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Note 11 - Impact of COVID-19
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Effect of Covid-19 Pandemic [Text Block]

Note 11 Impact of COVID-19

 

The COVID-19 pandemic has created significant economic disruption and uncertainty around the world.  The Company continues to closely monitor the developments surrounding COVID-19 and take actions to mitigate the business risks involved. During this challenging time, we remain focused on ensuring the health and safety of our employees by implementing the protocols established by public health officials in addition to working closely with our customers and suppliers to meet the demand for our mission critical products serving medical device, first responder, public safety, energy and national security customers in an efficient and economically responsible manner. 

 

COVID-19 adversely impacted our operating results during 2021 with an estimated negative impact to sales and operating profit of $11,000 and $4,500, respectively, primarily as a result of overall disruptions in supply chains and operations impacting both commercial and government/defense markets.  While we have maintained normal business operations at all our facilities throughout the year, the supply chain disruptions including increased lead times on key components experienced within our business and by our customers, impacted our work schedules and timing of shipments.  We exited 2021 with a backlog of $53,166, excluding Excell, representing an increase of $13,874 million or 35.3% from year-end 2020, largely attributable to the supply chain disruptions pushing shipments into 2022.

 

The extent to which COVID-19 may further impact our business is uncertain and will depend on many factors which we continue to monitor but cannot predict or fully control, including the duration and scope of the pandemic and its variants, resulting actions taken by governments, businesses and individuals, limited availability and/or increased cost of raw materials and components used in our products, and the flow-through impact on operations and supply chains. Prolonged adverse effects of COVID-19 on our business could result in the impairment of long-lived assets including goodwill and other intangible assets.  While we cannot predict the lingering effects the COVID-19 pandemic may cause, we will continue to work closely with our customers and suppliers to take actions when possible and within our control to mitigate the business risks involved.