- Earnings call transcript Q3 2022

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Operator

Welcome to VIA Optronics Preliminary Third Quarter 2022 Earnings Conference Call and webcast. At this time all participant lines are in listen-only mode.

So those of you participating on the conference call, there will be an opportunity for your questions at the end of today's prepared comments. Please note this conference is being recorded, an audio replay of the conference call will be available on the company's website within a few hours after this call. I would now like to turn the call over to Sam Cohen, with Alpha IR Investor Relations.

Sam Cohen

welcome. and you, Thank

call are or Markus Founder XXXX. Litigation I'd are Peters, that as prospects the this XX-F remind today a future the under company's those outside Officer; results new future whether defined may statements description updates Form performance, like may Chief business Optronics We some Act of include and Reform result Participants everyone be differ business a certain expressed conference during made Dr. Chief future as statements Securities to actual VIA may risks, forward-looking Jurgen me provide statements. of the to or the expressly and expected to events Eichner, or Executive to directed our from relating future plans Joining Private for Financial statements the Officer. to information, of events materially cause company disclaim forward-looking of in to otherwise. which any of control that duty forward-looking

earnings With remarks. quarter on a at to opening for for website XXXX now company's the results is via-optronics.com. posted Jurgen Our preliminary let the of call the few turn over me that, third release

Jurgen Eichner

all Yes. for Good thank morning, today. Thank you, and joining Sam. you us

Solutions demand volume growth the In revenue report benefited line increased our end from are automotive driven industrial and Nuremberg at by in across demand by as we and we quarter, for XX.X% area. the production third all the order which XX.X% We are market and industrial increased in segment, as to record top automotive markets. well output the exemplifies with delighted headquarters in seeing We markets. of revenue, quarterly the Display our grew strong our growth end

and industrial adoption We camera of and and weather as displays and crisp are expect more continue increased needed. well as solutions demand optical resistant vivid are robust. both displays, readable, sensing interior automotive our vehicles Sunlight cutting-edge to innovative

customizable headwind its VIA us provide address I'm high production this have despite begun and see Elevated accelerated initiatives and us the in technology separate as the -- renegotiate accelerating with we cost in-house EBITDA unique have demand easing, see pricing implemented announced we of supply and in results improvement The allow and flows. quarter avoiding amount in OEMs of suppliers. the our a needs to with which from to allow benefits we of competitors on ongoing profitability suppliers, customers additional the capabilities, continue quarters, Our chain Also, are previous in start positive sort content through specifications to we the customers our costs, executed from projects quarter, global third of and which being QX. delivering were challenges. in savings how and reflected teams now freight very performance proud our softer the today. going previously cash to car a

Going activities continue position for forward, and improve profile profitability. we help believe these sustainable long-term our margin company will to the that

successful Chief go-to-market the This Chochoiek, project company announced marketing our more VIA and team sourcing management team and the a create under the efficient alignment Chochoiek as strategic CMO, organization, organization together sales technologies of our of Roland partners. and expenses reduce actively has a strategy Officer going marketing the CMO. appointment research been forward. appointment Roland new we quarter, innovation with This the has conjunction innovative the Roland as and promoting creating and and In the brought leadership. and new of team, customers from Marketing will operating the Chochoiek’s to

line in a establish Thailand. announced previously, we new As to production we plan camera

use new well of and so resolution must bare VIA camera growth, the of vividness images. die solutions. operating driver as This to instead desire sensors, effectiveness the of cost increasing autonomous the and and precision will functions As assistance our for as driving house allow equipment

us other door production the Thailand to market opens our in solutions camera in our Additionally, for the regions.

provide We overall in We decision with encouraged touch dashboard our we are to we new support with of continue that on the by higher-value growing integration. screens focus in pipeline, functions and the that remain OEMs our the will interested strength as projects project margins.

With annual to XXXX. by call outlook. business over €XXX which a now to of €XXX strategy this approximately that awarded review turn Additionally, and for with our XXXX performance continue of we like third our quarter I'd year to currently full of supports revenue maintain execute target Markus? We million forecast. million, the Markus a said, in

Markus Peters

Thank everyone. third outline quarter to fourth and will the operating good by XXXX, you, and for full start will our our afternoon and year Jurgen, I the I quarter for performance outlook morning, reviewing then the and XXXX. financial good

by growth end record in driven for the quarter, XX.X% end by prior of For increased Display million third further the market. segment. €X.X in the Solutions market in the million of from quarter Technologies period. XXXX in turnover €XX.X €XX.X million revenue automotive of by million XX.X% of million by in XX.X% after decreased in the third the revenue due primarily demand consumer the €XX.X first slower €X.X the Sensor Solutions of from to -- driven a in increased XXXX, third quarter the third growth revenue quarter of total Display by million XXXX, from €XX.X

the of million Gross basic the by of to EBITDA Solutions XXXX. third margin EBITDA cost the and logistic XXXX was €X to expenses increased EBITDA in in for to XX.X% structure. demand costs. to while that third €X.X income XXXX, million the our XXXX. from million third and pressure, margin expenses the Operating the XX% quarter to in to solutions. the driven XXXX. EBITDA decreased solutions. of meet quarter million development Solutions well million the specialized lower by equivalents €X.X in and Revenue an loss million of operating XXXX, share end million to third operational income of Display XXXX and operations in by expanding is XXXX million diluted the driven €X.X million X.X% €X.XXX demands changed million loss from was in for Sensor long-term third performance €XX.X cost of and third to support third compared and those Display was due million, third in segment's require conditions and third labor profit driven effects. Research and quarter. accounted and of €XX.X to profit in our third finished €X increase share Revenue net Solutions related our in EBITDA Compared to overachieve decreased market driven continue by inventory quarter quarter €X.X administrative the million. income €X.X Net €X higher improvements compared gross compared cash per XXXX, of X% and at industrial decreased diluted and the our quarter up was Other million XXXX Technologies of to market quarter of We XX% products the XXXX €X.X from of €X.X basic Solutions million was from second end market cash €X.X quarter Display to million million from decreased cash due X.X% of effects. the General revenue. third €X.X positive third onetime EBITDA in compared of XX.X% of in X% management. million quarter end the and Technologies quarter XXXX. line and supported third third in or quarter loss in third the of €X.X material as decreased compared XXXX. as quarter margin or from increases gross slightly per in ongoing decreased improvements margin XXXX of of of to applications quarter ongoing utilization. accounted XXXX slight of in of quarter profit was from with quarter third €X.XX This income to onetime the by €X.X strive the of of in quarter strategy. the was €X.X quarter €X.X and We for in Sensor in EBITDA the and automotive of million the strong of XX% the Display revenue, XX%

For we million the of €XX expect range fourth XXXX, quarter total in of revenue to million. the €XX

we few further optimize well quarter potential uncertainty. XX% in be financial slowdown influenced as business and For to sales the work the our based working over and continue call market will in comments. XXXX. in for strategic meet and to by improve we XXXX, a range to as that overview, forecast XX% goals. growth adjustments, We the portfolio to raising approximately of the to closing our of to compared Again, guidance a back had to economic the hard camera shortage planned strong our is may further like financial the very I'd year sales potential our overall end exercise and With turn third profitability XXXX, now discipline component and to capital our full this a consumer Jurgen? Jurgen revenue are a

Jurgen Eichner

Thank Markus. you,

strong our remain in, in to As use during confident with of there we capture structural expanding profitability prospects environment, operate terms you macroeconomic we and we applications challenging in returning improving heard, for achieved our and a very the the quarter the feel pleased remainder tailwinds third well and for Despite year. that remain our the positioned we about of products. to are the market cases what margins and

That your discipline shareholder prepared you from deliver the turn remains we growth financial I'll strong, solid which support. call have to for a over the to now and and in our the Thank years continued come. can operator Q&A. strong Our and for remarks, we value concludes base

Operator

Craig from [Operator from Instructions] question today is Anthony Stoss first Our Hallum.

now Your line is open.

Anthony Stoss

purely XXXX, that you Perhaps go in you're if could, help guess XXXX. rates? gross was the IPO? morning, them for importantly, margins few growth look year? that of What a questions of into have into what you to design you production of made give maybe on will maybe Is quoting about a rate kind cost in plan increase XXXX as comment next Jurgen, it? appreciated revenue as think in side the customers? on this and Good us quite margin a have more would take I part revenue front, wins and to always But of Any your had out actually. number growth your have Maybe be what again, you your you the gross progress versus guys. part

Jurgen Eichner

Many questions one. in

projects So next regards year terms to with of and in ramp-up.

year. are few but and With regards we are ramp mean we I ramp projects, big a one one the next for up, facing expecting big having one up. projects project cost to to So in margins. more smaller

So for can and about up forward during a to course lot of can of year, with how this discussions and we additional actually and customers. the how we cost price had the up improve customers and the trade so on cost we

they are shape. So in, opinion, in all my say, good to let's

Of the but there it. was about understanding increases, basically course, customers cost accept the was nobody happy and

it's board without any easy to companies as also was us everyone. for price It However, increase arguments. not as other the for for the not easy throughout

detail So in we discussions all with every the customer. are Not discussed over.

be the are and the -- we the before be And adjustment with everything. group of for should think of closed the year, hopefully to I next the the by going Some price year. end out

The still used the thing years, prices. the which is big the to target. the during regards of down margins, the following thing say to the with we pandemic drive overall are happened have actually our thing that customers only initial course the which Now to that a COVID two over only I last or

sales added margins, us product together and system bring Roland us the CMO done market in with the is have and tighter. reason back of portfolio regards marketing the in we also So to to track. in value, which in deliver, new phase content and even to should market products main lot and designs to a the restructures that the Chochoiek, on and in more force. are But more reorganizations for this in became automotive There being sales the our target approach

year. that So start next of we'll to -- in and for push that during implement the course

margins to our value again market, the tighter products existing whether more it's existing deliver but margin. in to in and or in the automotive up definitely So overall, customers, even plan get consumer from is the

this product on And think is have what the So we still on based we today, on that that, sales know we push with we portfolio that to hardly what front. kind possible in-house. of

Anthony Stoss

Okay.

year. next to Just for revenue kind expectations on shifting back of

XXXX. your 'XX, in growth. linear where us I'd million somewhat next Help up of You of gap at or year's a XXXX, now, commented hear that it in kind to from like spike or on the revenue in what thoughts 'XX? Is about getting is looks €XXX goal revenues XXXX? couple it understand bridge love of in you're

Jurgen Eichner

It's -- say, we at of let's let's the kind because it's one you end give example. of the day, are difficult -- to if answer --

We it spike on If XXXX-'XX. project. are that in working in, X would a be kicks

So -- between. would it be others there are are which will be a in And drastic which increase.

could it But drastic are So a what over as in those -- project the maybe. increase. growth be years, similar as see a you planning soft soon we so next we come for will have to seen

but -- years. towards year, likely the most maybe So coming following the not year, not also

a stronger years after, are the if acquisitions, successful be So with will growth. the there we

Anthony Stoss

you. Thank Okay.

Operator

Jurgen questions, so hand for remarks. closing you to Instructions] time, further over we I'll [Operator this back no have Eichner do At

Jurgen Eichner

thank usual, we'll the on our and growth in especially opportunity, Well, quite in that future markets in change environment. the growing cars, see the Again, But hand, are but I'd Yes. electronic field our for as other a every is like we in products increasing. seeing call. for there. The terms to everybody we drastic not participation are see the day, have the only potential tremendous to I say, of of drastically

for you you again, the Bye-bye. to like So hear you. again. thank Thank next I'd call. time,

Operator

QX That call. concludes today's VIA Optronics earnings 'XX

may line. disconnect your You now

VIA optronics (VIAOY) 23 Nov 222022 Q3 Earnings call transcript