Good day, and welcome to this Ultralife Corporation First Quarter 2014 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.

Thank you and good morning everyone. Thank you for joining us this morning for Ultralife Corporation’s earnings conference call for the first quarter of fiscal 2014. With us on today’s call are Mike Popielec, Ultralife’s President and CEO; and Phil Fain, Ultralife’s Chief Financial Officer. The earnings release was issued earlier this morning and anyone who has not yet received a copy, I invite you to visit the company’s Web site 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 contains 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.

Thank you and good morning everyone. Thank you for joining us this morning for Ultralife Corporation’s earnings conference call for the first quarter of fiscal 2014. With us on today’s call are Mike Popielec, Ultralife’s President and CEO; and Phil Fain, Ultralife’s Chief Financial Officer. The earnings release was issued earlier this morning and anyone who has not yet received a copy, I invite you to visit the company’s Web site 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 contains 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 first quarter 2014 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 2014 revenue initiatives and then talk about our full year expectation and financial outlook for 2014 before opening it up for questions. For the first quarter of 2014, we were very pleased to see our battery and energy products business post revenues of $13.9 million, a 7% growth rate over the prior year’s first quarter and take the next step in its revenue recovery efforts by building on the revenue stability established last year. Gross margin for B&E business was 27.3% up 360 basis points driven by productivity gains and slight volume leverage. For our communication systems business, revenue was $1.4 million, a $6.6 million decline over a top prior year comparable. However, also reflecting the continued impact of the slowness in the U.S. government defense project contracting. Gross margin for our communication system business systems business was 39.2% down 200 basis points driven by mix and reduced volume despite the favorable first quarter revenue and financial performance of the battery and energy products business and total company operating expense reduction of 10%, the lower revenue and gross profit generation by the communication systems business led to a total company operating loss of $1.1 million. In our battery and energy products business, the 7% revenue gross was driven primarily by some key international projects and continuing shipments of our new hot-swappable battery and intelligent power management system for the medical cart industry with our channel…

Thank you, Mike. Good morning, everyone. Earlier this morning we released our first quarter results for the period ended March 30, 2014. Consolidated revenues for the fourth quarter totaled $15.3 million, representing a $5.7 million or 27% decline from the $21.0 million for the first quarter of 2013. Revenues from our battery and energy products segment were $13.9 million, an increase of $0.9 million or 7% from last year. Commercial sales increased 29% over the first quarter of 2013, and included shipments of our new medical cart power systems which we launched in the fourth quarter. The increase over 2013 also reflects higher shipments of charger systems to a near like (ph) country. Driven by the launch of medical batteries and our focus on commercial markets, the mix of our battery sales for the first quarter of 2014 was 60-40 commercial to government and defense versus 50-50 for the first quarter of 2013. As a further point of reference, the split for the 2013 full year is 47% commercial and 53% government and defense. The domestic international split for our battery sales was 45-55 in the first quarter of 2014, versus 50-50 for the first quarter of 2013. The split for the 2013 full year was 59% and that’s taken 41% international. Sales classified its domestic includes shipments to U.S. based primes which in some cases serve international projects. Communication system sales of $1.4 million decreased by $6.6 million or 83% from the prior year, the decrease reflects continued slowness in closing new orders from the U.S. government is well so for fulfillment of large orders in the first quarter of 2013, where amplifiers and accessories from international defense customers for soldier modernization program. Similar to the trend experienced last year starting in the second quarter of 2013, we continue…

Thanks Phil. Over the last few years the teams have created value proposition that resulting gross margin rates capable of supporting profitability while funding continuous new product development and sales force revenue growth and diversification initiatives. We have also utilized 30, 55, 10 equals 10 (ph) business model we guide operating expense spending levels into ensure business payment through strong liquidity and balance sheet. As such we enter a period of operational stability where in all of our efforts are focused on our number one priority for 2014 returning to revenue growth. Whereas we have a clear appreciation for the business and economic challenges still facing our customers our goal to get the most out of the revenue growth to be able to us and deliver leveraged earnings growth. Regarding revenue growth initiatives our focus remains on three core elements, expanding our market and sales reach, new product development and for us doing acquisitions. Communication systems is actually pursuing opportunities in Latin and South America as well as in Asia Pacific to offer a large contingent of both early and special forces vehicles with our amplifiers, vehicle mounts and integrated system. These programs continue to mature through both testing and evaluation processes as well as within the procurement agency. As we have been successful within the U.S. throughout the U.S. Cellcom (ph) vehicle fleet, we see a future for these products globally and fully expect these programs to come to provision this year. Our focus on U.S. Cellcom (ph) has created large program opportunities in all areas of the battlefield communication architecture from soldier systems to vehicles and as far reaching as unmanned Ariel vehicles. As we’ll amplify our technology advances and our radio ancillary portfolio expand we find ourselves increasing range of platforms systems and usages throughout all branches…

(Operator Instructions) And we’ll take our first question from Mathew Paul with Sidoti.

For the B&E segment and the organic growth we’re looking at for year, how much more margin can you capture as a result of increased throughput?

Mathew, good to hear from you. I would certainly believe that there are 150 to 200 basis points are readily available potentially even more depending on the mix of the product that quite frankly would fall right to the bottom line with the higher factory throughput.

Thanks, Phil. And is that offers the first quarter margin in the segment?

Yes.

Great. Okay. And switching to the communications business, in your prepared remarks you’ve spoke about expansion into different markets of highlighting Asia Pacific and Latin America, is that limited the organic growth or is that something [indiscernible] looking to expand through aggressively pursuing acquisition?

Our acquisition strategy for comm systems we’re really looking at trying to widen our line, and I think we’re very strong position in our current base and try to widen our lane with adjacent product, that isn’t necessarily driven by any specific need to go for international or domestically looking more at the best company we can buy.

All right, thanks guys.

(Operator Instructions) And there appear to be no other questions at this time; I’ll turn the call back over Michael Popielec for any closing remarks.

Well thank you once again for joining us for our first quarter 2014 earnings call, look forward to meeting up with several of you over the next few weeks or so and sharing with you future calls quarterly results, thank you very much, that’s all we have today.

And that concludes today’s conference call, we appreciate your participation.