BDR - Earnings call transcript Q1 2019 | Blonder Tongue Laboratories, Inc.

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Operator

Good day, ladies and gentlemen. And welcome to Blonder Tongue First Quarter 2019 Results Conference Call. All lines have been placed on a listen-only mode and the floor will be open for your questions and comments following the presentation [Operator Instructions]. At this time, it is my pleasure to turn the floor over to your host for today, Mr. Bob Palle, President and CEO. yours. is floor the Sir,

Bob Palle

Thank you Tongue's thank Welcome Blonder morning, for much. first quarter Good XXXX We participation. everyone. financial your to very reporting you teleconference.

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

As the I may this know, from results future you comments predict, is that and caution may impossible so be those actual our to projected in you that morning. differ

XXXX could to XX-Qs for Grauch, for For are Financial filings, I this XXXX Chairman and Officer; me second of to actual form morning, today the the results Steve quarter the XXXX third Skolnick, our including Eric and our ask our including be quarters, additional Operating With Officer. and as factors Ted differ Board; XXXX, to quarters you prior discussed well of years of information would that SEC refer X-Ks. first cause first, XX-Ks the information Chief Shea, concerning prior our from that Chief and as will

you Our presentation, may questions sequence. available have presentations and all the period. same answer will the to during follow And of any following in that be us will answer question

of those improvements And in the letters to stock performance. remain increase major years order areas 'XX, overvalue. for improvements an achieving 'XX as financial goals. achieve turnaround to a major to which our a outlined my to drive within you successful affect First, committed in needed in the XXXX, those We we we result and in

morning the since bear previous believe this on in much that our changed investor Second, forward-looking comments a Xst in weeks six Not status and April has press call. teleconference ago. Regardless, that just comprehensive the repeating. report release we provided we

We due the XXXX. sales the was of data the the uncertainty products. government for largest conflict and quarter are the and several to slowed China, with first believe the to market We temporary purchases that further company’s disappointed customer sales BTs the due the trade ongoing that in digital factors, in video decline fact shutdown,

And other need which for completed February, has the Old reverse decline On growth accelerate restore to hand, we sales the sale balance the will the provided back in XXXX. that our be period sheet improved over the Jersey half New the capital lease second and of we believe facility, and we this profitability. positively working transaction and the Bridge, sales to will a the initiatives company of

the incremental revenue setup that Tier accelerated unfolds. are Gateway sales XXXX, Although, NeXgen its remainder The first million sales the still provider and company will initiative. recently remainder dollars we its we line, product of on as have the customer IPTV promotion concerned we MSO XXXX first for a the anticipate first add CATV of BT outlined XXXX and quarter plan next gateway. initiative box about The started gen one includes for in an the several of of and of half set-top-box secured IPTV-based X

Grauch, BD’s turn Officer. I’d to Now, like call the over to Ted Ted? Chief Operating

Ted Grauch

good Thanks, morning Bob and everyone.

telephone fiber focused of a box X new as as program, Blonder top set goals number initiated operators an customer customers products aimed well Tongue's higher the BT for with cable to added first reselling targets, line create operators. and Tier our X Tier U.S. in at and quarter systems or operators, During current value and value municipal VAR IPTV

These as and announced to this already referred related during trade mentioned, extremely as this TV that the morning. Cooperative as this unfold impact new comments this will of the the giving show, public on Bob Cable they announcement. Winter in are Educational up-to-date February VAR received of systems The to is investors product XXth initiatives has year. and release products key public our in as -- were line that press happened XXXX. initiatives after and the the sales well in Conference And associated in This and National this sales introduction other quarters. during expected all our now our well revenue keep before the indirect was and And first NCTC associated is strategic we coming rise Atlanta positively initiative on XXth initiatives

like Eric call would over Financial I Chief our to the to Now, Officer, turn Eric? Skolnick.

Eric Skolnick

Ted. Thank you,

first the effect quarter prior our increased XX.X% excluding inventory were of down XX.X% compared margin to as of the XXXX year, of XX.X% down $XXX,XXX gross to sales the non-recurring prior period. Although, right compared the in the to

increases, increase headcount months is costs. salary Our reduce to up to last primarily efforts necessary XXXX due the and three as were operating expenses and to prior of were first for period comparable related the which due these the approximately company’s compared contain This continued year. to XX.X%

trend call, Old allows of the implement an able the to have sale we As resources to will aggressive be second anticipate unfolds. strategy the half facility previous to mentioned Bridge us reverse XXXX the the in as that now lease downward back

credit We facilities call. since made adjustments the any our have not to last

in changes further our will to coming the still progress that made be expect we months. However, accommodate

call question Now I’d to and session. for like answer open up the

Operator

question [Gregory a Thank Private Instructions]. a from take you Urbin], We’ll [Operator Investor.

Unidentified Analyst

going toward what one, you looking number half could the second initiative revenues, you've box the at for already look from -- shared black the bring set top you're that year. get into I Let’s of to this

Bob Palle

lot set it’s the we help to if but successful that as projected a initiative, be. will box top as only not It’s

And initiative we've secured QX and NeXgen in our The Gateway. actual other is Tier operator major shipments. first X our orders with

Unidentified Analyst

revenues delaying to primarily Noticing that it or customers the equipment. to head to NeXgen from data the end is off related the in equipment? drop due orders, Is more transition

Bob Palle

get combination. major equipment just the we're a on, want give operators. several guys, said you disappointed at bit look was NeXgen we're second that But started the difficult with the little but that on at… it's hurdle me now the to of end I think when head traction I to a And over Gateway

Unidentified Analyst

You was say analog digital down, up…

Bob Palle

Exactly.

what head is that's So analog going that classically I up, it because is I up check is. was and end and numbers, have the that to we why and the was was call could sworn

Unidentified Analyst

And going understand NeXgen is the the as backbone? the I move be it, to to

Bob Palle

Yes.

Unidentified Analyst

or over And is over quarters that to years? occur

Bob Palle

over Well, quarters going that to I occur years. think and it's

we're Ted think comment I and up going also. the progress step could So on to maybe

Ted Grauch

their distribution deliver more different the cable a which these If the with is ways. you business-to-business look a IPTV networks have. is NeXgen operators separate the communication upgrades demarcation ability operators core that for Coupled and to in of cable the of networks at doing interactions combination and they between operators' to market sub-market, points expand

operating a So operator and their property. hotel data to their for a when example, redistribute a that those video chain same that's they when demarcation cable has in customer large on have distribution point system multiple they a have that that -- terminate system content area, a property within

the So NeXgen. that's a submarket separate for

even current There that believe what in and X X to base there potentially we're after, increased So half in come other X are Those cycles. bigger and of to fish Tier year, NeXgen win. of the Tier the multiple other that to will And question to win we to that have be to that will be we with Bob expand we'd year more mentioned quarters. and that in just win started going or customer tend sales do more answer quarters on the area, markets, long in the on those the the will operators timing to over. take sales those like in years Tier

sub-segments saying last we've first going quarter, believe. major Tier our operator we're in we close winning won So and some and all X segments after those the very we’re others that to we're and

efforts marketing So the we’ll these deals. accelerate just to close sales and

Unidentified Analyst

the respect Are larger modules fish, as the available… needs and turning those currently. needs to the addressing progressing such necessary new out R&D satisfy those With the to of

Ted Grauch

on that the so year good. looking that be end actually of are currently, the finished XX% those the of modules technology roadmap We believe before will are our very

Unidentified Analyst

making was next I gen Because What Now [Technical in transition within inventory the time product this the the next since inventory? there product. or obsolescence they're future… the there of to gen as the facility the to write-off transition to related I see be some Difficulty] assume this about might

Bob Palle

do believe this don’t that of amount to there our we is The transition. a write position to on current taking more be down No, much of the with a significant first result had inventory. going as quarter for a in the conservative reason obsolescence

was main necessarily as So it. NexGen. by a driven result the of wasn’t that occurred It changes the for that have reason

Unidentified Analyst

see to non-recurring, that that in a likely QX? Is or are

Bob Palle

not are QX. that we see likely to in No,

Steve Shea

building very same was to with over number. inventory the what the probably it, been that noticed in rest did. we the write-off very number $XXX high has of four low to grand, time or from at So descending which or Q we the three Greg, take you a consistent $XXX the conservative as exactly then years as view a last sale, non-current decided it’s or And and

Unidentified Analyst

on about And this And going looking mean that’s Blonder? going quarter, in what’s main the world, three the impacted how tariff to at the what China? to and factors revenue, that of

Bob Palle

increasing categories. we in ourselves to such tends of increase what be sweeping or now to mitigate -- Well, that additional are positioning on an tariffs number

what to impacted and that by of at we major whole have level, it move been the in have this mind It’s our prepared categories, we’re of different a we But move a to place wave us been have are goods finished right to in to tariffs. do, in factory, fish. do in much We either have This formalize have major with of Jersey. from categories we the we’re supplying New going the finished production, be not our matter that when factory. here Trump wave goods of assembly that is a whether to there XX%, bunch sure back first China doing going able doing our And stuff, how moved especially is a next in not been Far we next into of which move some. or from the our dramatically is definitely we they about XXX% initiative of contemporaries, decide partners final kettle to and test saber-rattling to cooperation because to whether or the will we’re but wanted East

that's doable But in XX months. hard this this So this more six like way. But in something, ground preparation which days do months, or doing about in it event went looks and task. the it's the like on it that like we've go it certainly work way, newspapers talking been eight it's a to and

Unidentified Analyst

began that last the other Cinema Is on at World you Now, going fall-off or that that either the relationship Toner year. from what's like factor there… business that Cable, risk, mentioned, in look

Bob Palle

The doing and risk not about with product not product mix at to we do They're has stuff relationships that. are are risk. at and approach, it and

Unidentified Analyst

that to So do sources stabilize, or you stabilize revenues expect not? from to or those

Bob Palle

expect as a Well, you significant have first to quarter. But basis, really We significant we especially use quarter we improvement. improvement. from anticipate if first a improvement, the the expect

think way forward-looking to the statements. those I is I'm supposed phrase

Unidentified Analyst

are looking expensive. to of rest the What turning Now over the as at SG&A we year? far as

Bob Palle

XXXX. very good extremely quarter the was question, you was of could SG&A a this see, quarter because for compared high That's as to it the first

Ted Grauch

initiatives. earlier, So we expect exactly to related sales slightly the close we remains we how come with as much have costs. year. should through decrease obviously of What we seen to would as be initiatives several the a alluded lot these I SG&A And that go

lower a that at But I lower. point, definitely this it's it would it forward. but would say be would going hard expect to be prognosticate So to little I

Unidentified Analyst

headcount total now? the What's

Ted Grauch

around somewhere we're XXX believe I all-in. employees

Unidentified Analyst

from you sales and So ramped up haven't the marketing the…

Bob Palle

not a on We've on selected and almost may worth, they guys but have -- either the full quarters' onboard key or they're hit board.

this don't, more want sales We dollars take have to the one on stage, in people do So key two hire or increase at that's… we we side. but

Ted Grauch

to allocate any accordingly. I your you have that. With company to resources add can color some If more

we there was So then we've And what initiatives that those areas structure. that we done that were could we and into funds our the so some took is reduce, where them we did SG&A we've evaluated redeployed referring believe and to.

that we money say So more probably though presentation may you of what the that's accurate spent happened. haven't even

Bob Palle

And shifted resources… have we

Ted Grauch

correct. Yes,

Unidentified Analyst

the the any sublease been available on there space? Has of progress

Ted Grauch

believe a and have interested be next and that to couple that we Yes, would able on anticipate we of report we parties quarter.

Unidentified Analyst

Couple more things.

compliance there's for hard staying what with said was that any cash it's me on the if that cash where with the about burn that Given worries minimum figure first I looking out we and flow -- Sterling. cash liquidates wondered to at you quarter? in -- just the covenants have the given

Ted Grauch

we At in and do March in our the line we cash. -- bit to be the But there over cash covenant, of $X.X excess burnt worries. the little if not any including had we it, XXst, we're availability of Currently, with minimum still anticipate may had excess about million we bank not in think that. you yes, have of And credit. currently a liquidity

that So operations using that that's and we're as receivable expenses our what's fund course, the accounts happening, turns cash our of is pay accordingly. over, to our it

Unidentified Analyst

Okay, that's Grauch, into new go. finally call And previous about to you you good the moving hear. new Mr. mentioned I'll let in markets… and verticals, And

Ted Grauch

Yes.

Unidentified Analyst

What's the elaboration… status there, any

Ted Grauch

we're some publicly that that one quite set those February discuss first related verticals there the we of several. not alluded reselling There others value previously are to in are what announced but had working to box we're program Well, top on we is ready added to.

Unidentified Analyst

Might they be of same size?

Ted Grauch

different and lines both type, going that sub-markets looking market not a markets before, after happen. to as that we're product with that we're current we size to and initiatives systems new had new sales as tailored Differing sales well with

Unidentified Analyst

Thank forward hearing look August. and to very much. have all in you now, you I That's from

Bob Palle

so much. Thank you

Operator

to no Instructions] closing questions the or turn [Operator this back at I'll additional time. further to appear for there be remarks. any conference And management

Bob Palle

Blonder And you look very in at Tongue all a participating the speaking much. great Have next reporting day. teleconference. you We thank teleconference. Thank forward the for you to with financial

Operator

you teleconference. Ladies for you. gentlemen, conclude that Thank and thank participation. today's your will We

have phone this line a time. disconnect day. great And at your may You

Blonder Tongue Laboratories (BDRL) 15 May 192019 Q1 Earnings call transcript