Allied Motion Technologies Inc. (NASDAQ:AMOT) Q3 2019 Earnings Conference Call - Final Transcript
Nov 01, 2019 • 10:00 am ET
Greetings and welcome to the Allied Motion Technologies Inc. Third Quarter 2019 Financial Results. [Operator Instructions].
It is now my pleasure to introduce your host Craig Mychajluk Investor Relations for Allied Motion Technologies. Thank you Mr. Mychajluk. You may begin.
Thank you and good morning, everyone. I certainly appreciate your time today as well as your interest in LA motion. Joining me on the call are Dick Warzala our Chairman President and CEO and Mike Leach our Chief Financial Officer. Dick and Mike are going to review our third quarter 2019 results and provide an update on the company's strategic progress and outlook after which we'll open it up for Q&A. You should have a copy of the financial results that were released yesterday after the market closed. If not you can find it on our website at alliedmotion.com. On the website you'll also find the slides that accompany today's discussion. If you are reviewing those slides please turn to Slide two for the safe harbor. As you are aware, we may make some for looking statements on this call during the formal discussion as well as during the q&a. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results that differ materially from what is stated on today's call. These risks and uncertainties and other factors are provided in the earnings release as well as with other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov. I want to point out as well that during today's call we'll discuss some non-GAAP measures which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP to comparable GAAP measures in the tables accompanying the earnings release and slides.
With that please turn to Slide three and I'll turn it over to Dick to begin. Dick?
Thank you Craig. Welcome everyone. The effective execution of our One Allied strategy was evident in our strong third quarter operating results. We are also benefiting from the significant investments being made in engineering and developing market-based solutions to not only secure existing business but to also address the emerging needs of our served markets. Revenue was up 21% to a record $96.9 million driven by strong demand and market share gains in our medical and aerospace and defense markets. We achieved solid organic growth of nearly 10% despite the continued softness in Europe as our sales solution centers technology units and production centers have continued to leverage our full capabilities. Other highlights were around our margin enhancement which reflected the impact of higher volumes and the effectiveness of our Allied Systematic Tools to improve performance in all areas of our business. Gross Margin expanded 140 basis points to 31.1% and operating income