NextTrip (NTRP) 22 Jul 212021 Q2 Earnings call transcript

Good day, and welcome to the Sigma Labs' Second 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 second 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 good by for lack be today everybody. of an Thank in afternoon It and you, disappointed joining revenue Chris, second would I that understatement and thanks our quarter. am call to the say

new I One our often be PrintRiteXD, Orzechowski, two after confident strategy. am are the that it's like markets, Frank? to I why understatement I doesn't can than our opportunity, our the intend opinion However, Sigma's long-term thought. each those stay the financials. We say an which ever both on focused true. manufacturing, race, as future about I'll additive Frank not in emerging with in other, at I quarter reviews is sentiments I'm run it's my larger in been. and such future so also excited technologies get realized case that previously and explain odds but distracted as and experience our to CFO, change fully have

Thank Mark. you,

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

brief today, will quarter results of our I So, provide of a the overview second for XXXX.

quarter of Our first $XXX,XXX revenues the quarter revenue This XXXX. for to second totaled XXXX for of the compares of $XXX,XXX.

year-to-date XX, While last the over ended same revenues $XXX,XXX, year, XX% slightly revenues over of months period increase quarter second year. period the XXXX the June decreased six same last totaled for an

XXXX of our gross the profit compares The timing quarter expenses for quarter for is the $XXX,XXX a second profit XXXX. recognize second of versus with connection ability in incurred Our to installations of XX% of revenue. quarter to in of the margin was gross largely associated reflective gross $XX,XXX. the This of

expenses for increase same for million, Our the expenses to year-to-date of range XX% XXXX of first was margin and June million, XX% is XXXX $X.XX operating gross compares gross the This a targeted of margin for the $X.XX for period our the quarter in XX, year. an were operating six for while the quarter $XXX,XXX. XXXX. months totaled XXXX within second Total of ended

XXXX, headcount a same compared increase three of Stock the over period made were employees the $XXX,XXX of result same salaries June increasing June exception XXXX. based in quarter, as new year, months XX, options given the year. not employees Our and during XX awards for XX, $XXX,XXX XXXX $XXX,XXX the XX% Whereas This last grants stock the decrease. or three due quarter stock to option average of stock the in the months XXXX with XXXX. were last decrease by of of to benefits for $XXX,XXX to was period primarily ended an largely to second compensation $XXX,XXX ended is June time for over to awarded employees full

Our XXXX compared same primarily enhancements last The PrintRiteXD $XXX,XXX research of the the period to and development and related and development attributable work, fixes to to expenditures and purchases XX, increase. ended three scans June were year, $XXX,XXX in materials. X.X incurred supplies bug of lab new related increase version $XXX,XXX during parts is and CT ongoing months to of

$XX,XXX to of related three period the during due the year. to for costs by This increase hires the directors XXXX. same is legal compared new accounting months professional This stock XXXX were $XXX,XXX in three whereas period to June for and were incurred months directors, in XXXX May the increase increase an of as held $XXX,XXX ended meeting not shareholders to granted recruiting July. last made the those the an fees in and special in during XX, services to the and June in to options Legal XXXX in ended in until costs a partially organization same Our fees fees. XX, expense decreases related non-employee for incurred totaled compared is the XXXX, $XXX,XXX shareholder period offset increase result primarily options

$XX,XXX XXXX. result expenses during period in last is insurance other increase of operating This the Our a higher June primarily premiums ended three XX, for the $XX,XXX XXXX, to year. months incurred were compared same

inventory to issuance of we warrants authorized have our special XXth a XXXX it and other issued to and $XXX,XXX. the authorized financing. liability ended we the May XXXX reclassified June Our Accounting available derivative enough from to our income the required gain Principles revaluation liability. not was lead ended three the June from the settle of XX, Generally increased per increase usage in due six plus Accepted a value received for state to expenses common stockholders we result increase have Since of in share additional shares the us used permanent for therefore million fair million, liability second compared unissued months in the on result increase to and XXXX. March resulted record meeting, of Cash a At our the income initially equity. common XXXX did our exercised. an stock warrants extinguished on the of approval warrants, discussed, as to as as This of primarily of shares compared COVID-XX. investment applicable times $X.X a share million operating first certain loss loss stockholders totaled $X.XX in This a $X.X primarily for XXXX XX, June as the parts the ended second $X.XX to or quarter the is quarter quarter of Net operating net XX, million in activities just the $X.XX or per in to of the months XXXX. $X.X cash was

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

Thanks, Frank.

the QX important then of In Europe, belief what reviewing that any direct the OEMs happened have impact closer future, look investors, the our had the at quarter, that up talk deals. negative in are lost it's what as for of supports road. and related In in to forward a we based. ramp to let's we we'll despite of our opportunities are about a Now not has the some take on the and of about expecting. you has the recovery slowed look It European bumps also that slowness a COVID know my sales

printer case, In because @Sigma Due before other is of to another would and prospect shortages soon. a with test that a issue let to the some team. payment you required in which we through being calibrate the full successful in an explain and process. were due @Sigma was circumstances new to last control. the process. Santa know visit, expect this CAD engineering case system from we the last of a a After that payment We slipped We to several quarter. delivery RTE started just the rapid the where we out step laser, due Santa Fe instance during were our deal they as trading build. the month our get to However, The we out build to a give purchase a and was that actually build printer. The In and in order our almost the of on company the from out a them. access were doing an part our but reviewed An internal is the of here contract split end was installed data and prospect final totally couple sales build order. delays the it in week user, Fe. RTE, In me it might the month quarter. delayed the purchase completed EO Asia took then a ordered and delays, case, the of cash our one-off an particular evaluation of failed PrintRiteXD in on file the laser monitors And remote the take part one customer’s issue done

in and the early these expect say informative. reasons in We In can August and are Well, install are soon. individual of frustrating some the the now to be system least. the happen and circumstances kinds disappointing scheduled that order unforeseen interesting, or and occurrences they to cases, aggravate, purchase may

our has do in recovery. the pandemic I is as pipeline second and matures pace bad However, representative to decrease It expect and more volatility quarter the the way the of effects mirror. luck in are of some our grows, of timing, believe with to industry the rear-view the I any not at opportunity.

story had do straightforward strategy our our a that's technology. to little the on potential, with for pretty industry's or need QX. and the It's So

the were assure sense our than more more have that One with of last activity that urgency opportunity company do renewed we've we I years that of customers reflect over that and results a its the prospects. from level we the I not has is In market of with and or months, activity can seeing also quarterly the things a learned more you momentum few prospects. seen. have ever people,

fact, engineering As the of our with. a team has been challenging up pace to keep matter for

the and consensus the the drill opportunity. continues market manufacturing over capture let's to inspect XX% overall major have consensus to that down and consistent I'll adoption sources, regulatory is being is of required And we manufacturers first accelerate AM PrintRiteXD a like So, then monitoring back growing world's ensure specific of initiative. a step imagination. industries. industry at This There's Sigma According specific the printed metrics that look XD an within to additive metal vertical standards system and third-party track. by quality driving reinforced also parts. bodies, standards-based quality

In there OEMs increase trends the we benefit believe demand will entire the and and several for are printer our manufacturers, the industry. end-user the that technology both therefore addition, and

OEMs, by and and be continues validated every to end technology Our each users, month. R&D organizations universities

pace Finally, have positioned are set we I that sure different The that company. for XXXX? factors second the for on the second ask, is the we we well that me following fundamentally half goals confidence mind achieve past QX why great of now that year, that believe the and is XXXX. is half to when, what's a and the question and not prologue, your I'm specific a that give between changed? The What's will of Sigma set the

Our opportunities. marketing activities our begin produce real pipeline to increase continues as to

and six PrintRiteXD to selling now sales Our much teams ability make have experience confidence have their money. in more months

Mori DMG, revenue opens and And our OEMs, seeing opportunities Europe up, added should to are more streams. produce key Our as for begin industries both technology. independent

procurements spend. Department sponsored catastrophic increased focus regulatory generating driven are that disasters by opportunities is and exploration risk to pressure year-end aerospace, for and management money on Our space quality, of to avoid increased potentially Defense

technology of end conclusion, directionally I more the with cautiously remain see multisystem is pointing right The we year. in and growing seeing the is are that to will quotes fruition come before installations some we the the market. optimistic are opportunity the the as thought our In market indicators leading We direction. for from advancing

and since great year, fully prospects. a staying which time finally, from And XX our same with Our course plan sense fully and executing engaged employees, team team is committed over management of XX has the last expanded is customers on to the to urgency. the with

to I As believe glad go questions day's I doing of a we might the that. matter world. that will saying fact, be have. the huddle answer that you every be on end Frank with path be the we're well, amaze safe, to any let's and

you. session. H.C. Instructions] coming today Our I'll from Buck [Operator Thank question be conducting first a question-and-answer from is Wainwright. And Scott

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Thank questions. of you're guys. my side the handful remainder is, hiring hires, guys for you on where sounds the taking could Hi, the the it outlook of us good a especially give made you on and color year? for hiring afternoon, you I'm what maybe curious, a sales like little

America in Europe. in three Europe on From now Europe. people the just a we side. support two that one full part salesperson each, We in year a hired logistics to North Santa We sales a America, have teams time And And couple a ago. in compares in manufacturing perspective, Europe. hired teams sales another one sales engineers hired and North and Sure. engineer We we here in technical and time two or hired Fe. also

helpful, second, sense give guys remind what that's to you cycle visibility remind is us months? the the next help a Mark. you six us the can XX or And over that sales business me have of Great, the into and

Well, how we other depending know the what don't cases successful in on is try, but in cycle now, their some quarter, starting on initiative, we depending the sales the cases the But right be. see of long, they're competency short, is I whether buyer. I'll last given will

though, did that. pressure space on four by was have are to regulatory seeing a that So for our pressure. do exploration cycle, the month driven have longer focus extended this deal the instance, regulatory than sales and procurements given that we're be aerospace, shortening And couple the defense, quarter that we What being we a sales cycle. appears

next industry. determine But within quarter, we true quarter or this the that's not. will what see course, whether Of that's happening

maybe in versus March? in help the pipeline, like very sense And pipeline can order then what us the June versus end a Okay, helpful. that's ago you magnitude, And terms that's then at of quarter whatever for the looks year give of of worth?

of Generally first at half pipeline the the at than Sure. year. if the we what speaking, that, in saw year, second we of the double it's half look the of triple for least

start burn How for guys. stages should Okay, last the bit thinking the for improvement see to of of then half perfect. little get we to of the the one remainder be should And me, year? a as kind consistent cash of with we year, first later about or we the

Frank? I'll ask that. Frank to answer

increase quarter. ultimately think sales, to were I on and an the standpoint, burn it's in to hires bit. reason made some the purely And Well, going from but see going the the expense the depend little why operating will because of from there, you're a expenditures later cash is

of – see reflective So little the a do wouldn't it half. we so side. the wouldn't But the entire bit be run increasing it OpEx on first rate

some in revenues significant fact, the those offset booking of and sales to wildcard you see the in cash. to However, and that going and book you but the not might it's it given is be down, the the revenues the quarter, collecting come looking and were that think increases,

really Okay, great. Thanks helpful, time. again for That was the guys.

Scott. Thanks,

Thank you.

Gruber Our Gruber from next question coming Jon & McBaine. today is from

Your line now is live.

say revenue, ultimate Hi, us That on QX good my how given revenue given year has give was of full some afternoon. you you for that lot maybe quarter, the are And outlook ate things on can side? dog homework guidance changed these the that your the a non-recurring?

quarter. Jon, It ultimate the ate question. thanks my the for dog is homework

we with we we However, forward in positive dealt going forward at if QX. in and issues QX, going we are the one-time look look and QX very that

little supply mentioned, see of the every to in based from the increase in sales now. chain. our see out them right the having customer the seeing hesitant ripple bit especially And pipeline be we space but much have pipeline We're pressure, moving in I a one-hand, as on month people and at another You qualification. exploration or as proficient we customer on one moving to aerospace, more get me expect to things regulatory I said, a effect

the the we I'm specific – capture expect are back to opportunity revenue far it said going the add points I'll I very larger, half today. But the as weren’t to to to year, guidance, of those all as missed what not So close go deals second and able positive earlier, pipeline to or that. is that QX, in larger, didn't and some we is provide

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Thank you.

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relationship on question. color with the is Hey, you had Could just a or quick Materialise developing how some a not I developing? provide

down perspective. Yes. Europe, had – in little transaction given No, a a it's COVID slowed developing. from bit it's They've

actually two using that Materialise where to deals, this the the the are are system. quarter of relationship, of control we MCP due is deals their the one customer However, expecting as

have the on into some end are both jointly Control of OEM possibilities also PrintRiteXD were make integration also deals give we user two Platform Platform. the printing to We loop. year, both half Control finally, that by on machine the those second of also the to working using And that the Materialise’s closed And Materialise. towards control working bought were and we're better to process, moving the of decisions of to

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very Boy, good it's a question.

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is four that believe five can the I on way we deals best to do from or probably So were there. that or And we on. the missed that you quantify opportunity the slipped math counting

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on Got as it. you and brought any, for then probably Great new.

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you sales I’m one have not look perspective, you or to percentage. really one when not if So perform, only and comfortable, a is good six performing teams lose or very a expected that's from you

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thing is month I a for salesperson. that mentioned really is important mark earlier, other that six mark The a

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you thank again Great. the conference Well, call. for joining

execute. understatement disappointed see a to – but us it say say to activity. understatement to said, And I it's an I that expect also see As I lot to an would to I'm excited. I'm not more it's expect

mentioned market COVID less earlier, where up the turns, deals. sales they as an and becomes can a issue. to in of I bring our gets force As execute And point

MZ. So any with that and attention again, please you have touch Thanks to get questions, hesitate and follow-up thanks for don't with in or call time me again. if your

Thank you. That teleconference. does conclude today's

line thank day. your We disconnect you participation may have this today. for wonderful You at and your time a