BDR - Earnings call transcript Q4 2017 | Blonder Tongue Laboratories, Inc.

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Operator

Greetings and welcome to the Blonder Tongue Laboratories' Fourth Quarter and Year End 2017 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Bob Palle. you. Thank

begin. may You

Robert Palle

welcome financial Tongue's reporting and year quarter end XXXX teleconference. to morning fourth Blonder and Good

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

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

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

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

full While half first of the the are performance, we generally and concerned satisfied about the XXXX. year especially we performance XXXX with fourth remain quarter XXXX

recover to However, we levels. should anticipate the second XXXX XXXX performance in of the half

at been report results MSOs. investor progress. mid-sized progress test and Today, Gateway, so systems line. last the the on in NXG we track. positive NeXgen of to are laboratory The far presently the in NXG are During call introduced on following pleased have testing are we November, newly very two an provided conference the update product

order additional during increasing testing later the be quarter. $XX,XXX. and NXG order the of in NXG several half We anticipate we in approximately The first month. be laboratory should delivered MSOs test this phase first to activity in to for This laboratory lead XXXX. installed both the successful order placed Also its third operator plan latter second will

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

Eric Skolnik

Net to or for fourth months period comparable per three December quarter in $XXX,XXX $X.XX XXXX. X.X% loss the Bob. XXXX Net $X.XX the sales for you, for a from XX, $XXX,XXX period of Thank $X,XXX,XXX increased $X,XXX,XXX the in loss or or share the was to compared XXXX for comparable per $XXX,XXX income XXXX. share ended

comparable products. or to and is $X.XX sales a X.X% year analog $XXX,XXX an The Company by one in of by of primarily attributable products $X,XXX,XXX XXXX shift an sales and products of $X,XXX,XXX data $X,XXX,XXX contract video continue manufactured were in is a ended the XXst, sales video video net analogue digital loss the products, part for per of decrease increase in in loss December share XXXX to attributable net loss of products or and XXXX. XXXX purchases in to mix headend primarily experienced products $XX,XXX,XXX. to level contract increased and were of period The headend of to per expects year loss respectively. video customer. of XXXX The has a product For increase $XXX,XXX digital of share products XXXX products ended offset and sales were and sales data headend in for of compared experience in increased a in to net analogue $X.XX from $X,XXX,XXX. in was Sales a December $X,XXX,XXX Sales increase XX, sales from products the headend $X,XXX,XXX in or $X,XXX,XXX $XX,XXX,XXX of $XX,XXX,XXX manufactured million in XXXX. products Sales and The to of products. and data digital were $XXX,XXX loss

our over would call turn Q&A session. the Now, to like I to

Operator

Dale this Please first ahead. Thank a time, from Our At private [ph], session. be we you. Norton go will [Operator conducting a investor. is question question-and-answer Instructions]

Unidentified Analyst

and the I to have upcoming several transaction related on questions your leaseback. sale

As shifting the you guidance goods cost release on that rental roughly SG&A, from costs? prior Any and going indicated various How approximately in you your are a on what depreciation the to is. breakdown that is R&D G&A of expense, that? to in

Eric Skolnik

interest G&A as debt. depreciation our the of line is building below the Well, the expense is course -- on in on currently and the

of say, So, it payments more perspective. components should from basically would guess to I I just lease those re-shifting a be a

Unidentified Analyst

in so lease going that’s Okay, goes the then the roughly into to G&A. be

Eric Skolnik

Correct.

Unidentified Analyst

that -- okay. depreciate Replacing

it thing, the that are remainder term. folks expenses Yet in fees. be going you’re you to the the quarter retiring from of Are those amortizing been Second you to appears have second you’ve anticipating statement to as in the that well? amortize going fees

Eric Skolnik

on depends still Yes, not or we'd yes, to we of have something facility would revolving a whether in kind be… fact, if have go not, or away, them

Unidentified Analyst

No, that, suspect that Eric. that’s least might worth enough that a large be some it I identifying cost that point. fully at what understand I still is at

to well? Could and and not then the but feel year, an for of and this you capital kind important give question, you’re it’s expenditures in viability where what thinking gaining really over as for next as rather looking are certainly be that is a been positive about what us R&D spending Finally, you likely past, folks outlook. a goes,

Eric Skolnik

I would similar. Right both now, think

Unidentified Analyst

no, XXX around XXX, it's Okay, -- year? for last CapEx XXX

Eric Skolnik

to reserve it think we believe up, but expect XXX, okay. important, But the would be If be we XXX anyway right similar. we -- probably appropriate. something it’s where comes think it’s so as investments we similar, Yes, to make to we going

Unidentified Analyst

is…. budget the course, of Oh,

Eric Skolnik

don’t off, I today, Right plans -- sorry, cut -- any have we don’t to we now, you am I sorry.

Unidentified Analyst

have. kind are kind that appreciate that of without -- the after No, And senior question, of where ask got largely associated having I've more will your you associate are positive with an any stuff. would and But one the assembler are please. going producing sensing possibilities I this you no. costs I are I’ve am there identify I cost manufacturing might Any effort a even printed done question you then diligence not -- circuits boards, headed. that that facility with folks to you environmental building?

Robert Palle

I headed what don't where environmental you’re with know the approximately you me tell front? can --

Unidentified Analyst

-- given guys I from the no kinds to up -- bill costs a the itself all well, they with Yes what background ended a the was company Company of that extent just clean environmental, years? had in EPA I and remediation you wondering that have folks through having stuff of and am help like clean leased and the but another

Robert Palle

anything that’s been identified. significance past the in that haven’t had of We

Unidentified Analyst

yes. that’s fine, Okay,

Robert Palle

-- course diligence but between we normal and that closes. to But the has obviously, stuff due occur transaction now of time

Unidentified Analyst

happens, about I time, I of facility, is what the anticipate be. X.X book this we No, and to that was the you the to looked the don’t know. million after-tax The gross extent saw value going I last your am that was sale only that the thing on wondering gain

Robert Palle

gain would a event chained we’re it result will just remains -- of the not we because transaction. anticipate significant be of we course a to Well, to close. that course cash sure of would be as make after-tax But doing exactly what

Unidentified Analyst

I very else. well. Already, Thank leave much. for should you okay. yes, the Yes, room somebody

Robert Palle

you. call. your appreciate Thank We

Operator

go do investor. here [ph] ahead. Instructions] [Operator have question another from Urbin Gregory also We Please a private

Unidentified Analyst

few and at Could on both over the what data of headend sales the months products? next you anticipate the regarding all you elaborate

Robert Palle

Well, or? are be whether whether you down mean, that you to forecast it’s up we suggesting going or

Unidentified Analyst

Right, right.

Robert Palle

Or am little I are confused you so. to a trying number nail get a me to or something,

Unidentified Analyst

rather quarter over compared looks look or of by or flat both in that a sales subtraction, were it categories Well, quarter three essentially… to those

Robert Palle

We to them had be flat. projected

Unidentified Analyst

Right.

Robert Palle

I I remember, think and I as recall, right. also, as

Unidentified Analyst

Right, we’ll and given that as take the positive for uncertainty, a now.

fourth cash positive for a and the had you've quarter. positive that Given EPS flow

Robert Palle

Correct.

Unidentified Analyst

quarters? for there distribution was are staying those the of the the much or that same noticed revenues year, I mentioned pretty no Are those cost. HFC across

Eric Skolnik

from -- is XXXX correct. products. from That It to the change wasn't to year XXXX those significant a regards with Yes.

Unidentified Analyst

to you to contributed concern the evidently, increase primarily data Right, products have or half guess from as about you back revenue that you customer -- in headend and that to one question primarily the applies my the said, year about data a to I -- products? showed, the substantial revenue the the some of had for whether first getting one even initial

Robert Palle

we slow down will largest installed customers their our has and growing and is first in inventory so pace see things, the they having have some half. Okay, slowed, what and they

Unidentified Analyst

a is And that data?

Robert Palle

always really has is I'm been I'm their sorry has recently. I stopped rapid know it sounds wasn't like I pace, here done. contract it as just as and Their inbound

they after half of the work return think so office we And things in will year. latter the inventory,

Unidentified Analyst

a I They're been rebound. it, they what Well, and take you. tell expecting that's

Robert Palle

install their just and to has was No, pace inbound as have what that it their they has said. I And pace off pace that's install been, not they said inventory always up. but picking their I as favorable with slowed. have work inventory What contract

Unidentified Analyst

Okay.

Robert Palle

now? clear that Is

Unidentified Analyst

That's clear.

an we're having And installed so problem?

Robert Palle

it's Not -- pains. just have they so purchased the work they ramp, they coming of it's growing up a problem, have stuff inventory just lot They're now having a to haven't -- they and off. trouble

for uncommon a get of of who So, it's not business in people ahead bit themselves. this little

Unidentified Analyst

Okay. Well, I think I've digested that.

I that. What's last developed correctly, all the go now? we we've product. ready fully the product for And have that if didn't the is time the NeXgen remember talked modules On about to a --

Robert Palle

to our having we years at developing out. roll for without that as four, product we're all this five modules. here do going We'll it probably so month, full the ship this you system line be And on to that's three least hope can't

Unidentified Analyst

early do that know of early it's -- When I -- rollout when the but you product project, think the might? NeXgen to probably

Robert Palle

Was it's now. -- right I starting my starting We're not in right clear remarks?

Unidentified Analyst

it's by you in it with sales? Right, be that expect figures of I in starting. product end understand year, the will six the But

Robert Palle

but plan. so, I that's hope our

Unidentified Analyst

Okay.

Robert Palle

our the actually be it we're we're future, this a our month plan, but we've Yes predict And counting laboratory in install very, test. that that's we're can't well and But very later going tests to will and the we doing sale so made on.

Unidentified Analyst

the that to all track? going And of back that might when idea close? That's any on have the facility. sale you good, Is

Robert Palle

track with the can it know. Well, and on we share Eric that you is details

Eric Skolnik

is period. Well, a it's -- there diligence due

for to and have diligence have to we close. be due they wait to then finished time after period So, that

be would went half So, expect it of done excuse second me, to like the first -- we the if everything but well sometime, June. I

Unidentified Analyst

And that right, this? All with sounds all is sterling on good. board

Eric Skolnik

Yes, sir.

Unidentified Analyst

revolver the you’re from alive keep to with reading trying K, the that? And

Eric Skolnik

That yes. is correct,

Unidentified Analyst

-- total won’t total with them? renegotiation That renegotiate require a

Eric Skolnik

That is correct.

Unidentified Analyst

Well, can net And without goes you net, do a let’s the that’s from gain the a finally, I assuming we as a have to through what hope expect hitch, net do that. it taxes? sale or that after good. profit a Okay, call

Eric Skolnik

really that point. not discuss this at prepared I’m to

wait quarter. I have the until second think to we’ll

Unidentified Analyst

good well in Alright luck Okay. the interim.

Eric Skolnik

you. Thank

Robert Palle

us. hanging with Thank there you. Thanks in for

Operator

a do Dale question here have ahead. from And go we follow-up Please Norton.

Unidentified Analyst

question. handholding a had couple I a One here. sorry is of more Okay, of kind

through is you need I my discussion, K might handheld source and perhaps My industry understand to have background like what real information of information As that? discussion, a to the guys or with that any ran and information into? the numbers up lies public Yes, industry are to? market something I there I get elsewhere

Robert Palle

also find was equipment of our Vecima networks. ATX they’re you will this type your genre. if the in I big share is private, I can’t public, and both guess there, A-R-R-I-S. the position, key is this get but I Well, I look would then They guess, look is They're I the much competitors, in companies. all CISCO. ATX that go in look information supply But at ARRIS, at I both Canadian area would companies. public out dominate I And of would at players.

to is everything Vecima second. two multiply or of those a that public key whatever. But by in we’re are company. X.X have competitors you the So our

looking their by a our at as looking So you history way. get at stuff long back much stuff goes this

Unidentified Analyst

Would you for please spell that me? last name

Robert Palle

E V as victor, C-I-M-A. echo, as in in

Unidentified Analyst

Okay, not then bother anymore here you other today. question and one I’ll

your your or come categories particularly your to Number figured inventory, revenues? you to that to turns about numbers in with are the continue to to two, continue do As expect You I down how going and one, turn in better continues various looking at what’s in non-current certainly get relative was you’re your appears inventory improve to drop. terms the there? whip? Number much done the it of

Eric Skolnik

improve. Yes, would to expect inventory continue we that the will turns

what with reserves any next or be was in long-term long-term of the inventory net used to represents months inventory, that appropriate. is quarter maybe expected first Your the not the that sold is XX inventory

Unidentified Analyst

category particularly out, Okay, it understand know? that’s the PCPs that K, in that but a or well raw be are I don’t things the that the materials along there lines going is what of finished I is to goods or

Eric Skolnik

calculation. of of -- formula based of a mixture any or a again, another. it’s pretty type not necessarily That’s one type by No, it’s dominated category

Unidentified Analyst

me. patience for Okay, thank your you with

Operator

to in floor the further for Thank back are the comments. like any to turn now no There closing over queue. I'd you. questions management

Robert Palle

participation. very Thank the have you for will call. And at great your you we and your to a much patience day next talk and

Operator

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

You may time. disconnect your lines at this

Robert Palle	CEO
Eric Skolnik	CFO
Steven Shea	Chairman of the Board

Blonder Tongue Laboratories (BDRL) 2 Apr 182017 Q4 Earnings call transcript