Bel Fuse Inc (NASDAQ:BELFB) Q1 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2018 • 11:00 am ET
Good day, everyone. And welcome to the Bel Fuse Incorporated First quarter 2018 Results Conference Call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Dan Bernstein, President and Chief Executive Officer. Please go ahead, sir.
Thank you very much. Joining on the call today is Craig Brosious, our Vice President Finance; Lynn Hutkin, our Director of Financial Reporting. And before we begin, I'd like to ask Lynn to go over the Safe Harbor statement. Lynn?
Thank you, Dan. Good morning, everybody. Before we start, I would like to read the following safe harbor statement except for historical information contained on this call, the matters discussed on this call, such as statements regarding future acquisitions and increased labor cost in the PRC, our forward-looking statements as described under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties.
Actual results could differ materially from those projections.
Among the factors that could cause actual results to differ materially from such statements are, the market concerns facing our customers; the continuing viability of sectors that rely on our products; the effects of business and economic conditions; difficulties associated with integrating recently acquired companies; capacity and supply constraints or difficulty; product development, commercialization or technological difficulties; the regulatory and trade environment; risks associated with foreign currencies; uncertainties associated with legal proceedings; the market's acceptance of the company's new products and competitive responses to those new products; our ongoing evaluation of the consequences of the U.S. Tax Cuts and Jobs Act; and the risk factors detailed from time to time in the company's SEC reports.
In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will, in fact, prove to be correct. We undertake no obligation to update or revise any forward-looking statements. We also may discuss non-GAAP results during this call, and reconciliations of our GAAP results to non-GAAP results have been included in our release.
I would now like to turn the call back to Dan for a general business update.
Thank you, Lynn. Before going through the financials, I would like to provide a brief update on how the businesses did from an operational standpoint this quarter, and what we see going forward.
Overall, we are being encouraged by the continued growth of our backlog, which reached $178.3 million as of March 31, 2018, representing a 29% increase from March 31, 2017, level. We believe our top line has finally turned around as gain in our backlog is now translating into sales. Following nine consecutive quarters of year-over-year decline, this marks the second consecutive quarter with year-over-year sales growth.
Sales during the first quarter were $118.3 million, up 4% from the first quarter of 2017, led by sales growth within our Magnetic Solutions group of $3.3 million and our Connectivity Solutions group of $1.2 million. Sales of Power Solutions and Protection products were the same as of first quarter 2017 levels.
Despite a $1.6 million