Business
Allied Motion Reports First Quarter 2020 Results
Acquisition of Dynamic Controls and the increased demand from certain medical applications partially offset the reduction in demand in Allied’s Vehicle
About this update from Allient Inc.
[{"type":"text","content":"\n\nAcquisition of Dynamic Controls and the increased demand from certain medical applications partially offset the reduction in demand in Allied’s Vehicle markets due to COVID-19\n\n\nVast majority of production continues as supplier for critical industries \n\n\nAchieved gross margin of 30.4%, a 90 basis point improvement driven by lean manufacturing and improved mix\n\n\n AMHERST, N.Y.--(BUSINESS WIRE)--\nAllied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or “Company”), a designer and manufacturer that sells precision and specialty controlled motion products and solutions to the global market, today reported financial results for its first quarter ended March 31, 2020. Results include the Dynamic Controls Group (“Dynamic Controls”) acquisition that was completed on March 7, 2020.\n\n\nDick Warzala, Chairman and CEO, commented, “The business impact due to COVID-19 started in March and was primarily related to a decline in demand in our Vehicle markets. As we worked through the various issues caused by COVID-19, our first and foremost commitment was to our workforce and to ensure the health and safety of all employees and their families. I personally want to thank our global management team and all our employees who worked tirelessly together to create a safe environment, while at the same time making the necessary adjustments to ensure the needs of our customers were continuing to be met. Wherever possible, our team is working remotely, and our manufacturing operations have continued to produce under stringent practices to protect our employees. I believe we will come out of this crisis stronger and better than ever as we operate within the guiding principles of our One Allied Culture and the focus provided by our Long-Term Strategy.”\n\n\nMr. Warzala continued, “Our first quarter results were relatively solid as we benefitted from the acquisition of Dynamic Controls and the diversity of the markets we serve. Our global operations worked closely together to ensure we responded quickly to the rapidly evolving situation and to meet the significant increases in demand for several of our products supplied to the medical market. To ensure we meet short term demand, we have built inventory in some facilities to address potential temporary closures and we are working closely with our supply chains to ensure critical mate...