BDR - Earnings call transcript Q3 2017 | Blonder Tongue Laboratories, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to Blonder Tongue Laboratories' Third Quarter 2017 Results Conference Call. [Operator Instructions] And at this time, it is my pleasure to turn the floor over to your host Bob Palle, CEO. Sir, the floor is yours.

Robert Palle

Thank you very much. everyone. morning, Good Tongue's Blonder XXXX reporting financial Welcome third teleconference. to quarter

other marketplace. this Before of remarks evolving details by that who we morning subjects, reminding of view discussing will today, begin be and Tongue in speaking may trends performance, made will my any management's you preface contain and with we forward-looking our by including representatives, prospects to I'd those the certain be Blonder which like statements,

XX-Ks to impossible those me predict, so XXXX you in quarter additional years know, Skolnik, refer is As prior prior are XXXX Board. differ filings, and could results actual would and With from future at concerning Blonder you information to Chief caution differ Shea, the Officer; results our quarters, morning. I today the for SEC second actual you from our that and this that cause you morning. and of the I to projected that that Steve Form factors ask our Financial the comments Chairman Eric XX-Qs Tongue's discussed may XXXX this information maybe for for

presentations. any All be will available following to you of may have answer our us questions

First, the comments the press bear quarter release essence of second repeating.

retail SCTE•ISBE that not in of in of offerings the improved over-the-top more is and or continuing seems sales XXXX made to reactions deliver sales following category in and gen anticipated at course, demonstration repeat at sales net We're of because received at NXG and was easily enables be continuing products. The service Initial to deployment product modestly introduction positive. XXXX. product to we're extremely included content. video in October. in was reduction content reduction line our the systems year-over-year, file-based category commercial, this product large a Although the Gateway national in less announce video of sales growth approximately analog the data were hospitality, providers competing in pleased fraction with to And digital X% the our their Strength of NeXgen live and our video which Denver SCTE•ISBE service the linear cost expected for its solutions. exhibition to part live The trend of very gateway feedback we debut national and diversify of the at excited inevitable. (NXG) sales institutional next upgrade, line, expand, chain a

first regarding in are remain we XXXX and optimistic we While cautious quarter made comments additions most for order the product NXG received XXXX the my to about second the of remainder growth call. prepared blanket to delivery on orders for and unfolds. database product mentioned remarks accelerations categories, side, in the opportunities in conference second as quarter early we of XXXX delivery future the Similar sales positive and

data immediate balancing counter still delivery early for give XXXX. October are market high of be we uncertainty for the that part the remains we will of These However, than has The distributors. anticipate points remainder sales premier the a level November especially is receiving feedback of less and been first part based there expected. of input order our flat and to from feedback the the XXXX rise us telling why basically

we like Eric? Financial will Chief over I'd session. and an the call Officer Now turn Company's question-and-answer to Skolnik, Eric open to the have Eric following

Eric Skolnik

the loss is offset attributed $XXX,XXX, comparable a of net an for Net quarter ended manufactured products X.X% video products you, $X,XXX,XXX or headend from products. data sales $X,XXX,XXX increased in video and by September Bob. XX, XXXX the of were Sales headend products, was the comparable XXXX. third for loss and were and and period and $XXX,XXX to in products months XXXX $X,XXX,XXX in data months three Net products share, the of XXXX. contract Thank were loss to products, for digital and $X,XXX,XXX $X,XXX,XXX, products for $X,XXX,XXX, sales decrease $X.XX digital HFC sales headend compared respectively. primarily were products a distribution per per loss $XXX,XXX manufactured $XXX,XXX analog analog in The share, XXXX $X.XX headend or products in three increase loss a period increase contract $XXX,XXX were HFC the in $XXX,XXX, third to or $XXX,XXX $XXX,XXX of and $XXX,XXX and XXXX of distribution

$X,XXX,XXX, per XX, XX, For September $XXX,XXX sales in in sales products, from products to or were and primarily in $XXX,XXX share, net respectively. nine Net is attributed analog a manufactured in of for increased in for and months loss headend digital headend and headend per XXXX. $X,XXX,XXX analog $XX,XXX,XXX comparable an products, in $X,XXX,XXX were period the the the September to nine manufactured products and Sales increase share, or video headend of increase $XXX,XXX offset months and month XXXX $XXX,XXX compared sales and data XXXX XXXX the products XXXX to net loss were by was data video video period or contract $X.XX decrease loss of loss in $X,XXX,XXX digital were nine $XX,XXX,XXX products. products $X,XXX,XXX XXXX $X,XXX,XXX, first ended $X.XX products ended $XXX,XXX loss X.X%, and XXXX. contract The

turn session. to over call the I'd our Now Q&A like to

Operator

have is REG now And Instructions] question floor Richard, a your open Greulich Advisors. for Capital The we question. questions. Richard [Operator from state you. with Thank

Richard Greulich

Bob Eric. Hello, you. and Thank

Robert Palle

Hello, good morning.

Richard Greulich

of NeXgen the product? market addressed is What size

Robert Palle

million XXX year. Estimating a

Richard Greulich

delivery now? And product for is available that

Robert Palle

Well, the that. okay, input the the we wanted series then, that have have oh, that the product input but this but for deliverable I and working is of we're - done, output it's you a - output Yes, now. product, series to that of need so and a a modular product so there's modules on is essence of next

are released there of really there's the not a So, product - sale. is sent but that's the essence yet, lot for

Richard Greulich

that in have was a recently ViXS purchased familiar I you with Canada called Okay, by the question. Pixelworks? Are company

Robert Palle

We are.

Richard Greulich

overlap do line? in where you And their product

Robert Palle

will like you and we if provider Intel product Intel so is line Okay, a Intel, in mini use devices right. a our mini well, this device

all our our ViXS We them, use in certain product also of but Not lines. devices certain of lines. product of

So, ASIC, is as design or equipment called they circuits sell ourselves what application the OEMs, acronym - manufacturers there and like are is A-S-I-C, [indiscernible]. original the it's to specific - integrated

Richard Greulich

what products have that you particular Okay, in their would using be ASIC?

Robert Palle

of In products. Not our - our encoder products all, our encoders. certain certain encoder but of

Richard Greulich

the does and supplier? Pixelworks more a let's solid Okay purchase make them by say,

Robert Palle

initial so I know. buy that get we from condition the don't continuing we of initially have of the honestly our I and that being didn't able ASICs Pixelworks, about know them concern any supply of don't financial to reaction. was

where us and on future be as they from features would that down developing. needs dug deeper they haven't to would future We be

or a credible worked do device thing haven't There We that that. as ViXS. is suppliers the the five at of out of same suppliers device six lot

we're hope So, don't we that we to threatened benefit them a not long know. honestly Pixelworks and regardless transaction them, is term what happens the of to but

Richard Greulich

your it I Yeah, is. think much But insights. anyway, very you for thank

Robert Palle

Thank you.

Operator

George, comes next your Gaspar, Private Investor. from Our question. state question George

George Gaspar

I late you a on call, so may getting Sorry, in the little I got bit. be laboring

out in to that in going more that XXXX the products to to you now this early stream, or real get XXXX, your generalization potential to are this forward the the with broaden new the you in coming early have headwind, boost base not here headwind, product really much order revenue stream but product innovation for some to some you're have company. implying and going you're remainder you're year area current regarding flat Just and cautious is for reach of into to going current pretty of you revenue in review you in

Robert Palle

and COG those feeling for think and the are timely certain the good are growth We line where then, the new that prospects what that best this to where introduction rate the with which I the have, and the are pretty other the company the comments relationships so But low. is data going points being of we about extended blanket on there distributor said orders counter still complaining and that's that boost and large planet the large is product customers that have revenues are activity there. is we're we help balancing

inputs. we well accounts probably data up partners are channel some the places face even our down, order counter in input is guys our aces but balancing some business two differing everybody provider healthy from those present based and direct mean see where with flat points, two distributors, and I our So, wind on complaining. system those guys think up, would we are

So, don't what know I to say.

George Gaspar

have Okay, of under funding about better financial how in make alright Could and financial, do more to flexibility? agreements agreements, got of flexibility things your the you you then have terms your you some comment now seem now in and your up you stack financial that control. terms

Robert Palle

and debt in been Sure. we has Well, year nicely. our know, as December working you last relationship very that refinanced

has our we've been obviously come along, we've steady. been pretty our as relatively as and to been flow they due obligations So, moving able meet cash

it's So, good. been

George Gaspar

just product just us on back right. sell And Can this All your system introducing, an you're if you Okay. just for? I could double of development for? idea new does you give can go what this what that -

Eric Skolnik

that features probably jobs XX, and of are then more ten I we probably - XX, have required price big Well, ground others to the are like XX, you - But a think are going some remember Yeah. dog can the those some XX,XXX. get under number of in that X,XXX, on and XX,XXX. X,XXX

George Gaspar

Okay.

Eric Skolnik

that's - So,

George Gaspar

Great. Okay.

Thank going you to now. luck good Well, Okay. forward here you.

Eric Skolnik

much. Thank you very

Robert Palle

much. so you Thank

Operator

question. comes question Urbin, private next Gregory your investor. Gregory, state Our from

Gregory Urbin

guys. morning, Good

Eric Skolnik

Good morning.

Robert Palle

morning. Good

Gregory Urbin

Eric, cash that it comments last inventories turned flow, the because Any negative. of of and quarter on specifically impact receivables that? the in the like looks on

Eric Skolnik

just normal ebb It's normal the so. of flow and operations, the

Gregory Urbin

bit, what Cutting capacity, the capacity the a total currently? borrow borrowing is

Eric Skolnik

the was see. - at let's - $XXX,XXX. end to let's the had We At borrow where, see of we availability had XXX September, it the

Gregory Urbin

the revolver. On

Robert Palle

Plus, we -

Eric Skolnik

facility. yep, have the we $XXX,XXX plus availability on also the Plus, subordinated we have, loan

Gregory Urbin

to on correct? year, had haven't at that And down all drop this

Eric Skolnik

That is correct.

Gregory Urbin

won't either. it Hopefully Okay.

the few sales Now, the over there's product on it the - can looks Any and that you to side, all? on next-gen predictability getting like - quarters. regarding the next very rollout about comment at revenue back the little of

Robert Palle

working chip it's interest have so We're in but we stuff, we very clients. blue good feedback yet, and have boat the positive not a just on from

Gregory Urbin

What?

Robert Palle

to of money. going And we're bunch save a

- guy, you're right. don't I a So, smart

Gregory Urbin

I not product? for the smart would I'm drivers What would as that like. as be primary

Robert Palle

- initial and approaches the would that its available. technology proof on most that be for its It modern lower based deployment future cost are and

of done We guys that should good are the go job - last have leapfrogging. we a

there mind out in are that we we have future guys the when also, and design other this. The

retire slide and slide and new So, you one deploy you you approach, in. models out approach the as modules you

Gregory Urbin

products likely Is of replace you the to now? have category this the market on whole

Robert Palle

No.

Gregory Urbin

Relatively -

Robert Palle

No, it's incremental. No, it's incremental.

Gregory Urbin

It's incremental.

Okay.

Robert Palle

say, mostly incremental. let's No,

are and of the stuff, the heart product going to but is encoder incremental. We have modules

Gregory Urbin

distribution? for largely tell meet it partly the over-the-top trend to me Is you the or

Robert Palle

to heading we key located would distribution star over-the-top that at system. already the blade - in the that meet a center become that that module - lines have hub that's and and product a to have of The this the we already component the

not Although still it's of release, we'll a that's into migrate eventually module chassis chassis. a initial product our that our XRU, it's in but the outboard

I the - answers not. So, don't I just - if know or your that question

Gregory Urbin

be just are looking was growth I where opportunities if going –? the for the to

Robert Palle

part our that by community a and other served we technology then, have participant migrate and the MDUs DOCSIS-based pocket so headend is large that's and course, will and the of delivery pretty in guys deployments into systems DOCSIS-based to marketplace, service. that sell good heavy Over-the-top the a over-the-top hospitality in we piece a already

quote think - my even in it's growth quote and these it. opportunity And again that working press think we pasted morning, cut a it's release think talk remarks. just and we're because prepared and We we we the into a it about big big in I this so,

Gregory Urbin

For equipment, DOCSIS currently? China the primarily from

Robert Palle

- The

Gregory Urbin

margin. Lower

Robert Palle

key - our yes. of it primarily - partners our partner, technology one a is technology China is The

Gregory Urbin

at, what assume new margins Right, getting I higher? the be with well, might was I next-gen the

Robert Palle

margins higher With the expect the product that we line, will new on that next-gen, yes. be

Gregory Urbin

Okay.

Robert Palle

we're projecting. what That's

Gregory Urbin

growth. We'll some right. look forward All and pickup to

of And I the that a quarter, stocks. course, been all? finally, that? in where report back, have know do over all there posed was you does volume those last have calls the the do. Of at two or And this three but all days I What some make incredible guess, worry spikes few last we since been

Robert Palle

call I would a maybe suspicion that I sort any do or of X Otherwise in and for a my quickly these there's you happens, or what certainly guess, was back and the know get then strictly days shit, were. idea. do pushing they result and it's see XX is and a and mistake is people of row. think as in now keeps discovered million wound or you would it can accumulating says anybody again company like do you we a then me program guess. or again, they end oh, filing know. winds something. for X the don't operation not no - at guess it we else, some days is a someone see you and program day people room it then program is or million this wonder then have and day that off and continue I different trading doesn't just not or at made a my back They could or the with next XX the XXG on any up purpose that it is tell dollars but And a and And trading that day mistake where somebody dollar like if the and acquiring second that This this we somebody it their operation first X time was there where we was a the eight this they everybody a they we and happens, and up sold them went, call,

Gregory Urbin

Right. release. news any - it doesn't accompany And there is

Robert Palle

accompany not does anything. It

Gregory Urbin

to It at the trust months news can? - doesn't but any all going we traders, when hope it might rest us, and be again that be on doesn't Anyway, chat well, that do half of good I wire get a some you'll much. before four the for positive you and for it's

Robert Palle

do release, Any contracts major an accomplishments press or we major individual would yes.

Gregory Urbin

it and guys. luck, appreciate good I

Robert Palle

much. very you Thank

Eric Skolnik

you very much. Thank

Operator

Richard Capital Advisors. REG Greulich state from with Richard, next comes question. question your Our

Richard Greulich

my actually questions answered. were Thank Yeah, you.

Operator

be floor back no Palle. Instructions] questions. And to to over there turn further appears [Operator I'll the Bob

Robert Palle

day week. Talk for you a very great this much. and you Thank Thanks participating everybody you. and morning to next great quarter. a in have Thank

Operator

teleconference. you conclude you. Thank participation. for thank does We your This today's

lines your a at and day. disconnect great may time You have this

Blonder Tongue Laboratories (BDRL) 14 Nov 172017 Q3 Earnings call transcript