BK Technologies, Inc. (NYSE MKT:BKTI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET

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BK Technologies, Inc. (NYSE MKT:BKTI) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to BK Technologies Corporation Conference Call for the Second Quarter and Six Months Ended June 30th, 2020. This call is being recorded. All participants have been placed in a listen-only mode. Following management's remarks, the call will be opened to questions.

Before turning the call over to Mr. Vitou for opening remarks, I will provide the following safe harbor statement. Statements made during this conference call that are not based on historical facts are forward-looking statements. These statements are subject to known and unknown factors and risks. The company's actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, and some of the factors and risks that could cause or contribute to such material differences have been described in yesterday's press release and in BK filings with the SEC.

These statements are based on information and understandings that are believed to be accurate as of today, August 6th, 2020, and we do not undertake any duty to update forward-looking statements. I will now turn the call over to Mr. Timothy Vitou, President of BK Technologies. Mr. Vitou, you may begin.

Executive
Timothy A. Vitou

Thank you, Karen and good morning, everyone. Welcome to the BK Technologies investor conference call for the second quarter and six months ended June 30th, 2020. I'll provide some comments about the business before Bill takes us through the financial and operating results. All things considered, I believe the first half of this year has been encouraging with numerous positives.

Regarding our current status as it relates to the COVID-19 pandemic, we have remained open and operational as an essential business, supporting first responders and we've been able to produce the products necessary to timely fulfill customer orders. While doing so, we have implemented policies consistent with best safety practices including social distancing and remote work for those able to do so effectively and efficiently. To date, one staff member has been tested positive for COVID-19. This employee has been quarantined in accordance with our policies and best practices and is currently remotely working.

During the first half of this year, BK's strength and ability to adapt quickly has been tested and clearly demonstrated while giving a glimpse of the potential we have for future growth as we introduce new products, enter new markets, and expand our market share. The encouraging nature of our first half includes a wide range of initiatives and actions company-wide.

Even while faced with a global pandemic, our sales for the first six months this year remained consistent with last year's six month sales, and improved from sales during the second half of last year. As an added benefit, these sales included noteworthy success in securing sales to new customers and markets such as the recently announced $4.2 million contract awarded from an agency of the U.S. Department of Energy. The award is BK's first with this customer and our initial meaningful penetration in the utility market vertical, a market that is