Please standby. We are about to begin. Good day everyone and welcome to this Ultralife Corporation Fourth Quarter 2013 Earnings Release Conference Call. At this time for opening remarks and introductions, I would like to turn the call over to Jody Burfening. Please go ahead ma’am.

Thank you April and good morning everyone. Thank you for joining us this morning for Ultralife Corporation’s earnings conference call for the fourth quarter of fiscal 2013. With us on today’s call are Mike Popielec, Ultralife’s President and CEO; and Phil Fain, Ultralife’s Chief Financial Officer. The earnings press release was issued earlier this morning. If anyone has not yet received a copy, I invite you to visit the company’s website www.ultralifecorp.com, where you’ll find the release under Investor News in the Investor Relations section. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. These include potential reductions in US military spending, uncertain global economic conditions and acceptance of the company’s new products on a global basis. The company cautions investors not to place undue reliance on forward-looking statements, which reflects the company’s analysis only as of today’s date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife’s financial results is included in the company’s filings with the Securities and Exchange Commission including the latest annual report on Form 10-K. In addition, on today’s call management will refer to certain non-GAAP financial measures the management considers to be useful metrics that differ from GAAP. These non-GAAP measures should be considered as supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning Mike.

Good morning Jody and thank you everyone for joining the call this morning. Today, I will start by making some overall comments about our fourth quarter and total year 2013 operating performance. Then I'll turn the call over to Phil who will take you through the detailed financial results. After Phil is finished I will take the call back to provide a recap of our progress against our 2013 priorities and then talk about our expectation and the priorities we have for 2014. Lastly I will share with you our thoughts on our full year financial outlook for 2014 before opening it up for questions. Regarding the fourth quarter of 2013 we generated an operating profit of $0.2 million and revenues of $20.2 million which were roughly flat to the prior quarter. We continue to see revenue momentum in the battery and energy products business, however it was offset by lower revenue in the communication systems business still feeling the carryover facts of the 2013 budgeting challenges. This revenue mix negatively impacted gross margin which was 27.7% for the fourth quarter and when combined with roughly flat operating expenses led to a slight reduction in operating profit versus the prior quarter. In our battery and energy products business we completed an important testing milestone that triggered initial shipments for our new hot-swappable battery and intelligent power management system for the medical cart industry, developed with a new channel partner with great domain experience on an agreement now expanded to $6.7 million this product solution has potential to be a very exciting new revenue stream for us in the commercial space. Looking at the total year 2013 where as our battery and energy products business revenue was down almost 20% from the prior year. Throughout 2013 the quarterly revenue stabilized and…

Thank you, Mike, and good morning, everyone. Earlier this morning we released our fourth quarter results for the period ended December 31, 2013. Consolidated revenues for the fourth quarter totaled $20.2 million, representing a $9.1 million or 31% decline from the $29.3 million for the fourth quarter of 2012. Revenues from our battery and energy products segment were $15.9 million, a decline of $3 million or 16% from last year. This decrease is primarily attributable to a large order for our M1 primary battery products shipped in the fourth quarter of 2012 to service an allied country’s Department of Defense. The decrease also reflects the continued slowdown in the U.S. government and defense order rate for non-rechargeable batteries and charger systems. Fourth quarter sales were in line with our expectations and represent a 17% sequential growth over the $13.5 million reported at the third quarter. During the year, sales have fluctuated between $13.1 million and $15.9 million for an average of approximately $14.5 million representing a stable basis of sales to which we have right-sized our business model. Our battery sales continue to run approximately 60-40 between domestic and international and 53-47 between government defense and commercial. This is fairly consistent with 2012 levels. Sales classified as domestic include shipments to U.S. based client which in some cases served international projects. Communication systems sales of $4.3 million decreased by $6.1 million or 59% from the prior year period. This decrease is primarily attributable to shipments of 21 amplifiers and accessories for soldier modernization programs undertaken by two allied countries during the fourth quarter of 2012. In addition, similar to the trend experienced throughout 2013 several orders totaling almost $2 million originally expected to close in 2013 have been shifted into 2014, due to delays in obtaining final sign of approval…

Thanks, Phil. Over the last few years, our priorities have been pretty straight forward, improving profitability, executing our growth game plan and leveraging our worldwide operations for global growth and competitiveness. As a result, the tremendous hard work of our teams when we look at where we are today, we see that Ultralife has a value proposition driven, peer group leading, gross margin rates that supports profitability, continuous new product development and sales force revenue growth initiatives, a validated 35 penny plus 10% operating margin business model lean implementation that guides day-to-day spending behaviors onto revenue level, a strong balance sheet and liquidity that ensures business sustainability during challenging economic cycles and provides upside opportunity for strategic acquisitions and finally, an aggressive new product development and focused expanded sales force that is diversifying the customer base and growing the opportunity pipeline. When these attributes are combined with the changes made in the leadership and sales teams, manufacturing footprint and portfolio, we enter a period of operational stability when all of our efforts come in place and our number one priority for 2014 returning to revenue growth. Therefore, throughout 2014, my prepared remarks will focus primarily on revenue growth initiatives. Whereas we have a clear appreciation for the economic and budget challenges facing our commercial and military defense customers, which in turn affects our prospects for growth, our goal is to get the most out of whatever revenue growth opportunities are available to us and maximizes sales conversion impact in terms of leveraged earnings growth. Regarding our revenue growth game plan execution, the focus continues to be on three core elements; expanding our market and sales reach, new product development and pursuing acquisitions. For communication systems, when we look at what's been done to expand our market and sales reach, over…

Thank you. (Operator Instructions) And we’ll hear from Matthew Paul. Please go ahead.

Hi guys, good morning. Thanks for taking my question, and good job fine tuning your expense model. First question, I know you guys have been diligently working out there to find an accretive acquisition; I just wanted to ask if anything in the environmental have change for any color on your search?

Thank you. This is Mike. I think we are still very active in the search process and there is the activity level, a lot of it building relationship with potential acquires, we have strong support from the Board, at this point it’s a key priority for me and entire senior executive team to book deals plus our strategic growth in some of our operational objectives for 2014. But we are not in a position right now to talk about any specifics of any potential deals, that’s very much on our screen.

Next question I just want to see if you can honing on the communication system pipeline, I know you know, 10% growth quarter-over-quarter and I just wanted to ask about the overall size and the make-up, again provide a little color there?

Yes. I mean there is a couple of different items of it. When we look at the amount of revenue achieved over the last three years in products that are pretty brand new, like one of the new metrics that we use for tracking our growth and new product development as traction. So you know that over the last couple of years that contributed about $10 million for our revenue stream. When we look at our current opportunity funnels for those specific products, it’s probably around 8 times of that amount. When we look at the overall opportunity funnel for cart systems as I said in my prepared remarks, it’s several hundred millions of dollars. Included in there are the $0.5 million projects and $2 million, $3 million as well as the large projects. so what we’re trying to do is take a disciplined approach to -- they have been intellectually honest with us about what’s really in that funnel, make sure that we take opportunities that we just don’t think closing a long period of time because not only it’s important for us to entertain our opportunity basket but we’re trying to make it where we spend our budget plans within some source. And so overall we look at the four traction from the product development and the overall size of that opportunity basked continues to increase.

All right, thank you guys.

Thank you, Matt.

(Operator Instructions). It appears there are no further questions at this time.

Okay. Well, thank you very much everybody for joining the call to review our fourth quarter earnings results. We look forward to meeting up with several of you over the next couple of weeks as we do, so one on one visits and to joining with you on our quarterly conference calls or future progress. Thank you for joining the call today.

That does conclude today’s conference. Thank you all for your participation.