NXTD - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Nxt-ID Investor Update Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker for today, Mr. Miceli. Vin begin. may you Sir,

Vin Miceli

XX, you, Valerie. joining financial thank for business. ended all. operating general provide update on Good call today afternoon, the March months our X unaudited for And and to to results a you the Thank XXXX discuss and Nxt-ID’s

performance During projections our by the which existing reference and of this information, be and beliefs, that statements. statements including statements, call, forward-looking we’ll regarding goals, to forecasts, expectations, cannot future afternoon’s statements such underlying making consist be assumptions confirmed

Please will statements, undertake note that recognize including our differ duty no you our that factors there in and are a any not place we should Please statements, cause materially reliance except to number update of any as forward-looking factors that discussed filings. undue to identified required and actual by on statements. forward-looking results SEC law, from such applicable

Vin Kevin am again, joining. I here thank Miceli. with Again, today for you So, O’Connor.

me format used and then financial And will up on Kevin, the at that first some XXXX, results Kevin of We the over will over to current quarter call we for on past. use over in I I’ll provide Q&A. update turn some have for the for then, remarks. the an to will the who it update the closing we’ll LogicMark. open back call will a provide business turn the

for And three to XX, I’ll the compared at So, we ended quarter. for $X.X in the for in results million the first release, about with that, $X.X revenues our came XXXX. March QX start financial with included as months press million

some some in our in call part our around March. that you’ll and April, middle -- that to preliminary early the revenues If the indication investors a I see of started of had we from we point had softening Kevin the back given preliminary recall

that we estimating COVID miss about of because did somewhere was revenue the in $XXX,XXX around not believe pandemic. I that was so, -- the in get And number, the number

Now, estimate. obviously, that’s an just

it I based think gross more a it’s margin. was $XXX,XXX, a bit little fairly somewhere importantly, think of in our was missed And margin from revenue conservative more But, neighborhood the contribution on in that the profit puts it I the missing probably estimate. perspective.

hopefully, a bit insight. So, more that you gives little

gross strong period. versus like year The The quarter million profit the this a to in percentage, came very continues at the $X.X for just which margin XX%, very profit XXXX approximately the margins. is business, very, at staple strong strong, very comparable gross be million for $X.X for

on into out profit, roughly penny of $XXX,XXX basically additional missed we which so, translated of additional And EPS. about a

made for overhead, compared we get Operating to the were business ended reducing growth. period. that months million extensively No for surprise about XXXX expenses same for trying talked reducing the million, March positioned $X.X progress expenses approximately our operating the XX, XXXX We $X.X approximately future the here. our and three in to

down of there. on SG&A neighborhood on surprises the or annual expect I in operating basis, no So, the annual an million, expenses be to $X an Again, somewhere expenses basis.

ended the somewhere March impact, COVID in approximately compared operating million $X.X period. of $X.X to months would comparable our XX, three the XXXX income factoring the for million. the I for again, income Operating have without believe, And been $X.X neighborhood was firmly XXXX million, in

$X.X million, was activities to about XXXX March comparable operating by $X.X months Net cash for $X.X the period. XX, for three period. income this the the came three million million, about compared op $X.X the million compared for to about XXXX year months same Non-GAAP in at for ended provided

CEO, take the reduce, had working if when will, financial to key started I deficiency recall, will as that over the you capital everyone objectives or If the was I to one minimize of Company that had.

deficiency, a for we have the although it so, big quarter, us. a to were undertaking $XXX,XXX still reduce which able And in was by we

that $XXX,XXX enough to down number to about of further. debt terms job delever going in in did should or facility, the We paid down the a term QX. COVID business and $X the about that preserve in the Included pay some better of easily debt need but term we was I first my The could done thought pandemic the paid of position, of million, but another debt, the on, of dear cash debt. to prepayment have I $XXX,XXX. we flow down to quarter had the $XXX,XXX. In even a heart, better say. cash with about quarter. great We Near

The back at about go million. in of -- cash just Company’s end came The second. at just cash current $X.X a March well, balance above let the me

currently $X.X equity right position that our about actually which has for is around $X.X grown, great cash million. Our a came at million. is And us in thing

quite we’re So, pleased with that.

would favorable revenue. $X.XXX. in have been to on that’s But that somewhere without our we miss earnings EPS. of in range the we Again, just perspective, believe based share in per be $X.XXX what COVID, again, the I about estimated firmly

forward. loan receive will in were the sure funding, picked tremendously get the disclosure on which waived. to the to you second like actually make under our I And loan We filed importantly, up us XX-Q. had more fortunate recently on proceeds help CARES round, we government just proceeds fortunate enough about We we’ll obviously of the got And -- going would many at loan of look some terms $XXX,XXX were those in it to I’m Act. to in say

However, we XX-day period. a have to wait

will will hopefully in of year. So, some that QX. incur we’ll start that And July we this process the impact offset in that of

on to will over And that, the business Kevin? with LogicMark. Kevin. Kevin over at provide it turn an I’ll So, update

Kevin O’Connor

Vin. Great. Thanks,

that terms as and things we’ll the through time a numbers, spend development. just time product little we of quarter I’ll any So, on won’t do to for on business review I spend continue did financials, in some QX performance. kind the But, the first touching the and and Vin went what operationally the of of

touch employee support. of and on safety to customer So, all, first

went As have was everybody to we QX, through impact. saw, as significant going COVID a

first sure the taking we continuing employee and employees to of that safety focused support our what so care the operation, to continue we do the So, was and could to on business. we foremost, make that needed

The for now we about is eight way that the we’re structured employees have years at around had LogicMark country.

So, as our staff well all Kentucky the we’ve got headquarters, service fulfillment We’ve in both fulfillment. center and facility where do got we in Louisville, our our as of sales. customer there,

close them with call again, goal we do in people between positioned that. Louisville the were everybody safe able changed do people that The from flexible kept them. sure that sure operational. we home the sure and precautions we then we support to staff from we we the was working We make that. to and customers, make up to to sure And already that portion so, make could make as the if support that that things if fulfillment to were business the to that kept work adapt the that and we needed continue they were we working down in home could could to that one had so was of We number and be And able Louisville.

were within are essential and and to business to were Louisville. there. with people strong operations place. We an follow managed business, restrictions were the considered VA, essential we guidelines did the guidelines, providing emergency considered being Louisville PPE the providing allowed health for to that we we’re in in making safety and open The the seniors are in and because that alert stay in to put to are continue state proper sure Kentucky, Because consistently the considered are Kentucky alert/medical some products

not we’re at again, employees to not that make putting anyone issues have risk. we any work had that employee infection. day come with every We sure to And closely monitor as

early business events, and and to on also cost through restricted to that. we also We the minimize all again, exposure as went manage travel

these that production, of flight as to through took shipping because they sure as minimizing availability make was anything we’ve trying lot priority our got so on by it challenging shipping availability, can times, disruption. been at Costs we as continue the managing very supply The in looking of restricted. it’s is and contrasted, of with everything transportation any business the times, availability been suppliers, been PPE component of really because both has far have challenging really into U.S. shipped lead were closely working kind limited That’s chain side and that and air up that the a comes gone continuity the

that in were we end a So, the did pullback of did product little going our without quarter sure inventory, because headed well staying up QX. as job operations there we by of in at the as swimming team making phenomenal in a a anticipate into Ken bit Louisville

the headcount sizing we continue support we part phase. like in taking us this. and Protection been business Vin on going second to get mentioned, as back non-essential that were focused, been, fall, able helped mentioned, to costs. We’ve really last employees, right to had Payroll of our take has We Program out the kind feel the proper that through to And and

we kept any staff, have on We everybody eliminate not did employees.

we’re as demand. the the to increase take of feel we And starts in advantage a business in so, like great to back, position come

in our COVID-XX it have the And that living that we or and current everybody alone believe come and to seniors, that well vulnerabilities senior back as exposed and life. the products impacted as they’re in through particular development, living back people come has we through of of facilities. normal start into starts that pipeline definitely products whether provide get out and a the the economy to positioned to solutions little bit shell in we’re

good As When impacted. the far pretty mid-March, first start quarter we hit activity, had the severely with were they as a to we customer especially VA.

the around healthcare a country. the systems, As to you tell, largest and the impact it’s healthcare looking country, VA system big the is can in

there the appointments So, to took. that was they be as we a that pullback number anticipated limited they going of

were number to that providers the limited they on issues of veterans focused COVID see emergency or and healthcare So, their really in surgeries. coming

the quarter business, into So, going we knew adjusted that have going we an that to on accordingly. the second and impact was

saw business. our of a slight beginning side the March, pickup in in commercial Starting we of

family. space; through product friends durable partners; equipment that medical distribution some also see the we and we commercially, for So, slight we needed call a there did were able seniors through in alone landline sell through be sell the retail our and And sell living based to really we to pharmacies. pickup for

in it a kind relatively was slight a and to there the numbers Vin And that a we pickup finish of went drop significant through VA. strong there position. the So, as in positioned

now bringing appointments healthcare not kind open commercial patients of is as up, and were they’ve starting been do the in. behind following seeing is and that systems is, back and as work to surgeries quarter elective their -- country start their be we’re to probably drive completely. driving systems take because through lot we’re lot it as is slightly lines. They’ll They a What The quite that and off can’t VA of along of is what’s VA a healthcare the this we volume that devastated, finances healthcare hospitals The seeing systems in position. right? financially things the shut and those

medical inventory be in on. up on know VA bringing in basis strong we with excess -- centers healthcare systems I So, that say, that think commercial been the starts believe we long was the a pent-up of weren’t bit little will it it inventory. a also And people. But, been of on. demand. to they they pick don’t don’t how on with this lot as back we’ve see have go turning will providers going slightly because as that most There’s back positions, that They healthcare with, behind would of business. the regular in turn work communication inventory a There’s the we control we they a

there, the back a So, in see we sales, quarter an it, both, COVID on, also the starts channel the in relatively as we was believe will start then, In VA I to it as But commercial uptick mentioned. kind did turn uptick quiet. we slight and of as see the that impacted commercial. of

the of as new to continue development on far development, As products. work new we product the

both, engineering are that in audio no it’s resource accurate in-house in key in we’ve this our the communication. we the third-party is really, our audio non-monitored, in We’re brought our fees market important a monthly moving that audio, engineering especially forward really XXX% performance. with also team; And specializes with since

that brought So, resource on that. we we’re third-party we are with confident with in track this that

setbacks The as We Wi-Fi launch product progressing. minor is in market. some to have did looking we’re the

the sites or living is One at facilities. we’re channels launching that of senior looking in

of right we’re making sure delivering needs out process understand So, site right that offering engaged sure that what with And and with the -- in be get we’re it we’ve in so about meet going our product technical we and with With senior big of way the technical making really have of are so and in anybody. limited talking we a the that solution. they work requirements providing the ability. infrastructure inspection, in terms COVID-XX We far been are, what that in the doing has part some right also facilities to what is them features lot their COVID-XX, are, going with place. impacting can’t the will

we also a with And we’re that we and excited niche can up in start on previous that set So, facilities And to for we’re think and really calls. and as plan sites about communicating kind gain in-home talked trying product. we’ve sites about moving senior the to for them, it on because access forward we some use them. the both of those that to open as up with Wi-Fi feels test

ready is then, product And a approved, we’re those depth be due in some delay in we’ll the we’ll of production preproduction the development. late weeks. production in QX. samples components. to run, get field, and to once testing testing submitting was key in doing There XG some for issues in do into still two get be a But, on next should supply The the chain production the

the team provide both We’re as that that talked be the communication, will And could engineering also emergency XG our working functionality, about health developed. that on LTE with viewed information we’ve well has via past platform portal so an ecosystem. another that in provide it’ll tying as PERS

of with probably to large that’s looking partner QX XXXX. launch working late We’re scale potential a do a or in QX early

working we’re that. So, on

It’s it. about optimistic us. play to excited in potential we’re large the be pretty going process, that We’re a early but for that’s

the medium sure our we’ve new out to efficient that long more the continue needs reducing roll in a think is overall be we our got that. development the in goal that that’s for products that have, and can of we platforms and is on And and after product make build delivering meet term, again, both so structure, pipeline And to strategy our we market. so, that really cost to short we

we’re the solutions and and COVID-XX So, our impact for the well of starts point needs of open to positioned the market outlook broader going to future. at balance the We the healthcare strong as remains survive U.S. the XXXX this up. balance seniors think strong into supporting from back the of deliver

Vin, I’ll hand it back off to you.

Vin Miceli

Thanks. Thank you, Kevin.

summary, little impact. we’re in I were a just would QX. with like achieved in in you So, pleased quite take spite we pleased. the what QX, I that results of in seeing through of COVID the bit We to quite was

QX will but from -- so also negatively be And impacted COVID.

where are be, it’s trending. where QX’s it’s end, this wish be I definitively more mitigate point. month can more at to with but than of all expect And provide weather were operating this to to less to that guidance actual is you us I doing we We’ve that pandemic. cut help transparent operating current us Our revenues for the for tell impact. the revenues. results and investors I COVID additional April could expenses on revenues at unclear determine other this deferred our at juncture, actually What expenses, we can on March month be the based our difficult been will May I

during to preserve immensely, also difficult time. position this can. best micromanage us operating an our continuing effort has We’re helped in Reducing to expenses very we disbursements cash the our our cash especially

impact this overall our slowly very of beginning have are state up are on well as also We the back many as respective open that business and their that will state’s positive economy. the the encouraged to now governments

out, So, summary, growth. we as in we’re Kevin pointed believe well-positioned for

operating substantial streamlining the strides term made the debt. by progress in have in and great delevering business We reducing significantly the made expenses

alluded QX, to laser-focused our remain also as We discussion. initiatives product Kevin development products achieving in new introducing on and in his new

do that, can more if for so. that any happy be Valerie, up Kevin Q&A, with answer. I it anybody to questions has like We’d open than to So, and I’d

Vin Miceli

everyone. and the as this good this being we again, a forward move we Thank participating for for you forward your thank And Well, navigating and Okay. you afternoon. XXXX. successful to in Thank afternoon. in look through attention. Thanks time webcast you have difficult

Operator

conference. this you Thank conclude you. Ladies and for today’s gentlemen, Thank does participating.

You may day. have a great

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LogicMark (LGMK) 19 May 202020 Q1 Earnings call transcript