VIAO - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, welcome, and thank you for joining the Via Optronics Second Quarter 2021 Financial Results Conference Call. Throughout today’s recorded presentation all participants will be in a listen-only mode. The presentation will be followed by a question and answer session [Operator Instructions]. I would now like to turn the conference over to Ms. Savarese from Investor Relations. ahead. go Please

Lindsay Savarese

welcome financial and Relations Via second Optronics Via Good conference to call. XXXX results Investor I'm quarter Optronics. morning, the Lindsay for Savarese,

today, XX-F, matters assumptions that to on discussed the differ Chief will uncertainties including report and earnings the materially filed in note and Joining Via's Chief April Via's with business website including section call And the archived uncertainties press that Today's over live where Jürgen call on result documents Form forward-looking on update webcast contained like was results from Officer. forward-looking turn and company's actual These discussing new is statements are a on annual of today, will undertakes Jürgen. release this obligation to and statements today are the these for full at is SEC, as quarter based the any with to to forward-looking could future will or risks that, me statements Eichner, subject statements. are XX, XXXX. those the Markus which in are Via's events. information filed Please company's via-optronics.com, Certain and the third we projections Financial Via's available. XXXX, financial of on of the no are and I'd made call company and to on as statements. Executive call outlook Such cause that Peters, risks the be Officer; currently Dr. the year Relations be be Investor

Jürgen Eichner

you Lindsay. for you, Good and Thank morning, joining us thank today. Yes. everyone,

recent I discuss in the overview followed a second of the provide performance key full quarter quarter quarter quarter our achievements before our XXXX Markus, and the all awards will will of results the of our loaded outlook our year. for third by of Germaneers, and brief then acquisition I detail financial review our over provide call more XXXX in who turn second to and First

of XX.X% Display Solutions segment. €XX.X in into second Turning million Revenue driven by growth year-over-year, quarter. increased the our

Our from positive the global million to words second on EBITDA million the quarter. second in negative a €X.X provide in like component I'd second the of the decreased few quarter €X.X shortages. in

have manage the to affected we able supply Although path, second on impacts quarter and successfully revenue of our been continue by global the the our slightly was shortages. disruptions growth

affecting While to compared transportation by our basis of these using without components margins. impacted a case-by-case to There's revenue in some are expect potential the facility driven to XX% solve for working I report been issues the in we however, in supplier XXXX record China additional am increase shortages revenue new that resolve costs and German companies had to impacts capacity production with on we have equipment shortage, our globally, our on many growth pleased by still we our XXXX. about the an customers our facility. with we

of mirror production for company Germaneers we in facility and We provides Through for up systems, large are EV with during focused second interactive in for manufacturers. are is completed During quarter. a equipment view, of thrilled interior not sophisticated to the quarter, our have this monitoring. and strong cockpit Germaneers high-end solutions interfaces. optical deliver display are the high-tech including, strategy with over types a acceptance in company already compelling all cameras and sensing ecologically early especially driver automotive solutions, acquired and surround for working Germaneers, engagement well-known years relationship market. The phase welcome design on user transaction, Germaneers the the but placement in functions to, automotive like limited engineering Nuremberg performance now customer user entire integration range brilliant our process. original the of system for on our the the we can we strengthening auto Consistent We driver two for with and the ADAS leading a with concept design of company had site U.S.-based manufacturer. new Together advanced the and a already and and team assistance extending interfaces test position board. ramping second

exciting develop for and match financial to this consumer electronics. new applications, solutions a a SigmaSense, industrial expanded automotive sensing that will investment, and touch controller be displays new collaboration believe With investment touch able made controller. combining batch by with in sensors SigmaSense We technology. produce also our we in solutions global touch have leader and metal We to touch we our

have increased We consumer further industrial that presence receive and continue project automotive, the in markets. our awards to

In addition, overall presence our EV by providing market expanding charging we solutions are in touch stations. infrastructure display now for the

continues will continue. be and we upcoming pipeline much stronger visibility this believe trend to Our better backlog years, and into with much the

our further our solutions strategy in the the base. customer existing markets, number driving bonding our leveraging the projects Looking expanding LCD capabilities camera within while times our industrial deliver sales on to and ahead, and system execute of and our new will of auto sensor of

R&D constantly are benchmarking design capacities. further system M&A We opportunities to evaluating on increase and focused new and existing electronic our

during hand markets. I'd financial endeavors. Markus in he in Markus CFO his year, lots him Daniel Baltic like has detail. more and to public outlook welcome July, results like team VIA Jurgens I'm that future him would Dr. the the for transition role all bringing company of a all the in to best I to to the present for work With wish in Peters, announced Daniel to privately to the held especially the experience, our started from especially over to As grateful I to transitioned has markets. this,

Markus Peters

the XXXX. review company large morning. opportunities transition full like was quarter I'm Jürgen, in over the the and and the serve their to months. of some of on X the results second look industries. Okay. and help company. Via’'s having ahead and Via respective opportunities company for the help very to everyone on the XXXX. and long-term revenue We then in my year the us. forward on their profitable our to business operating second quarter €XX.X million quarter and during large my for support million provide as largest XXXX up €XX.X to of I Thank companies solutions you, call execute the quarter achieve I'll to XX.X% by markets the earnings and most and third our these cutting-edge the from second We technology financial performance in of quarter on of the pleased excited last for good reviewing first innovative outlook I'm to growth. CFO would start provide execute growing the serve of and Board second Total thank

of However, also of in quarter which market, the our Within revenues in quarter XX% margins mentioned, revenue revenue for approximately Growth for Display a of the XX% was in the especially technology second of by future to revenue €X.X of slightly quarter in revenue year-over-year by end the €XX.X as million total segment, and in the compared the quarter Jürgen in specialized was from in of of in the XXXX. revenue quarter Revenue business. revenue XX.X% applications but of to our to represented accounted XX% million compared in XX% increasing related demand, by Total our automotive our Solution our QX last compared from XXXX, company XXXX XX% Technology of gross and of better quarter of second of QX Display Display in XXXX sector. Solutions revenue the quarter higher the down second revenue Total of grew year. quarter XXXX. XX% of in resulted total second markets Display and end our automotive in represented demand from grew customers' quarters. of XX% million to and global in semi the of revenue margin XX% was consumer sales driven X% in represented Solutions €XX.X was was XX% revenue in XXX% XXXX, second impacted up to the shift XX% market shortage, compared from second compared the million accounted Total business XXXX. QX quarter €X.X profit quarter second in customers X.X% to related the second revenue sensor industrial XXXX. driven XX% for the was industrial in Solutions to Revenue year-over-year revenue XX.X% of of Sensor technology and Sensor XXXX. approximately to XXXX. of second second of

compared XXXX QX margin XX.X% in Display Our QX gross profit XXXX. was Solutions to XX% in

year. by second utilization the the in profit margin quarter XX.X% Our increased The second Sensor XXXX the of XX.X% enhanced our gross technology compared capacities. profit of was margin previous to primarily production driven in existing was gross of quarter

turning operating as in as by revenue, the company-related and expenses. in driven which or quarter expenses. million XXXX. compares further XX% Now of This our strengthening €X.X increase million to total capacity total QX revenues Total XX% to was were second public or of R&D well €X.X expenses corporate of primarily

headcount our and these environment complex opportunities. our the especially organization as continuing enhance of meet we further increased to to have industry, for the further in prepare We automotive are growth growth,

administrative to research have the expenses reallocated were €X for some in of selling revenue in second to compares and which from noted X.X% This our X.X% results. revenue of as €X.X XXXX. development QX no R&D release and total personnel with addition, in and expectations, of costs XXXX, had In million our or material we line total expenses general period or prior In earnings impact million quarter expenses. from press QX,

quarter of translates million of average the second €X.X to of quarter on in million R&D XXXX. XXXX to more the €X.X recorded to in to in XXXX. of a loss of expect the solutions. was €X.XX on complex per negative XXXX loss in second second basis net quarter basic net have quarter customer and diluted X.XX compared in shares count development million weighted positive second as the €X.X XXXX. of XXXX, Based of Looking a a income We net quarter in €X.X we investment of second ahead, million compared continued EBITDA second termed we case-by-case the this support quarter the of the million of in share of share

with Turning the quarter of sheet. to second €XX equivalent total and balance €XX.X We of or cash million the debt million. cash ended

outlook share would XXXX. I Now for to and full year quarter the our of third like

we to quarter, million third total €XX the revenue For of expect €XX million.

-- full focused compared XXXX. manifests potential I as capabilities. organization industrial revenue. well very year well require positive component concludes Thank we the These uncertainty back to opportunities us, on about to our projections up in as strain, which revenue COVID-XX of expect many we from of for part our operator auto and and the ongoing the particularly further and This impact Operator? will you growth XXXX, line may reflect as customers the related my as the impact and continued -- XX% of investments For potential production remarks. ahead also possibly are open the our which R&D and turn of to questions. to much. now the call markets, Overall, in

Operator

[Operator the first go from of line is Buscaglia Instructions] Berenberg. ahead. Andrew from The question Please

Andrew Buscaglia

you Can risk the have out how XXXX revenue are Can component to the seeing you're -- that, what able embedding might a you in there are on shortages. the And -- of we been worse from side could quarter? Is with what with guide? much revenue in terms in with just get that start that sort quantify of really -- here? you

Jürgen Eichner

Maybe -- yes, giving sorry. some you

only, [Indiscernible] driven can part, by issues, So you see, haven't for so as mainly impact, and that was received. had components it that delivery they we

quarter. the So parts some the third shipped of into have been

year. We We're the the about okay to have mainly we all here, overall talking and be seem with discuss customer. consumer in

So why at not still guidance. something, we hold at the we the are It's this too moment where least is concerned.

at look to have we it. However,

it's my So from side. helps. Hope that

Andrew Buscaglia

U.S. QX. said talk issues believe with Can any on track electric you was for you vehicle about the I manufacturer that? production, And related

Jürgen Eichner

we can. Yes,

And But because in up is problems in I okay. up delay quarter we it fourth everything produce some production some about component with peak be according if this plan, capacity already ramping of have we've They -- the to We quarter. should as with to been the have. So talked works the -- of overall stop we is are components capacity And that today. just from basically, issues and been have continue China coming the maximum some then we once a resolved. would per we they Germany. shortage everything supply it be like the at other in quantities now such, this beginning The and this not running, think, how overall, are equipment month. shortages planned but now there. reduction looks in in or Again, we’ll

Andrew Buscaglia

Okay. in bit higher and it pass And I one, one R&D than little was was last and on. much a expecting in guess how the is I'll that G&A maybe related of To quarter should years? I more away? to to expense in normalized back goes nature there those expect German And Is we a there to onetime next quarter? levels that like more get

Markus Peters

onetime with Perhaps [Indiscernible] increasing on intelligence an as color have. they really the million related engineering we we and I company, the issue. can acquired capacities. talent basically, some increase acquired Germaneers to run our And Germaneers, rate, about of bring [Indiscernible] I and mean, this the the

Jürgen Eichner

I'm that? -- understand. sure to hard not you very were did you get Andrew, Markus,

Andrew Buscaglia

little understand. It was hard bit a to

be If that, you repeat could that helpful. would

Markus Peters

it. will repeat Yes. I surely

So in The talent. additional and is costs €X.X have about related a R&D we from on this run we Germaneers, rate. Germaneers, bought is million that engineering with steady

this to be and R&D not future for ongoing. increase So That's costs capabilities the going a in an R&D is effect. onetime our

Andrew Buscaglia

Okay.

Markus Peters

Now it's better line? the with

Andrew Buscaglia

better. Yes, Yes. better. much That's

Operator

of next Stoss ahead. go The Craig from Please Hallum. Anthony the from is line question

Anthony Stoss

from How much the quarter? in you book revenue did the acquisition

Jürgen Eichner

I question that's think, you. a Markus, for

Markus Peters

million one quarter, Hold or [Indiscernible] on €X.X the of second, the revenue? In please. numbers. so

Anthony Stoss

couldn't that. I'm quite I sorry, understand

Markus Peters

Okay.

So external below revenue €X.X is million.

the million. acquisition than for revenues less external So is €X.X

Anthony Stoss

Got Okay. that.

Markus Peters

We turnover. bought talent. didn't We a buy

Anthony Stoss

you instead that are that expecting maybe, then negative? I to on think What if the fact EBITDA And negative you you impacts be commenting had or Okay. guys allowed were related of, wouldn't positive. biggest Jürgen, mind the that you

Jürgen Eichner

Yes.

basically I to a so in over We already. Germaneers projects group. -- maybe internal me have to -- work answer already hand little more color Let to contract think we me and let under have Rob on we just that bit the -- upfront been on them

in limited keep samples for they the amount So OEMs only and external concept revenue related local of a to prototypes Bavaria.

our So they in good are projects. R&D mainly

Just a bit to well. color more little give that on as

say EBITDA For something can about and revenue the development, you Markus, maybe the...

Markus Peters

not of about talent were external consultants us especially not talent we in that This we our and something we organization. expenses the adding especially, capacities, have year up are holding, organization expenses only is because and were This in listing and by hiring have -- costs, And also added talent means the we quarter increased last for in we second ramping our by not talent and R&D support listed. in we having for Germaneers, added production. to

Anthony Stoss

yet last their guys the question technologies, have metal partnered controllers? Jürgen, And your for why then end organ. you my access your Or up own to with internal to you controller? Did did SigmaSense mesh have partnering these own controller. with you not have

Jürgen Eichner

the other use Well, basically so on case. from always -- -- depending we are so so we Atmel, controllers and from semiconductors, controllers Microchip many we including from Wacom companies,

controller at that one works technology we the can of right we it but the Sigma cover we the applications what with -- the this in So as with day over end all everything And have basically we controller, envisage if general. controller watched see out development now. one,

we reasons of you a our technology, have one was in to also follow additional combine investor share closely. low to this it's because all to take SigmaSense very the know an the be mesh with developments advantage that able follow And an very sensitivity. So metal to as to a

resistivity We this sensitivity, it's to sensors, So actually better combine already also but mode want touch a I'm we can with which detail. with and high avoid controller, I but other we sensor touch have we not advantages. and can go even into the some applications good in have as very could the well sure switching combine SigmaSense

a So there of bit applications of that we amount are number targeting. is open

Anthony Stoss

maybe more. then And can one if I just in sneak

have related we've these many wins you over to of co-form for American you systems? us lot of year cold North discussion automakers? EV design a form. maybe So Can How some for -- the the your understand help last higher-value other

Jürgen Eichner

not think that X -- I are opportunities that already but we last cold I sure. think we have time form producing. I about mentioned

years already production. see X in X really We have

X the one these. as than we'll of you ramping covering more actually dashboard. displays are year, X we China. have that we we Usually, and with have the know, already vehicle, cluster the We up X Not that so to is That of more glass. particular complete information I completed also vehicle center the And up the behind would display. be of as extent, ramp think, in have this

Operator

no this closing at are go hand questions Eichner ahead. Mr. time. comments. There back I more Please to for

Jürgen Eichner

you quarter. We next for the think forward in you, of between joining updating would few on on a as today. call us look the overall, we next everybody, our thank well. First more to you I all, give progress And updates earnings call

you, in hope as with you to touch we be everyone, well. Bye-bye. So in between and Thank

Markus Peters

Bye-bye.

Operator

concluded, gentlemen, telephone. Thank have Goodbye. day. a joining, your and now pleasant Ladies the and disconnect you conference is and for you may

VIA optronics (VIAOY) 9 Sep 212021 Q2 Earnings call transcript