Good afternoon, ladies and gentlemen, and welcome to the Nortech First Quarter 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Chris Jones, CFO; and we also have Jay Miller, CEO, on the call as well. Gentlemen, the floor is yours.

Very good. Thank you. And I'd also like to welcome everybody to Nortech Systems First Quarter 2022 Conference Call. Jay will begin today's call with a brief review of our first quarter operational performance, and then I'll review Nortech's Q1 financial results before turning it back over to Jay for his closing comments and business outlook for 2021. And then after our comments, we'll open up the call for your questions. Before we continue, please note that statements made during this call and the Q&A session may be forward-looking regarding expected revenue, earnings, future plans, opportunities and other company expectations. These estimates, plans and other forward-looking statements involve unknown and known risks and uncertainties that may cause actual results to differ materially from those expressed or implied on this call. These risks, including those that are detailed in our most recent Form 10-Q may be amended or supplemented. The statements made during this conference call are based upon information known by Nortech as of the date and time of this call, and we assume no obligation to update the information in today's call. You can find Nortech's risks factors and communications with respect to forward-looking statements in our SEC filings. With that, I will turn it over to Jay for his opening comments.

Thank you, Chris, and good afternoon, everyone. Overall, we are very pleased with our first quarter results, which built on our positive momentum from 2021, and we are optimistic about our outlook for the rest of the year. During this call, I'll cover five key themes that will provide a framework for how to think about Nortech, the Board of Directors, our customers and suppliers, our core operations capabilities, R&D innovation and our people. The first theme is our Board of Directors. Today, we held Nortech's Annual Shareholder Meeting. And as part of that process, our shareholders voted to retain an excellent group of directors and added one new member with a unique and important skill set. If you haven't done so, please take a moment to read our directors' bios on our website. They are an impressive group, and I'm honored to partner with them guiding Nortech's future growth. They have a wealth of diverse experiences and most importantly, they are great people who care deeply about helping each other and the management team realized Nortech's unlimited potential. The second theme is our customers and suppliers. Nortech's results in the first quarter are a result of great teamwork with our customers and suppliers. In the current supply chain environment, most of our customers value quality and on-time fulfillment each in equal measure. At Nortech, our culture has always prided our commitment to quality. Our medical, military and industrial customers are in the business of saving and improving lives, and their supply chain must meet the highest quality standards. Our customers also want quality products delivered as fast as possible. We are collaborating upstream with our suppliers and downstream with our customers to provide seamless end-to-end solution that fits each customer's unique needs. Our people are in constant 2-way communication…

Thanks, Jay. So in the next few minutes, I'll provide details of our financial performance in the first quarter, but I would also encourage you to review our Form 10-Q, which we filed yesterday. It contains far more information about our business, our operations and financial performance than we'll cover on this call. So as Jay noted, we made progress on several key performance areas. First, revenue totaled $30.7 million, and this represents a 39.1% increase from revenue of $22.1 million in the first quarter of 2021. Our year-over-year revenue improvement was primarily due to higher volumes in each of our core markets. Q1 2021 was the lowest volume and revenue quarter of the pandemic for Nortech Systems. And though we're pleased with year-over-year revenue growth and revenue, we do believe that looking at revenue on a trailing 12-month basis provides greater insight into the quarterly momentum that we are building. Our last 12 months revenue now totals $124 million. That's a 25% increase from revenue of $99 million for the 12-month period ended March 31, 2021. Revenue in each of our last four quarters has been $30 million or more, and we see more predictability in future quarters in line with that $30-plus million quarterly trend. Next, inflationary pressures are impacting everyone. Producer prices in the U.S. rose 11% in March on a 12-month basis according to labor department, and that was the fourth consecutive month with double-digit increase and the highest level in 12 years. So we are obviously impacted by that rising prices, and we are carefully monitoring our material costs and we have been implementing timely pricing actions to offset both material cost inflation and labor cost inflation. So moving down the P&L. Gross profit totaled $4 million or 13.2% compared to gross profit of $1.6…

Thank you, Chris. I'll close with these thoughts before taking questions. Our organization has learned a tremendous amount in the last two years. In many ways, we've already been transformed, but our aspirations are so much greater. We have a world-class Board of Directors who care deeply about guiding Nortech's growth. Our customer and supplier relationships are becoming more apparent and collaborative. We're adding new operational capabilities that solve today's problems, and we are proactively anticipating new problems by investing in tomorrow's copper to fiber technologies. And our people are rising to the challenge. They're motivated to take Nortech Systems to the next level. The outlook for our company has never been better. With that, I'll conclude our prepared remarks this afternoon, and we look -- and we will open it up for questions. John?

Okay, we currently have no questions in queue.

Very good, John. We're happy that we proactively answered everyone's questions. Thanks again to everyone for joining us today. We look forward to updating you again in August with our second quarter results. Thank you.

Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.