NextTrip (NTRP) 23 Apr 212021 Q1 Earnings call transcript

Good day, and welcome to the Sigma Labs First Quarter 2021 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, Executive Vice President of MZ North America. Please go ahead, sir.

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

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

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

the the thanks, to the a year. normal new families hope because you normal. time are for in Thank know everybody, and new for the you, closer an call airport I Chris, I'm your we I'm as safe and joining today. to closer get first I sitting and in that well

also direction. if apologize. in to noise tell you right you So here, Sigma And ambient that is pleased I'm headed I Labs also hear some the

of plan. about printing, and and of XD business was all our acceptance aspects validation of execution. QX Acceleration PrintRiteXD validation against execution product metal of acceleration, our So

in an were plan year, As on despite ourselves exciting the and position for very to last month, able call business XXXX we a XXXX. mentioned year-end execute I challenging our

position leader my for focused metal that entered quality growth a as belief a reinforce results QX our the printing. new has phase, assurance revenue in on securing clearly clearly Our company XD and

have Before I go Frank? into the financials. detail, more Frank review I'll

Thank you, Mark.

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

So for of today, brief I'll a first overview quarter provide XXXX. the

XXXX revenue quarter Our of first for sales quarter quarter for revenue this doubling to unit PrintRiteXD The first in the a $XXX,XXX increase first revenues $XXX,XXX, of of over compares totaled due the XXXX. XXXX. to of of was the

the the of Gap] first cost goods, a XXXX nearly customer for of which compares a reduced enhancements, wind combination negative quarter gross and rapid [Audio first $XX,XXX margin have gross RTE lower of a to which margin manufacturing our during of in due is legacy unit Our of to gross complete a first and gross quarter was cost. The quarter test improvement a of exchange the for in the our at PrintRiteXD or XXXX. down evaluation of programs, resulted margin profit XX%. of This a

XXXX. quarter quarter the first with public whom of result of primarily of $X.XX lower X.X operating addition as the result relations a to employee. expenses and X of the restocking PrintRiteXD compared million, as totaled application operating staff, business Also investor administrative for lab expenses from was version the XX of engineer the of materials. expenses four for expenses and development increase R&D XXXX contractor software of is first the decreases first X quarter; The quarter previously and operating million. the Partially total offsetting Our employees were in trade X and increases of $XXX,XXX supplies of of $X.XX resulting during expenses engineers, these us, advertising four were to and were increase development contributing XXXX and show while first a

X March principles us to for was of Our financing. from the the required the authorized issued exercised. not our months of available do This we liability value the $XXX,XXX. ended warrants on the since XX a XX, accounting derivative other the March have warrants, an accepted record income if XXXX, fair liability enough unissued shares and March currently XX settle as revaluation to income unrealized Generally resulted gain from

in our We of The used to loss are of the $X.X $X.XX XXXX. XXXX, be And million stockholders XXXX. permanent net compared common a quarter XXXX loss first was quarter seeking will or authorized the share approval, to million to to $X.XX XX, $X.XX for we should for activities March quarter applicable first as receive the Cash first meeting. $X.XX ended May per XX stockholder stockholders net the at quarter our common liability to equity. first special the share $XXX,XXX we able approval XX, totaled ended increase operating compared shares that in reclassify million to per of for or March

XX, and million, back our XX, that, totaled XX, March as compared capital totaled XX, Working XXXX. call December at million at at and at XX, Mark. XXXX. XX, equity at to million the $XX.X $XXX,XXX $X.X And XXXX, now to million to XXXX, at was $X.X XX, over December XXXX, I'll At XXXX, Our XXXX, compared March to compared December million March March balance $X.X million cash $X.X as turn at million March $XX.X as and XX, XX, at $XX.X XXXX. $XXX,XXX stockholders' March with XXXX,

Great. Thanks, Frank.

returns company results the can ago, the financial over not it's We're indicators just for are my revenue financial every significantly see leading but hope year improving improving. metrics growth. metric other business that are also future on experience, that, beginning on to I the you As you the areas that investments and of in evaluate improved has our agree, in

and Sigma increased our Labs our PrintRiteXD specific, research both increases influencers is generated leads. the month-over-month First, industry. highlighting marketing those have have in as webinar inquiries The as organizations and programs profile well the industry and recent

the the Secondly, in hire to hires progress field adding XX new to facilitate our to assimilated QX. to We them through plans, the into company contribute our flow and our in deal expect quickly resources partners.

features Our have pipeline industry and discuss which played in sales all engagement and the resources our PrintRiteXD increase collaboration, ground in running. major NIST, see sales hit core philosophy role experts opportunities continues who also to momentarily. with gratifying are new our and X.X, I'll that a of the level of radical to field this of case, It's very

in the MTC, as earlier, Baker manufacturers, that defense Industries, with to defense validation metal mentioned agencies addition increased XD that acceleration Northwestern users gas of we continue Materialise; and The Future XD government OEM, Airbus, that including Hughes; aerospace initial around the Lockheed printer and such as as printer technology of by such a these Turkish sophisticated building printing a us international are globe. and and contract our Martin, I demand Fraunhofer, build EWI; the including independent prepare handle market company; as coincident Finally, leverage our software European DARPA, and INX.OS; of printer R&D to leaders organizations who also QX. actions Ermaksan. such and as oil as like and sales with believe The Ermaksan, -- I with companies, is such companies, XD and us XD organizations, got Factories an we the private order continued model we accelerates in MORI, aerospace industry like DMG recent ANSYS the are Additive gave

the focus as on we order happen multiple single we to in few So the driving to orders. see what we First, quarters next need begin some do into of need system contracts to turn revenue?

best seeing to to hardware software existing increase ensure organizations, going and to additive to will ISVs. our additive universities global And technological holistically, to programs partners. partners, aggressive and finally, with the and We're continue OEMs also printing going programs, We need of advanced DMG Additive activity increased manufacturing hire XD also. market gaining pleased software there our say, sales then our to inroads Materialise. we're manufacturing the distribution can continue in manufacturing and And deal and engineering Second, flow maintain support that the or lead leverage with R&D model specifically we partnerships. with MORI, expand additive I'm to to new we Industries, the industry's and increase attack continue through we're printer manufacturers talent

the difficult result past, mentioned to The predict will come. XD an exact play will and we although and in timing, -- being quality are in believe and inevitable, use is that to end economic the and manufacturing we I've broken increasing quality the globe. economic around that the the down, As velocity see direction and printing and the barriers for increased role decades vital

few for, a some to PrintRiteXD AMUG Finally, the groundbreaking that and talking announce significant features AMUG a weeks the It some at in the we'll releasing for excited I'll in is weeks. Conference. of we'll release couple has industry X.X at be a been features about some waiting be of that list has I'm that time. very

with machine-to-machine understand. temperature important the and for is sure it's calibration. And most monitoring The and we important that can This is NIST. first work I'm do you calibration, very which

a it's begin is potential We'll to to a This cross-section it's enhancements usable for on defect analytics holy-grail introducing is monitor models. to extremely to analysis visualizing Multi-laser or We'll the also and machine-to-machine, a look into the doing of expensive. also and post to users lasers for introducing used analysis, data and which you metrics. that introducing allows contact anomalies. past easy which XD based history also predict in-process And visualization anomaly. when CT some If and diagnostics, comparison user-facing and the more ensuring to recording data. predict consistency. We'll in is are quality provides doing usability control and enabling quality framework consistency be quality that the of and This close we're predictive calibrate production coming course, machine of process, at rapid be CT tough learning issue. developed interacting, can't a reference alert quality we've statistical but user and be

users. which enhance security, user more is a major So more becoming important to for the this is step industry. and finally, And

As to advantage. we are new features aggressively believe you can see, that continue introducing our increase we will competitive

that, same of and glad to Frank will Operator? With validation mentioned was I at see the to QX I have. about and coming comments, be acceleration, questions might outset my answer execution. I the you the As quarters. more of in any expect

Instructions]. [Operator

Barry Spartan Securities. Our Capital first question from is of Sine

impediments, talk we XD been that to get printing you could been turn this no equipment. has need in when significant been sense look available. I selling just exception, you've Maybe big see is the picture capital than you've more If to and get printing of the company state-of-the-art, of the industry, is and selling as fund revenue -- a I back, the stock be metal year being wanted I it's hoped? of not printing kind accepted industry, And might revenue. it the some XD as you that not about is seems in the on had Your players seem just you in yet by major just technology the seeing accepted really being quickly we're not to top-line. is but the you best like

You've seem of all they employees. around think resources, new that, revenue. I added XX I a And generating to lot be listen to

point at So of a than we revenue top-line company? of where sales to or you year might what more a stock quarter think we on we see the do the see get

Sure. we’re question And fair very asked. a that's

advantage to believe level selling an opportunity increase do I'd where us. wouldn't have opportunity in getting when without material question, a First of be, expect that to the answer very what stock pursue. and I we the part in second we'll multi-unit of important of was believe take the we to the begin to the see to was An will sales. at half important second And say see revenue? we some companies of that, year, the we can all, funded

the As far impediment. the question to as relative list

our using somebody have production The printers forward. first the makes And they into multiple for that's is to companies XD more that level company required manufacturers. and move printing. of hit proposition that number different what's from the value metal seeing software the going -- have where more production We're

Does So I that to your the the will say second year, question? of question, the multi-system your sales. material answer driven in second half answer revenue by

now I me. What is it Are don't very product? and And of XD lot on if a that just can helpful. companies the an question, don't this accepting they on error product that understand other just are in Sigma be using doing a the -- forgive at high XD may in of chance taking printing going That's Labs or so edges the that not they process? with rates how a And printing that. you follow-up anyway? doing are faults are the ahead kind have What are doing? of metal product mind your metal without a you

to R&D, relatively they catastrophic. worried Well, it, acquire about the obviously, to is, low-value that's start a to because But the and they're and vision your printer fulfill prototyping we're component or question something trying when answer happens probably a quality there. the it's if in with not not consistency are that they they

As they the and go more those mission-critical risk goes up up parts volume, and that as they catastrophe parts move complex of competency and curve exponentially. into at build more

get that a curve part mission-critical, through what low-value so that's go have And companies doing high-value to to product happen but doing levels see that's R&D that we'll competency and is as up, mission-critical we prototyping begin point inflection criticalness to not see real goes the is risk from to a more it they mission revenue. go up. production getting And levels. production in our to into the And when

don't you if X last And question, mind, please.

You've aerospace, of expressed seeing and the optimism half it consumer products? optimism Where broad the What Is devices, interest that seeing shipments. industries? the driving medical are ship year your machine multiple are start you most to What in you verticals end you'll in? is what that enthusiasm? second

much aerospace, most is exploration can now, and because and a the and those you of see a the hear in draw produce parts so and car like Right are from space about number in talked creating mission-critical the I why is coming of we to that a users. the sitting they at Right putting Department Sure. the parking an visual, I Defense. by. just you all end acceptable lot high-value and of parts of the become I'm reasonable system now, up, goes a as And of And parts increase at that's airport, the ours earlier. those usage reason go the activity more guys economics

defense, globe and most the aerospace, we’re initiatives the exploration space seeing So of Department around Defense where are activity.

from is David question Net Trickle Lavigne Research. of

want you up So your minute, thanks at the last it early. to refreshing to sort companies most seems first, of reporting have Frank I size like say very report because end it's to

just you doing So personal must to early note, and a of report be staying refreshing. on things right top something it's so. That's and

as it kind things to down at and going would sort was you your to value down the I've proposition to for we it. the the the felt about of of there successful that side. of have guess, feel considering is one you you do notion I in the OEM. I've from to you're certainly, kind adopt take OEM always And the those you one metric ultimately, by manufacturer to how like be on progress able done this Mark, So of directly to always measure be me really seems this that progress terms looked things And opportunity, the that, that And to good on going well, making should of me to think maybe is a OEMs pretty being critical. be drive to could of manufacturers business this. that's some like, me, I progress to the of in to success them And that? get of Because that's the

those that vendors have on XD multiple metal competency nature printing end what from multiple we about I or puts up as your demand users product creates multiple pressure of Martin complete that talk users the create If end Airbus the are understand curve our the from printers like who generations, for or OEMs. and market attacking an well holistically, the I are the question, for Lockheed when demand

mentioned the monitoring a other I've own that's as is works system past, that what system. XD printers. the monitoring Now manufacturers they But on most in of printer have people's consistent have their don't standards-based

users, success use We the to with approach our begin put So the from system OEMs. the we not would put with it of demand OEMs on like create the I And and and pressure combine monitoring their analytics. ones but to pressure, one have mentioned is their the cooperation. compete data system, earlier, end with to our as as like monitoring we'll we

So opening manufacturers demand, users OEM the it's end the demand a between us. creating up the opportunities kind of and acting that relationship people, symbiotic to for

So where are can us on they salespeople focused? just you tell most those of Or new are focused both?

focused both. They're on

then So divided focused they're both on And vertical. OEMS. they're by

on with side? you've happy progress the the made OEM you are So

We're we happy. other that we're early stages. the X we working Yes. very several then in initiatives and good And a for pipeline building coming that are have with are One now actively online, us. that have selling

OEM take So said, their And of system. I deals own most as monitoring have time. them

need progress. to first. we as doing happy we're demand So we well can, yes, as But and create the end users we're up from our with

Okay.

X.X, of kind X.X this sort X-inning grail? or as the is to a holy closed of we've that's game, the If like system in referred So is how a towards it sounds to loop. what progress always game closed me towards closed-loop the far

I'll of and game, then it's of David, in X-inning the move we'll the say, X. if on top question. I a question, to answer X, would another the bottom the we're But

Our Bill question is from next Chapman. shareholder,

you'll keep to go into QX momentum think QX? from you Do

the they to marketing inquiries see and add manufacturing relative momentum brought the the already we those organization to sales our making that both are and up quickly have to clearly companies inquiries to value from from field background speed additive because industry why the technology. QX. come that's And as We into Yes. that mentioned leads. such the other in And we track, into and going why that's veterans metrics I the

So continuing. yes, I see the momentum

good. Okay,

the the second year. of You fiscal had half mentioned

appreciate hearing you So I that.

did from too, Additive? on, any me MORI DMG you get you, Let or revenue ask

directly And their assembling was them. to through it was company and right aerospace delivering in floor directly Additive, be a system European the in our they're user. the headquarters, with end from with we'll OEM printer the deal The factory it now their

We sale the fee last X this X QX. quarter, also Additive customer evaluate DMG have X a trial get but but with got MORI, quarter an technology. X to or our where coming going engineering to didn't quarter, we prospect hope is on paying get this we in

to hear. Good Okay.

how Let's the you margin XX%. a that gross see, future? for And looking of had is

XX%. it stay will it on Frank this finish. I'll Well, But I at ask at comment XX%. to stay won't after

DMG Our Additive target have and consistent new is XX% to little Ermaksan XD some to XX% XX% some we'll to do that? of any systems history old through be revenue Materialise, printer the you winding able on and downs Turkish XX%. to we bit and XX%. It's more as Frank, drive And inflated deals. metal a a of And comment and want to because more some manufacturer,

Yes. to of things. that looked couple the engineering gone which is number would has top components. through bottom the has us cost allowed made really say I One of the at of a and number product reduce a to enhancements, of a and group the

come And did customer system the that they of what at older want really XXXX. had our the XXXX. was cost decided of a and systems the didn't a of and higher older it cost. end a They XXXX, We receive was one And shipped system. at system. has wanted that new system, we quite a down from that early a goods XXXX our it first in in the So of bit benefit quarter for

them of into And took of ship lower one of new and credit a systems what sales our a that in inventory, about that much us onetime happened system back $XX,XXX. at so effectively, older cost cost, our is gave we

of about related first points us Mark's puts squarely about for in that. XX But that in there XX%. there's percentage the quarter range So to

going XX% target. be that So yes, is ongoing number to our XX% is pretty to comfortable range, in which we're that the

Okay.

great. Thanks, ahead, Oh, Mark. Sounds guys. go

other to that. to One thing add

take As have provisioning DMG goods components deal of I've to do solution. the because in we mentioned some lower the before, that today, we the Materialise, a MORI our we expect over with utilize when hardware. we cost of of the OEMs they provide some or And a

stages, deals approach multiple XX%. over As to the the go gross they for and expect in margin provisioning of up the OEM hardware we take the

comes Our next Group. question Charos from of Symmetry Anthony

will I activities a up? congratulations. you those from? do do areas? And Mark, increased just And of sales will you be question, believe my the had believe is pick X coming when you quick in do see already. Where it those questions answered why sectors

Sure.

to and produce production you earlier, As exploration then create pickup. aerospace, I parts of risk demand we're And more on and the that's critical a mission-critical on the level, increase demand because at mentioned Defense, growing. is seeing the And reason is your goes most demand the space production in up. where them the parts and as higher parts Department for

that's think They're XD expert what I of they're also users So printing. seeing. metal

they multiple printers. So have

reducing mission-critical, going the risk So they things direction products components. those addressing and producing printing have all those and the in economics high-value by of of

most where that's the So we activity. see

their more have The is range second the parts stronger, down for They competition their we're more get activity and in area vehicles The electronic where reason. and is again, tough. up. see get same costs And beginning to to get in automotive. production durable lighter,

a lot that there's we're see. to Those involved major activity we areas there get are of So with. beginning X the that

Martin is next Our from of Ferret Capital Roth Management. question

of is will literally things in that hasn't or make XD printing I of is metal, do for ability used explode? the XD question made printers that the been ask would to there like are demand to XD metal the that First your ability yet a

more you're Well, market. on and seeing more metals come the

progress before, And continue more couldn’t science the last and doing the continue. been the that materials expect over imagine to they powders the made materials. do invention the is to now in industry designers the right XX for innovation X drive from it's design that's couldn’t allow of the and I said most the that parts months, to in see and past. an things active given innovation and designer allow powders I they the metal -- never as to the of But to the metal the that's expert I coming when it and alloys progress not am things, past. comes So the

industry are will, inventing market allow right to the So thriving of do in couldn't the earlier, and a part past. it's said bringing lot now things a they have I of to innovating -- as that designers people metals done that

book repository top to Martin, you order. -- X to something a and with various customers me the that technology, there with your as for you that it events be than My something this hot, a something to the it's a from up? able where in fact relationship regard them how who what like in want all and refrigerator. that was a X are conversations your And If and yet, I'd shapes I were at think you I is, that. burner With may the is significant may is made I that at question potential regard certainly win quarter on turned classify having thing you you on. stove validation is specific, that's Lockheed that that look you're not to were contract me them way, a were One be the of that's second Could if know. let that higher on performance still be back in that this characterize able is looking you the

curve Yes. is all manufacturing that additive the across where because depends their spectrum. their journey on their relative Well, it's it's to on prospect hard initiative. on and It

that your would being the front. as we in And out If or several you Hughes, Lockheed first category conversations have put hot. in clearly people very category, look they're I that at Martin Baker

religion, a And with they those selling the new we're have people why things cold, a is they them. to trying We already category marketing our the are talked don't course, know people who that of people lot about see know yet. process or agnostic you're standard the that who selling we're And hot, need the one have of you conversations they selling users what efforts a past then, the middle up, of have whether both educating who to third-party know of the need address really are third-party come system. bibles because quality To preaching value that's of decide And based the bibles. in you To you issues. in are religion assurance system. and we've

very have to have that seminars that the our whole Does and to challenge events our radical are that collaboration your specific back And the for who industry answer webinars really advanced very strategy. industry, ones and question? We users engineers. then able Hello? goes and we educate

is Weber next Aegis Harold from question Capital. Our of

Nice in to continues printers. if not? new sort regarding see are that will you're we're build. to relation the that idea. momentum the know good of question, a you new improvement. or -- it's thing of I the of some make, these don't Tier I that hope about metal In this new X of PyroGenesis guys so I'm some called recently. comments sort I metals to which put with company These is new out a what of these doing. an with been I'm is familiar agnostic would they've materials Canada. -- making came in these of they materials put are it's metal wondering or story these the -- do they're -- whole whatever it a buy usable, metals, type and how overlap Is aerospace making we this, there, assume our to whatever guys, can that assuming supplying they're into they Is types

Yes.

the to type agnostic metal. we're part, most of the For

build course, new As process. metal the during to a reacts metal comes how we have on base out, that the knowledge of

with customer its powder, titanium a just was part who through dusting with So XX% the there example an recently, production. a is

And we have that machine people learning. have we're to have to -- to seen metals. different fact We it so with and our beginning see knowledge able of in to agnostic and that, can combinations experiment except to be types base we knowledge to for our use of metals enough begin different and predict the enough

curve is of one us, quickly. a each we for a So little repeatable process but learning that a relatively it's bit do

market. customers So as statistical and I to to some trying a expand, conscious with so about metals would database Obviously, the for these online, new to give first materials would like to how these on new about to these that additional coming advantage products think coming new so the said, that we that info supply the build proper you forth, coming us is new new and we're like out going applications do and materials market that's of hoping? purposes,

case, focus we right we on. now, the In user Sure. ones let which drive our

dusting ones So coming But more choose base all build and If look we an we'll out more pick value example that. around and combination and user, titanium. earlier, that used qualify has of that of then and don't the a and becomes the knowledge as the I part standard all process at to end them. are with

basically, requests doing based you're from your So it customers? on

They're our amount predict new we're try, of have whole But a sector, the to going Martin winner, it. if to comes up nor we Because keep driving be like prioritization. says, over could and we all the Lockheed Yes. the with it. in activity metal not material we'd

-- industry I'm nature? you to less the you seen responses see base to heavy type announced our that? PrintRite wondering In guess, regard some Okay. and the you What I regards have new Lite little applications customer to that back, that? industrial on have expanding that things potential to of in other while users, of seen what a about

the Lite the less PrintRiteXD go that they the Yes. OEMs more activity can end system. relative a OEMs think they from users. to than sell we are the expensive seeing I We're after product, the want lighter before And from product

honest and users. the I lot you, a activity think to end and a amongst users activity thing. And more of be end yet. educational not thing that's an with marketing So OEMs from And

our will think OEM on portfolio. we it's the an it more. still we So And think side to product help important

say we that OEMs for it are applications? is the customer looking Or… reasonable ventures, to customer to more So

mean, I I and talked our earlier, to is philosophy our market yes. the Well, holistically. attack as strategy

So then we can users amount if create want into PrintRiteXD they the and a to leverage where go of tremendous leverage. take off model. that's mid-market, can the get the of get and company, an our to burden the the provide And we OEM the to we after but end and Lite OEMs sales demand a

the Lite the OEMs as through So yes, distribution. it's for primary

that up see having take we do In effect? general,

activity. metaphor, kind mid-stage hot example tell have in all forward. right the now. We that earlier, can't but the nothing burner, you of on use I back It's the to moving the

to products? our regards in mainline And

sorry. I'm

main product? I'm sorry, in to the regard

No, in Lite. to regard

Okay. that I stuff, take is up And other how going? on the

the earlier, to good. continued And very activity expect said I As I momentum. is see

opening going at stuff, Is do type other see How what in on you an have we're you do globally that international this do deal point? earlier reactions based you on? up places? I maybe of know

is about same. we of global. definitely quarter, for got the in this the quarter. the It's I deals were QX, the believe Europe X X forecast coming

And continues Europe as our U.S. is customers. have some as in to going quickly dominate coming we The behind. So Japan. on far activity

Our Martin Capital is from final Roth Management. of Ferret question

off. Mark, cut got I

of a questions were missed I couple that asked. So

you any units ask me Lockheed is Let considering additional you from this. Do that any you? indications have

-- industry, have All No, we heavily have stood and do challenges. our engineers, I not. challenge up to with who believe engineers best is can that They our are the responded the you we are in I the tell them. engaged

going still all we're where their their and they're that tests analysis. So in phase through

they're So lot has customer a X right of a system new now, that potential. with just

additional see more things versatile? any product that you the could they do Do make to even

Of world. course, they're the most sophisticated in the users one of

them. we more customers ideas only collaboration that we than great could can us they so the have and possibly so very help and with have do deep thing to features And we accommodate. are the understand much, the so functions that most that about that they prioritize is But our they important it's

it's very beneficial date, relationship to fruitful and a us. So been for

primarily my Lockheed you Martin. I'm I to comment calculation, guessing due that of -- was the sale on that? by Would to sales doubling own the

of it No, the was primarily That end, we higher the quarter. systems at to to that it increase X in sold wasn't board. the the And Martin. was but wasn't an X It due it across was it. due primarily Lockheed

Now with be going added Ermaksan, that to make where to sale going Turks, is you're option the the an regard to Materialise is to right?

Platform. Control our We've Materialise's Materialise’s. case, technology with which their integrated uses In No. that Ermaksan particular MCP, Materialise is

I'm It and And install went factory a on trip prior the the together use I it machine technologies So user. and trip integrated on to last Turkey we the to did sale And to that right I the joint to deliver on their now. January. our they last was end did then Ermaksan.

system selling. sell or hopefully, cooperative, that expect and them sale, a X integrated a quarter. more more, Ermaksan couple X it's using So joint to is And this we

Now didn't a Materialise is that Ermaksan, right? make to have you is to taking along, you sale special

a made we No, joint sales call.

I understand that, really but one make is the Ermaksan sure, that's the lifting. doing heavy

a us. company, into they broader have mean, it they're they bigger us reach brought clearly was effort. than I joint that much a yes, And customer particular opportunity. think the But I -- bigger

will to to that regard profit. be they and of profit a above fair that, over With Is earning say? your Okay.

their No, sell we product. and they product sell our

of that when no -- traditionally much wasn't higher they of a gross there's we with the matter and is provide, hardware Materialise a because we provide Materialise would Platform. it So if our fact, sell integrated some Control margin

from is question [Paul final Hammock Our Berger Investors]. of

drill some revenues what in little And and will indication year? on think Mark, bit a estimate down burn? quarter be second can more you throughout also the you your cash the of

Sure. Sure.

on I not than, there what we'll and should the as lot far what's I quarter-over-quarter. provide increasing increasing is is I'll multiple see say A other momentum we're first that hit As that Paul, And and believe see all system your when to the revenue of guidance, revenue timing question? that to revenue increasing second But you guidance I'm we revenue. relative depends sale. continue said earlier, sorry, giving to

your cash some indication being? what and Can burn cash you us on give

Sure. Sure.

about and you $XX release, in as million press we've So got in from heard the Frank also cash.

from business based down million X.X build going burn to went to demand. in Our on the the quarter. X.X cash million first We're

is, the quickly go to about And little on how as it that companies expect our would build product curve. the where competency that depends depends for burn that demand we down the cash bit. I and company, on maybe remain just So up a go

can now. building about far yourself, runway, we're that funded it. the and the the I'm as company but not funding So so worried do calculation worried I'm driving as company -- the about you

somewhat that hope I your answers question. So

can you I any it that just making get there? will in also, mean, take that And of there, Okay. progress And give machines? are a want the you to that area? are big not little more to Are you -- machines new into already what hit areas color out one

Yes.

was As machine. machine a existing a was Martin, General they concept Airbus an laser fact, matter Electric of the Lockheed that had.

getting are So activity and retrofit more we market. the in more

that we us opportunities state-of-the-art And as and to that it type heat in We earlier, to towards that, system. on generate our have a can and technology, up an Materialise's for Xth, take a printer expect the you of relationship is Platform an because Control mentioned bottom the with as Materialise top closed-loop put old our more begins of environment. Xth of

second-generation take a and can technology. our third-generation with system it you a make system So

Okay. you? get And surprised any follow to out hasn't at looking I'm mean, Wainwright report are a put trying on you I to that analysts you.

We we the X several that expect follow analyst Research hopefully, that are to distant us in conversations actively having I not looking will future, have and too or in and addition an Trickle the future.

that, become those revenue see point leverage and from answer in do new lot validation appreciate some So of time, begin to the we begin our quarters. are our we accelerate expect sales. We'll that questions. these because technology the this you'll built of as was the a mentioned the see your we've to that set system if acceleration model that in the at coming I to And and get And is about multiple I industry, to execution. in things quarter earlier, X questions. the in And

that, with you your thank for time. So

any hesitate more Chris to there, follow-up you, and we'll contact Steve and don't MZ be If glad please Thank or you. operator. have to get to questions, you back

concludes This conference. today's

participation, at time. for you a lines Thank your and disconnect great have day. may You your this