BDR - Earnings call transcript Q1 2020 | Blonder Tongue Laboratories, Inc.

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Operator

Greetings. Welcome to the Blonder Tongue First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

the to turn Grauch. host, now will conference your over Edward I

may You begin.

Edward Grauch

Good to you everybody. quarter thank morning, Great, you. Welcome us morning. reporting call. joining XXXX conference Blonder And for thank again this financial first Tongue's

development management's like financial forward-looking Before remind evolving that events statements and made other regarding all those performance, speaking representatives, the to Blonder we future and presentation, Tongue the statements view today, in callers prospects, marketplace. our by begin technology of I'd our my will trends including contain

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

XX-Q, our will years, as concerning years, cause as I differ prior For morning, our for results of as refer quarters additional as would filings ask recent XXXX, could that XXXX, current you our factors all X-Ks. well our XXXX for and well including information discussed our filings, be XX-Q prior to SEC this and the information XX-K actual XXXX, that to to past from the

Financial Laboratories; me Eric Board of a bit Tongue of of numbers. are Skolnik, some Steve the our remarks With of Vice Blonder our mine Shea, Chairman Directors President. Senior and dig today the Officer Chief Eric's follow and and will deeper into

us Q&A all be to you available of presentations, will session. the Following have our during answer questions may

income net It the in that the of $X,XXX,XXX lower reported noted, our in out quarter was gain, QX for by And earnings first Old to our of sales primarily the first quarter that facility in quarter XXXX quarter the during for in Jersey the our be Our leaseback net in sale Bridge, however, the $XXX,XXX, of we and transaction relative of gain lower of earnings XXXX. driven in of quarter-to-quarter net to than that $X,XXX,XXX were XXXX the decrease clearer a comparison. first comparable quarter XXXX loss from first XXXX. net the substantially one-time we reported than $X,XXX,XXX should of headquarters first of net closer sales providing the of slightly quarter much subtract decrease was the is of the New recognized If net XXXX.

Our products. analog digital the sales to headend and year. NXG were same This data compared products, CPE of -gen products was DOCSIS, period last video relatively by headend and our video offset sales next signal processing lower of products, video higher products

reporting the goal a weeks and the a on in XXXX significant operational committed call. these call financial of few our the of touch changes As performance. improving already significantly are I only company's ago, have will discussed future a year-end of structure initiatives organizational expenses implementing our we and during to progress to number begun with

manufacturer getting Laboratories, Before throughout categorized continue and number may like I US would to adjustments some a to and based of remind as are Tongue and to essential more Blonder that as equipment country, who specifics to an into have of new adapting of providers service key we normal. a attendees been without scheduled regularly all progress, follow our COVID-XX not around current of large performance a those telecommunications able operations not although the business, crisis, the phases quarterly

and cleaning hand availability CDC released. stations in facilities, our personal fortunate of work being our practices formal began proactively enhanced disinfecting our ahead factory as operations recommendations changes been and having and We team distancing, location and cleaning well in initiating as in have of within spacing, headquarters, that an weeks government

equipment. workplace able were guidelines and authorities masks gloves guests, personal immediately non-medical both, staff to -- we make updated after protective and also available also are issued We to related grade to

to happy COVID-XX -- of far, case to staff. are confirmed by we a that had any happy report our single least at have report very not so We

last mentioned all in have to of many done we call, transitioned accommodate companies adapted March. our As those the And early our similar be operational we home roles as also in to from capable company-wide country. work-from-home being to processes around performed changes other

February, some impacts serve the re-engaging and we COVID of have the through with in has related signs continue our The in into to and last to last in to the adversely our week March customers current levels. work some at increased only been and beginning It we us the see impacted sales April, most markets of started affect that show began they efforts, increasing week of to month. returning and beginning staff

Although we on hold at week having the return with specific are had May for to a and cannot part on this they of forecast the meetings schedule end March. programs of June put early normal, we early crisis customers of that in timeframes the us for beginning

signs initial be we activity, expect planning to increased the and are of process recovery Although we accordingly. protracted these indicate business some anecdotes

As of the previously liquidity. company improve diligently at reported, our beginning crisis to the worked the

in and portion recently yielding aggregate an result anticipated a of additional to $X million commitments Program of sources, debt, is debt in obtained facility far, thus forgiven. which external Act, $X.XX Care approved, million Paycheck Protection these or to interest efforts PPP, a our Federal be for low yielding April, subordinated As the and we of a was both application internal

for despite country recognizing earnings fiscally operating available, in a are mentioned As most for period business call of our during the made we are possible, economic we industry. these way the our now in great conservative that funds our being and last uncertainty

my Eric fundraisers PPP our details CFO, following and the remarks. Skolnik, debt program Our of cover additional will

integration early as initiatives To program QX, additional companies. aimed working part began of streamlining and improving customers, company close distribution major with our company a as status with our expanding major the during two on well points; further the at sales our and telecommunications relationships

remain they have To key partners partners we and have end, increased result stronger and better for with process year, we markets multiple distribution our these this of past cases, which in growth offerings over built decade the XXXX. customers potential a will our us, Our serve. us relationships product and in recovery in in respective relationships align XXXX some anticipate opportunities begins distribution their as the we with our as to channels, with

approximately should to produce we improvements and call mentioned also had basis. our our will year this made on annualized an efforts our working that enhancing all of that XXXX. capital specific procurement XXXX Further increase in per of adjustments be cash XXXX monthly goals have our began liquidity turns processes quarter we in but investor production and ongoing our We These for achieved recent second the point, products. on during tangible with of average inventory in $XXX,XXX savings our

$XXX,XXX on annualized Let monthly XXXX me second basis and savings of cash that half the say first quarter early an of approximately during XXXX. again,

are help Our this operational performance us our in achieve and efforts along year. during will our these improvements bottom lines efficiency continuing overall to increase line

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

Eric Skolnik

of three diluted XXXX of decreased $X.XX period XXXX. Ted. quarter per X.X% $X,XXX,XXX in or the in March to for loss for or $XX,XXX you, per for share, of period was Net first Net XXXX, or Thank the for XXXX. earnings a $X,XXX,XXX $X,XXX,XXX ended diluted loss sales $X,XXX,XXX loss to XX, the net months $X.XX share the compared from comparable comparable

and of headend were sales The Sales primarily products headend $XXX,XXX products and upon $XXX,XXX and products. in and is for and respectively. XXXX XXXX decrease decrease the the data products of $XXX,XXX in in first relative Old headend attributable and of first gain video quarter products next-gen the transaction recognized $X,XXX,XXX net and quarter offset sales the quarter CPE driven were first headend and $X,XXX,XXX, consummation earnings headquarters analog digital of in products, the the digital by sales leaseback $XXX,XXX, to in a products an were and were DOCSIS and by months DOCSIS CPE our in the products video is sale NXG decrease products Bridge, data New XXXX $X,XXX,XXX video products, analog of of in were $XXX,XXX, primarily $XXX,XXX video $XXX,XXX, XXXX to Jersey. first increase facility of The $XX,XXX of XXXX three of

the annual doubt substantial about and sales, cash capital, Form continue activities in operations, company's net in the As ability raised XX-K, decline a disclosed from experienced most conjunction reduction the loss operating a in working in to factors recent used in company concern. a These report growing with company's on a constraints. liquidity as

as XXXX, as a classification to XX, a should the ability substantial The the factors March company that or financial concern. of any not still continue assets recovered statements the growing As necessary, recoverability relating to include doubt continue there of be might do of exist; liabilities the growing accordingly, the the about concern. unable exists the adjustments to be above company's still

security on call, to a subordinated liquidity upon of to which In constraints, the entered we've mutual company's loan $X,XXX,XXX an as conference offer mitigate mentioned and provides agreement previous agreement into up parties. the lending senior the convertible

As today, been report has we're to of funded. $XXX,XXX pleased

$X.XX Finally, and of funds approximately his excuse PPP. remarks, -- Program, Ted million, Protection as we the million mentioned $X me, received under in Paycheck

larger a the May $X released to principal PPP be deemed loans borrower necessity liquidity good The affiliates the that Safe the required million to together the might loans the generally a of current PPP you issued has any with that Harbor Harbor are concerning made of less asked loan concerning questions, which borrowers been faith. XXXX, funds. of Safe adequate As in required XX, that there this is good likely because concerning publicly-traded be an obtain SBA of amount it's have environment aware, appropriate borrowers original The lot receiving the with an this have addressing faith necessity to borrowers economic determined SBA On of loans. update such their will than sources to companies frequently below loan SBA received it's request. than certification request certification threshold negative access states publicity with in less

$X than less is are covered million, loan Safe our Harbor. As the by we

question-and-answer call Now, up session. I'd the like the to open to

Operator

[ph], a Our private question. At proceed with Greg investor. will session. question-and-answer your be question People this is [Operator Instructions] a we first from is time, conducting Bourbon who

Unidentified Analyst

Good morning, guys.

the $X,XXX,XXX regarding financing, Eric, the the has said on? $X,XXX,XXX First, of and $XXX,XXX drawn you been that

Eric Skolnik

is That Yes. received We've funds. correct. the

Unidentified Analyst

tranche there B is $XXX,XXX still available? on So

Eric Skolnik

committed, tranche it's been and it of yet. and part hasn't A It's drawn

Unidentified Analyst

the All right. tranche $XXX,XXX? movement Any using towards C, the remaining

Eric Skolnik

time. No. Not this at

Unidentified Analyst

All right.

any be -- might can PPE much of percentage-wise loan, it forgivable? how idea the Regarding

Eric Skolnik

this try it little At to would to premature that. quantify point, be a

will QX. a better have in We number

Unidentified Analyst

there assume those knowing have furloughed? I I asked have that the regarded; not been -- sure I'm how that that furloughs, you folks been know, be probably and because would

Eric Skolnik

taken brought headcount our utilizing that appropriately we've -- have were as to to steps some felt this are bring during -- we we people wisely we back appropriate, Ted Well, mentioned, and period.

Unidentified Analyst

All right. a in headcount? been reduction permanent it Has

Edward Grauch

Eric. I touch think I we as that, -- can on

done we've reductions operational that our combination due call, overall last the and to reducing on on touched a of that we in process year as we So work operational were increasing already permanent last started efficiencies. costs

independent steps regardless the current were we're So decisions, process, already those permanent already COVID in of situation. through the

COVID crisis situation, that the to made the particular headcount reductions in right. any have permanent situation to Within not itself crisis, related response we

got a that So, made and were made we've to permanent the decisions the related that were not decisions we combination related crisis to of short-term we crisis.

Unidentified Analyst

total wasn't see number overlooked or there. now? Do the may it queue it. maybe be I you in of a it didn't have the I headcount

Eric Skolnik

don't We headcount. generally report

Unidentified Analyst

XX-K reported it but… thought I Okay. generally the in was

Eric Skolnik

Only, correct.

basis right, an not on Q's. an annual on basis; annualized You're the so, do only on we

Unidentified Analyst

All right.

come the you what or interest weeks Now two that the witnessed last six the from turning say what back so in to -- to from over you'd hints prior to week seen months? you've is starting income; maybe

Edward Grauch

remained XX% week very, Yes, some to a open is, which business. day, and in I make increase a have mentioned sure indications said, the my continuing want in are in to But level have XX% on what of have to basis do had point we this. we emphasize those we then that I of remarks, anecdotally have on of initial and premature is potential early some a our day to of it's I make normally kind activity on seen and very which level points. or week XX% of But in about speak I with roughly, XX%, customers that, any predictions or customers their sort reflected the into could -- to businesses activity; overall deal prepared couple of that anecdotal of the very sales

at can be right. the we us first of What Number are end will in either started work seen indicate to have two have week businesses the last of just to few things they that completely or coming back the June, we were the a closed one, early most. the have of that reopen week; a half or to May

that getting of with scheduled March. meetings part for since closed some companies actually we're have been So

although So see that but were they back other the early. of that's not temporary the we're companies that on in small crisis the starting to people encouraging, way the open very crisis, thing then of And is, the actions had a bring taken way. in through some them a big because

we've kinds signs you because the for again, it's of great, as on looking So situation -- encouraging, for it's can fluid. daily very basis current is everyone these been imagine,

So, this anything timing on of concrete and encouraging. level is we we're any recovery, anecdotal related but but it's can't or it good from encouraged to of into information, a information kind lead slope

Unidentified Analyst

All right.

to scary. XX% queue what today, one that's the seemed Looking fall-off -- to XX% and got the at of in be a plus, last it paragraphs the the

Eric Skolnik

more would business way up the word temporary the of costs, for I flexibility fall-off is that absolutely have actions them we based a lot that our having thing adjust what the our scary, down on conditions has of a is of big year word we or advantage we prepared use our on in -- course, the use some a that of the staff economic wouldn't operating to our in can -- chunk concerning; and our and long-term and any last -- level I are. move

course, that I monthly to business operating So, infinite, comfortable up a have move very on levers feel Those has down in or are place not costs of basis. our we the no the on we're a side, in know, the service. a essential across States service; an is little positive you them; essential business services that bit are to United but, an telecommunication look

Our a end that holding the or of are direct customers distribution our channels lot very -- operators service either are our well. through up customers

that So, we our see levels. foreseeable at with currently, in have really least just customers etcetera. revenue from operational we associated and relative And there the of into of don't business our we're future our they're sales are accordingly, from prospects to downsides hammered horribly way, are And us; staff, temporary. management -- operating we for been kind that that and reactions tell and they're beyond it that running acting lot out have what our believe costs currently of extends good staff, some but way, speaking with these other any their the -- a from we our planning factory, as managing areas staff, the goes can

Unidentified Analyst

Right. cancellations? rather at decrease And in looking sales, it is the more delays than

Edward Grauch

months. have absolutely be the deployed out and into that frame; timeframe customer's homes. later PO's characterize the a It's a combination, timeframe, mean on be point. and by June been want I I'm glad put in you even asked in May that that and asked question that of but In I in very there because that and to time and is books good on planned deployed the had deployed; absolutely, were is basis were orders to facilities to April shipped and of our percentage hold a we've shipped those percentage don't specific

months in already later Some August. put date. a part, But scheduled and have actually been current they crisis as things such have the most precise indicated situation, on not July customer's when the shipping hold for

Unidentified Analyst

given And a I sensitive share business market that anyone everyone to assume that in has and any hit, that you lost competition? this get taken

Edward Grauch

the asking opposite us, that the have that from market because fact, same is they're The worse much data suffering lost. We're the and gained have much us seeing possibly of to is really we've in enough predict to customers, our the kinds frankly. activity our than how and or sense competition questions -- I question. I want I say great or don't Another don't share

Unidentified Analyst

once… Well,

Edward Grauch

no frankly, about lost have lot and indication us any the and We're call share, never topics. and market customers of opposite. that different quite inquire we've a phone I a with seeing pick we've availability and --

Unidentified Analyst

Any sense on growing sales relationships issue concern is or that on suspicion the weighing within… or

Edward Grauch

to with situation by had done, assessment No, We additional that we raise liquidity taking come aware that been statement is any raised, in mean, of for, of keep buyer; proper -- external number that see allowing rolls we to Oh, believe diminished people no, the unemployment points mentioned. the -- off was never we've applied accounting tranche the program, we the government with haven't we've steps and the organization. revenue up that reasons the C the received both and I'm that the internal write a no. we've it's have very happy And our that that that was availability customers I able and that assessment We've extend us you've an in been acceptance keep substantial used already we've funds to situation. this for, operating CARES used a for the fortunate we've a to specifically of.

the I viewing accelerating program and an as target prepared that customers shipping kind of product believe products our an intended be we're to some So -- will product the we of the to as completion, recovery around. are and wisely that using and produce -- that, sort taking -- the and funds as we're the investment turns to audience the we investment we government for the accelerating when believe of advantage into completions funds that that and for economic benefit ability

sort happen. been company in be can a as and the it way money using the of that starts additional held that recovery redeployed So value we've when inside to

Unidentified Analyst

CPE, saying -- quarter-to-quarter see income; CPE, various the quarter-to-quarter. with QX the why those I'm that's introductions. that -- because decline actually the in XX% the next-gen regarding the newer and legacy the are To quarter. didn't some -- both there digital HFC seems the increase were in next-gen and of those that cases, headend the was both the about they -- whatnot and Because QX I the segments is finally, but -- comparing somewhat of It was an surprised to of surprised off are sales across prior And legacy and 'XX. from the audio there sales and declined

Edward Grauch

I it to backwards. I backwards think want have you that? year-to-year. comment may on from read got Eric, you think you've them

Eric Skolnik

He is referring no. QX. Well, not to QX,

Edward Grauch

Oh, today. okay. he information thought shared I the to was we referring

Unidentified Analyst

No.

For just whole back, quarter-by-quarter. -- looking you a back looking I year; my know, not purposes,

Edward Grauch

Oh, on very touch that for can that easily. I

the we a from the your very budget shipped our you some and the -- -- larger such the So, tend QX have up those you activity basis this QX some basis targeted of yearly see as I've last and of beyond and probably towards we a products customers is calls end on you very, the closely. seeing I know of to next-gen customers. And we follow consistent larger company are the to over heard voice, I on know so, year; earnings kind

We and they in with with year. that fact little before that of that there's end bit end tendency the have budgets our the markets year, our some year this and larger the boost these their want of a up to with use do has to the customers every of the in a of customers,

do ones a guys bump to very it's the starting and another then that categories, sales you that not holding then, targeted used and more more consistent service to operators, in their in QX; recovery they inventory, see in -- especially QX. they those quickly start of to up the use the bigger in So see up budget we and some product in to QX want are again,

in would next-gen category. related that decreases; I put and them put So I'd the CPE

Unidentified Analyst

market? has your COVID by face-to-face? the most of you marketing; much Has or to to of able a has via particularly Are that to restrictions change impacted sell do given ability turning web what still that placed been how on, phone? finally, -- that have And in Okay.

Edward Grauch

nobody's as there itself we ability on It's inwardly of don't that out clearly focused by mark I our huge if the to market. everybody's reality because the ability necessarily having our situation out. the did have -- the for see a business affected most impact to part, the is, mostly

activities. looking new focused lights on kind very are Our operational keeping of information technologies; not very new all out, on and casually for short-term customers products are on they and the

products, in certain things or to out the a an replace a or that that network getting are of might have whatnot. to most problem shipped network operator sort sales a for geography we're implement being are of So or expansion bread-and-butter fix that

mode things show, We're seeing latest Tongue and you encoding People in efficiently transcoding in businesses they are not whatnot. coming cost-effectively of technology be operational from up out the someone pick a could what technology as trade that exploring their for or Blonder of kinds possible is not issues. example, the is find done, mode technology, the a to through booth are getting and what of as by running where in at as

perspective shows that the in losing trade from we're sales a lot don't So be things. new technology of by in of having activities think there and perspective, not the I marketing form

running over though, like What turnout we have couple weeks getting seen free in and start to and the done previous one on services; ones fantastic happened we greatly for every latest yesterday those we're is expand flipped we've educational have marketing, one never webinars, just before. to the we're actually fact, now, --

example, webinar in any like never educational operational did for drew like on past on attendance a just webinars attendees, basic that XXX-XXX So before. event had our the of we've we

stuff there we're in and of brand, of people people's as good So, for, the going are out we're we're every keep reinforce names. just at, alive the known "talent" of single what that to doing that people and kind service what one reinforce to capable get for using brand our the trying

quickly now. up And finish I'll

or We're that term it's been customers side situation, potential in And schedules dealing to people taking that projects on and customers with people I normal know things in a we think has sales like pre-COVID an talking that. for we're of kind a activities their getting finding it's previous for for the On it are time lot on not what-if than scenarios, in who the curious busy us, overused phone the with getting to it's and very with this at point, new hindered of were us context. got more -- situation out but about though, had this customers. calls they've potential I their reaching been effective COVID fact, additional normal;

pretty we the actually it's encouraged in overall that increased. that having we're has by with we're decreased, discussions actually So activity and dialogue customers; fact, not and --

levels on know, we've a month-to-month and you all week-to-week releases. Although, filings reported have in that the the and discussed actual and basis sales in been press

Unidentified Analyst

Well, that good participation level of is to hear.

Edward Grauch

It is.

Unidentified Analyst

I with be you any me? upcoming participating Did the you assume trade Ed? virtually And InfoComm would of or hear other shows?

Edward Grauch

Yes. to I'm mute on -- mute. I speaking sorry, was

For situation, and version decision of because show every effort of -- and we virtual trade it dialogue time worth those time I and current an effort, worth time a felt trade show shouldn't that with coordinators it's say the was the felt it the attend, pretty made a actual and whether sure had to missed put we've going independent and was the we like together have show in relatively do believe anything expenditure. we I significant the wasn't to have effort, yes, not for quickly because that I'm time. the virtual was money we enough did was not NAB involve worth -- and that like ourselves

we'll the in effort lot are InfoComm, believe much we more putting more one For a and I involved. be

of case case So we're kind by scenario. it taking

to be may little if fall, for operational know on very their were be recovered, trade are even spending also shows looking of to focused some we're the still concerned if attending money the few actually a not we're attend. to example, be we should that the rescheduled and now, things customers are activities I the for see bit likely right that

go expense is So customers, booths; and there versus We show the of our all and to friends is for of competitors an to doing to seeing go cost we don't benefit one all very where right. want trade those our where we're empty partner important. each want someplace is

that's basis. the a So on case by case we're assessment doing

Unidentified Analyst

And there might on jump be some the reluctance to airplane?

Edward Grauch

Exactly, Great exactly. reluctance.

Unidentified Analyst

one your And with hear Thanks. case. I'm COVID. Well, hopefully, that will that affected thanks no glad to And the stay has been for time.

Edward Grauch

own partners, both, we feel or and pointing the combination for for our employees same of the it exactly activity our the blessed whatever Thanks that lucky case. -- That's of very activities way, out. and the Yes. and -- feel efforts that's we

Unidentified Analyst

luck. good as Good Well, luck, always.

Edward Grauch

you. Thank

Operator

there to Instructions] questions. now closing management back for Therefore, are more will further I any to And [Operator call no remarks. return

Edward Grauch

Great, thank you.

So, releases for Eric if everybody -- and to thank press I is I you our the filings. there and other attending for questions. for And or calls, everybody myself and follow-up call in of our thank have want any our contacts

So, up today. you. questions we can no then are other Thank if wrap there it for

Operator

This today's concludes this may And for you your disconnect conference. your participation. you time. lines at Thank

Blonder Tongue Laboratories (BDRL) 15 May 202020 Q1 Earnings call transcript