Allied Motion Technologies Inc. (NASDAQ:AMOT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:00 am ET

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Allied Motion Technologies Inc. (NASDAQ:AMOT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Allied Motion Technologies Second Quarter Fiscal Year 2020 Financial Results. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

It is now my pleasure to introduce your host, Craig Mychajluk, Investor Relations. Thank you, Craig. You may begin.

Executive
Craig Mychajluk

Yeah. Thank you, and good morning, everyone. We certainly appreciate your time today as well as your interest in Allied 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 second quarter 2020 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 market closed. If not, you can find it on our website at alliedmotion.com. On the website, you'll also find slides that accompany today's discussion. If you are reviewing those slides, please turn to slide two for the safe harbor statement.

As you are aware, we may make some forward-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 to differ materially from what is stated on today's call. These risks and uncertainties and other factors are discussed in the earnings release as well as the 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've 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?

Executive
Richard S. Warzala

Thank you, Craig, and welcome, everyone. Allied has continued to steer a steady course through these challenging conditions of the COVID-19 pandemic. I would like to acknowledge the incredible efforts, dedication and resilience of our employees who have done an excellent job helping us respond to the ever-changing environment and unique opportunities that have presented themselves. Our second quarter performance was relatively solid and demonstrated the success of our One Allied strategy.

The diversification of our revenue base, the execution of our lean toolkit, Allied Systematic Tools, or AST for short, and the integration of Dynamic Controls all played a role in driving our results. Despite second quarter organic sales decline, our gross margin held up well, we achieved solid profitability and we continued to generate significant cash from operations.

From a market perspective, we successfully navigated what we believe was the low point for us during the COVID-19