Earnings call transcript Q1 2023

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Operator

Welcome to the Helios Technologies First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. This morning, the company was having intermittent technical difficulties during the pretesting on their phone lines. They have posted their prepared remarks on their website in case any issues arise with the sound quality of the call.

It is now my pleasure to introduce Tania Almond, Vice President of Investor Relations and Corporate Communications. ahead. go Please

Tania Almond

and Technologies operator, issued everyone. to afternoon. Welcome press Thank quarter good financial Helios yesterday results first announcing We results the release you, our day, conference a call.

have you hlio.com. at that If not release, is our available it website on do

find You today. will accompany conversation there slides also will that our

next Tricia our are Officer. Vice questions Executive President then quarter Chief Financial On call me our the our our and our Josef the progress line to reviewing Chief will we our augmented Fulton, President will several spend results, discussing strategy, the They your open Matosevic, and first outlook with Executive minutes Officer; and with XXXX, for and reiterating

Slide you Safe turn find to you If X, will our Harbor statement.

from will today. presentation during our and we other statements upcoming in be to filing well Commission. forward-looking As factors subject as our well session. where provided that results with the These as as filed we could be make and to Q&A latest been and risks materially cause These you uncertainties XX-Q this other future events to have are Exchange differ as that apply are aware, XX-K factors statements the and uncertainties some Securities risks and may to actual

You can or website find these documents at sec.gov. on our

believe out useful in today's also some performance. call, we during measures, that which are I'll non-GAAP evaluating point we will financial discuss our

isolation additional in in this You accordance of or a should GAAP. substitute not the consider results with information as for prepared presentation

now. reference Slide table with measures X the Please accompany of that today's GAAP comparable have and slides. reconciliations non-GAAP provided We X in

over it's my that, pleasure With call turn the to Josef. to

Josef Matosevic

on vision. laid for and come line on thanks and our continues to shared colleagues we in The everyone critical to our Helios team starting together. your to Augmented Tania, Strategy. execute tireless you really Helios contribution all vision is Thank executing thank the the joining out us. The you, to have work

strong results. with top-line XXXX We started

Our double revenue coming growth of sequential including fourth team quarter. delivered X%, electronics from the digits very good off

by health months. we encouraged business continued our are improvement few last over seen have in the wellness We and the

achieving impact. We on supply FX margin, a sequential are environment, while business chain, the the navigating gross and macro protecting our by increase

We are investment half first continue we the the will out will of step over of global through We a it for prepare view investments how financials. year. as journey strategy our function next and these operating through structure wave play expenses our investing of as proactively more the areas. in long-term accelerate are this several augmented to align integration cost our this This growth. There of

currently X and Daman of X to temporary the First, lights This on is place the following Slide we Centers we addition the between be the are part the acquisition feet. construction took just adding Excellence highlighting and and wall opening announced on completed of square XX,XXX in new companies, the building. integration QX. down several of at existing We of taking turned

to We in add square existing XX,XXX facility also right to Mexico construction feet. next starting are our Balboa

outlined previously work and to to relating roadmap we continue manufacturing we projects. Second, do the operating our

execute this of harness throughout An business. assembly from and is that moving several board across improvements initiatives wire XXXX to will and We the beyond Tulsa have efficiencies drive example Tijuana. we targeted will and production

been actions and these adjusting In new created responding increase that implementing have to to. have been are fact, we we capacity, mid-stream customer opportunities

this to the of critical and next position the has announce time mass happy After happen. moving from reaching planning for regional that our to addition Hydraulics a we flywheel us A to structure Third, invested to to are been acquisitions, the a adjust lot several has wave of make our for time growth. are organization come segment. we structure of

will President of of long-time just For the President Matteo, Arduini, our the our with leadership and in been our leaders together to We who region. to segment. Manufacturing in well APAC Rick, Matteo longstanding in chemistry, Helios customers, have promoted work has Rick strong Electronics Operations, QRC, new and full extremely support customers and Wichlacz great leadership, Lee brings joined In now of place who work our the together. oversight of and Hydraulics Lee as President Head Martich, in for will team local knowledge our have for structure updated Americas. our the December, was EMEA. regional structure, team that our of that Hydraulics brands

and $X of make billion time to strategy operating on those and regional well will which new company total support a Excellence, investments We structure, company's this operating milestone. growth the is right impact to short-term our important manufacturing expect have We the margins. our our Center beyond believe

We our are protecting challenging outlook efficiencies, while productivity and margin with full earnings our strategy executing driving and environment. to navigating a full year manufacturing operating and operating year

we week will diversify Development. definitive and recreational agreement commercial marine, Product power engineers goods, industrial, They off-highway, Last X. and to has further XX acquire iX Slide electronics, over expertise iX end ag, fitness. their and consumer in and markets through and medical, with to a sports across engineering. turning industrial, software sports, announced our mechanical, health wellness, Now embedded experience

successful the organization. any is Innovation lifeblood of

intersection the to Electronics. of the We our innovative of expect and focused iX the on efforts most turbocharge be Hydraulics to company acquisition

most with remote in field and for support significant They Helios platforms needs Helios value-added provide customization and professional provide will platform customers services solutions. Their for devices. their capabilities the to equip complex and will patented IoT solve customers'

cloud, capabilities focus their XXXX global taken off. Since has that really of billion annualized XX-year and combination to to revenue. time, apply their their to a a It we electronics. Helios powerful will in approach be pivot Over their the as growth against history, iX and scale in include business $X connectivity, IoT expertise made the broaden

ours. It the top provides find of and for notch is with caliber analytics aligned perfectly we quite that a roadmap to will our data into company perfectly this software some been own roadmap rare is fits into engineering culture opportunity iX Their that telematics very capabilities have vision. plug time. and a articulating

the them family. to are pleased to Helios welcome We very

call let over turn to to reiterate please. will review back our for comments. it results and outlook. the Now financial a She Tricia, the Tricia me few then me hand to final

Tricia Fulton

Josef everyone. X Thank I through review On consolidated Slide and will XX, quarter hello, you, first our results. XXXX

increasing strong investing the EBITDA original saw gives year on in sequential growth the fourth expectations. future. margin, and coming This in We we we off sequential adjusted rest see improvements had revenue, to the us quarter, how our while gross confidence of relative unfolding our

period. markets mobile in growth realized the the and percentage double-digit Industrial year-ago quarter over

in contracted construction, forestry, specialty handling, generation, power Agriculture grew annual machinery, material renewable and demonstrated energy. our period, Within the digit oil gas, vehicles, while to and year-ago wellness these growth growth compared remained but markets, XX% there sequentially. markets health and was single

Hydraulics Electronics currency Our by up X% and over the strong 'XX. QX revenue which XX%, and health was X% QX growth XX%, with the segment excluding up Year-over-year, over was in up Hydraulics driven 'XX Electronics was X%. up wellness segment of constant XX% or

XX% Geographically, saw X%; we at APAC growth led the with sequentially, regions X%. and by growth, across at Americas all EMEA

$X.X of in had FX the period, segment. the the health an regions, year-ago declined affect in of million first quarter reflecting wellness we impacts quarter Hydraulics demand the with on primarily revenue Over Overall, compared and unfavorable market. all 'XX. the FX Most the impact lower in revenues of

Sequentially, XXX higher points quarter, driven the gross volumes. grew margin profit basis increased gross over and fourth XX% by

cost expect, As on offset on partially by we profile profit. which lower leverage lower gross margin last the reduced mix impacted increases. of acquisitions, year were base a favorable would impacted on fixed our compared the basis, volumes our and year-over-year with margin sales sales and the impact by Gross price was of

increased expenses SEA to $XX.X Our X% sequentially million.

drove increase. and making this adjusted up Sequentially, adjusted time, are over investments the margin XX which fourth we basis outlined, EBITDA that XX% EBITDA important Josef levels. As quarter points was at several increased

top-tier provide We acquisitions. this We to continue to macro our flywheel leverage effect investing challenging our multiplier environment. a while of achieved demonstrate integrating margins structure through we future in the can

prior-year tax rate non-GAAP of domestic of jurisdictions. in was reflecting a Our compared the quarter on with expenses FX. $X.XX EPS levels Diluted interest the with impact $X.XX of last and cash XX.X% first reflects effective XX.X% compared in higher in international versus quarter for tax income the $X.XX period, year

visual XX quarters. on trends relatively shortage supply past the sequentially and flat delayed and from constraints we We in $XX.X year-ago coil chain overall key Hydraulics provide several estimate million metrics down this quarter million discussed in quarter, improved. for the slightly has $XX.X that X Slides sales The last period. in

well as some we as delays. processing out-plant quarter, experienced part this However, shortages

sequentially inflection an point time dollars revenue Electronics revealed since 'XX. growing for the quarter in absolute segment, with QX This first our

optimistic year. XXXX of this the was the throughout we you health and the that wellness We remain become decline. of the cautiously cycle softness the As sustainable market boom a in driver rest the in trend know, can coming off experienced

we and we and last to results. in out, the believe wellness are may recovery XXXX quarter, bottomed signs starting said our see of As we the health have market

FX highlights added over this basis period first QX you the grew the On prior-year find Slide grew XX, currency $X.X segment our over quarter was 'XX. on Hydraulics Acquisitions X% constant segment. Sequentially, XX% for million. impact a will Sales and $XX.X the unfavorable million.

$X.X and profit material increased material increases, gross recovered compared costs 'XX. our FX and The the period, the $X.X was gross to this energy margin in which prior-year fully margin or not of profile Compared pricing margin The acquisitions. costs million over primarily with price reflects different segment million higher for Hydraulics due sequentially as X% 'XX by with $X.X unfavorable million. efforts profit of QX was dollars restructuring well as of quarter QX compression recent

the outlined million increased investments were $X.X acquisitions increases of to and The by XX% increased to we basis well expenses XX.X% strategy. the by related as as SEA sales. points or year-over-year driven company's XX

Slide review minor concentrated of a our the of only segment to the more in $X.X so turn foreign Electronics revenue for currency segment. Please This is million for impact on quarter. had XX U.S., a

the demand all by prior-year the mentioned, and declining, to regions 'XX. with grew in the by $XX.X saw When wellness market. across mentioned, we over health Electronics excluding segment. decreased and very the sales primarily this Sequentially, industrial wellness of XX% market, was the million, and strong markets. due as demand segment End contraction as mobile over driven growth XX% to QX period health Electronics market

driven gross profit of a XX gross margin wellness expanding profit managed XX% million points. the were QX favorable QX sales SEA the gross dollars mix. sequentially X% slowdown health over reflect Year-over-year, sequentially in declined basis 'XX segment's $XX the grew gross expenses over 'XX and and with the points market. margin over QX level. The the basis increased XXX levels Electronics by The 'XX

over our $XX.X million generated In we from the XX cash had year-ago cash solid a Cash QX, to turn generation. flow. XX% equivalents in cash million, We and of period. Please Slide totaled review $XX.X cash up for flow operations.

at sequential XXXth of CapEx $XX.X dividend. full And cash X% paid quarter, our with XXXX. flow on for in came Slide recently our was year future million investments line the as XX% expectations for cash a Josef to quarterly support outlined rate growth, with trailing XX% strategic compared in X. of of with conversion Free sales for XX-month on a the our basis we

see for our strategy sheet can liquidity XX that You have end flexibility the solid and we balance a execute $XX the million. at on growth. quarter financial was Total of Slide to

EBITDA of Our the reflecting net to leverage adjusted ratio Schultes. X.Xx, debt was acquisition

forma debt X.Xx. our ratio pro be acquisition, net adjusted our approximately iX EBITDA recently will We for flywheel announced leverage estimate to

align paid in strategy. good be of of the consideration talented Helios transaction, engineering of the part portion resources our success a that combined a the As to with will equity long-term deal

know, you well-established our of track on we ratio record we acquisition leverage our a As execute managing strategy. have as

to our generation. quickly recent level to above for leverage of increase been or based target de-lever target ratio able acquisitions, our we cash we Xx below As back on our have

Turning Slides please XX. to to our XX XXXX outlook, reference

$XXX That We for annual XXXX growth year. over growing to imply X% to XXXX. would and to the revenue $XXX are X% reiterating million compounded since XX% over our growth last between X over outlook this million years

XXXX. of milestone be run continue revenue with ending margins $X fourth basis reach able our expect to on billion We to a the top-tier rate quarter to

Based the XX% half split second first half now first strong respectively. revenue growth in to estimate our sequential quarter, on our approximate XX% we to revenue to

EBITDA back run the year-end With the the a of sequential improvement outlined investments our on year, towards timing margins we the revenues in as we to basis target. expect point work and of we XXX rate the XXX half approximately higher

Investor $X.XX last XXXX still a a to our of the see range we path Day our growth target approximately deliver for of to $X.XX in cash per share. original Importantly, non-GAAP XX% at EPS X-year achieve to at of our set CAGR expected midpoint

to over questions. back like for we hand to would I your before Josef take some it closing comments

Josef Matosevic

Thank you so much, Tricia.

XXXX. to in are a We off start solid

in by we out. expect. established build We the over come and We strong the they on dedication and strategy leader remain few being years providing we foundation augmented executing focused the attention last the customers have an innovation continue on to laid industry our to

technologies acquire continue We a our to products with portfolio high-quality advance industry-leading acquisitions and that solutions. flywheel

making and accelerated progress markets implementing has margins, operating manufacturing diversify as business revenues We significant are we growth. and and our our while protecting which strategy all our

progress we remain goals future. and as we the that innovations, pure-play continue created the that long-term XXXX, provide we will We will have acquired our So and value into to organic shareholder the into structure vision and and execute business, plans. continue drive system earnings, the discipline cash protect to to our our business electronics believe and Through a hydraulics well can Helios flow unchanged. business and

that, lines up the for open With Q&A, please. let's

Operator

first line with of Capital question. proceed [Operator KeyBanc from Hammond comes Jeff you. Markets. Thank with the Instructions] Please Our your question

Jeffrey Hammond

morning, everyone. good Hey,

Tricia Fulton

Good morning, Jeff.

Josef Matosevic

morning. Good Jeff. Hi,

Jeffrey Hammond

Yes, maybe little is unpack what quantify a margin a then like XQ? the that more I way was looks bit to just XQ? And into of improvement. in investments just of operating cadence the kind And expenses there or -- onetime

XX% this quarter. did You

think exit run your is rate XX%. I

how Just there? do Thanks. get we

Josef Matosevic

have When Jeff. nicely. and morning, last two, smoothly they acquired really at Good in been Yes. the we and the looked went pretty swiftly, pretty companies, particular

anticipating way the in So investments having terms line really The capacity, say. of waiting They're their everything into going on with of of sales to are have on not done to some capacity so methodical orders in and investing done for we come. sight. integration, for are those terms

manufacturing really lines flow what a we we that in up having and in proactively similar in material XXXX So have some right and short-term what setting Daman terms into invest getting of the to approach Sun very and end between done of dual our need the way XXXX, here. into people future

the goes So very transition smoothly.

million. So is improve obviously, to quarter-over-quarter. And roughly running, once just QX all up $X around in anticipate terms in that into and margin function step investment pull we're ahead we that of

Jeffrey Hammond

there there? Okay. in the Or confidence health balance little and just what's destocking just color. inflection? And us? Is Thanks. this a is talk some can behind then just about more in driving new simply in you Maybe the and wellness, wins

Josef Matosevic

for Look, Yes. business said get the Jeff, we a time, that has last we sense started to stabilized.

are name see dealer X the within ground to in shows, time a good now it, with positive of lot a spent have We right the direction trend customers, months distributors, for you we and continuing X, now.

to starting So orders are we don't see and levels any destocking per inventory come down. new the to se the

communicating cautious trend right in clearly are we So direction. message, but in it's the our clearly is going -- the

Jeffrey Hammond

And their talking like in one. about kind lot then chain seems Okay. sneak supply spot It around could are costs a abating I if of last a of friction companies improvements, on freight. just expedited some line normalization chain. still supply give challenges. Electronics, you see think like you'll are us for start It just Maybe guys of seems to seeing you when sight to some buys

Tricia Fulton

things either the seen we having across need we the But There basis issues starting specifically timely to a on part, seeing quantities still well. already we're most normalization improvement few as are have down are see a and or Electronics. getting cost that little that we of for bit in some a We are them.

finding and job procure base I across doing think look parts. a being able the in very the globally to teams our to place good supplier are our best

the Electronics, amount sales chain, down of by quarter. held I supply think you this saw that being especially was came that back on

encouraged we're that. So by

Jeffrey Hammond

Thanks so Okay. much.

Tricia Fulton

Thanks, Jeff.

Josef Matosevic

Jeff. you, Thank

Operator

Please Chris from Moore comes the CJS line your next Securities. with proceed question question. with of Our

Chris Moore

going Josef's to little of prepared you Hydraulics new for guys. more back morning go structure morning, good how on into some taking a remarks of regional a for fits talk the -- strategy Maybe that and Hey, -- just couple questions. good kind of Thanks about bit forward. the

Josef Matosevic

communicating Investor have that when Chris. We in we we Thanks to Sure, we our a get us this you. morning is, on journey a a needed laid Day. sharper are our for to well. last leverage. again, said of focus out to well point, Look, part our Good as joining

not support Group. were regional also the within structure. -- team invested Faster or operations, Then well-established a our proactive in upcoming those have capacity but We We investments talent. manufacturing to significantly, just done

you're come East the cutting region Middle to team journey. one and drive what supportive is systems. across in and aligned European consistent So are going leverage Customers to just here and see really that practices, informed much very over

and So vision. Chris, focus our against just to higher of a discipline, speed level, executing

Tricia Fulton

of mass some in critical We've while. to flows what with the this given very for about I well gotten for we've been region the each within the think now also the in region a quite of the last and us talking years few in the ability resources to to that the the we utilize each that capacity be we forefront and region. able over really that made best the that acquisitions have give to bring regions

Chris Moore

it. gears switch there expectations you balance roll bit thinking are little the kind talk but just of about the maybe ENERGEN specific a Got for 'XX, out, you're I appreciate that. of bit, a can that the And little about? milestones and

Tricia Fulton

Yes.

still out it, do we the we are feedback And need there's some are we opportunities we testing a on at on can scale. good that ENERGEN. with but that testing do before a customers, few doing to of are more we that looking have still larger specifically We for the that roll getting

I XXXX that us this to be well setting But going 'XX. get but into probably in do that. think we it's to we're going probably anticipate some roll material of very out broader out up it's that revenue not year, to

Chris Moore

it. it Got guys. there. will leave it. appreciate Thanks I I

Josef Matosevic

Thanks, Chris.

Tricia Fulton

you. Thank

Operator

proceed Please next with the comes from Dobre Robert question. question Baird. your with Mircea W. Our of line

Mircea Dobre

your you QX to Electronics segment? envision issued Maybe half? your give in in embedded Can half, first we finer outlook? what you first good a second your Thank expectations sense us revenue here point this you, expectations versus guidance? morning, seen initial how And the progressing a as on put for and What's when you've everyone.

Josef Matosevic

get consistent right good improvement it has trend, to the see trend will it now, to the Tricia She's the into going order still in pulling was biggest really right the Probably and spotty but that you. up been it's the meantime, morning the We anticipated Mircea. some direction. But numbers. in health wellness. change encouraging

within is And driven we investments the largely on direction some really it's than actually, have plan, anticipated in to nice cases in exactly part, strength based and going in according new years. over the X innovation better second a continuous our business going the plan, that's done we our last X, product

the are and Orders manufacturing now no the journey are to low-cost over There's now. coming. balance cancellation. fully flowing. They're extremely having margin Tijuana additional continue we is uplift as the Team well next in XX gives us performing on with will XX months capitalize second we the U.S. on factory the between investing footprint and and this

Tricia Fulton

the through see very of we With regard quarters have second we're first basis out. XX-XX. a to bit a well sequentially the on is we the pickup side looking of at the to on on we Mircea, as innovation your half products includes to of little roll new consolidated continuing coming similar and that half expecting that question, are part of for Balboa -- are breakout That what the the the a some rollouts as business, it

Mircea Dobre

million just the me wrong, around QX guys to I'm assumption correct difficulty] like and sure segment expectations make I in the that And somewhere just million understand are of call you your it, to $XX back is variation sequentially this so to going set for I'm relative half that level to it if there's that in ramped but seems that [technical rate look, get to run that and thinking. then been we $XX me you're by, what mean, much revenue here I'm Electronics. trying

to mean, be please where I from if run we $XX really wrong, that but it if And not all rate I'm confirm the XXXX. would look far like that's correct, would were in million me

question. how 'XX? market, you exit lot So progress and to rate run wellness a And into Sorry, the do implicitly, is there's 'XX? the in what's think health that with going

Tricia Fulton

I going Just there? to in a kidding. there question say, was is

and necessarily I and we very perspective see where is Electronics I is QX pick run think a that break rolling how don't want yet to that seems up. all by this to from number your health we of are out reasonable. quickly $XX wellness. to the million the quite rate know going that for for trying We're down to still market going time

on are we an we little able orders that be out are But We a probably overall more to where aren't want to still that bit seeing break picking to every month basis. be to quite specifically. up

million, we year. $XXX around might some when $XXX made the conservative pretty ones initially Mircea, do had health put our in together And and we to guidance assumptions and of the million what wellness

we levels assumed we potentially So a above band then had go of below back of assumptions that. kind and could pre-acquisition and to

we so started think And I year from a the we like felt place. pretty conservative

Mircea Dobre

Okay. final my question, I to guess Hydraulics. going

some with you on that with the that ton price to are slides, of the still this I'm lag. curious low, how given seeing a you're you forward? inflation recover run cost making sort your why to going as And expect this relatively do some to manage you backlog, that of really cost don't lead And fact times been haven't pricing. of On comments your you're able really

Tricia Fulton

Yes.

expected. on bit cost the are perspective, one there's of us as continues piece, an to on even of Energy logistics still hitting some one are, We close hydraulics to inflationary more those cost price the but than to things that continues we a well. be from very part little those, probably be

we do the that at rolling more half the but are see happen We both also from now, going regional of those going segment strategy. are that of on in going have anticipate we things, the year. growth right this that back looking Excellence to a Centers to in of new out And we're those lot

where we're really that's So leverage. to start going the to get

Josef Matosevic

to to in are operation, pretty entire of is past, so well. the and capacity moving to one to manifold Mircea, state of adding do learn at part them them super transparent significant big in time -- say, a here, much after how this, we from every you of another. Daman And so And done many amount be eventually

So go going plan. to has go has exactly And this one extremely to well. to right, it's according

a out gate investment we can proactive as and assure the business bit come almost it's the of in there's to are of Daman little in of triple business So go swinging complete it's right, once this once here done, or overnight we terms revenue. done will

of see that. you carried once that is go But costs to into us, going So behind some away. the then the that's operational

Mircea Dobre

I more we're companies appreciate fully has the from pricing cost that. more I that sort guess on prior There's of my a basis. thing than question one many significant, consistently them and side. on up caught are pricing was really of hearing power been that is the

good given have if the I'm in lag. pricing you anything power. historically Hydraulics, Again changed So here wondering enjoyed

Josef Matosevic

No.

Tricia Fulton

of No, through CVT. in Sun or We side the side put at nothing the on pricing changed. did least beginning the year CVT the of on

faster look restrictions there pricing can when on specifically. side we for are on Sometimes at OEM the

Mircea Dobre

you. Thank Okay.

Tricia Fulton

you. Thank

Josef Matosevic

you, Thank Mircea.

Operator

Our comes Stifel. the from question next Nathan with proceed with Please questions. Jones line your of

Adam Farley

can regions the the for morning. start maybe prepared seeing end on are wanted little and Nathan. any is color Adam top line. in the Farley the weakness showing you detail are And more in any remarks, to a Good you appreciate strength? end This you I with give areas? most gave on I Hydraulics markets which but

Josef Matosevic

Yes.

be the side, be general the kind opened. that we good. bag on are mobile industrial construction piece, to just overall more side be QRC at international when they is here, well. piece construction -- European general the Not in side, strong relatively mixed our look a continue the CVT still but great, to China. construction Balance the is Hydraulics strong. side, on U.S. of businesses to since remains going areas continues side still the or That is ag So good.

pretty our can on end we that now. see is overall So stable right

Adam Farley

for question. taking my Okay. Thank you

Tricia Fulton

Adam. Thanks,

Operator

the City proceed [Operator Jon Our question. Braatz next of Please Instructions] your with comes Capital. with question from line Kansas

Jon Braatz

everyone. Good morning,

Josef Matosevic

Jon. morning, Good

Tricia Fulton

Jon. Hi,

Jon Braatz

couple I questions but Josef, of I iX know had the it's about small, acquisition.

use this You X you has an the would in opportunities you with since used that you guess trying and to if to ago, accelerated of you get this And to how I'm company -- acquisition. XXXX. years talked of term sense able been turbocharge it? will opportunities have the I And business. the also do about to how maybe trying the may had that extent, you growth the understand really be business with a of I'm front what maybe this new

Josef Matosevic

will as over a speak you you, appreciate Yes. able about been not This talent #X, being question. honestly, John, from a standpoint, me closing for, I really and a cultural really from that is one and just looking tell we've that day special quite but some heard quite our sale. for [indiscernible] to time switching now gap product -- our start system to I

we Those piece was that guys telematic the application embedded software technology. This a been that. Electronics, have for really company. kind same now. do missing into can couple vehicle a been and build pure-play base years now upon as And of us the eventually, foothold the throughout talk provides we exactly and you that at guys entire But have able about our about to time, having me it heard a to talking customer Hydraulics compete our of into and

So we point us to application the us this that the invest recurring get the continue specked That provide not to of to needed turbocharge necessary we comment that company figure in in time is that point. point We're to need. going at get that do entry in we kind IoT revenue a stream. to have and we came as how do and for information but customers how the build out out and then, some needed just data

it really with strong plug their our are also they brands. into markets Secondly, where

and and So on foundation things, Jon, walls the the of plug building yes, the the but one it's roof. the it's scale you start right side, revenue in smaller out

a got the pretty You of house end the at nice day.

So about we excited are really that.

Jon Braatz

So, Josef, is type it of OEM more business? relationship of an

Josef Matosevic

yes. much, Pretty

Jon Braatz

Okay.

Josef Matosevic

So OEMs. primarily driven

Jon Braatz

Thank much. Okay. very All you right.

Josef Matosevic

bet. You you. Thank

Tricia Fulton

Jon. you, Thank

Operator

remarks. closing hand in I'd further There like back questions call queue. are to no for management the the to

Tania Almond

operator, through number and Thank We forward in investor any us to you, great to on that for reach We we about forward updating appreciate our results and the free conferences quarter. Great. you in me you in have your Helios be at seeing look feel follow-up a Thank you. day. and joining look and a participating will August. today. to interest we to second with different thanks, Please out everyone quarter of questions, out

Operator

this participation. Thank you today's does your for gentlemen, and Ladies conclude teleconference.

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

Helios (HLIO) 9 May 232023 Q1 Earnings call transcript