ZMTP - Earnings call transcript Q2 2018

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Operator

Good afternoon. My name is Hani and I will be your conference operator today. At this time, I would like to welcome everyone to the Zoom Second Quarter 2018 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remark, there will be a question and answer session [Operator Instructions] Thank you. turn over to Mr. like would the to call I Telephonics. CEO Frank and Zoom Manning, President of Mr. Manning, your may you begin conference.

Frank Manning

read we'll of quarter, Thank our available you exciting to the with Today a for section, Telephonics pipeline website’s conference our www.zoomtel.com/SQXXX. and welcome you I'll specific have slide This a to Investor XXXX the of new slideshow X second Relations be and presentation. product when on introductions, recent Zoom Please products. call discuss address an profitable referring quarter. is presentation time.

were where are Our my in Gross million. to of to Amazon, than stores. direct through and SEC. of for risks QX due percentage a we sales compared financial basically slides from up and of QX net improved $XX 'XX, with $XXX in thousand QX margins loss income enjoy Revenues as filings in comments Slide margin Operating brick to do XX.X% higher and we QX'XX. subject and slide to comparing mortar flat. We in XX.X%, errors, some primarily provides sales a to highlights, as this $X.X higher thousand uncertainties, XX.X% reported X the a sell to detailed 'XX were our 'XX. expenses and

to slower this with Walmart. year growth for at slowed sales were a go lot The the over year main and of rate slide reasons Amazon made let's X. We sales specific in to Now but product development lower quarter, progress growth two issues XX%.

hurt was up in QX sales but over by growth box Amazon 'XX buy were issues. XX% Our QX 'XX,

buy have customers other for run. a that what a don't Amazon from rather toward explain for means the the the that ads product, box from we the box buy for pushes product me product, of Without than let the buying us product. Amazon retailers buy-box is. First When

cable We've selling X line number these that gateway routers, thousand reduction a sales XXxX 'XX, up some This from dropped 'XX signs in markets. Motorola the Our of XX%, our was sales of issue on Amazon, Overall the dues $X but we average in our these. QX for Revenues were continue were get XX%. in $XXX our dealing in and percentage encouraging also Motorola there progress to Throughout modem box expanded for products at sharply. Sales not-cable-modem to in our and products we're a during buy-box pleased with products impacted now for cable Moca but our about nicely. ramping period at the buy between extender. year it of better with not-cable-modem a and Amazon. are a for top-selling continue ago; good accounted are We've QX so and by new box we're Amazon the gateway, QX they buy QX to 'XX were also range in 'XX ramp these period and Amazon a to sometimes making products and $XXXK, million. errors, the adapter, ZERO DSL probably lost we

We growth significant of QX to expect America this starting from we Canada our reported Latin also the potential in the quarter, but in in outside year. We upside $XXXK see revenues see and second US. of

can and later X Slide of issues. that discuss the over those be year, in see call. the gross time, Amazon and margin was shows QX will profit and We that changed our products I'll you shipping the also reasonable margin sales have quarterly gross how by even see potential from growth excellent with end

sales. $XX think of states. as in showed QX reserve partly sales and million thousand We for quarterly normally because of some our discussion income reduction about a in $X in tax profit expenses. of net $XXXK sales. for release You can of benefitted see our break-even We XXXX with million our $X.X press gross

payments we involved and we sales months sales ago. We intensely did with been estimate tax liability now a since better have have few tax than April, ability a to much

to to of drive Motorola continue a X. adapter. cable our products X XXxX brand router, ramping two is products, ACXXXX ACXXXX XXXX launched Now products well-reviewed Every let's including growth. nicely. December go an an products router, new slide Motorola We've and MoCA since one and these

now top-selling products slide Motorola rated Amazon's better, turn Amazon on main X, Amazon. X current products out go rated X of XX are X and better. at of line which XX X.X products. We stars to XX choice, rated network X among summarizes are are the the let's Now our or XXX and have product Amazon. are XX the are stars

ratings We X satisfaction. the these sales comparing key achieved and high-performance reliability, customer products, have product support, overall shows excellent to QX through Amazon's customer 'XX. 'XX two categories, in in growth Slide QX total

grown gateways, grown quarter. to and million XX.X% modems that per smaller to can million. without have modems category, a You $XX.X Cable $XX.X routers see has XX.X% built-in

product is this prospects our should believe ports. gateway product first very biggest focuses very both An cable modems this close growth to categories Slide for this certification, challenging We product and important plans product than significantly The better category. occur in Our and good. by Comcast with has gateways, and are we're that cable telephone on for that this. quarter. been X far our

is name, working Mesh that can wireless yet walk so you handing of also smartphone on move cable gracefully not we but a next big, for products but you home. adjust your are gateways the your category network line of that these another routers these as through include cable expect changing first for home a routers, you until be mesh with planned, mesh through signal to the We a network fast-growing to automatically gateways. stronger with Zoom routers. year. half without off with point a has access don't shipping wireless from one the Mesh

sell-through. space increasing continue and shelf We to on work

sell-through space Walmart. brick including Center, and shelf excellent through retailers Target, Buy, mortar have and Micro our We Best

upcoming service summarizes status about rollout significantly progressing, hope starting to and certifications 'XX. We the providers expected are that we modems. and completed recently timeline. key we've announce our so for of I'll product LTE CatX very certification tests also provider some already one to Verizon's our focus on talked difficult, and achieved We've sales Verizon very major products. We're USB increase was Slide service pleased in products, QX have our accomplishment. XX to this a

and We'll sales our moment. in discuss for supportive, in to started modem been process and great. is do transitioning USB very some XXX% from Verizon our timing MultiSensor a is away good has is a CDMA, way Our they've Cellular that to the customers. Verizon Verizon leads. send good of

cellular this in is this a hope year. of QX Our We it market for progressing, Ethernet we modem there's product. good type and will know ship of

We Cat working hard, datarate Cat can home, for facility new ATT about MX Verizon. XX both or you protect MX number is modem works MX machine product. Cat vehicle. LTE a Verizon MultiSensor, lab, excited USB have our and ATT so addresses we a low garage, important machine for Cat are our which Slide in and this an product, of or things for have and we our other Cellular technology certifications a monitor and which MX Motorola communications. and cell to pushing begun are senses

units, We continuing but are the app. to have working we and fine-tune firmware

that with product, volume to exciting and We've remains proprietary made works we sure in that strong October. progress XX Slide of our and high we're building a base debt. an shipping This be in We in hard for working for sheet make expect challenging shows and hopes well. technology, significant cellular balance product term it follow-on huge to is no and have this sensor products. long

on equity just Our XX. under was June $X million

While National focused Exchange. for our from questions do to a on to we our time get are about up-listing we operations, expectations time

least that amounts to have to $X.XX share. about $XX straight business. market equity get is cap we days our a good recall in of way You'll one million, trading currently which feel per about million with $X to and Overall, NASDAQ XX onto at

and the products. products will products soon. about solid expanding and Motorola let’s your an We're appreciate turn now shipping that introduced, Hani, even of recently to have be more and sales, line We of a support. customers about excited interest excited and the we've We base questions.

Operator

question the open. Matt Camdo, Your line Matt comes line is of from now Instructions] your Mr. Camdo. [Operator

Unidentified Analyst

wondering the issue. Amazon could you if upon was just expand I

going million. Is $X are you the to XX% about that impacted to said You situation XX% buybacks from correct? QX talking $XXX,XXX and you that

Frank Manning

Yes.

Unidentified Analyst

you And with pleased just so next you could just could upon the expand progress comment you figured were your Have upon said that? expand that because or situation you Amazon. out, rectified at you

Frank Manning

one and I But are we always watch some people to we there Amazon just little I of buybacks fix or issues them they some that product there for tough OEM Amazon a buy QX will number but have even Well can unusually we then kinds of who try stock of were them. the team regard that actually about very whatever. and that the in was in problem was the our if talk and that issues undercut biggest and units those give retailers think three and normal price found

had stop large the it that a their group completely anyone of stuff but have the hand quarter, really did had specific if the with they three one a shipment So where typically the on is had or way also issue pulled kind by we works. of that think called basically very depending we day product of us somebody people at an concept savaged eye significant had mistakes of and that’s which products and cohort first disappointing can we case, Amazon the by is top We’ve our there mechanism two erroneously. or [indiscernible] in Amazon the they he [ph] of

we things of could we and very we no actually That won’t way be any we again. think statement. anybody there through but experience issues takes we ever be fix ones be a time had chance amount we able normally will there issues. more learnt are those and happening to So we the But some impossible that good think is fair that an I next would solved be get to are of and dealing at that time we it with think I the the understand could reducing say, faster – it

product there way sell So the I products, it sales still see going that Why year have dramatically forward. well is in reviewed. to great as QX about we still be in that – think, to optimistic go our last as people will we still grew unlikely was the very it’s Amazon? priced we Because are well bad are that and a and Amazon we and wonderful it

picture way crazy very is. reasons general encouraging but at the it when Amazon but for the is lose really you significant think good I sales this So fairly is that’s

Unidentified Analyst

you Were there. the you. well. explanation upon competition? upon the And seeing explain sales if rationality comment then appreciate from just some you too? Walmart I at that could Well, Thank Can you lower as

Frank Manning

basically worst and the and Well, by is that the faster you transitioning one phasing of And out a in the back sales. main of product best that to Wal-mart in my of at are depend that – comparable in whether I so or but whatever. process or version can that product I disruptive account things terms thing, was if of a was you are taking our products like reduction look our selling also think on new a know account – to you

view. a all So why from the but that – our picture to our sales was issue point detail that’s that – second basic into I I biggest that, don’t the of get is want quarter in but

Unidentified Analyst

Well one it products products pointed you’ve online, and now. out, are sounds so or now like some lot got you learnt issues you are a and on behind of from you new like things that coming two it not relying these are of you

in So in to that’s regard opportunity, this the you and correct? a rolling your big October. remarks that you positive think be are out cellular Is said sensor that to with I going

Frank Manning

easy putting I do definitely of it, their fell been be fairly our run about for tell it’s we parts in probably I putting of in I to and has it in we October. some the improvements like got doing some are very brought their – that of down we months think certain are run lot follow It’s we closely good their sensor, company are sure for case. are good that it think that smartphone us app XX%. the to end we and a people and firmware and slipped has improvements but fairly done over power We’ve but this – finalize have out comes term everything the if I that and multi-sensor testing own also it of own won’t first There product think so absolutely we so a be want at But we using firmware. can wouldn’t will it. but make I we well. XXX% the probably and over have feel the time it good. actually and shipping till feel works some you know month can number when do actually we to very that what Generally really it’s to this that’s in a the

Unidentified Analyst

fees. Yes, here it guess price point $XXX the knowing from you call are very would the upon $XX be exciting sounds with about deck and recollection, to really but you in expand Last per what service just product I targeting not selling talked talking for my about you month that.

there is So –

Frank Manning

$XXX second? month in that under under interrupt just case. I – with is so Can important correct. and service the I say Actually word what per we $XX is That’s one

I with like $XX it XX% will that certainty. and a – be $X a just say between So will a month

Unidentified Analyst

Thank Is there or you the for are of fantastic. you’re with that That’s – line partners? still the you trying there develop right working to clarity. are currently partners

Frank Manning

partners, say partner? you what When type of

Unidentified Analyst

on How going Go to market. go this you product? to market to are

Frank Manning

Sure key so so products and good and of question. sensors in that’s sales surprisingly is the strength related and the there more and Well focus. interest more and not is is retail which will retail be a one definitely and activity our channels

that, the know home would example product. example of like good to we reach are are at people be We example be other would as solve Those we be – not do are some plumbers, improvements. an who one good like would another those markets of contractors kind to ways those

good we kind hand, less making of other at that the On sales. are

Mobile context course and that at Angeles and So are meet some to Los we will we we of Congress a we be show will have Congress. there see markets. in and World those mouthful, to people in in also hope It’s Mobile starting good September new World reach we new out in but directions a some think some

Unidentified Analyst

like in right Thank this – see go at you you direction nice are and it’s very to to It starting the sounds certainly much. profitable really things level.

Frank Manning

to thank you. you talking Okay, very much. Nice

Operator

[Operator questions Manning, this Instructions] further may you Mr. continue. no There are at time.

Frank Manning

following to results. Thanks Okay, all you thank Thanks of with again to the third We issuance forward you. speaking of our for interest. your quarter you Bye. look again.

Operator

call. conference today’s concludes This

You may now disconnect.

Minim (MINM) 5 Aug 182018 Q2 Earnings call transcript