Astronics (ATRO) 28 Feb 242023 Q4 Earnings call transcript

Good day, and welcome to the Astronics Corporation Fourth Quarter Fiscal Year 2023 Financial Results Conference Call. [Operator Instructions]

Please note, today's event is being recorded. I would now like to turn the conference over to Craig Mychajluk with Investor Relations. Please go ahead, sir.

Yes. afternoon, good and you, everyone. Thank your We in and interest today certainly appreciate Astronics. your time

call today our On our me with the here and and Officer. Chairman, are CEO; Dave Financial Burney, Chief President Gundermann, Pete

should XXXX results, market year close a and after the financial of fourth which our You quarter have full today. wires crossed the copy

you not have it at website our do the find If astronics.com. on release, you can

earnings this the conference could filed from and forward-looking make These and As factors release what you as cause with well These Q&A during formal future with session materially Exchange discussion we as of factors risks subject Commission. and to to are apply uncertainties today. statements actual and differ is are and the stated to the are Securities as call. the statements other results well may documents other that uncertainties here aware, events that risks other in provided as

on website at You can our or find sec.gov. documents those

During useful in discuss today's be performance. these our some We believe call, non-GAAP evaluating will measures. we'll also

this should as with information the consider presentation additional not accordance substitute of in for in a isolation results You prepared GAAP. or

that with provided non-GAAP of have the release. GAAP today's measures We in measures tables reconciliations accompany comparable

me So Pete? to with that, turn Pete let over it to begin.

for and it progress. in consider and into Craig, a XXXX everybody. our year pretty Thanks of good note strong on tuning retrospect Thanks, afternoon, call. a We ended solid now

and XXXX, afternoon impact describing minutes enabled by progress. having our are Dave business another our the shape high they specifics $XXX will quarter. were end of fourth first, was at which series business. XX.X% financial forecasted these continuing over revenue comparator million quarter improvements results Fourth our The the headlines I trends of enter $XXX quarter trends we XXXX talk million almost of for have up as our over quarter fourth profit Those of through drove affecting comments we statements. But our up some from environment XXXX. will XXXX. trends dedicate of time. year was you measures. Our financial the be a volume of my of range of that the some expect XX% the some Then been on of to in are and cumulative revenue few higher to this will

example, Our million was $XX.X sales. $XX for just or of sales. of fourth or million adjusted quarter XX.X% XXXX shy EBITDA, adjusted EBITDA X.X% Year-to-date, of was

million we $XXX where as XXXX. revenue the to XXXX, midpoint, to at be range expect another up previously million. XX% That's of In announced, in over $XXX the closed we

So about those trends.

are They're about quarter more talked Our our recent expected of any calls. of them results to fourth kind them been some not important. these affecting business. drive quarter things a in time for trends And of nothing there into words, fourth through just really the expected special other In order. of was result degrees are results particular that of that went None quarterly under these to several certainly all the new. varying results. surface It's really have talk order, kind in now. priority our over the I'll happening that We've

airline been for demand travel really And and everywhere. to demand be strong strong. continues has been First all, just us, has of or

hit. the or is in or any the XXXX the in But weak. much near China remains and You one before world, follow travel international of being if was other pretty major out metric, industry, in above this see where it at you even travel China, parts in exception the most aerospace pandemic of pretty

us, trending upward our have Boeing platforms there's for going AXXX, pressure; some XXX, for there's pressure; not flying, are a fourth what production increased on increased years now. And that rates like more major into translates but XXXX, we've being all that's over Despite built improved just in demand airplanes upward that, in travails in for or the people just XXX, when us. quarter, company in And time really markets. of up. more Airbus With major when been and are XXX, seeing, of the not

looks business, book-to-bill XXXX XXXX, bit but book-to-bill in a lower, The in a at Our came little dragged our X.XX. number was was pretty at for X.XX, by X.XX. bookings In final in same that's where X.X. much it the down level, Test lot XXXX poor a

Our of our year XX% of the Aerospace came the shipments. a segment, for majority vast of is book-to-bill our which so X.X, business in with

backlog the so quarter, it ever slightly. quarter With new has our that set highs only the exception fourth being came down after consistently demand, where after quarter quarter

a The handicapped and gave second us chain. backlog mentioning our in able pretty demand continuing close of solid challenges, in of is confident those not and time is in in dissipate much to are between really predict on started is us 'XX, continued way worked are just quarter. chain able supply is to addition improvement talking XXXX, But XXXX on fewer for trying we earlier Constraints our why major the fourth to due the and It's trend, that worthy farther the as perfect. being There out to a the And and and year but which the another to through are we hard are and XXXX we than was that XXXX why performance to supply growth of they respond left to straighten through as about. our pandemic. in a still demand execute XXXX. increases headaches were reason I

labor different basis a situation. mention and Like Resignation, needs have in fundamentally again. war the we single settled peak in recently, availability turnover That operations saw of XX%, low really that of has the which the most we used of on lot digits the percentage the seen our approaching during on down. while personnel to -- a companies, in is as pandemic, turnovers especially were improvement XXXX the is consistency a we that trend Great Another

seeing before, our time the culture some together was that rates the and it as to to As tenured those we kinds a again were before It's seeing -- again, going less back years the the drop not get we're turnover general used But result, is was the of getting team. a and working in improve, it's learning from and we're still generally peak was seeing dramatically that people get turnover. it more taken There's dropped like of much ago. pandemic. it workforce than where curves pandemic, but at it's to going

have is become suppliers not back last dramatically. they Obviously, of and the Fed over pressures all have reasonable. inflationary or pressures also want costs finally, more and have the pretty And But the XX dissipated particular dissipated be. other inputs we that. We from our in pressures where of terms to for business, the see in so months the know

all that what's add of more our the on a So business and is everything is point in used quite you together, it look getting to back is I that to one at wanted also going things I be. predictable than out bit

as business a our much way through to turnover supply of the accurately in and we where is be into be now coming going enter the XXXX to focus going it perform. and it's chain and headaches with how XXXX. challenge peak to and the we That's honest, worked more inflation, predict was pandemic To as

fall of in in to we plan forecast happened million. when evidence was in where to only issued XXXX guidance $XXX compared accurate X up That's million. initial that. XXXX. the the consider what actually Some cumulative putting X% back pretty within year in together, before of came not And actually you our year XXXX, million but to we internal our ended for or the at $XXX of we for were revenue $XXX We that,

with in go end to million. we of as fourth example issued business a revenue the that of similarly, critical and we is another optimizing Again, $XXX forward. high guidance of really right improved And range. plan which came at the executing quarter, We predictability, $XXX for million the

had discussed us XXXX with be it strong XXXX, of trends as to we forward give just together And go another I the confidence recovery. to finish respect and solid we the year will

the a Our That's percentage is that's in low That's we compared growth welcome the in reasons. one couple XXXX XXXX. for over what at a but initial a to million growth of $XXX to XX% sales terms of saw midpoint. forecast it's and of XXXX, million year outlook $XXX in

range all, of revenue First it will us to of back the pre-pandemic. where were get we

and been but a it's the midpoint had of XXXX, journey, million. be range million. $XXX this $XXX of would we Finally, sales in long

would cap business $XXX performance. range, even but than more do year to our pretty $XXX the And of high the expectation, We the to at have growth, goal backlog our XX% at it to million. is end of that and be million strong another that,

XXXX line, into turning would $XXX at look the midpoint, and million, $XXX you XXXX, $XXX If million. top at turning we see into XXXX million

we and there through also we ours, and on increased As the we we that business. our way no profitability improve at pandemic money through saw room through like There's lower million. when in frankly, But as going with work we way into something sales on always going worry XXXs to $XXX performance work XXXX, we're to now, run as the levels. the be the have the will a at work quarter, knew are we're margins. as and the optimize right you would make high That's those to structured company think But move a you that emphasis we profitable about we we an operating it's not year. that be fourth

slowly. We expect somewhat XXXX start to

be in That's or that a first where you the step various down where reasons bit, bit. we million bit, with little of the $XXX little we've from up a to pattern positive past X X look quarter expect quarter, a little million. time. quarter a the a it's so, to a overall and over up be to fourth But back bit We can quarters down continues were little we're been little sales at if for $XXX bit, a last a trend

us to first we the a few are are be to that in There quarter. things can point going affecting

help profitable. The and are Those winding we intentionally we're pieces business kind pandemic of full. as that non-aerospace factories picked business to is and down of pursued away our keep not some early walking in first generally up the on noncore

down, them a work of So wind though, aerospace in will that there's we quarter as or we prioritizing statement for hole a bit little are our last a income so. profitable

XXX. messages bit, bit the Boeing a program. the first is And little unit, biggest news of And have number from entirely heard we sales a it it. XXX is get which will biggest different is unit the we on with Boeing a of biggest number going and of of routes. programs, it to giving. a seen general through rescheduling our resulting going it's is put quarter but operating a also reschedule has been airplane that overall deflate on an product That's one been little customer. probably operating from our and the in our are There people facilities that not in and range we're there not different on, consistent seems on

just you a And got kind when it. product to customer sell then the that of issues of schedule products finally, mix customers deliver on and

So we're whatsoever That's to $XXX indication first expecting demand. be to wavering of quarter $XXX no million.

We quite well to we expect second to before to second there and took from in since climb expect the be anything seen we've half pandemic quarter, pretty the dramatically relative hold. strong the

One on other comment XXXX.

to program, time about It directed something we now, ]. is procurement, X.X waiting for some a talking Army were winner an been have We test announced sole call of it a take we for source T It's and [ ago radio years we have that place. negotiation XX:XX currently. underway contract been

talk we're previously that have much there We we momentum second area, expecting see but so of about been this quarter. a able bit have for in now certainly it awards to quite sure, positive in most not likely, and to but the having absolutely not so

So more on that as it happens.

of full range of few is that of Army will be a the use million gets an a use at is of test test A for little radios equipment sales It of $XXX platform quite will they can million X U.S. the to imagine have their a could million if dropping And review $XXX million about family use. this in impact you which but program, look be to of that million And IDIQ thing at to our business, expect $XX once they an the radios. to years. you X to is $XX year level, operating can we Test underway. over bit it a or $XX this

one talk that's we the in in our it on our more happens, it likely we'll know more, have QX an items, of more about that which as but So most as plan. will influence XXXX certainly And call.

talk of to my financials? end the prepared it Dave, want you and That's take about away remarks.

Pete. Thanks, Sure.

strong or line compared of last $XX.X was sales to sales from $XX.X fourth $XX.X mentioned, year. quarter. operations to strong and transport, to up largest XX% executed As demand, million fourth year $XX market, combined chain markets at our Test our the million during Pete year's our we had high to Commercial million from last last the The particularly a quarter was compared top segment a fourth with end customer level also very driven increased up sales of million. quarter all quarter. were strong aerospace by supply that

the to with full bonuses that we out, year. until in unusual year-end, the item be no therefore, went determined not and were In quarter quarter had as not includes of or terms One of margins, called quarter pretty clean is income. significant each fourth though, a accrued through year costs we a

So since will QX in are bonuses be paid reflects the we've $X.X paid and XXXX. bonuses These the That's to cash, of first full preserve they stock bonuses year million. that amount.

our top million Consolidated expansion, or the $XX.X million growth. line driven growth margin demonstrating income by get X% sales. incremental -- sales increased $X.X can X.X% or we leverage drove The the by to on operating

margins neighborhood that our segment Adjusting we have represented closer quarter, which sales. income levels. can expansion incremental XX% of the the margin at operating Aerospace in Looking sales to were prepandemic back The This segment, the Aerospace recognized been X.X%. of operating is which would had full the year performance. in XX%, of bonuses for demonstrates from achieve of consolidated leverage

on around we said Aerospace contribution to think mix, being our XX%. we depending As margin tend before, of in

over mix loss of comparative were Test with headwind and last Sales to $X quarter up be rates. million the and and a a to quarter. improved legal high costs. underutilization, year's current of segment million rates operating by loss a Interest program our structure year continues $XXX,XXX this in The challenged loss high $X.X from fourth remain debt

the about Our had about cash interest XX%. we was the million, quarter million. equates the which $XXX.X At end effective of debt about outstanding $X.X an rate expense for of to of quarter,

terms alternatives reviewing used options Cash Now million. that the loss was net have recovering over adjusted quarter by structure, to us was a of net we'll we're period used operating expenses debt few from will available last and assets, provided forward. in more tough million, noncash years, be The in in we $X.X the operations $XX.X for million. $XX.X offset but in an increase going which

the cash assets operating much from at the the of where components we operations. of generated Looking consume

goal inventory but of is reduce a we managing make by struggle need to supply well-oiled to still lead be, We're headwinds a XXXX. was which earlier is welcome, improvement in million getting but face were levels. able progress continue year the improved in some remain were a We chain back inventory, to they was our fourth turnover to quarter, of In we compared forecasting as move The machine inventory improvement we not through ago as than which pre-pandemic times the levels where XXXX longer pre-pandemic. our we're not exclusive still $XX.X close still a while and reserves. to

needed program year price an all equates to X% from say. million using X.X the were sell to due until -- of net in the quarters. $X.X year sales weighted proceeds should realize to fourth the at-the-market program and were accounts increase flow second shares half working we dilution. quarter, We of and full fund The was capital and second be The cash the the high third tight. million, shares This XXX,XXX sales. growing at for continues timing being level -- the high our the ATM to to $XX in the quarter Liquidity fourth for active half of in receivable $XX.XX, of the million raising level average I million the $XX.X sold about

our our on as inventory be expecting is and continued outstanding as debt flow will the free execution, in into improving are flow cash with XXXX, to we structure and focus as move reduce optimizing through debt XXXX, turnover. compliant operational summary, compliance. we used debt move Free We're move we're covenants our forecasting and year. we through to cash And our grow

That back concludes Pete, my remarks. to you.

And you Rocco, want . up over you if to it to open for questions.

Truist Instructions] Securities. [Operator question Today's with Osterland from comes Pete first

Mike for evening. on I'm Ciarmoli this

anything start you start us just wanted on to I how give first, the with margins could looking are year. So to

in guidance and you were point margins starting your a that quarter good puts any cost or first you there inputs there around margins year quarter, are productivity of to given how that changes in level Just do second that the then had we of where potentially quarter the out, a to Or is since you quarter? structure would at Is look EBITDA in whether might similar what X% might your notable sales the in first labor call change you anything for you what business? that at last or other be? it's

could first any changes Not I I there's say significant Pete, structure take that that. in wouldn't the quarter. -- cost

contribution tends around on our mix. I be depending product commented As to XX% somewhere earlier, margin

way the So line same down. top goes that the as works

would starting that point. So a be

would a bonuses full think I be mentioned, the year's thing at quarter. I other that fourth the which, of fourth worth as in to look quarter, contained

for quarter worth need a in profit QX that to you're you up QX to fourth if an bonuses So and make between in the do for adjustment adjust year that bridge and of going to QX, try that. full

helpful. Okay. That's

the for relatively assume your could Or revenue in XXXX. Test? get a you Are a similar XXXX? does assuming by revenue wanted So guidance in segments revenue then also or higher detail if little growth on in either Aero you split I growth see assumed to more

We penalty pandemic, that's our by our at from really side. down business that's of the the Test the actually coming lot. It's where would mean a has -- anticipate most income, was if on big look That's and of the stable. you big the Aero whole turnaround was growth sources where been. the I where business relatively

get not figured radio up resolved to test go out. probably this we lot a it's and program until So going Army

stable. -- revenues similarly, also was have last and relatively jet strong, particularly been has business pretty stable. by enabled are supply Military quarter And chain The Aircraft been

whatever So was, the to $XXX commercial big is in side back swing largely business. and commercial that million also or the to largely the the rebound was transport the took $XXX it down from million us of that business on transport of side the level

the And then on I X last just Great. bookings had X environment.

looks to put in versus I quarter, the up year, a trending just But that, of you number. lower wanted in Aerospace to rest it bookings the sense are how So book-to-bill of although a so first get understood I fourth relative a was begin the revenue what that's the like your bit little in higher to far? quarter

strong I don't business. our sales that continuing to among to there have describe specifically had professionals say tell rich. I we across pretty that there. the if And target much to I I as the would you think We can environment we interactions regular continues I be know demand. be guess --

our of pretty we we the influence getting, positive if And watch on work of towards as the there. will of the have team sometime course, revenue start in impact on because And the an feedback wraps tone it, also year. a under going program end to second have towards pretty so that it. we're soon, year as this will the test we the the But over I'm bookings first underway the and radio get Test end quarter positive and of is side, quarter to get

today CJS Tanwanteng question next comes with Our from Securities. Jon

impacts the longer about us talk nice flare my performance tell resources Pete, term? recent over cancellation is, the the maybe on of quarter. Army's first and you far the the Congrats how question reallocation in can you that and to

really how bit know little a Jon, it's happen. ramp-up to question, we Well, an going is don't of this early because

I teamed are against team. Sikorsky most the guess Bell know speak against you call won we're the As we competition I to set V-XXX Flare compete X on And the part I and that Lockheed can't now, -- I the to Army. seeing makes speak but of and FLRAA. probably are the us. I listeners concentrate learning Bell you, me Yes. for to team. money tell Bell, sense for for that the up can't details, good guess, FLRAA from would and perspective, and on still the my we're is system

our resources X concentrate can and also. X for speak their again, of we but So the can't concentrate I army program on resources Bell instead can Bell,

with we since were it, So especially That's team. on I'm right the okay all with winning me.

from more assumptions it. and wondering just Got You enough. rates that color from us rescheduling, little what a in Fair you you year guidance? give demand run mentioned the expecting I as demand from beyond what's on or your Boeing production the in bit a And you are the can the assumed you're and was QX? just through hole rates go

I Yes. reschedule. mean didn't to of be a It a to imply more seems hole.

what been is. anticipating We they think we plans in many know of always XX their has XX on I ship to every tell those ramp like weeks. XXX kinds We don't getting facilities or basically cues. rate were production us like our and they as So suppliers, shipping higher-volume update Boeing and a

And that a hunch it that once their apparent becomes rate. ahead production assume us. our that a bit production in a or is rate correlated little would behind bit You little our to they behind But a somehow they're us little were us. of is bit they're while, every

whatever month. they're by word I back So about And end or of to lot of But still I they heck at the on which XXXs going and XX is to that a they're XX the Street to XXXX, XXXX, XX things. they probably were in was they're a planning think the accumulated not rescheduling than that some X. building it's to thinking think a go build that's while more we're inventory

say. by for any a of I It's a hold would So inventory, means. reallocation us, it's kind minor headache just but it's not of a

like having And next looks Tony Gabelli from we're Mr. with It Bancroft. comes Bancroft Funds. issues question technical with our

Mann move Michaelmene So ]. comes from at question, with ] which to time, next our Group [ this we Ryan [

Congratulations on the recovery the and the results continued pandemic. from

you I speaks When in quality lighting broader business you about I the the management just question, think market still a competitive your to the talk safety the how about more A fragmented and opportunity panel think little bit if the who and and your that are, business, and the market current could dynamics competitors It's key you landscape share of market it there? evolving see general very team. there, and set the there? may. of sort .

-- you're Sure. our about business general, in It's lighting asking right?

Yes, sir.

really Yes. we're the for we're It's of do active our the jet, we're cabin. commercial the active involved know. X major and we don't who And cockpit, the in business We're thrusts lighting in -- in transport. spectrum, in military, active aircraft those exterior across

red of or and So plane, red see the the or products the range lights. include and the on green flash you landing outside lights lighter of the

light cockpits. we you If do end cockpit, in there's above indicators, major of our reading things the the sitting lot a that for And in head you're light if and assembly up through sure. whole cabin your up, in the that's whole that bunch a a companies aircraft are work push of in you and avionics that XXX, of bunch or XX

And places suppliers all larger. business I one the some OEMs. And more happened would we're our big of if XX, our in has product our made product that line, company. world. has of companies worked the that you aircraft to industry in in X XX available are venture various the of together, lighting lines, of XX competitive prominent our add years We in over the us it the lighting -- larger But one consolidation lighting with in that's the we the nature the of like the far other stand-alone say to do the so last favor.

to what of and it. does that do more differentiators time for a we hoping thank is do, us, kind from a of we're I'm to that long the would and it way. what big customers to like because need effective small are intimate do enough prompt in it but is our to one we're that's And enough We asking customer

like the picking industries, been and industries, So aerospace share. of reputation up the a we've lot business, other

about we it. X It's -- consider on business be we're that's our of of strategic thrust, our So them. based enthusiastic one X and to

just that. think I it. difficult But follow-up very helpful. you Got to on I may mean about it know be sort share the That's that market players Maybe when in of your quick a terms and us estimate. have the particularly of a that you're data and to worth up be there any there might segment, better? helping against, military are main you points maybe the company little understand

that's Gen the Well, high-volume, do F-XX, extra example, for it. a the the and a we high-value lighting suite fighter, on Strike program, we have big of portion

day, arrangements. the in international a there in share there were story there's the work back active cockpit, We are and not

that that. kind from we're what you we with. of So an would were of precluded example But give involved

next question a CJS from John is follow-up Securities. Tanwanteng our And from

of first all, of could and can all. wondering maybe expectations back as into guys second -- could collect comes kind was you you kind you if head especially QX down, you of then receivables, expect? on the year, for your I of we cash your through conversion flow as revenue EBITDA clients And up, walk what

to assume I Pete, you take Sure. that one? want me

those obviously, the for not are listening. who Go place, ahead. We're same in

Yes. Yes.

into second, expect the to It top lot flow where we been for off in programs, on through setups flow expect and move we So XXXX. to won. quarter, testing spending slow. to start It'll we'll from through as tooling CapEx generate move programs the significant back But CapEx. increased compared really cash the cash programs slow related line there. pandemic, we of third cut the have return that we've new fourth we've terms is and during at specific the as positive year million And that of to of we for is be neighborhood $XX where to will operations. in for A

cash significant on year we've north you going I'm our will we that it not to then net income it's to but our typically guidance north return -- year. give through as be significantly We specific -- flow, specific generation flow And for so numbers. what move never the of cash to do expect given of the

And year? it. you go as the the any plans CapEx Got then through to phasing

be Yes. probably half I and think look does I separately with A divide by back model difficult specific by heavily rounding purposes, moved your But rarely be year, of more quarters would weighted the try X, get lot you think. to It's bit and of to for probably it's out of toward in. at going to But predict a always the it out. us it's significant, going not the the it Very I our for and quarters. I'd moved think. it range little CapEx. modeling to I things anything take more less take if just break or and get midpoint

Fair the finally, that potential And working have? the what's enough. expectations then you for debt refinancing the high-cost Okay. questions, obviously, cash down flow all just with a and

positive -- this lot and us. to we a more have is right eats our But As amortization obviously, cash. those ready loan options not I'm interest pretty to high point. we mentioned, into to our profitability our up of here as cash We'll term flow. return at and cost I of available get now,

at options for we're the here. look year So us the best move through the and as going we continue to to alternatives

with comes Funds. Instructions] next Tony question from [Operator Bancroft Gabelli Our

some I of week, things we about just the really view listened the of about other more follow-up and I just quarter. or a about review Maybe Maybe to know and seems like want you had the there. updates to XX,XXX-foot there. positive you FLRAA, news. It ask job just maybe aircraft a lot going to Obviously, a program the Textron are how call FLRAA. Great some you electrification incremental a on a talked color just well have how of comparative any positively. advantage that of there? little they impacts

of it's lot thus, the to undertaken. risk. at shipset lighting, going premature talking full would a numbers has for already lot you, has I escape if an our such could on done airplane. are it It's and so I full it. imagine And When of the where that a possibly of Tony, we you in theoretical a the things on substantial. But path it's with we low and the the for that and you'd Sure. look program of company. full down, equipment, never moving long should IFE company been out, a relatively on ever airplane probability load be has term architectures game program really do wide-body airplane somewhere to that are about important put the to nail well all to we're there's it, are the potential load that of we've FLRAA an that content. single suite And largest neighborhood shipset be PSUs, in north the antenna And say range you this still but with content of pick that it's $XXX,XXX be it. the top proven all get based think a of think it that I've probably content a we But the our Astronics of around, never exterior and and We've for developing, played terms I

opportunity. us, So pretty a for substantial it's,

it some the end-use the systems. able the generators to people doing And electrical we surprised think pull system entire I industry were after off. generators to we the we're that from basically in

a all aircraft what might use plan pretty lot circuit years has the over been with actually switching their it's So use, their XXX, obviously, electronic might or did did and system, we've We we do support FARA to -- I us. range of mean in good of of FLRAA. XX and And for the us asked for the XX electrical did prototype and really before breakers, that task. we're their trying partner to the big involved we be of XXX. , Bell done a But years a then FLRAA with.

really be we pretty know and well. going to a So -- pretty well, we program. going think Army I to And think think that it's the needs. great be it's I organization know really It's something they we us

that That's little feet But and been forth view. incremental sort of also then we've anything a with too. with And bit actually, pretty in-flight again, good on and the XX,XXX But one, maybe you're overview. the seeing entertainment back on this to they longer-term the thoughts can and is cockpits -- talking there. you retrofitting of sort as there? a any what customer sort on commercial transport the maybe Just side, about view customer want of you what just us in give view

Yes, was well pandemic have I'd the a through really just helpful a It's navigated before. that we trend biggest in-seat it's us never see as say we picking world speed. are they we did, trend the is the in very as narrow-body but that to power that up way around operators as that adapting

of a back we the here our that developed Southwest future. and the sometime system IPs or we'll customer, There's fleet. a their so in our system the NG endorsed on and Airlines, and So far talking put that lot with they partnered beginning they that we've about on of agreed target expect that as to was an and forth, a or fleet pandemic developed I have portion near in we're largely also pandemic MAX be there's with the

turns and out the India around the system desire found it from China, architecture that Southwest unique the all to lot favor of a the Europe. of kind of But has world

and the there, be a of booking long lot world major in we're that So for a force will a asset driving orders for time. us

the a that better positive not The some also in say we other connectivity in is of are ways ubiquitous, would trend And I with connectivity involved more is of and that's leading that less. getting number suppliers.

little in But a active pretty are it's use we're reluctant than that customer, them there, space. which their the to of more let where right. some So us others, name

while. I to think, a So quite positive that's us that's a well going serve trend also, for

on? sort guys before, anything anything a but then update in bit litigation of going talked there, what's have talked And I what it K? lastly, incremental? with you Anything on the about about know we little

which Lufthansa have are on up chance little a a nice. there's know, much of going decade. you a Technik Well, dispute get will get long-running the towards would be chance than there be of to days. but these And going have There end those there, XXXX, as more through kind we that change. likely pick would been and That in we we a and say Not on resolved that's for things with situations as things here happening XXXX.

Test in appeal. Teradyne business, go, related we far very either things in got where that and actually we But ruling all understand to fleet has of As December as counts. intends as the on a favorable to our appeal, course, side we basically won these

takes the that It's been of little middle at with be through a will orbit begin has finding as what because been all that fact unpredictable. play the But something XXXX. So to out in expensive probably the bit shouldn't found. is it of least we've as

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ladies question-and-answer conference and for call. Thank you. We you thank presentation. attending And session and this today's gentlemen, all our concludes today's

now may have and wonderful a disconnect You day. your lines,