Good day, everyone, and welcome to the CPS Technologies Corp's Second Quarter Investors Call. Today's call is being recorded. At this time, I would like to turn the conference over to Chuck Griffith. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining us. I'm joined today by Michael McCormack, our President and Chief Executive Officer, who will offer his comments on our second quarter results. Before we begin the business portion of the call, I would like to point out that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered subject to the many uncertainties that exist in CPS' operations and environment. These uncertainties include the impact of COVID-19, the Russian invasion of Ukraine, economic conditions, market demand and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statements. Now I will turn the call over to Michael to offer his perspective on the second quarter results.

Thank you, Chuck. Today, we are delighted to announce revenues of $7 million and an operating profit of $669,000 for the quarter ending July 2, 2022. This is a 21% increase compared with revenues of $5.8 million and a 164% increase compared with the operating profit of $253,000 for the corresponding quarter a year ago ending June 26, 2021. We are pleased to report that revenues in the second quarter of 2022 were the highest in the company's history and showed a 6.3% improvement over revenues of the first quarter of 2022, our previous record high for a quarter. Aspects of our growth initiatives are beginning to show results from the challenging work and efforts that we have undertaken at CPS. We are cautiously optimistic that our growth initiatives and profitability changes we are executing will continue through fiscal year '22 and beyond. The team is continuing to drive growth and efficiency to sustain this momentum. As the economy continues to progress and deal with the challenges of a seemingly endless new variants of the virus continuously emerging. There are also emerging new normal facts, such as inflation, material availability and transportation and shipping delays, that we are actively working to mitigate. Despite these uncertain times, we remain incredibly pleased with our second quarter performance and are confident in our outlook. I'll speak more later about the overall business progress moving forward later on the call. But for now Chuck will discuss the financial results in a little bit more detail.

Thank you, Michael. Revenues totaled $7.1 million in the second quarter of 2022 compared with $5.9 million generated in Q2 2021, an increase of 21%. This increase was due to increased shipments of armor panels and hermetic packages, but in particular, base plates, which last year bore the largest negative impact from the COVID-19 pandemic. For the first 6 months of 2022, revenues totaled $13.7 million compared with $10.7 million for the first half of 2021. The revenue over the first 6 months of 2022 represents the best 6-month period in company history. Gross margin in Q2 2022 totaled $1.8 million or 26% of sales. This compares with gross margin in Q2 2021 of $1.4 million at 23% of sales. This increase in margin was primarily due to the impact of higher sales on fixed factory costs. For the first 6 months of 2022, gross margin totaled $3.8 million compared to $2.3 million for the first half of 2021. That would be at 28% of sales and 21% of sales, respectively. Selling, general and administrative expenses totaled $1.2 million in Q2 2022 compared with SG&A expenses of $1.1 million in Q2 2021. This increase in SG&A expense was due to increased compensation expense as a result of the addition of our new Chief Development Officer and other salary increases. For the first 6 months of 2022, SG&A totaled $2.6 million compared to $2.0 million for the first half of 2021. The company experienced operating income of $669,000 in Q2 2022 compared with operating income of $253,000 in Q2 2021. This increase in operating income was due primarily to the increase in revenue and gross margin previously discussed. For the first 6 months of 2022, operating income totaled $1.2 million compared with $289,000 for the first half of 2021. This represents…

Thank you, Chuck. It continues to be my humble honor to lead CPS on our growth journey. I appreciate these opportunities to share with our investors, and hopefully, interested new investors, of the current state of the business as well as our future. We generally appreciate your continued support and believe that CPS is a growing company that is on the move to improved outcomes. All three of our product lines, metal matrix composites, hermetic packaging and armor, continue to perform on or slightly ahead of plans. The year-to-date operating profit of the business is the best half in the company's history and a 7% improvement over the first half of last fiscal year. We are excited by the path we are on, but still must execute the second half of the year to solidify the growing value proposition of CPS. We are committed to creating positive outcomes for our customers and are growing more confident that continued positive financial results will also be achieved. This past quarter, in addition to executing commerce at the highest levels of the company history, we implemented a new material resource planning and enterprise resource planning, MRP-ERP software tool. The new tool we selected was Aptean's Made2Manage. After a nearly a year of planning, we implemented the new system at the end of the quarter and are encouraged by the ease of working with this new tool. But the tool is only part of the solution. We need to combine the outstanding people of CPS with improved processes enabled by this tool. This will enable us to create a growing environment that can easily manage 2x the current business at CPS without incurring a linear increase in fixed costs. We are encouraged at our gross margin and operating profit continuing to exceed our goals.…

We're ready for questions and answers, Connie?

And we'll take our first question.

This is . It sounds like a really great quarter and things looking good. Did you, I might have missed it, happen to mention what the book-to-bill is?

The book-to-bill remains consistently in our goal, between 1.10 and 1.25. I think we are slightly on the lower end right now. But this quarter that we're executing now, that is starting to rebound.

And there are no further questions in the queue. I'd like to turn the conference back over to Mr. Griffith for any closing remarks.

Connie, thank you. This is Michael. Thank you, Steve, for the question and all for listening. Again, we had a great quarter. We appreciate the continued support. And onward than upward we go. Thank you very much, everybody, for joining us today.

Thank you, everyone.

And this concludes today's call. Thank you for your participation, and you may now disconnect.