MINM - Earnings call transcript Q4 2021

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Operator

Good day and thank you for standing by. Welcome to Minim's Q4 and Full Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. I'd like to now hand the conference over to your speaker today, Mr. IR. Hayden from Carbonara James Thank you. go Please ahead.

James Carbonara

President Once and Controller Vice QX you. are Financial Chynoweth, Nicole Officer; to Patel, Tacker, President, Officer; on Accounting Minim's Year XXXX Gray Officer Zheng, Officer; Executive Interim welcome and Full Chief Chief earnings Chief and call Marketing Mehul Thank the again, and Former call. Chief Dustin me With Current and Accounting.

at company's ir.minim.com. for today's live are Investor reminder, Relations a the website all materials As available presentation on

Before want forward-looking today's I we call conference that begin, everyone remind to may statements. contain

expected include operating outlook. statements statements could contemplated Forward-looking regarding or the forward-looking results expenses, business materially future, including future these from those by revenue, and differ trends margins, Actual statements.

cause non-GAAP performance. too reconciliation most and in that filings available recent to or company utilizes contained note reports in Form use a time-to-time well XX-Q, those expressed in forward-looking our from company's the the the Commission. as analyze the Please in actual of on filed from call results our other reports Risk such to numbers management periodic comparable discussion with company's today's most GAAP with which For the measures the include of Securities Factors non-GAAP may such Exchange implied differ XX-K, that subsequent numbers files please risks as of the in statements, see and Report detailed well in as Form that to Annual the could A is press release on uncertainties, SEC.

proceed. CEO like call of please Gray, Gray would to the Chynoweth, turn to I Now, Minim. over

Gray Chynoweth

conference and Good morning James. and Thanks QX to Minim’s full XXXX year call. welcome

in. right jump Let's

well hoped the we performing continued growth we to in had the as on not market year For outperform despite QX. as

have this over three in compared dropped For our of With strength context a resulting drive year relative share leaders the to I performance following. Three in year the GAAP how market XXXX XX%. we was that to to XX% by resulting and we outperformance approach headwinds. XXXX want a in revenue to market revenue by believe the the XX.X were three XXXX X% of CAGR But our of context up X%. sustaining of points helped market we million Minim’s are XXXX beating CAGR the face

the we products First, to year delivered up the ASP X% from high over $XX. value in our to XXXX grew market, $XXX prior

XX% we year. Second, tremendous Amazon.com in sales prior drove sales grew over online. the The channel XXXX

share. Third, we market captured

XX% in grew As an Amazon.com second from XX% putting by full basis. points year on example position us we on XX to a dollar share

Given two with Best category using with in data the XX.X% over capturing we estimate that gateway segment. XX% I a sources consumer have basis our Motorola unit one XXXX believe took next respectively. multiple tight comprises of mentioned in share the market the place to is the Track e-commerce it electronics the XX.X% of out home is ending consumer calling the and important According Amazon In third share Buy. Line for competition Amazon, players four quarters own I dollar on analysis worth September how electronics Amazon

didn't Best with keep dollar increased XXXX. Buy growth by growth in due increase with up Buy the While to our our with Amazon, sales Best XX% on with

as the costs the The and headwinds issues. QX delaying that and indirect, increasing for outperformed we experienced performance. revenue chain supply The shopping ability to direct, bring at biggest our both from EBITDA result in While a significant products retail patterns distribution component buying impacts impacted and we new to partners. market market are revenue a macro headwinds the came and level year on adjusted growth, growth

our supply pandemic chain chain, diversifying at the of performance demand our pre-pandemic modems, to the distribution rebalancing but consumer a plan level distribution competitive below U.S. cable, partners. by the of headwinds number U.S. supply the the by and the market We headwinds overcome outperform included gateways, levels market market segment suppliers levels to these In headwinds continue primary all globally. becoming above our and and expanding increasing share of retail the the to addition market the to other more settling market to and inventory in in U.S., partners increasing U.S. and beyond mesh in and in peak

basis our bottom points for Turning XXXX. came negative continued improved million and on by profitability that X.X Adjusted XXXX, of note tempered will EBITDA R&D of increase eye headwinds an XX.X% lessen. focus gross to our margin as to increasing XXXX and in QX as over revenue we in to sustainable in million with line, our growth I investments at for an to for our XXXX. compared part X.X XXX them entry market

position Turning which when XXXX, of and to cash end compared million with end both of review the we X.X million the cash with exited improved $XX.X dramatically to inventory. the and saw cases in a million inventory. balance year million $XX.X this represents sheet, in us of In XX.X

from continued inventory chain not the Given levels of enough to inventory on of and having the seeking the back to put our of began late dynamic with we XXXX. progress Minim to in risks on Telephonics that market turn meet risks environment, transformation Zoom inventory monitor having both levels operational pressure which next our closely liquidity. performance of our to supply will efforts merger demands the hedge Stepping I

personalization a to making supportive intelligent mission, software options, updates, distribute everyone Our network for new new network interface. and home our that and apps, delivers delightful frequent vision, guides connectivity develop and safe helpful extensive

tax we work Given models are than relevant security vision Minim’s the more the working feel hybrid streams about ever. to and cyber continued increasing this driving Three mission shift transformation. and and are awareness concern

corresponding increasing X in products. revenue in to value from XXXX intelligent the deliver portfolio We've great and intelligent we here, and course in growth already X number First, revenue growth XXXX. more XXXX. a consumers resulted have This reach of growth. to headway past planned XXX products in a XXX,XXX saw setting Minim with our This to over intelligent XXXX Intelligent product made for year Networks increase in

regardless to of value to discuss roadmap. where This goal deliver is our software internet. a consumers how they shortly big will Nicole the in Second, that connect product for XXXX or with

software company with and we already XX%. powered X% customer through of resolution reducing value higher Third, The support customer initiated phone has app. the improved operations time service product rating rating, the consumers to XX% deliver keeping new in first and front about live by satisfaction for upgrade app our a in the became upsells Minim. functionality innovative this tickets by product recently features than to chat our app home mobile networking On motosync support that

We launched recently Tracer troubleshoot also connection users Issue which a feature help called issues.

this members brings VP the that experience extensive have hardware I earned at to earnings Retail out as since mobile the leading Director, of ambition be so applications with new ARRIS. software propel at brought to ARRIS. Charles call Paris. generation and and Patel, Motorola, consumer CommScope earned Sales retail new Rodning, roles for sales extensive amazing of experience in new of with this leadership our experience the with of Next to month. Jeff value earlier our across thrilled her Schwab. financial growth. VP our experience driving at with CommScope joined board call Lakshmi deliver He November. Bill extensive Kadiyala, of earned and in Mehul brings him at him new we stockholders, them us VP the experience new course has brings last And brings hardware and This team the crew. continued National our our Minim’s on I'm Wallace, CFO working who want company extensive Phillips. customers, leadership to our operational our

you we earnings of which it growth, coming some late makes XXXX. business practice, perspectives a outperform sense and QX, of we experienced the to Nicole market towards with the look to first expect into in comparing fiscal given progress growth levels of disruptions bounce Also balance COVID-related look in chain the QX supply with to the means hedging expect to disruptions year to quality on our glimpse expect revenue growth XXXX of quarter position XXXX. development we continue product how progressed While our of been specifically, XX% intelligent QX QX return in our of that and and QX software while of in chain we to in deeper to against it call, growth and [ph] see expect a is QX Up quarter-over-quarter see a increase between as QX to our the not this on for In revenue back in specifically, of normal Asia exit and between product to QX significantly we XXXX. cash Nicole. and the the performance note QX. the supply timing more share between quarter-over-quarter give tapering sales production means has More XX%, management. drop short, will ahead on an next, exit

Nicole Zheng

net At captured our in total have of Thanks, the modem believe approximately share the category Gray. sales we this modem also products, of the million revenue Gateway. known as by composed XX% million. prior in revenue at XX% router in $XXX cable is moment, gross XXXX. from and our underscores U.S. we predominantly in Overall, XX% to exceptional approximately growth in itself up the market. believe XXXX, $XXX the beating This XXXX from shrank category sales year We market

return to let's discussion product a pricing. for deeper about Now look, a

company. networking As the MBXXXX, the the aligned XX% industry combined say The market products. products modem an our I'm of upper XXXX price saw movements to ASP was intelligent increase In three X% were to made the our and by position. product in was of an Gray gateway MG-XXXX, growing in market. the our ASP mentioned, proud which sellers first pricing In as with premium X% increase grew mid-tier in up of earnings market well due MG-XXXX last the sales last discussed of year. average and kept across The top increase net for and to we home cable XXXX, our mostly XX% product X% is we a our call, that Motorola MBXXXX, portfolio. total This sales. Motorola for gateway

planned, Friday. has events not year Prior run to participated greater As in had Black XXXX, flexibility company Amazon pricing profitable us has the to the fiscal as which afforded positive such shown new promotions results.

market in performance, historic products an $X.X time marketing consumer totaling year, pre-pandemic to As position had Black the of new for levels. X in midst XX% modem previous the Friday exceptional Motorola Today, Minim in this programming, XXXX. a team our last of and tripling gateway demand are of share. Amazon I'm e-commerce in number share estimated an number return especially market a we X, with XX%. extremely of million at proud XXX,XXX Monday, the Cyber result sales, our held high and almost This our

in with Amazon versus Specifically, decrease industry gateway and XXXX, sales of hold a the QX not steeper retail this year market XX% at of that with to of look remains analysis, saw our mind by all same channel. decline exciting retailer the our analytics in NPD we a turn a share to and stores XX% consistent. Amazon XXXX, leading XXXX modem cable channels, data our according Considering is retail It platform. retail full and performance as our did our in which in in picture

sales such, decline the described. from subject our and to XXXX in retail As were as demand

particularly the supply chain inventory against vendors. their performed risk disruption primarily from in quarter purchased of fourth to suffered any quarter holiday as Our hedge retailers third

our product few X. began highlights. intelligent Now the from software-centered X to to on look company. we portfolio In our a journey the XXXX, increased multiyear year, I'll turn specific Throughout products we to of number a in transformation a become at

made mesh those on of impressive XX% up the intelligent year, Also of X.X launched sales. system for products, last Amazon.com. our MG-XXXX Motorola gateway MHXXXX Minim Motorola One DOCSIS the net an

this its with its versus encouraged product predecessor. proven times to are sold has launch for a XX Amazon be mesh competitive more own in that While this its has we marketplace in product volume category,

Buy this recently We online. are in progress and Best making launched in and have products Motorola product growing Walmart mesh of awareness

products. to plan we to ahead launch intelligent As look high-performance XXXX, four networking we

isn't business travel, mobile In network the every the might also in-home product look app. of to WiFi going an verse It's Right the use our an WiFi improve embark regardless road reimagining search you the hardware. for to network. thinking download app use map. you better able this conferencing we to mobile the app WiFi continue connection on simply innovative On might product it. future, our an on nearest that app to your room be What experience, cutting supports any and because now, like. Motorola we intelligent as year can While bigger on are with experience ultra-high-band, hotel will purchase motosync you we exciting be Minim

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development development India. year, XXXX and first the communications improved labs chip year, prominent visiting this we with Last shows app, our this a brought By see pleased for focus you our we largest firmware road to includes some the market. in WiFi open the development, to of were quality for near-term has that time in-house and and on Indonesia mobile a the world. to WiFi will companies in support that have led two interoperability time Already partnership telecominfraprojects.com, also utilizing which project Beyond minimal our ISPs support announce map platform.

spring development, As WiFi in and we of Motorola QXX with CES, we next X the networking look high-speed WiFi mesh this XE coming the in ahead two Motorola product performance, our summer products and that announced competitors this and gateway QXX. cutting-edge price upgrade and In performance in follow. have DOCSIS design. These we product bear modem and categories, products year will have to development exciting the and Motorola challenge year latest announcements X.X

Walmart.com turn products Walmart our flagship were I'll which to to Seller app. will pivot three has leveraging for the prior the distributor largest channel December use In led by the December to revenue between platform as pivoted XXXX, a Lastly, Furthermore, our compared plans. e-commerce year, a expansion our months. the has This of the to Minim three sales online launch motorolanetworks.com to motosync XX% in February Central, increased XXXX XXXX upselling we in U.S. last third-party model months own and e-commerce, second be for for of proud

have for As expand dollar sales, and relationships see channel like as share this retailers to strong we year an retail customers. Omni continue brick-and-mortar to would our edge with

As boarded our Director, Mehul. placement. new Sales Rodning, financial new and a of now who has Retail and review Gray Dustin turn for expectations outperformed results. on mentioned, in a I'll exciting already to and a Mehul recently National product relationships seasoned we Jeff opening

Mehul Patel

Nicole. Thanks,

I VeriFone, engaging I global at international of to as would of six telecom material saw groups, unit, opportunity achieve manufacturers that the major at business my participating Verifone, team a the from and the excited to as of towards to hand institutions, working Minim to the and name change like to and especially our pandemic. company to Motorola to of consumer my look Dustin thank make connectivity turn merchants. knowledge provides to and the about continue to growth. Motorola, rest excitement and consumer sustainable Since company continue a and to payment moment CommScope. company At many navigate four to with products these stakeholders contract XXX,XXX also same led market with report company's a equipment only brands, introduce here bear to fintech in and about issues. express joining from supportive Google opportunity have many to we With premises continued network over discuss Mobility, to working cost Prior over company, time Dustin CFO, it QX leveraging on achieving relationship efforts an we for I I'm team including our Dustin. for will Minim joined the XX supply join solutions become this FY excited a and spent chain performance. bring to in more everyone. Minim our financial Before control to experiences, and to to and I to XXXX, acquisitions business deep long-standing the home as Motorola drive the during as brand myself, shareholders to our we ARRIS the to over month, I our earlier forward joining I across I Minim major objectives. I've retail this that, take financial Verifone, Home Motorola looks years commerce XXXX safe experience

Dustin Tacker

$XX.X for the revenue described deferred million, the by to which Mehul. Relations on our XX% the increasing presentation up posted by Driven year. as that is A been XXX,XXX XXXX annual under our totaled the friendly that with Gray ir.minim.com. in has issues reminder financials earnings exited XXXX Investor over above, will I cover are basis, website we on Thank depicted revenue an net the you,

XXXX. QX in we is do million revenue pre-pandemic year, see XX% It as as see fourth pleased that, return is indicated, to to are our quarter-over-quarter to QX of XXXX levels. did ballpark we XXXX shrink net when While the for quarter note which important QX the in with year-over-year growth $XX.X compared to Gary a sales growth we of

component the our basis XX.X% to QX. our QX on from up in And cost by gross For on headwinds basis. brought increased and a inflation XX% We stable in that year-over-year margins improved margin increases, we gross the despite points, were XXX pleased from remain year, XX% to XX.X%.

with and in we year, income which results share the which loss million, bulk the was of $X.X of operating basic $X.X a negative with negative or operating of in XXXX. an of of loss per saw diluted net million negative million loss and $X.XX an share $XXX,XXX, million QX, this a For operating line, XXXX. for $X.X combined loss $X.XX basic diluted other or The XXXX. loss for million. with our occurred operating Below posted when loss of in which net compares $X.X per $X.X net compares an resulted interest This

$X.XX loss a compares basic and million negative the a of fourth net per share $X.X or diluted For per the $X.X negative we saw This diluted loss and quarter million $X.XX quarter, of basic in of or net a share. XXXX. with

we adjusted $X.X of XXXX. year, negative For EBITDA the EBITDA adjusted saw million in to million $X.X of compared as

quarter, in of of adjusted we million saw $X.X as negative EBITDA the negative XXXX. For adjusted compared of to million QX $X.X EBITDA

As noted, focused to in and by remain these on improving we encouraged are revenue return QX XXXX. results quarter-over-quarter very of a growth Gray

in million, trademark, million in end basis increase year-end end and the million of of rates, to at inventories The driven compared close by support efforts compared million ZOOM XXXX, and in we of with compared a end, a at on risk market that cash in was the QX both sheet. on to for of To a $XX.X equivalents we that of of compared and Now to pressure necessary as sales risk a and to $XX.X transformation. enough August. $X.X put the continue the the capital the which $XX.X year-over-year XXXX. of quarter, that inventory we of do $XX.X was our occurred due and both to R&D million the of our inventory raised and prior close disposition primarily and our increase to We to against means decrease during QX. the investing had offering inventory, capital $XX.X cash the levels the to not inventory in the an discussed basis and The XXXX fourth areas At demand look on million levels cash cash at of meet quarter-over-quarter rose secondary end balance closely investments liquidity. decrease our monitor having the having of production balance

As XX, of With the $X.X of end the as down had with million debt line the outstanding that, to This Gray debt million of outstanding and earnings we of announce drawn September the XXXX. I was on $XX we will open call line turn year, in it which $X.X our Investor credit. company's million to compares before for from rescheduled QX Day over the dates of questions.

Gray Chynoweth

and Dustin, Thank Nicole, you, welcome, Mehul.

excited so on have team. are We the you to

Dustin line for questions. to reiterate progress under I'd releasing management, earnings growth, against with we our revenue to on continue a that, thousands half the to to Investor means futures. chain which intelligent XXXX. like balance operator, first then in will in I Day QX then investments like hedging we announce I'd to and on QX management In May software in like to have to disruptions efforts, continue inventory tapering the new during networks we With means supply June community XXXX market growth call transformational open continue and our As important and to in we that to means which more bringing which closing, that return first conduct QX to in expect an quarter-over-quarter would half mentioned, of expect of unroll the QX make

Operator

Instructions]. [Operator

Our the come first of Josh proceed. Nichols. question from line will Please

Unidentified Analyst

seems despite I on decent more Yeah, that on. a could challenges changed why sales you retail guess, hit thanks from what's you the clearly, in first has trend see some little Best performance the questions. like quarter? taking were much granularity And so provide down But for thus fourth a far Buy? the my Understandably, quarter what you bit in when going that on

Gray Chynoweth

chain looked that by Yes, I'll the take that you, Buy due really patterns that in disruption supply would of in in that I at Thank than think data, it nature segment. really August of them to your the I as kind Zoom end were the And and occurred that Electronics result terms hear buying the at a good Josh, been headlines think were market ended following disrupted at to issues. voice. you QX of followers COVID that people And I towards leaders, industry the the the that have in also Omicron say occurred of we and better retail And September. in much that saw I as the not up of occurred you but industry what that buying and think the the the Amazon performing might the in kind of Best kind leaders and season. holiday restrictions of one. much,

have return to improved So I performance. experienced quarter-over-quarter think that that we we've talked about a return retail to growth, and suggests that a

shutdowns on while that peak than larger subsiding is it been improved the quarter-over-quarter home think very and there the do pre-pandemic, we I will though, and performance market networks. from note has a see that basis did in I total the investments a somewhat As was of

bit I'm specifics. color, happy more that -- a of little that hopefully, to into go a So bit you gives

have something you you Nicole, have wanted you -- If do to add?

Nicole Zheng

trend we're seeing others. had that than the the a are strong I have Sure, is said e-commerce that retailers last faring that strategy better

that's to So look XXXX in and to something beyond.

Unidentified Analyst

of and magnitude margins are you comment last looks first a where then the like provide, trough what get day to for mentioned to could trying kind is just of XQ? at quarter. the I'm for trending up then it know the the the dip in quarter gross be any but XQ. comparable expected to was going I today And it to cash started since the balance you Thanks.

Mehul Patel

Yes.

know, you closing, said. you Mehul. today, So This still as as is last we're the day

oversee inventory of non-sales going the continue inventory Buy over as the will along to we balance in, we we're go for what and on we and [ph] retail burn we'll the that as have our from as to inventory continue and the as are everybody overall, will amount continue the way. the improve and quarter, managing we'll Best we had for see to manage get a manage the bit that we quarter to shutdown secured cash So we we're down But that factory burn small continue to in sector. and else to

So get gives and that's the where you some -- can’t context. that hopefully detail specific into

Unidentified Analyst

what's levels then chain. profitability process because sustainable on XXXX? we of in obviously, a and cash or thought XXXX a lot going flow are cash inventory potential move with kind supply source been that expected throughout higher, lower what's of Is right, to and the Thanks as the be trend to of on your getting

Gray Chynoweth

Yes. stuff Thanks, and you And year, perform. nail Josh. about further the us to ahead kind we say -- some saw on build things of of the closely very last hit for as going We disruptions chain. see had in how concerns were you can of supply the whole I monitoring we're you these head. would

operations that players built to meet in context I has to think position retrospect a than through continue be the that consumer buffer in is And the did see effective demand, able our feel proved the because very market up. QX. we that operations actually in wise be significant and actually to what manufacturing year we chain we and is us in that other disruptions put honestly, supply to in of at last end more

position. puts said that earlier, your want to to enough meet I on it never have liquidity much Now demand, your as have so you you want but pressure inventory to inventory

tapered bringing we'll and And saw we year absolutely orders have of and is ours. of we I paid as we manage additional for in selling we manage also we QX, QX QX hand, look QX, in that QX, and we that in that shutdowns have that And selling so positive enter course, less focus COVID a in as as to That, the which centers. our on impact in on means and that the stock payment our terms cash. more of be manufacturing we a will think

is supply is onboard The and inventory controlling that deep talking excited other bring thing expectations with the about both of Mehul to costs, so reasons we his were managing management, chain one I'd say returns. that, experience not

going not on this make be to raise capital attention that us. need an team it sure we're And beneficial that to a where so I And really for a that, think it's to in on position that great of year. person we having area is the focuses additional

and So talked have that's implications ours, we we cash of very focus attentive certainly about. a that key management

Unidentified Analyst

provide on for you it of any expect What's question success for pace that's if ramping at you for that did software of I'm growth these here, the the up pretty have that still business, XXXX it, last revenue and you of looking the cause but ramp It's revenue, is as quarter-over-quarter dip deferred drop what I then healthy. guys partnerships? could be like been the year-over-year, kind of up had growing couple could know of the deferred And just a partnerships, right, new me and piece new guidance sequentially. with you some

Gray Chynoweth

to Thanks take Josh. Nicole, do you want this?

Nicole Zheng

Sure.

So the growth is that year earlier you in saw the to expected continue.

will. to onetime So the sent up to sales We from return the dip deferred to that growth us retailer. third product will back, and what forward expect unsuccessful needed the and deferred continue you revenue we happened quarter, category with to QX opened a with Overall, had product that's go and grew what return. selling off not in a essentially with sold that we retailer over channel XXXX. in that When and moving take actually revenue. deferred one-time were from quarter $X before anomaly, in you see second we we $XXX,XXX, a there product quarter, be that was if is we in XXXX. they revenue to a product came a that sale, expect But not for in up What that first onetime see

Gray Chynoweth

that. I'll just to add Yes. And

line. that places are very a to I released, drive the by XXXX exciting, the excited lot on of folks received and really new those two revenue the year are XXXX encouraged for was by And by house QX. additional and done last that the to With MG-XXXX, the we work the of software think we of killer that a going products us. continue in that product think they the is I'm market for some which side be I and and build real well

-- on very that continued growth a front. So year this

Unidentified Analyst

for Thanks, me. that’s it

Operator

of proceed [ph]. will with question Your question. your line David the from come Please Tocos next

Unidentified Analyst

Hey, good from you morning this everybody. Atlanta morning. Calling

concerned Relations do below days, of so have the you to backwards, that also be I is like the because gentleman profitable, of split, you or been because so concern basis and I'm number. $X then I've to $X stock feel is hear after questions. get for you the cash that's whose honest, flow? for But think profitability, so you'll when be quick me $X, So sometimes I kind -- all. or the of -- I be Investor through I my could to stock very about the like and hit mean devastating reverse that could from they one and you to some the guys are, don't for stocks waiting like be I going done, thing like And that. someday potential would me guys so another that delisted, couple price split to that's a dip some other below you hearing questions and Just my potential that consider XX stock $X me. be to did guys to that's is don't I kind worrisome nice be concern. and is sucking see from that My $XX $X.X reverse a could at a I basis, delisted devastating be seem

And of to profitability. of need I So to of the mean, that's to I know -- question? guys being I'm you're if kind delisted? head want I then I you'll kind profitable XXXX hoping concerned think in you kind be about will

Gray Chynoweth

Yes.

much. So thanks question. very the Appreciate

responses of it. a to couple I think there's

to continue on us very having The means what raise to sustainable growth. first this is go we at is not focused be And capital time. to that out additional to

we will on year, it of we that about the and rest sustainable sit I'd sit to at in cash certainly position that adjusted of the believe it say where the also EBITDA the the QX, growth sustainable will includes So growth. where I it profitability. where end for year, sat us path the talk and think that puts

to have business. achieving. going -- about call communicate. that beat November we're level I communicate we strength had next since working the we I'm earnings able focused are call, an to So months, haven't we'll these impact we're market the this things have macro us, hard market of be to effects there think be where we're that on And able are to really last of the the to continue year. that the three all and to In to continue excited -- impact

coming an We coming May. have shortly have a we're early up Day the going to our we have -- in June. of up call QX earnings in Investor And part then

are lastly, delisted. And think with our very getting result in the those focused to a an more sure think we people that and that interested with And a purchasing to to share I'm IR that fundamentals right going to I'm believe people working I not that company of all our we're stock to that on I performs going in that's in I are will for that. which I we to be the get alignment obviously issue business, back that three individual of us out, why stockholder the going do am able us attractive to think concerned because engagement our of supports talk about positive what's attentive up. the are we are believe in with think what delisting. bring excited continue on to I that will tell way into price. momentum now a I basis, one to So to purchase about us on the price -- out we partner road that And have not be to making garnering. company. story that earnings that I'm also we share opportunities the that very reasons And the it's the company I'm shares the to be And price

set to of responsive that's in hopefully, to a further follow-on are you I'm happy So engage interested with you call. if your And questions.

Operator

line Savageaux. proceed. of Your next Please from come Tim question will the

Unidentified Analyst

year-on-year soon the rebound as a Hi, on your thoughts more of new same be that when there. wonder able product lines, QX, if to as could And the good return a can basis, morning. Maybe on should given got us I've be or upcoming? from up rebound be those somewhat might given we in thinking launch give along company launches I follow the QX retail to continued you current or growth a

Gray Chynoweth

Tim. Yes. Thanks,

leader would usually outperform guidance. to nominal we So say to we're it's of from expect QX flat market. What from flat provide kind QX be the flat so the not continue because It set was to kind to had year. QX I industry rebounding they that -- tend expectation QX. have to and previously we that was don't -- of close around would a then to

what industry that we the year-over-year obviously, market to having means, will beat said. improvement I compared think and that that a

the a forgot to next hopefully, second the you detail. that take gives So And I question, happy but little your of part more I think, part.

Unidentified Analyst

any fiber calendar how the ISP or I something or notably wanted stemming build-outs cable, channels additional next? I info of relationships drivers think rural project But were, of you most you Yes, out and outside with on wanted if in for to growth be XXXX, of telecom growth might contribute to follow opportunities that. touch some year they mentioned up kind on I potential coming able broadband to to also either from builds this and

Gray Chynoweth

add I'll Nicole and you. thank a maybe I'll thoughts lot has Yeah, first side of who take this the it this. of product then to on

-- obviously software conjunction gets -- an we're revenue very growth So why And speed, we're the attached about investment. going networks one so modems. to performance mesh can higher improved have and reasons that our looking hardware that those people that any access excited as emerging accelerant so encouraged get from seen network. and as works But to the is for of much this home be cable in on that. also their by because network, it get work including they're portfolio those to We

think that? I segment. there's thoughts any for of drivers a us. have Nicole, this a on to add about Do So there think lot you lot growth But you

Nicole Zheng

Sure.

very product market the our speed and we X.X, as adoption a is healthy DOCSIS of sort Taking by down drivers. cable portfolio the highest it modems gateways, there's DOCSIS break just what and which at see date. available to growth the look of me happening on let that's still So

and benefiting So we in that as gateways continue certainly earlier. we've are We're benefiting benefit WiFi rolled that three from out and spoke modems. adoption, about plan to our to portfolio fixed sellers of we top I a

X see the mesh perhaps be dynamic category WiFi But excited products. side, they're I there. are very So we Minim, revenue a intelligent And Greenfields is to deferred new will more networking cable look also gateways year. that a from enabled have and about products, this When with has modems those. the of consumer Motorola here. proven than a entrant a lot we at take Mesh

and We lot of is to have that them one within a of by competitors. space a their differentiate not retailers offer space lot product a of made to

we and this year also So amongst grow are looking to mesh our placement awareness consumers. grow

larger at is $XXX than a actually So annual market gateways million $XXX and modems U.S., in million. mesh is the cable which

in way to the penetration improve a customer lifetime to our to on software a value talked then as Adding So And software lot and ability we finally, that I'll cross-sell the and something here our upsell definitely say, layering be with about XXXX. call. be to is watch. right that growth part there tail hitting app that's the expect in taking we to of the the year, of end but in is be We're certainly going going forth that driver mobile to an growth. important towards a our

Unidentified Analyst

Okay, thank you.

Operator

from Your of next with Rosenbloom. Please come your line question the Keith proceed will question.

Unidentified Analyst

see about is which I today. capital, trading It's Thank rare today you. working the you company the when quality and to what wanted below I inventory of think company is that's ask inventory. a

the are inventory. disruptions, is in you said think you having that have any like this advantage, of it's some cap capital. quick And of I'm you If other the worth of inventory or take down, which written able I speak by supply here chain wondering inventory That's of questions would advantage be at million have back, about is highly why addresses seems as shares, to that slide the to meaningful Thank liquid terms in asked. follow-on available? you I deck the that quality value is been your company some let's the interesting an and buy X with that you. the and think your competitors to $XX you has be stock? below a gives working say, anticipation stock then to that, inventory, and Can which that and doesn't million company the solid, volume $X.XX, market have like that, there that your of

Gray Chynoweth

Keith. Thanks, Yes.

Amazon. inventory. I inventory parts on is on in for have then faster as hand goes are we But and question have in mean, And Mexico, water, big than first on that's been us and you'd have the the building our facilities we have Southern strategy, inventory. of of what and at guess I some that expect. at water obviously, will So other inventory, we I and California water of there's quality, or to -- three buckets have in the of on the we on part Amazon. our -- that very are overall, actually the it excited what inventory as Those and high

end the a have. We year, the that of I levels think completely we think interesting I we're effectively year they've books. with, entered the factory And you down. against the here, mean, we inventory know significant shut at So amount on was last about the hedged the risk. it's excited us, as for inventory of

several the led some by so companies shortages. -- or supply but of of as to some returned And have return the they've chain operations, operations been

that of disruptions it specific might our burn kind have sort as supply had inventory chain as supply seen impact of down so expected And we the exactly we've chain.

I is quality. excited to I'm think the sell-through. high see it of is through. inventory selling It

we and we that a all in And lot a that we John so come that making to the products. to that’s managing the position I I just And COO; good and together position. need to also us. plastic like we are make and that make liquidity our putting we're Mehul sure things sure housing have different -- I on have a and risks, in pressure said, chips make not the parts enough think confidence are in those in And our of Lauten, sure

our very liquidity. on that, with to we very burn let location the we have much strategy down comfortable how our focused of and -- both that So we're manage as inventory

but it's we focused something cash the our inventory that the stock strategy. somewhat to produce we that certainly software on we So talked consider interesting about. and raised we buyback, cash to investment money, driving on and inventory as also convert It's on R&D that certainly position when

transformation have And better invested us certainly I of And to impact inventory, be we've that weigh on what the business. it going is so into stock taking [indiscernible] to or been those be investing price, question is it in pushing is R&D. a think long-term into and our repurchasing the software to in think it for accelerating will going shares a I capital

take consideration. are on of So the that weigh. Mehul like things that those in board go be Board been different its continuing context. for And it's to we decisions a will his absolutely previous it the that in something have I'm and to we of and who's happy seasoned And kind to veteran lots track

that and suggesting with making teams do if a the we you public. the then you about that decision that. cash news we'll suggesting it. Mehul thank obviously, with And seriously we Certainly will position, to for take and consulting be So our be talking I make that, on Board something

Operator

remarks. further no back now will I the And turn at to panel for are time, this there questions. it closing over

Gray Chynoweth

for to forward to everyone you, QX in the speak and discuss first first part the and joining Investor all, with June a Again, we and speak to performance our today. QX you our call then of broader opportunities the you which of look growth excited remain next to return part to in Thank quarter-over-quarter Day, everyone about May soon. Thank to and the QX discuss strategies. we'll go-forward our two

Operator

call. for participating. today's gentlemen, this and Ladies Thank concludes you conference

now disconnect. may You

Minim (MINM) 31 Mar 222021 Q4 Earnings call transcript