Giga-tronics Inc. (NASDAQ:GIGA) Q2 2020 Earnings Conference Call - Final Transcript
Nov 12, 2019 • 04:30 pm ET
Welcome to the Giga-tronics Second Quarter Earnings Conference Call. My name is Vaneesa and I will be your operator for today's call. At this time all participants are in a listen-only mode. [Operator Instructions] Please note that this conference is being recorded.
I will now turn the call over to your host Traci Mitchell, Corporate Controller.
Traci Keiko Mitchell
Hi, everyone and thanks for joining our quarterly earnings conference call. I'm Traci Mitchell and I'm joined today by John Regazzi, our CEO; Lutz Henckels, our Chief Financial Officer and Executive VP.
Before we begin, I need to remind everyone that this conference call may include forward-looking statements, including statements about future results of operations and margins, future order growth and shipments. Actual results may differ significantly due to risks and uncertainties, such as delays with manufacturing and orders for our products and services, receipt or timing of future orders, cancellations or deferrals of existing orders, the company's capital needs, the trading of our common stock and the volatility and the market price of our common stock, results of pending or threatened litigation and general market conditions.
For further discussion, see our most current annual report on Form 10-K for the fiscal year ended March 30 2019, Part I, under the heading Risk Factors and Part II, under the heading Management's Discussion and Analysis of Financial Condition and Results of Operations.
With those reminders in place, I would now pass the call on to John.
Thank you, Tracy. Good afternoon and thank you for joining our fiscal '20 second quarter earnings call. I'd like to open with a few general remarks before our CFO, Lutz Henckels goes over this quarter's performance in detail. First, I am again pleased to report that the company has completed another quarter with positive operating and net income, this is our third consecutive profitable quarter and I wish to acknowledge the entire Giga-tronics team for this accomplishment.
Second, I would also like to acknowledge the successful completion of our follow on public offering. We've raised $2.6 million, which strengthens the company's balance sheet and positions us to pursue our EW test business more aggressively. Third, we just received a new multi year contract valued up to $8.4 million for the continued production of the F-15 variant of our Microsource RADAR filter. The contract includes a firm commitment for the first year's production valued at $2.9 million with options for the following years valued up to 5.5 million.
Finally, I just returned from attending an Industry Trade Show held in Washington DC, where the company was an exhibitor. Our business development team had numerous quality engagements with potential customers, who are now generally convinced the Giga-tronics solution can meet their advanced simulation needs. Just as important, these customers see and believe that the Giga tronics team understands their application. This has already led to a follow-up meeting with one military base for a more detailed demonstration of our solutions. We continue to believe our EW test platform, is the company's best