NextTrip (NTRP) 25 Mar 212020 Q4 Earnings call transcript

Good day and welcome to Sigma Labs Fourth Quarter and Full Year 2020 Financial Results Conference Call and Webcast. Today's conference call is being recorded. At this time, I would like to turn the conference over to Mr. Chris Tyson, Executive Vice President of MZ North America. Please go ahead, Sir.

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

Mark hosts company's company's and results is Eastern the Officer. across Ruport, Your wires Financial sigmalabsinc.com. are President Chief afternoon Frank Chief detailing Executive release press the today this available website, and A the on Orzechowski, Officer; these P.M. today XX:XX

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

shortly. what Thank enter I we good our all hope for I the the that both you, in the joining to turnover healthy afternoon, everybody. XXXX we excited we're end Chris, activity discuss know hope of which and well call everyone and today, and for thanks pandemic. the as is final safe be start I'm I'll market, at and the as the as XXXX of seeing

I'll XXXX and review Frank? CFO, our for and financial Orzechowski, road end perspective discuss Frank ask year the situations, to XXXX. results map our put and a I'll First, then

Mark. you, Thank

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

results provide for our will XXXX. summarized the full review a of financial of year today, So I

Our full the full of XXXX sales a year for as the of totaled year primarily PrintRiteXD increased revenue as $XXX,XXX $XXX,XXX system. our of for XXXX, of compared to result

the $XXX,XXX. gross as gross $XXX,XXX Our XXXX's negative profit full XXXX for was of compared year of profit to

margin includes as XXXX and for our certain materials legacy as Our customers engineering the XX% associated programs costs of RTE enhancements year. with parts existing gross reflect given well throughout upgrades

cash from $XXX,XXX in for of expenses operating to to of of increase our and XXXX travel total in applicable primarily expenses total loss of of reduced $XXX,XXX, to Net Lower in million, year compensation substantially provided $X.X year full the year development full the as ended $XXX,XXX as was preferred $X.X organization $X.X XXXX XXXX, totaled the due activities XXXX. XXXX. expenses was travel operating XXXX. D&O increase million $X.XX common in and XXXX. financing $X.X total premium full in for compared XXXX an and XXXX, million for $X.X before compared costs by loss for for none to a $XX,XXX by in of The million loss used depreciation for our for share driven per Our primarily depreciated result share. restrictions, the were ended these in activities over a operating expense Cash XX, result of and XXXX, savings December $X.X Partially million December XX, salary of $XXX,XXX applicable of decrease lower was from COVID-XX of R&D costs operating product $X.X net net a and $X.X the dividends insurance due million an of public XXXX loss million completed $XXX,XXX, totaled of XXXX offsetting private $XXX,XXX in loss other net shareholders $X.XX of XXXX operating were in a offerings million, and to in common $X.X fiscal million. shareholders fully in million of XXXX and proceeds decreases preferred to stock-based $XXX,XXX, per preferred After in was in assets. expenses a $X.X of warrants. our in resulting $X.X for costs in accounting to $X.X of million increases and compared loss from directors proceeds exercise compensation the The decreases net consisting net dividends benefits of million,

of We have course XXXX. our strengthened during the areas balance several sheet in

December XXXX, December as proceeds of us in March, XX, warrants to in February Our a $X.X common at of exercise Subsequent cash public completed we million $X.X additional of stock, to our the $XX,XXX which $X.X XXXX. common year, to the to compared XX, an totaled at close of the and million proceeds provided In million. net resulted the cash company. outstanding offering

$X.X XX, XXXX, decrease of was December a compared at XX, XXXX, at $XXX,XXX deficit The a million totaled Our payable December capital trade XXXX. XX%. working $XXX,XXX at to $XX,XXX XX, December at XXXX, accounts of XX, December versus

raised totaled December over compared position, XX, December with $XXX,XXX will to business and year-end conclusion, call absence now In well Our million to date at plan. stockholders' XXXX. at I together XXXX we our positions the believe Mark. cash to And debt any with equity $X.X on that, in XX, as us the execute to additional back that turn XXXX XXXX, the our funds of

Okay. Thanks, Frank.

market company by XXXX perspective. market putting we in and that year by contrasting a as start opportunity company let's that And the the today. to it was our and do opportunity I'll So see ago, the

promise future. bright believe year is place processes. a agree, take place alongside its XXXX, printing is With its a fulfill believe XD metal As we And traditional company we to everything disruptive I than as were for hope to what I different be manufacturing and a a you'll technology ago. beginning much in that as we enter Sigma very

you needs to off good be a potential to pleased regard, point, some validated that with at to we're that In very XXXX. that realize start do I results. However, in tell I'm

Our Center, off great direct was Manufacturing contract was Space of the to a further year Design kick announcement last week and it validates as system an initial obviously with Martin a for technology. our Lockheed way

know, As you is for XD metal largest parts. and advanced using and space segment printing aerospace most mission-critical exploration the industry might

In segment addition are Lockheed Martin, to we to on and other Sigma. several initiatives a it with industry expect I exploration growing space be for

this announce Regarding followed new also with to Lockheed up we I'm pleased contracts additional X contracts, Martin quarter. that

will company, with from initial printer additive MetalFABX which industries The customer the shipped to the first industries, Additive European result with industries. PrintRiteXD a is laser, factory. additive direct for system again, relationship is of quad our an aerospace be and

We a we received In last in, joint to get in OEM, the for contract. a on Due Armox Armox addition, relationship COVID, a call made a year also first Turkish our just to it over the contract from initial by January. would materialize. took driven system

position leader leverage printing. of in XD reinforces the to that PrintRiteXD of will And distribution leverage expect me a a additive will the that what and shipped industries, in year. the a directly user with benefit model from we to looks we're for our end the develop quality that metal only start third-party As to off process Past be very installed be to to as set to out we're the beginning Armox different very as factory tells assurance increase we experience at beginning the year. so by Sigma different for

the ability full why versus is the industry years different So And an let's today. last realized that lacking prototyping many question look the to is and the to to was needed. market XXXX, what's XD out the printing They shortages companies from imperative. transition on is compelling demand and COVID, Well, a at manufacture have accelerate closer at Due as are can the believe will problem. as country it in of chains well complex industrialization. Entering the to R&D longer happened exclusion that the for and crisis. company deliver to year manufacturing no of event rigid subject and past? have the and they and rely times We than of where market metal start therefore, of perfect end the goods on delivery to manufacturing mission-critical the be supply parts part must and to this critical

and like saw e-commerce, side. virtual side. to of the lot learn It's optimize taken just see learning, After of and change the We're to a the difficult more decade Zoom. the meetings, Distance to that consumer beginning acceleration et a acceleration longer. cetera, supply it's a chain on to Just took all, download XD industrial we printing complex and complicated on

were one And DED some support Bed printing that XXXX, The mode. everything gas, COVID. in AM we increase COVID forecasts technologies market recent on a clear will of of aerospace, by sales had to reacted leading COVID. hard and expenditures. XX% World of X system printing beginning one forum XX the year, annual the processes those worldwide pandemic of I've in XD appears the of and Here's automotive, metal of many no will that orders to the rate economy. canceled Powder systems POWER, a of an past, noted or Sigma, that focusing resurface. forecast that XD the of their happening, delayed manufacturing, as and predictions listed and consultancies the the is growth independent accelerate the freezing representing effect due is statement. and by hit or From shipped. reducing world's dramatically of additive had industrial This expansion XX% many serve, understanding oil At it industries expect on the capital at compounded Economic several see will Fusion the we

our highlight to ago. and between to year fulfill I'd readiness few Sigma's now Regarding X differences potential, like a

evolve now Mitsubishi, by our and Baker as the foremost, OEM company. Fraunhofer, to and Hughes, such Airbus European the Turkish validated First and and organizations be company continues Lockheed, aerospace technology

our addressable product greatly entered Lite, we DED offering, increasing PrintRiteXD with PrintRiteXD our we've Second, and expanded PrintRiteXD, XXXX and market.

Sigma DMG OEM our aerospace of industries were the our product we further is has position. whose several real total with traditional time monitoring is MORI, X significant system MCP. as believe quality with a Last or of currently And including, bundling We the quad for have and we force sales in channel. Spring, or of a laser they addition, print third-party capacity, will industries over for assurance in that temperature the only time, miss enter field. standard year, additive version XXX last very In support XD customers and XX CNC a and preferred machine to entered pull first an months, up it salespeople a the year, of support that expanded, have added their machines features, new technology few the up -- Materialise calibrated awareness software. XX employees. for our XXXX agreement, an people in the and we our to now with with our agreement rate used no system create printers ramp in sales a through direct offering be monitoring and company of the the extend leading automotive introduced sales production partners, and integrated employees in and at leadership we demand to XXX,XXX worldwide to partners heavily had and experienced support for In our team This will manufacturing, this for with

mass, can in note, partners, have and the to North investing you It's our resources both the we critical for get we see, had Europe America. we that important to and As however, in planning are support growth. to so

my a building our of times we're capable model, times me supporting number X experience of However, leveraged partners. to staffing sales is current the tells and distribution level X since that

So the relationship is not linear.

the viable. last keep to did time, at difficult we some Finally, company financing this year,

members anticipate XD the growth, different becoming us part to These In and addition, discuss de of I'd now employees in just management salaries for the and for how process the foundation printing. intend but what of in lay a of mission assurance It's for the to much to to to be achieving the much milestones all of their we standard to different quality turn conserve Board facto like our we deferred a for for our of metal decade. cash. and support not our year. and XXXX rest year are objectives start

an activity is industries, first Our have our up both to X build to North revenue with revenue MORI relationships a additive and and begun Europe. significant the Materialise. that from And picking in streams. relationships All independent achieve objective milestone America is in we expect DMG and increasing

a announce year. to expect We relationship this new OEM

OEMs take time provisioning margins. addition, In the harbor resulting over in PrintRiteXD over we of expect to increasing components, the gross

production. contracts additive Another important just into multiple but milestone, manufacturers industry system serial is going Sigma for not from for the global manufacturing

increasing are We number network which environments. having solution discussions large enterprise, is of a for regarding PrintRiteXD production

to continued this a the universities organizations very they programs. in in see trained their manufacturing process international believe into will in leaders the value that agnostic goal of important to PrintRiteXD support quality and standard penetration I advanced with milestone programs. R&D additive manufacturing Future quality. use be of set expect additive assurance We is our when systems for on third-party

work continue As and part of our you to our philosophy, entire organizations contribute will with the to radical ideas to time see collaboration international us manufacturing industry. additive and further the standards

Finally, our coupled analysis. from used consistent the and different end front of a machine produces to and data real-time feed processes with printers that the durability set learning our can design, process initiatives, monitoring OEMs across build be simulation

quality where vendors, analyze to improve can the is our and Our manufacturing the relationships data build is used announce or collect used the economics and data the software of additive printing. ensure goal several to during overall XD process to be we with ISVs

optimistic a validates it it's XXXX It in enter global process our work level. it a third-party a for and reinforces do quality assurance I a we So system execute in to reinforces and clearly different demonstrates to still on and plan build a start, business PrintRite predictable revenue company. lot the technology. to But it we streams. have need our like ability and agnostic our order realize just -- a XD of

move and you the prototyping that, and I multiple have. is that, serial systems write might to the different And into that from be agree questions with So times for that rate the any begin XD. around to With you and from full Sigma with R&D to production time and me with answer companies multiple production hope I'll Print world. glad

investor. Instructions]Your [Operator your comes Lyles], proceed with from first line question the [Sean Please of private question.

cereal ask, and call awarded contract what us? I to you this I a Thank do appreciate unit -- you production for Mark. update. quarter to just multiple be it. in Hello, the wanted expect production to

more one tough my had ever half Sean. of a going configurations in we've that PrintRiteXD the I'm timing before. mentioned to about to sometime systems than predict, it, larger in will second discussions break and had of as we've the It's year. I the network be But and of comments, early

Your from the with next Aegis Please Harold question your line Capital. Weber of comes with proceed question.

was. of commenting market is? much this maybe this and PrintRite billion, to you larger. Before Could metro the over is you somehow? what talking address is much some we a of were talking kind $XX we you and years, of how larger market. couple on a the about, line, billion? I market is don't market that know have that product address, next -- This Could were expand customer new The what larger The it much about and believe we're that $XX

and full going features that's quality announced printing of with And at monitoring or Bed a optimize as who alongside DED has the If is work by deposition. processes, year not XD That's diffusion large today. require metal you We to PrintRiteXd fusion. is look that several powder the a PrintRiteXD. in at last largest another -- and XD pool for used It's assurance market, Northwestern, and process but another we machines. in direct that time not companies originally participate user the are powder of at several energy doesn't entry-level it's Powder is to relationship metal component. designed Bed which PrintRiteXD components, the we was functions PrintRiteXD targeted Lite Fusion, introduce the metal

to access PrintRiteXD So separate a gives mid-market whole DED PrintRiteXD Lite to us market. lower a access end gives us

of about XD DED, that at between are XX% printing that Bed printers look market, Powder today. and metal XD the fusion shipped being metal up makes the you If

and quantify bigger So how it's that processing. market allows the to to machine, provide the it an hard for to opens market allows the into us much move but it adjacent DED us up opportunity for us, entry-level

a are purchased different So they these they -- do this entry-level machines, by set? industry -- is

exactly No. same. technology. ramp people easier begin to for to the our provides just No, an it's use It

most Is it have clients, types then reasonable systems? to say of that both users customers,

of And are OEMs both having More types systems. there and those also of that develop more, systems. types they're

have bed look If both MORI, powder and they you DMG DED fusion a at machine.

machines. at both they Mitsubishi, develop you If look

If a for DED processes. users have metal Hughes, at you as components multiple often process and look end like Powder building repairing machines multiple they Baker is to a for used A fusion opposed metal components. Bed

by So a both being the also from end used you're and OEMs seeing combination coming users. both the

Okay.

market is expand line helps applications? this our bottom the So

provides Yes. begin lower technology. And our for that want a to entry new ramp it test users to

Okay. Well, really good. that's

good. really That's Okay.

proceed with Your next Alper [Operator Hammock Lee from your line the Please Investors. question of with question. Instructions] comes

sounds like give on you at Can us bids many close? some it Mark, time estimate And the point? on this some to Hi outstanding track. right how have on maybe we're color you

you have X time I over to The if we has X bids number greater our probably many this can How of that. pipeline the that outstanding. tell to not pipeline last we bids increased months XX from a than this time X keep year, fold varies to The close times X to to track year. times saw tough of. But last is X months. is overall what time

the a XX contract Mitsubishi been remember, in the looking the But perspective, closed, have a Lockheed over far in they've other If our close opportunities Martin was like at year was you that in longer not than making. even we long though about time. closed from a that contract much was for we Armox which technology days, a from

the is decreasing. tell is you, is time the increasing So the the thing I to one and close bids can pipeline of number increasing,

Your line Brooke] of the comes from [Mark investor. next question private

time feel right of direction. now, long for definitely moving and the us following a things are been the long, like a long, in We've company bunch

that a Sigma do patents XXXX do into Do observation, for got in manner wider process company much actively there frequency and to get it has year to has you and how So protect X much Sigma world with labs product the observation the is the feel the then moves audience, to in move spectrum Labs perhaps more for the but Labs that Second a the now. Are of you Sigma question in is the the out audience third that than I Does quality. And that for them patents beyond different -- breakeven frequencies questions. is question you profitability? story spectrum? sophisticated against are to patents. protect of playing the at technology region that current that's with the around the of competition Sigma looking Lab's going those in same the do different

into little a Mark, I you. let parse of a lot so that time, you bit for see if pack me can

market and profitability, given that. down guidance a how growth breakeven our on the as going hard It's push come to and far As how want of responds. we lot to we to haven't

it the the from reap not It's we that be. this can't to the So to investment. the we investment be will dependent it get, be going will And want level it when activity predict benefits of time make to takes we year. exactly and on

As far as customer the getting from perspective? you perspective from about a to a a wider audience, or talking are shareholder

the Actually both, in it stay invested and Labs. of away Sigma great get originally shareholder be to We actually movement just capital course, but a all fades it because in intending to perspective. I was And nobody wants then, company. market

also both. the think is answer I So

of to and to to audience a are now lead awareness we presence we deliver market. other. wider And the in-process believe the when benefits increased comes quality our wider and will as investors. expand leverage we get the of the into it I to results, our the a the So will assurance. audience and one marketing today. We visibility We've have going getting our

to active putting As us, from to patents they portfolio yet very asset us together they the far patents technology. and valuable I we as is do thicket company. are will a it how competition be and we've protect a for what packet around extent a in our that believe protect and believe seen, but some what the regards the been call

with of Ralph question Your Investment your comes Weil Weil from line R. question. Management. the Please with proceed next

had once or it order How Baker be One contract, one getting And and simple Lockheed. you've or long contracts unit. or -- been orders from question. one do or whether Mitsubishi or an Airbus The you you what Hughes EraGen time for X, to they take won will to for just different companies period like they go thought they hear Are most ways. of X that And your on X, feel these testing get a before that. in I'd X, whatever.

depends, competency Ralph, level system on and company really the and the the of Yes. acquiring doing the that's testing. sophistication It the of

Martin same one we to of their I'm defense. that can companies some aerospace with I company's for area one say that and exploration more from that with XX% and multiple when quickly believe it say sophisticated the comes knowledge what So I has to do move and that systems in very XD we they true users can we and and going the needs. of if do Lockheed address is of than to dealing is prove metal instance, other the printing we system that we're believe more the probably of will space worldwide.

system, an assurance multiple or So the system. agnostic printer able they printers a be people this the understand multiple less to If need. third-party understand they for the it they they X and need vendor, for quality from vendors, initial have to same printers get as value X for to have -- takes while

they XD from move and as which tourney the will of speed purchase initial So technology use their to the expands, will multiple increases compress. in our metal an purchases value of

is, initial So the increase as the to customer purchase purchases it shorten. will from multiple matures matures, and really speed the the opportunity to industry

expedite you that? up companies your sales marketing and is time? their to the feel Do Or take to help the to that just team it in and additions will

the with down factories their across the point Then with combination that fill XD We maturity regulatory have market of But it expedite imperative have of of machines. into other view overall the single consistent the machines. it's the multiple and No, people help a companies to They to both. that will coming companies knowledge. industry where are multiple systems the to can't those of with printing need multiple agencies you have from machines. a they components multiple they clearly that telling industry have you have quality get

Process and consistent and think like studies system and having quality see becoming continues obvious to competency that as look XD metal of production. monitoring and more of will move we you printing see and that And the Fraunhofer I quickly on being more that's assurance systems you compressed to to industry happening time quality the do feel. organizations more So more full user systems use the And assurance going as they're increases see And XD we metal the to. heights ever before. than far saw people the organization, that the with everybody a and of that and are if as the fact the field more working get of overall capable step third-party to up the customers to technical in to printing as than believes salespeople take have both explaining reinforce they companies can and the and quality the the benefits

Your next Yu] [Devin question of line comes investor. private from the

machines just using in machine a would on lower assurance the for end for for general? a user, better are PrintRiteXD about you the end How -- that have if they're need I Lite. low question on need the quality thinking

Say that again, Devin?

PrintRiteXD Lite necessity have product? to what's we how machine, the pick they a the care if So about up versus much end lower

Sure.

$XXX,XXX $X area the describe compared $XXX,XXX $XXX,XXX let's high-end is of lower so machine, a million. machine to A And lower to a or machine. in end end

quality machine about is that's type under end application. the $XXX,XXX. end And not that a by lower they're part for machine talking on lower in that really of building dictated the the assurance we're So the need

applications used Their applications. one need as end level the producing machine higher has high dealing machine, producing. mid-range just we're the higher end medical as of machine quality with and not the the a So is that's for that quality is dental end lower for they're type for of production who OEM need

of and it's So the a for. it's the extent need functions they assure part the they're looking mission-critical and of that cost full a just features lower PrintRiteXD part, quality to still don't mission-critical

And then second question.

the and prove or out to the assume we're quantify of to a cost As end you then you go qualify time OEMs you're that I the typically on takes to what them users, pick customer? trying savings how it can much to at end picking and day,

Sure.

when you investment, look one management. the to first of the So look at is things on return at have risk you

qualification focus difficult able process technology you design to to get money downtime, more So machine to and simulation the we're of PrintRiteXD we past from you it With build And waste every an you a quantify. that, prototype machine without cycle. to cost times quickly reduce to component the to a get amount than go you get to another cycle much takes that's are part to going you a that PrintRiteXD, can to if on cycle quality time, and that's production point Once cycle qualification ours. like you're a the have part, material you large where time through for time. using time as through go example, and you from you

waste, end able machine to to downtime, material So time, between quantify user. an the benefits cycle we're

on what return dependent X on than actual to as is takes and what time to for far return. years. that the upon investment get the of investment, systems one we’ve That's return producing, they all manufacturing less of far the it the seen As but specifics so from

have reached the Ruport end we to would for turn question-and-answer Mr. closing gentlemen, like and remarks. and the I of back the Mark call to Ladies session,

X say, fact of back we're and reinforce of for now? things. everybody believe like the thank to you I today. that their And would seeing convergence time why to amount the like activity I within if the step it's industry that I'd the is tremendously. increasing

has where to going on to has be they critical the be The is first an parts. cases to to And be and that's more requiring closer build have end be parts the able of to and user parts built avoid demand, particularly industry those manufacturing critical to imperative them. and crisis It shortages to agile. in that of

better, getting printing the acceleration that's technology that's of getting the take materials field user itself. are same better, getting technology, ready thing our competency, second to the printers offer better the are better. coming level of with together our of XD The science And the partners all Sigma, and the is our causing the organization are getting is at advantage is The opportunity. time, that

to we the very to and industries. earlier. to people different expect we talked be year about end more do sales users sales aerospace, segments XXXX than see gas to the OEMs, in expect So have defense, that XXXX. asked, a do oil And We additional and as multi-unit automotive all

appreciate look I your you on of we your to look And forward other and be time. that today. QX will the believe updating to time again very a you forward what start successful we that, for answering Thanks XXXX. with have. So We might questions

This today's concludes conference.

your at participation. this may for time. You disconnect your Thank you lines