Welcome to the Bel Fuse Inc second quarter 2021 results conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Dan Bernstein, President and Chief Executive Officer. Please go ahead. Thank you, James. Joining me on the call today is Farouq Tuweiq, our CFO, Craig Brosious, our Vice President of Finance, and Lynn Hutkin, our Director of Financial Reporting. Before we begin the call, I'd like to ask Lynn to go over the safe harbor statement. Lynn? Thank you, Dan. Good morning, everybody. Before we start, I would like to read the following safe harbor statement. Except for historical information contained on this call, the matters discussed on this call, such as statements regarding anticipated cost savings resulting from the closure of Bel's Modules Design and Technical Support Center in Maidstone, U.K., expectations concerning pricing adjustments taking effect and their impact on offsetting labor and material cost increases, the company's plans, intentions, expectations, and efforts in connection with profit improvement and maximization, operational efficiencies, and the pursuit of certain opportunities and markets, expectations regarding backlog as an indicator of sales, supply constraints and the company's ability to manage them, and anticipated future trends, plans, and results for the business, including for the second half of 2021, are all forward-looking statements as described under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Actual results could differ materially from Bel's projections. Among the factors that could cause actual results to differ materially from such statements are the market concerns facing our customers, the continuing viability of sectors that rely on our products, the impact of public health crises, such as the governmental, social, and economic effects of COVID-19, the effects of business and economic conditions, difficulties associated with integrating recently acquired companies, capacity and supply constraints or difficulties, product development, commercialization, or technological difficulties, the regulatory and trade environment, risks associated with foreign currencies, uncertainties associated with legal proceedings, the market's acceptance of the company's new products and competitive responses to those new products, the impact of changes to U.S. trade and tariff policies, and the risk factors detailed from time to time in the company's SEC reports. In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward-looking statement. We also may discuss non-GAAP results during this call, and reconciliations of our GAAP results to non-GAAP results have been included in our release. I would now like to turn the call back to Dan for a general business update. Thank you, Lynn, and thank you for joining our call today. First, I'd like to provide an update on COVID-19. All our manufacturing sites globally are operational throughout the second quarter. The Delta variant is prevalent in regions in which Bel operates, particularly in India, U.K., and now the U.S. We continue to stay vigilant and have protective measures in place to safeguard our associates. I would once again like to thank all our global manufacturing associates for their ongoing dedication to Bel under these difficult conditions. Turning to our results. We are pleased with our financial results for this quarter. This is our second consecutive quarter of meaningful year-over-year sales growth as increased orders over the past six months continue to translate into sales. Our bookings during the second quarter reached a new record high, and our backlog of orders amounted to $314 million at June 30th, 2021, an increase of 75% from a year ago. Most importantly, these increases in sales and bookings were seen across all our major product groups, which is an indication of general market strength. Sales within our Power Solutions and Protection group were up 23% from the second quarter of 2020. The increase was largely driven by a 55% growth in our fuse sales, a 53% growth in our products that support growing e-mobility end markets, and a 30% improvement in CUI sales compared to last year's second quarter. These increases were offset in part by lower sales of our custom modular products as we exit these low-margin products. In connection with this exit, our modular design center in Maidstone, U.K., will be closing during the third quarter with an estimated annual cost savings of $400,000. Our Power Solutions and Protection group finished the second quarter at robust backlog, which is up $92 million or 143% from year-end. Sales of our Connectivity Solutions products increased by 11% from last year's second quarter, with a continued rebound of the commercial aerospace end market, which improved by $2.9 million or 114% from last year's second quarter. Sales of our connectivity products through distribution channels were also strong, reflecting a $1.7 million or 12% increase from last year's second quarter. The backlog of orders for our connectivity products grew by $21 million or 45% since year-end. On the Magnetic Solutions group, our sales growth of 8% over last year's second quarter, led by higher shipments of our integrated connector modules that are used in next-generation switching applications. During the first half of 2021, our backlog of our magnetic products grew by $45 million or 105% since year-end. Our first quarter acquisition of rms Connectors, EOS Power are now fully integrated into Bel's businesses, and both were immediately accretive to our results, contributing a combined $8.7 million in sales since their respective acquisition dates. The recent pricing adjustments to our customers focus on margin improvement, coupled with the highest backlog in Bel's history, the return of the aerospace demand, and our participation in growth markets like HEV, IoT, and 5G allows us to be strongly optimistic about Bel's future. Craig, can you go forward? Sure. Thanks, Dan. Moving into the financial update. Sales by product segment for the second quarter of 2021 were as follows. Power Solutions and Protection sales were $55.4 million, up 22.9% from last year's second quarter. Connectivity Solutions sales were $43 million, an increase of 10.6%. Magnetic Solutions sales were $40.3 million, up 8.3% from last year's second quarter. Preliminary gross margin by product segment for the second quarter of 2021 was as follows. Power Solutions and Protection had a gross margin of 25.9% in the second quarter of 2021, up from 23.5% in last year's second quarter. Connectivity Solutions gross margin was 30.3%, up from 29.6% in the 2020 quarter. Magnetic Solutions gross margin was 23.2%, down from 25.4% in last year's second quarter. On a consolidated basis, gross profit margin decreased to 24.7% in the second quarter of 2021 as compared with 25.8% in the second quarter of 2020. Bel implemented price increases earlier in 2021 to offset rising input costs, with a portion of these price increases taking effect in the second quarter. In addition to industry-wide increases on raw material pricing, labor costs are higher due to wage rate increases and unfavorable foreign exchange fluctuations in the second quarter of 2021 as compared to the same quarter of 2020. The margin comparisons were also affected by $1 million in COVID-related subsidies received in last year's quarter that did not repeat. Excluding the subsidy, gross margin in the second quarter of 2021 would've been more comparable with last year's second quarter. Research and development costs were $5.5 million during the second quarter of 2021, a decline of $650,000 from the second quarter of 2020, primarily due to the closure of our Switzerland R&D facility in mid-2020. Our selling, general, and administrative expenses were $21.8 million, or 15.7% of sales, up $2.7 million from a dollar perspective from the second quarter of last year, but the same as a percentage of sales. G&A salaries and fringe benefits were $1.3 million higher as compared to the second quarter of 2020. Legal and professional fees were up by $467,000, and we incurred $317,000 in acquisition-related costs. These factors resulted in income from operations of $6.6 million in the second quarter of 2021 as compared to $6.1 million in the second quarter of 2020. Other income and expense net was income of $113,000 for the second quarter of 2021 as compared to income of $1.2 million during the second quarter of 2020. The income in the second quarter of 2020 largely related to a $1.5 million gain on the company's SERP investments, which are included in this line item. Interest expense was $721,000 in the second quarter of 2021, down from $1.3 million in the same quarter last year as a result of decreases in both LIBOR, the company's spread on its credit facility driven by EBITDA improvements, and the overall reduction in our outstanding debt balance. We had a benefit from income taxes of $1.9 million in the second quarter of 2021 compared to a provision of $423,000 during last year's second quarter. The benefit in the second quarter of 2021 primarily resulted from the expiration of statutes of limitations on certain tax reserves. Earnings per share for the Class A common shares was earnings of $0.61 per share in the second quarter of 2021 as compared with earnings of $0.43 per share in the second quarter of 2020. Earnings per share for the Class B common shares was earnings of $0.64 per share in the second quarter of 2021 as compared with earnings of $0.46 per share in the second quarter of 2020. On a non-GAAP basis, which excludes certain unusual and other non-recurring items, EPS for Class A shares was $0.64 per share in the second quarter of 2021 as compared with earnings of $0.43 per share in the second quarter of 2020. On a non-GAAP basis, EPS for Class B shares was earnings of $0.68 per share in the second quarter of 2021 as compared with earnings of $0.46 per share in the second quarter of 2020. Now I'd like to turn the call over to Farouq to go through some balance sheet and cash flow items. Farouq? Yep. Thank you, Craig. Beginning with some balance sheet items, our cash and cash equivalents balance as of June 30, 2021, was $66.4 million, a decrease of $18.5 million from December 31, 2020. During the first half of 2021, we made net payments of $14.8 million in connection with the acquisitions of rms and EOS. $3.0 million towards our outstanding debt balance and used cash for capital additions of $2.5 million, dividend payments of $1.6 million, and interest payments of $627,000. These items were partially offset by $6.7 million in proceeds received from the sale of property. Accounts receivable were $86.9 million at June 30, 2021, as compared with $71.4 million at December 31, 2020. The primary driver of the increase related to the higher sales volume in the second quarter of 2021, as compared to the fourth quarter of 2020. The 2021 acquisitions of rms and EOS also contributed to the increase in AR from year end, accounting for $4.7 million to our receivables balance at June 30th. Days sales outstanding was 56 days at June 30, 2021, comparable with the DSO at December 31, 2020. Inventories were $116.2 million at June 30, 2021, up $16 million from December 31st, 2020. Was largely due to increased raw material purchases to accommodate our higher backlog of orders, as well as the inclusion of $3 million from 2021 acquired companies. Accounts payable were $53 million at June 30, 2021, up $13.2 million from its level at December 31st, 2020. The increase in AP was in line with the heightened purchasing volume of raw materials during the first half of the year. In addition, the 2021 acquired companies accounted for $3.2 million of this increase from the year-end level. Bel's total outstanding debt balance was $112.9 million as of June 30, 2021, net of deferred financing costs, a decrease of $2.7 million since the 2020 year-end balance. With that, I'll turn the call back over to Dan. Dan? Thank you, Farouq. Before I open the call for questions, I'd like to take a moment to thank Craig for his nearly 18 years of service to Bel Fuse. Craig came to the Bel family through our acquisition of Stewart Connector in 2003. Since then, he assumed a number of positions within the financial department, before ultimately rising to lead the group in 2017. He's instrumental in helping guide Bel through some of its most transformative years. I'd also like to now acknowledge his generous efforts in ensuring the transition for Farouq was smooth and uneventful. Craig will be retiring from the company at the end of September. He will be missed, but we wish him the best in his retirement. Thank you, Craig. James, can we open the call for questions now? Thank you, Mr. Bernstein. If you'd like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your sound to reach our equipment. Again, press star one to ask a question. We'll pause for a moment. We'll take our first question today from Jim Ricchiuti with Needham & Company. Hi, good morning. Yeah, congratulations on the quarter. It sounds like the demand is clearly strong across the board. I'm just wondering if you could comment a little bit about lead times and, how concerned are you, just a general bit, some of what we're hearing about component availability and the potential for that to be disruptive at all to the business later on as you look out over the balance of the year? As we stated, I think we managed the situation very well over this quarter. I think if you look at our materials, I think we have a ballpark figure about $2.5 million we could have maybe had in greater sales if we received all the materials in. Lead times are stretched out. You're looking at some semiconductor companies that are going out to 18 months to two years. It's very difficult to put a finger on it, but so far, I think we've done a good job, and I think we can manage it, just as we've done in the past. There might be a couple of shortfalls. Again, all of a sudden, you're looking at a component shortage, and then you have a situation in Malaysia where, because of COVID, the factories are shut down for two weeks. You are going to have these hiccups, and it is a concern, but so far, we've been able to manage that concern pretty well so far. Got it. In terms of the impact of COVID, it sounds like you've managed that fairly well. Is there any meaningful cost associated with COVID as you've had to secure all of your facilities that may be contributing to some additional costs that we don't see necessarily? I don't think a substantial number. If you look at mask, thermostat, temperature gauge, temperature measuring devices, making the place safe by putting plastic walls between spacing, cafeteria, all those costs, I think, were taken out. I think going forward, I can't see anything more than minimum cost going forward. Your SG&A is running a little higher than we were anticipating. I assume that's just a function also of your volumes, but I don't know if there's any additional color you could provide on that. I have one other question, I'll jump back in the queue. Okay. Thanks. All right. I'll let Craig know. Craig, do you want to take the SG&A, or you want Farouq to do it? I think I can take that one, Dan. I think we are seeing some incremental SG&A related to volume, as you said, Jim. We did have some additional expenses, as we noted in our remarks here. I think it's still in line with what our expectations were, maybe on the high end, but I think it's nothing unusual in there. Got it. Just with respect to some of the pricing actions that you've taken, have you realized the benefits of that more fully, or are some of those expected to flow in over the next quarter or so? I don't know if you can give us any kind of sense as to how those pricing actions have been. Yeah. This is just ballpark to give you a rough idea. I think in this quarter, we probably maybe picked up 15% of the price increases we put out there, and then the balance will be, I think, divided pretty evenly between the third and fourth quarter. I would think they would all be flushed out by the middle of the fourth quarter. Got it. Okay, I'll jump back in the queue. Craig, I just want to wish you the best. Thanks. Appreciate it, Jim. Next, we'll hear from Theodore O'Neill with Litchfield Hills Research. Oh, thanks very much. Congratulations on the good quarter. A question about seasonality. Given the strong demand here and the longer lead times, and your two recent acquisitions, do you think Q4 seasonality will continue, or do you have any thoughts about that one way or the other if there's a potential change? I think with COVID, everything's blown out the window. Again, generally, because in North America, because of the Christmas holiday and Thanksgiving, you lose anywhere from 5 to 10 days where people don't need parts. I think at this situation where the backlog is so strong and people are so desperate to get materials in, I'd be shocked. I doubt we see the downward trend we've seen in the past. Yeah. This did come up in the last quarter conference call, and I'll ask again here. Are you concerned about double bookings, and how are you managing that risk for that? That's a great question. As you know, we have Vincent Vellucci, former president of Americas of Arrow. That's a question we address all the time. At this point, everything we hear, we're getting the impression that there isn't double booking out there, but you don't know. I would think that you would probably see it more in the semiconductor area that are really stretched out long lead times than our product line. It is a concern that, are people bringing in too much inventory? I think just the concern is bringing in the double booking is people bringing in the inventory too soon. Why bring in a Bel part in 20 weeks if you're not going to get the IC in 45 weeks? That's a concern that we try to look at. You can alleviate, do you have non-cancelable orders? Do you have non-schedule change orders? We looked at that, but we haven't implemented that at this time. Okay, thanks very much. We'll take our next question from Hendi Susanto with Gabelli Funds. Good morning, Dan, Farouq, and Craig. Thank you, Craig, for all the interactions. Thanks, Hendi. Enjoyed it. Oh, yeah. Dan, I would like to ask you questions about sales trends. Let's say in the absence of unforeseen COVID impact and given the strong bookings, will it be reasonable to expect revenue will gradually improve every quarter throughout the end of the year? I think for the next quarter should improve. Again, historically, I think the fourth quarter would be substantially better than last year's fourth quarter. Generally, I don't know if it'd be better than the third quarter because historically, the third quarter has always been a strong quarter for Bel. I see. Yeah. Would you be able to share what the revenue contribution from RMS and EOS in Q2, and then whether your expected revenue contributions from those two are higher given strong performance in Q2? Craig, do you want to address that? Like expected revenue contribution for the year. Okay, Craig? Dan, I think, is better Farouq to address that. Yeah. Pass to him. Sorry, I was on mute there. Hendi, you're looking for the quarter? Yes. He would like to get quarter. Do we have a forecast? Yeah. Okay. For the second quarter, rms contributed $2.7 million. I'm sorry, if we're looking at trade sales, $2.5 million of sales and EOS contributed $3.5 million of sales. Just to give you a little more color, I would say that again, they supply the aerospace people. Historically, if you looked before COVID, that's a very weak month for them. Okay. Sorry. Looking at the first half of 2021, RMS contributed $4.6 million of sales, and the EOS was the same $3.5 million since they were acquired on March 31st. How about revenue forecast for 2021? Are you expecting higher? I would say yes. I don't think we're ready to share our figure with you, though. Sorry. Okay. Yep. No, that's fair. This is a bookkeeping question. The $0.4 million cost saving from the U.K. facility consolidation, will it go toward bottom line, or will you reinvest that somewhere else? I think it's only $400,000 is the cost savings for shutting down the Maidstone facility. Yeah. We'd expect to see that drop to the bottom line, Hendi. Okay. Yep. Then any insight into price increases? Not the detail and or whether it's like a single digit, mid-single digit, high single digit. No, I think on the average, the price increases are falling, some smaller ones and some higher ones. Overall, I think that it's probably falling into the 5%-12% range. Got it. Okay. Thank you so much. Thank you. As a reminder, press star one if you have a question at this time. We will pause for a moment. James, are there any other calls? Hello? There are no further questions at this time. I will turn the conference over to you, Mr. Bernstein, for any additional closing remarks. Once again, I'd like to thank Craig for his tremendous job, and I wish everybody a nice weekend, and hopefully we can keep these numbers going. Thank you, everybody, for participating. That will conclude today's conference. Thank you for your participation. You may now disconnect.