LogicMark (LGMK) 9 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the LogicMark Third Quarter 2023 Financial Results and Corporate Update Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Pierre Dubois, Investor Relations. Please go ahead.

Thank you, Abigail, and good afternoon, everyone. in call. participating you appreciate today's conference We

Joining Officer; Officer. and LogicMark are Chief Executive Chia-Lin Simmons, Mark me from Archer, Chief Financial

this for be that will launches. results call, statements, product During statements including and making anticipated address performance future forward-looking expectations or operational LogicMark's management

to involve statements results other from those may cause factors Forward-looking materially that statements. and actual risks differ

with annual particularly For the accompanies subsequent in LogicMark's described the risk more factors and as well information about as statements this XX-K recently SEC these it. report filed LogicMark's risks, reports that Form please filed the refer to release in on most press cautionary call,

obligation The content revise any publicly to only XXXX. accurate November update reflect of is information X, that circumstances events call. call any this Except this as information law, occur to that of by after today, time-sensitive or as required or contains disclaims LogicMark

said, that Chia-Lin. With hand to I'll call the over

broader that population afternoon, you was the an is. product our needs meet to veterans heels excited for Pierre, and I'm population to began many and very of you, the since company products our But with opportunity launch our good still valued suite expanded of compelling, and it for aging team build the our the came to in even speak potential the safety Thank company was a an center. this continues and team develop and front When of together also to improve the first everyone. first to on years. today journey, new

additional well Android app, add stack that a allow streams as uplift. proprietary all care proprietary software capture on-device Village our AI-enabled and subscription an us that margin services, to of opportunities hardware ecosystem, just that Care better to with us to infrastructure broader economy. a is a will revenue obtain doing just cloud ecosystem iOS beyond expand proprietary vision We're Our which as in the growing new middleware, prepares includes to and

and Our device new also prestigious product caregiver offering development CPaaS worked Alert our emergency an hard a advanced communications services teams It detection is center. a new to the X-way provides new platform. extremely be and algorithms first features release under to such as partner, and our the Plus, a or Plus Platform location. research offered Service, Freedom Freedom US with Alert XX/X patented monitor GPS fall X our monitor as with diamond Monitoring, Care

can Freedom Store can app at to to always Google Village caregivers device, for be Alert fall Plus, providing App belts, that And one's Apple to loved monitor Play status, attached battery clip have the the your Care of new connects accessories connect their including neck which Our both or the around free allowing purse course, to downloaded Store, and to device a a and backpack. or lanyard care more. around accompany PERS wear to access we for device, be

choose from or WiFi, Freedom meet to or is Alert that connected we our has expanded currently, of one to devices that of [ whether needs are points. developing customers. line price X other be LogicMark of in an landmark] the at XG several solutions various specific Plus products not

have XXX at-home solutions. our for and on Alert are Alert go, the Alert LogicMark And Freedom those The Guardian we XXX+. Guardian

means a to fee. top-rated with We limited alert believe should Our access medical have PERS been device fits that their that budget. by those systems no as devices recently with among have Forbes within recognized monthly

which those fees. payment the help products interest who Further, So offers partnership with no plan. with device, we need for no a we purchase to new subscription their continue Afterpay, monthly of offer have these a with

solutions launch our sensors we preparing At new use the road direction using new this to Along revolutionizing of and our the this moment, to ability and way, innovative technology Our the portfolio. next? are map. IP launched same machine time, our a product expanding is device is our what's artificial the PERS device, So year. intelligence, learning at finding team second

report to compact weight, design, which very regarding dissimilar sizes This factor, meet in been feedback during the has prefer preferences. phones service consumer detection are customers particularly new is to positive that a initial We testing GPS fall some and delighted which smaller to product form come its feature. various location not

operating devices, not solutions. finding sustainable we look efforts new continue on focus improve for ways but only to efficiencies Our to and

For working biodegradable versus us costs we've solutions, is transitioning boxes shipping towards our as packaging airfreight helping margins. and And and from after packing COVID-XX shipping are example, sustain including environmentally mentioned, also waste. and we bags friendly reducing reduce

and planned predictive or preventative areas, such what monitoring offering other complement that PERS expanded doing devices, with only such are those into solutions we LogicMark's expansion features reactive, medicine that are to includes are not health but as reminders. our entry as

in of to and very our talented about I'm governance, product areas, forward making, are look advance have Given as excited expanding to excited Board we and Carine to lineup team expertise corporate the the to and next and the directors several new verticals X welcomed solutions. elective total many including software we Board's our the Schneider Tom company's through plans Wilkinson, enter We recently growing X. the progress members: stage hardware finance, of development. are we number new operations,

hand call review I'll brief to Mark over to a time, this provide financials. At the of the

Thank you, Chia-Lin.

results $X.X gross million Our for compares gross margin of of on on included same of $X.X million. the revenues a to quarter year. revenues third quarter a This margin XX% last of XX%

replacement for onetime quarter was cellular network boosted The prior national decline XG. XG, discontinued due year their year-over-year the sale this upgraded carriers, which to as they third The support results. in sales year, quarter of units last during to

sales quarter. needed year-over-year starting supports in with XG an last current So the anticipate our XG September customers with completed Alert in this model units those process with of December year, XXX+ This so units to older Guardian our current services. replacement to was end we reduction replace

on Back X to We improvement. our gross to that drive margin. continued areas improvement focused in

we've been Asia-based freight able shift from to manufacturers. air transpacific contract shipping back from to First, our

us During in demand and shipping we basis. a move COVID, which expensive the order on timely customer increased, to that to necessitated to delays meet could ensure peak airfreight of costs port

switched inventory procuring to more traditional just-in-time versus opportunistically previous our we approach. Second,

when are Now our some when rather part. most favorable purchased we of prices components than we need the

And third, our customers were improved. Previously, domestic we shipping have using exclusively. shipping costs vendor to one

is implemented software option Now particular FedEx whether lowest Postal States cost each Service, or we've order. that the United selects UPS on the

operating total to expenses. Turning

The in year-over-year to was third new and a June by reduction year's launches. selling higher mainly XX% XX% operating $X.X or decreasing with last from and The slightly lower our product general million due in administrative expense expenses year, expenses this to compared support million, down quarter $X.X quarter the same and at marketing came offset quarter.

diluted Net share year. same per the in fully loss loss On quarter a shareholders in with quarter million $X.X share the $X.XX was loss net for net to common quarter. the third versus the loss year prior last a of was attributable $X.XX $X.X million a of basis, net a compared

last [indiscernible] have stock our reverse been this adjusted for X April. XX split for completed

terms to $X.X end cash end December September, the the million liquidity, compared $X of In as of the at million balance XXXX. was of of

books. our no have debt We on

we on continuing new move we margins as remain year-over-year launching revenues, increasing quarter products, breakeven the focused improve into and So of the profitability. to year, last reaching

call hand will open back up for who to to like I'd that, it questions. with the And Abigail,

Marin with Our from first Zacks. comes question Marla

can template bit you that a you talk First about do you were product? there your the use also, any experience introducing launch product new Alert of Can for as And surprises saw a that like think the forward? with launches Plus of this potential introduction? following little product all, going Freedom you other product this

Marla, to answer I'm that happy question.

launch not this particular to anticipated huge a when So we it do product. came see surprise of the

fairly through and back-end monitor the a gone rigorous service. services the testing have of QA a XX/X We product,

talked -- Care As you might really of of FA particular about launch it's I this technology call, during spoken our but the just of Village Plus, itself, about platform. not launch have the basically that particular with the we launch as hardware the when

services the technology app. the so then the of So form detection we recurring of and of proprietary have service, fall the the services of and the sort subscription launched monitor forth. the middleware technology, AI-enabled in launched sort sort XX/X cloud-based We

do not surprises we any so And there. see

that in-home first solution, monitor detection time we platform have we service, of this have XX/X -- consumer will side. subscription out it's our because rolling this launched say a a sort I on service fall However, and a

and And as demonstrating introducing to these so we as them them out our the and we reaching BXB are partners, out to going going to some technology along. are we of BXG and are

concurrently at rolling be because launch this all platforms our BXB in matching same at of consumer we particular time. launching time, But so all simultaneously to and future, launch, and same the then different the we across out these of facets And first we're channels at least with may the first did the technology BXG.

actually Veterans new this we're in Orlando, being to -- so introduced where week. sector our And is government attending week, we even have technology our Administration this the Show

I'm back showing call to remarks. Chia-Lin would to closing the no at Simmons questions time. further turn I like this for

veterans, and I Thank improve health. of In the progress population their on teams to fourth the thank This segment next all which and to meantime, support. safety results quality our vision, our full of is continue would employees, in investors and enhanced valued you. to lives. reporting solutions customers those and dedicated forward quarter for elderly our aging place who passionately continued like to In conclusion, the look provide includes will work year. for help We to our their every year to our early the seek

mission, families, successful Foundation we us, honor Woodruff we we veterans, service our donation have in and stable into a their had our which support our holiday, announced sacrifice Today, futures. and country. service their sacrifice who Day ours. of well and the the with in that families As Bob members nation's veterans' their the reflect as head ensure aligns stood of To on to Veteran's to for as

for them. our have over independence, We Administration and Veterans our great continuing with a to relationship forward with veterans' look worked decade to we the facilitate

our team best. Thank all you the enter holiday so the we season, you As LogicMark wishes entire at very much. of

your conference. This you in the for does program. today's conclude Thank participation

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