NextTrip (NTRP) 24 Mar 202019 Q4 Earnings call transcript

Good day, and welcome to the Sigma Labs' Fourth Quarter and Full Year 2019 Financial Results Conference Call and Webcast. Today's conference is being recorded.

At this time, I would like to turn the conference over to Chris Tyson, Managing Director of MZ North America. Please go ahead, sir.

Thank you, and good afternoon. call. you Lab's taking year fourth update results thank us to XXXX to and Sigma for quarter conference like all time for join business I'd and full

Chairman; available Your at Eastern John Frank hosts sigmalabsinc.com. X:XX the Financial these p.m. release Chief on today website, A company's Mark wires results today Ruport, crossed Orzechowski, Rice, Executive the the Officer; are company's Chief and press detailing is Officer. and Executive this afternoon

I'd financial the your refer like to on forward-looking presentation, remind filings industry we everyone refer could for company's supporting webcast, uncertainties SEC of made formal call. list you the Before be website a begin are statements to more cause we the information. and risks including results that that described the industry subject prospects, Please of may to and differ actual those to results would for and number to risks, materially call associated and regarding from future company's also the in and those

this turn over Executive Sigma Lab's Mark, the Mark is I'd to Ruport. At to Chairman, the call floor like time, yours.

Chris, and us and to the It are and incidents. are we to positive slowdown begin safe everybody, and personal without virus hope of you families that the taking and good spread the of that the measures that thanks and I that country today. affecting these new the for unprecedented are of this the your week, see some saying joining number that coronavirus is as our both signs beginning afternoon goes times is you, aspect Thank every professional lives.

Chief relatively Rice, Orzechowski, and our concerned, provide discuss call be I financials, we today's of path concise, will CFO the our specific as Frank brief. and Officer will review will XXXX highlights; review a far the our will XXXX is John Executive forward. As

John? the a question-and-answer conclude with call session. will We

We were muted.

Mark. you, Thank

welcome. are you Okay,

and are go hope coronavirus hope safe shareholders, and about we you optimism echo hope of We are we want that owners, that and to part comments say with are will you our our well to as our Sigma. we you catch family. forward I in sense the your and you you Sigma our

several that the that from laid the three-year is we has shareholders In transition increase commercialized equipped and that our on verge and for in accomplished to the and R&D XXXX generating product to patiently go XXXX believe significant complete major fully as we company the we future. valuation company for on objectives into [indiscernible] one into foundation following into an a of and revenue

the XXXX In we and designed program. executed RTE

are launching platform you a of Before completed many of know, was a down PrintRiteXD proven we released and equipment which of product test You it test in we when evaluation selling The Buy" our performance XXXX placed in product in this laid beyond. now of Version the XXXX and off very last "Drive our companies. large May. As XXXX program in X.X we In

that tool other a better build the enhanced to real-time very analytics go taken into data and user in engineers understand deep X.X or single has build sophisticated a other at place the package to data as the interface to customer enables it software and with or our process evaluate mine any part friendly to and time process.

they with to they were did X.X and that are working daily are continue to not monitor even this process call And if down as to to to are their the and released getting a Version be learning an who well asking and engineers are PrintRiteXD the and come plant. they accessible miles usable a machine process important, operation that engineers in operator because PrintRiteXD machine made now floor able the from we alert, out away age have use important them both Now our they corona now we is operators they this received found machines. who remotely have the on as they'd fully when besides we more in have product upgrade to process talking

So is big deal. this a already

with XXXX In IP intellectual property competitive our enhanced we patents. mode new

companies As our you the wiser is PrintRiteXD to as story. technology major risk our our issued license two just wall license portfolios for including And announced our technology. think easier our growing principal attacking know, OEMs product to seeking more Intel patent and of now strategies to our on continue one seek than patent our is appropriate we [ph]. defense simply And of it rollout sell their patents are OEMs model industry's of to we against that that to yesterday, rather inside

exited continue mention we actually year And due OEMs Baker been such the with or MDAs. and R&D programs. all for Fraunhofer Hughes, with US. of National testing fourth customers XD and to any cannot defining as the institutes This We the industry equipment. with manufacturing quality in and standard built Standards universities end brands currently having relationships industries, and drives to additive at with of product metal like the the whole and that as AM and additive laser note Institute but Fraunhofer quarter, to have Airbus become like we strategic user collaborate Materialise like

So to simply that a in drive so we all and into XXXX above launching could commercial transformation in beyond that year us the the company XXXX completed cash year and this we pad means both revenues the our of which was flow.

Chief to over I'll And Frank with our that, Officer. turn Orzechowski, Financial it

John. you, Thank

press financial issued filed of results. financial SEC the our detailed our the with XX-K release results contains and today we Our highlights Form key contained in are

confine myself a for and to XXXX. results of So of review fourth I year today, will financial full the for our concise quarter the

for of quarter was of revenues XXXX year. in full the which of in $XX,XXX compares revenue the $XXX,XXX of the of or of This totaled we fourth $XXX,XXX of earned XXXX quarter last Our the for year. earned $XXX,XXX XX% full year year fourth this to which

profit gross a XXXX and evaluation and additional $XXX,XXX. remote margin Our of was costs quarter year of labor $XXX,XXX primarily variable gross test in the for fourth contributed with involved collaboration on-site of The travel rapid company's associated programs. the full the is the company's negative XXXX which and negative function

of Our related $X.X operating of office of million few salaries Number were $X.X in increases and was related to total was development development compensation continued XXXX and expenses expenses operating travel expansion for related $XX,XXX hires, the by and the expenses perspective stock expenses expenses million based one, driven in of expense six $XXX,XXX. The operating $X.X for increased our in outreach customers a Total reduction factors. increase offsetting PrintRiteXD totaled general in $XX,XXX product $XXX,XXX of continued and to our occupancy primarily which our user increase OEMs, and a and quarter. new fourth $XXX,XXX and end bureaus ongoing to into increased service this European incurred to XXXX benefits suite of were the market. research expenses of Partially million. related

$X.X net all $X.X XXXX $X.XX year million XXXX compared Our $X.X net to fourth fourth loss quarter and full in quarter numbers a or million share or of compared $X.XX of the XXXX per $X.XX XXXX. of $X.XX are million the I note [indiscernible] share or loss post in for or totaled of for million the that adjusted. loss share were will $X.X share loss to per these per of Net per of net

operating $X.X used million totaled XX, in as XXXX. million to $X.X XX, Cash $X.X full XXXX. ended full XX, December Cash XX, ended XXXX, at compared $X.X at million, September $X.X million totaled December million year December the activities the year XXXX at to in compared and XX, December XXXX for

proceeds approximately common will of of to million. the private of by holders, proceeds stock and to completed convertible exercised $X.X for convertible us Subsequent of purchase preferred total purchase the the warrants stock, shares to to shares potential preferred cash consisting purchase cash stock, to us of the the are quarter, the shares be stock shares placements resulting of stock, close of approximately net additional million. fourth remaining in $XX.X and of common Company warrants If gross preferred to two all our warrants

Mark And into look over will with call a that, the to I now back XXXX. turn for

know Thanks in months. happen weeks impossible to it what Frank. for the will coming days, is Obviously

first State Mexico is The New has our close. to to of Our employees. businesses ordered obligation all nonessential

so component open to under can we as as the CDC we're remain we manufacturer, follow a limit and are long doing. which we five However, gatherings recommendations people,

remotely. software used supporting customers Fortunately working company our as a through to and we're

United Asia, in customers well that Sigma support we as States, sleeps. we as never Europe, Since say

to As teams with possible company things our we're keep everything our customers. engineering a and moving doing

prepared normalcy, to we to begin return is some will much ground. too hope without when state we forward losing move be Our that of to

private the a issuance to are and vote meeting have their proposals Friday. and are both. two approve is first we increase the is progress we authorized common to special the on know, As IFS has you second shares stock. shareholders pleased recommended votes this the are placement for in ballot, for The scheduled that for the There shareholders' to of

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product is waste and layer anomalies and defects Our able printers, process limiting is to on by only layer manufacturing time saving monitors real-time in majority of of the product, the know works that the identify and the and PrintRiteXD market today that XD detect we metal money. and

facto to de approximately XXXX our We the goal mentioned XXXX, John success become approximately due to the can $X of feedback mentioned Our to million to X% opportunity for very for $XXX to for is claim. as RTEs had features in a quality stability addressable and the metal market and start assurance the very January which between printing that and translates revenue that we billion And standard of market parts. to is fast XD off be We large. got that Sigma PrintRiteXD. and John of every of the the and estimate

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for Our of XXXX that retrofit over would dollars relationship a of translate Materialise millions up market printers. for of XX% revenue with to opportunity of opens market us Sigma.

XD actively certify move our and with on interactions the We closer to value we stream multiyear Based progress multimillion-dollar represents significant And towards of each making with technology our us hardware Sigma. progress revenue to OEMs production. Each their are our one forecast, printers. with confirms serial goal. a continue make end-users several opportunity manufacturers as those they to for moves

that As you with the Mississippi State help intend influence saw leaders additive manufacturing on such by with from manufacturing. focused announcements educate we Northwestern innovative recent and collaborating organizations University, to tomorrow's

you over a to steady top slow quarter. is but on in the these lay effect As of streams revenue quarter other, revenue each ramp increase

OEM, only shifts our In our R&D from revenue dramatically. and margin gross software to addition, mix changes as end-user organizations

of last several know, impossible call, that have asked you one of additional me The conference with challenges and question to today's becomes been on timing the as have predict. you and

to based the what software we our ability that customers I subsides. and quarter-over-quarter our based today, for the When increase foreseeable the we crisis happens, see support collaborate However, positioned our future. develop know revenue that continue on quickly our when recover believe we're to business to on remotely, will and

factors a believe I'd today's years like couple our will years. very coming There two or thoughts improvement two you for with that become the world to three leave significant out. market I opportunity in and are relevant increasingly are about additional

socially processes sustainable environmentally that first the The towards is and and responsible. movement friendly technologies are

the future of the pandemic of is on manufacturing. the effect second The

investors. the former, sustainability gaining consumers, from earlier around toward the recyclable momentum printing and become powder trends Regarding to as world reductions warehouses the transportation, I cleaner than process the is waste, reduces and energy processes. saves increasingly in important The is and mentioned companies XD and is will traditional

day. will Tom going many an the The pandemic was interview aspects I that New today forward. lives we experiencing change The other our are in of Times Friedman, watching York

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to chains His printing people first schools. as was answer e-learning due traditional to substitute was XD second will will being His explode. question exposed to going explode answer Supply are to a the rigid. process complex. the processes long and greatly printing toward as responsiveness agility enhancing the manufacturing chain. XD the needed manufacturing too end Traditional too are moves and closer supply the product of

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The timing as unquestionable. the unpredictable, earlier mentioned but trajectory is I is

As opportunities meet front the a embrace the us. company in of and be will challenge ready we to of

time for a see Turning Sigma and to is become it back current vision anxious to get work difficulties difficult, exciting we're I know is very reality. which aside, and our

the Labs. taking personal time time, from we your of are and Operator? will consumed you issues open At this listeners. today. for support for I questions we Thanks your all up call thank know for Sigma with

of Our go your who private George a Thank [indiscernible] [Operator coming from with Instructions] ahead will be the Please question. is investor. first line question you.

for my you thank call. me guys, hear Hi Can taking you okay?

Yes, can. I

Okay, hi Mark.

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in You mentioned you of us on is excited that? can mentioned many you wasn't deal? the numbers, if any refresh term us. near some clear again, prepared which from in revenue Materialise the revenue expected Materialise remarks, immediate your projection What numbers, And I some or the

Yes, George, thanks the for question.

right Let me opportunity with doing you Materialise the what now. we're or give let me frame and

platform. their their As are you with know, control targeting platform PrintRiteXD that MCP, we're to integrating markets. several They

are use, that the The already first from on are hardware in the OEMs printers market new and is that in coming the or second out side. retrofit

I talked our mentioned We are XX% side. I provide retrofit estimate millions in that printers with that that we Sigma. opportunity come Sigma was to of for is opportunity of If to an Materialise dollars in The get that the market, solution. on XXXX joint revenue today earlier and about there that place of what

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comes Sure market now stock hi the our Yes, When George. George. and valuation, it our to control. that's within

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should or questions. Thank I'll taking opportunity the in the the from some depending where say ask. more other for to Maybe – I people back. line my you in give Okay, come and several I'll everybody got I'll is I've questions. jump

You are George. welcome

you. Thank

investor. is question [indiscernible] question. Mark your proceed private line coming of from next with Please Our the with

the of confirm, on lasers? quality you printer know that is Sigma back what is on everybody these used calls afternoon, the of assurance like operations so running in-process sound that. that multiple better is recall is working guys I Good commend and case a to considerably I to now hard. Labs fact I wanted early PrintRiteXD gentlemen. in days capable nowadays, things just it sound in I

our single a with on and running dual or are working quad. we're OEM on we Yes, one

is Any that nothing except that AM to that of the seen for that that was or mean case, acceptability the response are that that now? indications I've indirect out is the PrintRiteXD to everybody case indications propel metal is is that you guys touted and that indirect the going putting industry we have world that I the a does in specifically know that few

platforms, we're quad Yes, running Mark dual again, and multiple printers the put specifically dual single hay only manufacturing we that dual companies which that. running Part And and we is was will RTE and and one too make manufacturing on dual on but of continue completed. quad, in several as I my a single, the run versions on to different for of the we're forward. laser, question. go highlight that will to good also and that remarks we single we of and multiple today both have more

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Thank you.

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Go ahead John.

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Hey guys.

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really So have some arrangements any you with [indiscernible]? going OEMs particular any likely and you not are to switched respects are most in and

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conference. today's Thank concludes you participation. This for your