Astronics Corporation (NASDAQ:ATRO) Q4 2022 Earnings Call Transcript

Jon Tanwanteng: Okay, great. Thanks guys. And obviously, congrats on getting all the stuff done and over the finish line over the last couple of months.

Pete Gundermann: Thank you, Jon.

Operator: And our next question comes from the line of Michael Ciarmoli with Truist Securities. Please proceed with your question.

Michael Ciarmoli: Hey, thanks guys. Jon, picked up my labor question there, but just on FLRAA too, Pete, is there anything assumed in the current year outlook for FLRAA revenue contribution from the development program?

Pete Gundermann: We do have some €“ yes, we have some NRE built in. As you might imagine, it’s probably a couple year engineering effort. It’s a little unclear how that’s going to play out at this point. We originally thought that it would be somewhere north of $30 million, south of $50 million over 2.5 years. It’s delayed. So it’s nothing in the first quarter that hurts us a little bit. If it gets delayed for, let’s say, something crazy happens and the whole thing gets thrown up in the air with the €“ by the GAO and they recompete it or whatever, and the whole year is lost, then that would be a significant downgrade to our internal forecast. But at this point, we feel that we’ve got enough demand and enough excess demand that over the course of the year, while it’s going to change the shape of our first quarter a little bit, it’s not at this point material to the whole year.

Again, we’re expecting the protest to be resolved early April. That’s what we’re hoping and we expect to be kind of hit the starting blocks right then or pretty close to right then.

Michael Ciarmoli: Does that, I mean, I think, Lockheed filed the second complaint, which is that there’s a deadline on that for May 17. So I know the first decision is €“ I mean, does that have any implications given their additional complaint that they filed?

Pete Gundermann: Not that I know of, but again, I don’t know any inside knowledge about what the deliberations are on the protest.

Michael Ciarmoli: Okay.

Pete Gundermann: I can just say that the longer it goes, the more €“ it becomes a material detractor to our plans.

Michael Ciarmoli: Got it, got it. Perfect. All right. Thanks guys.

Pete Gundermann: All right, thank you.

Operator: Yes, it looks like we have reached the end of our question-and-answer session. I’ll now turn the call back over to management for closing remarks.

Pete Gundermann: Okay. No closing remarks. Thank you again for your attention. We feel like the fourth quarter was a step up to close 2022, and we’re optimistic for 2023. We look forward to talking to you again next time. Have a good night.

Operator: And this concludes today’s conference, and you may disconnect your line at this time. Thank you for your participation.