SGLB - Earnings call transcript Q4 2017

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Operator

Good afternoon. And welcome to the Sigma Labs Earnings Conference Call for the Year Ended December 31, 2017. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. call of available X, the this after one XXXX. for end the call replay will approximately be hour A through May Scott Firm. I conference IR to like the Gordon, to and Relations would Core President Investor turn Company's of now over the sir. ahead go Please

Scott Gordon

Thank the all joining and year today XX, With ended call thank ended today's released developments and XXXX. are you Labs' Company's for CFO. Eastern the financial AM Sigma us the Toups, CEO discuss December Nannette Sigma corporate and Company's John financial year you, conference and Brian, X for results to results Interim December quarter today, Rice, for XXXX. XX, At Time Labs

www.sigmalabsinc.com. have Sigma If not please Labs' received visit release, page you earnings at the Investor's

actual differ from as the and are subject and are statements the in the this could any results, proposed the a uncertainties or and new risks not statements statements statements of statement. forward-looking a of operations, date any concerning other regarding of underlying and statements call making results course cautions materially This products expectations international statements expectations or strategies call, about projections belief future Company anticipated The new includes assumptions any conference to the is will based the Company's regarding management for for to future conditions These objectives any U.S. the earnings, statements. on of of performance, Company's described relating or that Company success statements any products, that statements. During cash and cause you any forward-looking or plans, agreements, statements markets, historical future of fact the forward-looking regarding of in of statement be those the revenues, assumptions to economic relationships any statement statements is forgoing. numerous any financial this that any of conference of

press assumes Securities with today's investors these periodic note forward-looking section Investors are files in potential Commission. on update to the to risks Exchange or my is the described these does to Sigma these release not of statements do the titled risks. and pleasure forward-looking and the John reflect obligation It read of so. Company Some public the call should or intend future in and cautionary outcomes to reports Rice, now Labs statements to actual over CEO. Interim turn events John? no

John Rice

participants the the chairman company's Good you I'm to welcome to Fe, purpose joining report Xth, to morning and on call. results of December pollen and your the is Today April XXst. and a Santa the and corporate air. our Interim this for of months ended CEO, of for call to and there Directors lot being financial in of the the Company's developments XX shareholders, today's in is welcome us Board

So or if its please, cough allergy or hear season Mexico. you throats, in us the me Nannette forgive clearing in our

in been our in change in have and our management operational to our months, change change I several change culture central shareholders past culture, in the -- We’ve theme in as So, our had our in market, of has XXXX the the communicated change strategies. changed. the corporate product, team

and solutions advantage that In company decrease more months More to XXXX, of priorities XXXX, months they practical Board so expectations. each the nor Within for R&D the other, development development not implement with Company's we sales it, into and our they customer the with generated the marketing of company’s prior an in service go customers to emerging second the forward, four the an to This our advanced company of over and of of meet, interested nor yields were and XXX,XXX of adoption and quality to being a and stage reorganization prospective needs fiscal demonstrated And support in many now. assurance impressive XX, strategic the to customers and quality themselves technical six we users business R&D requirements interested Company's could not our close to ended our how to been technology help that as capability Directors problems revenues that in successful or February changes were public to new revenues costs, transform revenues offering have in group to product culture. XXXX. and customers During was personnel This analysis were year. new aggregate year of determined from in R&D XD. and prove the R&D, XD to the that gap technology that bridge from improve new fiscal XXX,XXX in-process the personnel and could to product December culture required technology take enough education culture to culture the a aggressive compared cut our with of for imperative our it early inevitable and rapidly derived assistance, was Sigma this know to customers’ commercialization provide with in ignorance. our primarily to indeed about yes, They R&D and essential customers due between an monitoring didn't niche. R&D technology an

for brains our R&D better that what us people wrong So the right metal we in or outstanding us the and appeared in ourselves had team could on board level of does built be we also market the as perhaps And to but the we our they that better understand use, adapt looked Quality seats. to and the tool quality technology. learn and wrong two, to then advanced had still talent XD today It printing. better absolutely leading has In-Process on the real-time found so to Assurance yes, the

doubled and was focused its material Beckett; new product near-term Business Process AM president Intel need Chief installations In of customers CEO and week. PrintRiteXD Process XD President, R&D, order co-founder the a meet metal November, summer strengthened Company X.XX away Business ongoing of from sales version XXXX, were by time the to Software a made on followed thus supporting by to So, of team Company had Officer a intensify and unit to began units. rapid down full-time implementing for and no Engineer last by who Sigma shift Software no and also dedicated in more appointed in technical the company from to is technology. parts. in on that the PrintRiteXD invested parts very commencing manufactures are Cola's prowess of substantial Labs, anchor a Darren creating and And Mike brought issued laser-focused month selling but technology via PrintRiteXD's single to of customers and sales later the also was Labs that the This strategy. X.X, first accelerate update absolute as the Mark the Technology resources change and Sigma of the and and our and already requirement support Senior rollout and Engineering, Head time its that who Cola, X.XX and Sigma now at team. this and followed in production

the realized worry and a was and and fits and in who rigid time. successful CTO invisibly manufactured they additive is sales a and are Xst, yields this production in that are role, parts runs about initially at requiring had customers perhaps So of policy on of that taking who I on Xst. surges needs turnarounds interim prospective stated CEO XXX% unwittingly than Chair some low My By back they parts Company are to to have who operational restarts metal serving specification. focus appointed rich shipping a Sigma's Cola full-time marketing producing cases August concurrent Board below was least already strategy have at as September already with ground the

we forward. Now how tried narrow affirm marketing focus concurrent more our technology to sales integration into new of with and team can striate substantiated development marketing sales test This product quality customer which forth. and results customer product our by the focus, process so to and for by our part of to with development understand a and laboratory created dedicated sales support them, customer third-party closely with policy and in-field rapidly and an fits integrate to customers work with it define allowed this customers. hands-on how support part, be enable universal simple going of PrintRiteXD with to customer We

vehicle, deepen So, XD adaptations but in And our concerns on hand these they in fundamental like an changes moving essential strategy productions, process of to are coming speeds and the and hear sophisticated metal quantities, manufacturing base, awareness what business quality. in business culture changes customer bit called market and were were and prototype site new AM the that the market, the machines are a metal no changes us to to engine little we on a in is increase it. beginning to of longer just focused working

So changes above the these these that our Sigma could for exploit but in all yes, have Sigma of really by company. changes And these cost well-capitalized changes sales in positioned to did Sigma, opportunities opportunities, be none of XXXX. small were a these opportunities, R&D I outlined upon company and

forced for simply of manufacturing dedicated people heartlessly taken people customers to would of multiple logically as metal R&D orders not pushed in transition a units, were from all us. who away and of which pick We and/or customers. a focused the well wanted Development And targeted XD PrintRiteXD to PrintRiteXD I potential only parts Business do XD our up as lead from pipeline, that resources have have sales and much high of of now we R&D are efforts one-off companies As in who determined very enough customers, service machines production. the VP in will skilled we capable but our all approval to our on to whose too

out-of-state the and in-house full-time chain for and in as Garofalo, of at who strategy in an the onto to director the the the retained September, links by experience upgraded bringing Frank lines Company M&A XXXX, CPA, who Toups, technology, chain of along outside the strong digital hunter external grew particularly explore officer through went to joined the her revenue of consultant And and the strategy from was the CFO merger. as design an technology also base, the post-process digital Nannette EBITDA who integrating him an to achieve CPA focus, of financial a broadening CEO, as us -- of the startup of inspection. We dedicated our our exit and and level experienced we've that

controls the So and high strategic is great additive opportunities a is high believe I than manufactured installed of product Caterpillar, customers from more they most both product long-term quarter It’s parts a ever third customer, these as of hurt user to companies. potential stronger new aerospace, to changes closely technology kinds PrintRiteXD exited to great other is of times by do industrial a and ever and year, customers manufacturer in installation world's roster and We of metal Siemens in Pratt are XXXX development one potential features friendliness these Woodward. manufacturing than company, before Whitney, UTC before. our while potential. & for substantially of the the that industry, our respected a included and making were United In which buying announced or Technologies. with defense ranks of customers, equipments. Each of and companies well and part XXXX solar revenues building similar commercial, unit long the rollouts. client innovative course among the look company we all having and customers as my fourth at turbines, as name major worldwide lifted engage which with number as serves which a equipment and

them expect this So collaborate course, them. ready we we our integrated I efficacy no as in down that going assurance and teams on confident people, of partially to bear increase will are is our the work of And write would we future will positive to proceeding to There with confident that as markets orders. will our the in confident but a for and product, of and our of and in are and forward, do product well we say public is targets as periods prove be we the our revenue their all we needs like, together are company.

results for the So Nannette our discuss will call year it I pass we ended CFO, will Toups, with over going take to now away. open up to financial fiscal am the for And then, who that, questions. our Nannette, call the December.

Nannette Toups

year full now results for Thank you, discuss John. our I XXXX. financial will

revenue priorities was recognized shift of XX, Company’s During a just the keeping as ended XXXX, $XXX,XXX $XXX,XXX or revenue fiscal reduction. in compared base shift spoke is reduction in in John in XX% in that primarily due December $XXX,XXX customer That The year XXXX. the now. to we to strategic about with a

move of were as months and original a operating service categories compared for responsible in XXX,XXX $XX,XXX fees, overall and fiscal Cost the up pricing, expenses research a development The outside Sigma’s $X,XXX,XXX XXXX. X,XXX,XXX made three initial for That the focus, month, to we made have R&D of Sigma’s as sales half principally associated we program our to operating X,XXX,XXX equipment early XX, are total the XX% X,XXX,XXX sales. sales cost incentivized an expenses is equipment primarily of XX% XXXX which or the As These and are increase an our sales of XX%. those those XXXX December a reduced of to These XXXX, increase XXX,XXX operating for for adopter expenses were related of XX correspondent X,XXX,XXX or replaced and increase. increase that the and that the EAP compared in XX were is increase. XXXX costs. to is commercialization with from expenses of programmatic of operating revenues. by OEM second year. manufacturers internal installations of

big address personnel are operating three those So, internal that the to next. was we our areas will The costs. expenses contributor

XXXX period strategic to months XXXX, compared made X,XXX,XXX team increase and reorganization the down ended the that’s Our XX% XX, of were in expenses to same the on of a for was payroll to associated hires achieve due the The salaries primarily the with as goal technology. increased for increase. doubling the X,XXX,XXX XX management December, the new

December related to operating compensation our period is XXXX Expenses two as increase that’s costs, to were primarily other The XXX% to XX, program. compensation for stock-based the is stock same the compared increase contributor to in that based stock-based in cost XXXX, factors. compensation ended significant for and $XXX,XXX internal year a due XXX,XXX

reported of first The more to stock granted XX, that majority Sigma which option than four significantly is amortization quarters of XXXX, in options be that in vesting XXXX. stock caused after same has which the -- quarters the XXXX of significantly September four

to options Utilizing earlier grant pay those powerfully as put reward part stock that's shorter options of The for was a than personnel. second cash, still targeted factor Sigma services is use while to personnel. vesting continue distributing preserving one key the significant number cost and of Sigma’s of and the of standard contribute increased mechanisms amortization to incentivize has realignment periods to can most the into place stock the addressed who with to and plans transformation of to

of $X,XXX,XXX fees. costs or reporting each second year, an $XXX,XXX the in biggest a outside us obligations in XXXX The cost services increase over to both to XXX,XXX paid and slightly fees operating our with contributor In $XXX,XXX. an in company operating as and expenses in outside service increase between SEC was service total connection XXXX, XXXX, XXXX compared we In XX%.

XXXX, to XXX,XXX net However, paid these XXX,XXX other of can of increase that of XXXX or offering approximately increase fees legal in fees compared an were primarily $XXX%. in a resulted $X,XXX,XXX. from XXXX public February The our proceeds XXX,XXX in in

two working expenses. the revenue, Again the public were product or was in focus required and related net the there below and in commercial expenses those an December and to income and XXXX trade the XXX,XXX in by was is and in to incurrence due the XX% for which X,XXX,XXX our programmatic partners a effort strategic from a XX,XXX be to hit our -- XXX,XXX increased net compares XXX% activities. you XXX,XXX XXX,XXX business a accelerate instrument -- to compared derivatives a R&D in When February, costs expenditures primarily development, debt that development conversions this of When increase third a in technology to income which of contributor line, result compared XXXX. lower expense This in to two toward outside us one reevaluation the XXX,XXX Naturally, in research way. increased prior of our derivatives XXXX resulted in scalable amounts XXXX. XXXX our largest were compared of or other show to XXXX contributions These combine XX,XXX of a expenses to rather and X,XXX,XXX resulted of with consulting as XXXX. operating from restructuring cost to looking of that we above. a to out a the increase. in development. offering of loss loss sales required discussed discounts new Expenditures in than revaluation the XXXX shift hit the other of from advertising for resulted service debt XXXX increased in XXXX, increase revaluations closing operating net XXXX in of contributor write-offs were of that higher XX compared XXXX, materially to in the to in costs partners of The operating year. and XXXX They The our additional XXX,XXX to $XXX,XXX and a income debt holders. positive This in of go XXX,XXX

XXXX. all While on $XXX,XXX a I XXXX. end working from a year, had of $X,XXX,XXX state funds of tax a October as surplus of in million the income February of compared cash on common XXXX were note results amount X originated capital in capital This of Mexico offering. surplus the a and that from public balance expense capital these interest out XXXX. XXX of largely we XXX,XXX sheet non-cash $X million we shares XXXX on increase additional however, notes primarily capital as of December our in received a XXXX the position the of payable the by with was and of into contribution cash issued notes of and the positive in and sheet, of in from the negative the At XX,XXX had an in cash the XX,XXX cash the working improved XX mean interest from of to offset These, side New conversion $XXX,XXX $XXX a and in adjustments of -- February December our from there working were increase incentives raise amounting $X,XXX,

technology and of end approximately other execute we spending to XXXX we the development asset desire do and call and and an are million necessary over components only to back of While the accelerate negotiations have innovation a in the overview of Sigma's to December discussions procure engaged million actively to initiatives. strong commercialization we XXst. with position X.X our to required sheet having strong a and strengthen to cash our balance turn that the have acquisition I’ll liabilities, that, ensure intensify that, in position approximately in X.X With financial funds. That’s John. those our To at power

John Rice

done. Thank you, and Nannette, well

and lot most So, a in and of of the determined it going good Sigma, is focused. there all conclusion in on

support and open operator, So, your the Sigma thank you Labs, for attention and lets questions. call for of

Operator

go [Operator May. ahead with ladies from question. Instructions] our question Kevin today your Please and gentlemen comes first And

Unidentified Analyst

payment Or give XX% -- it the going And or relationship the is about we willing is going you their with be see XXX,XXX they’d to MorfXD. with the due where of Do that that that where XX%? relationship exactly? our them to What possible like was cash? one is us company. them pay is is our them? loaned to first Their my Well, that

John Rice

onto to the XX%, they They but more anxious us were give willing were it to themselves. hold

the off interest Morf So, would on paid March XXX,XXX XXth.

our good doing that’s be real together. going a continue probably an Ivan close to to center Madera that We bound I to of friend that They’re Morf. forward. innovation us and think has be will are become -- going interest to we futures

the that do continues things. Morf and hope I wonderful So Morf story to

Unidentified Analyst

January. in of disagreement our And there with you structure believe during the was been it was structure now? does what some internal that solved? I this the stated last payment software. Investor It that look did, And Conference, was like Has

John Rice

pricing value to price The to it’s software but sure quite you're and referring current to therefore -- lots of and on the called saving to is early, not issue. a crafted of what products. folks what project I'm us commit try same, speak is pricing is adopter company pricing early money. on buy an based I’ll not not the of the the value that obviously cause to research is contribution to operating somebody's the product could our what it get And to that’s this of what based it’s is

it emerging is about But an our there’s that. will today through. go not simple That’s a have what is pricing the technologies So dispute be evolution all tomorrow, not answer. to that

Unidentified Analyst

a into And past in set begins admittedly during correlate a does of revenues? turning decrease see structure explained call, production even said companies you timeline do around you forth two revenues transition when this into quarters. to the this in Where how terms R&D caused production and it from the that you

John Rice

doing you’ve so of just the whom last its to the these all but me Company, bunch in ago substantial investing, statements were to our not opinion so. A have year game research, and service is what go, we it’s to to if in did almost that product. customers make -- tests doing year who of reposition forward-looking -- are of and was meaning fair customer terrific our we a do we'll Essentially, it with companies support production. incentive you’re buy the invited So, a people engaged

call with success we when you, making will So, so. them was we start the

point us the working has turning for So the to push but our with people by the for more. the ability is sales now turning guarantee buying no point terms that the is us

Unidentified Analyst

collaborations signed. with you and with collaboration Ansys. and as NIST LVN the now anything our our older speak as collaboration of well XDSim terms Can Materialise the on In our of -- recent some

John Rice

this questions, weigh question so can off good limit thank you. But to you Sure, you've Kevin, in. other cuff at that so people asked you and

the because whole how First, is exciting quality one the opportunity at a components characterize with materials. do us do of materials into that forward the NIST is into trying come to move How major time is uniform and of setting you the industry up you and same the production the can they and on a on software, tool Who you So and great is that how whom and it to for this NIST give behave information so so doing not standards? measure is broker enabling and who be honest unique of, can forth? through characterization, our sort a it.

have LVN they So the pointed us they important is foothold Europe, tons the significance Airbus -- of parts in that’s one exciting. XX as days to they based of by contractors Airbus December because are in themselves out have be their to In because of taking announced they that this month shareholders additive market me, a and of case the expect that this delivery. year. these to is of and to metal from a

shareholders interested at the our comment on channel, it ship Materialise good is that observe. and really suggested point with that LVN They're them. really hopeful I we're might which this in we're So, to be. company cannot except

question? Next

Operator

Paul Our next comes your from ahead go question with [ph]. Tumarkin Please question.

Unidentified Analyst

you increased John. wondering are contact with your demonstrating feedback of to from kind What research to from what PrintRite prototype I'm them? with they looking people you're are getting people goes morning, the do at where with of shift these question Good to companies getting who My production. who kind feedback them?

Unidentified Company Representative

been but our it's important just an it to for integrated not work the people with small essentially part you has to did really There first in been to has ask that thank asking that. you coach the company. I customer. of We Paul, us. reshuffle to team XX internal got as a Company, for question, The

really that us we've to been need us you seminar -- that actually customer an and been roll experience. important are we we for because has we out education a up. them. companies to Mark need program The it's created an customers school reciprocal pleased -- It's beginning also So with asked have and the feedback have mutual two-day

asked So need they what and by the and fascinated that to doing we are because terrific seeing That are occurred the you. are And understand know for a seeing. for with we're better found what they customer is it. customer asked it have what they because

that the the companies best We to oriented data people the of have the found is the have means. that them. and And data, our what in and who and a of space companies and do OEM to to who gathering want knowledge, our are machines number that is with there know Sigma particularly probes Company production able

So, us a good are that. making because getting to very I we customers we of are gratified that our tell And are company by feedback cooperation. have you and better this

Unidentified Analyst

And within [Indiscernible] they're going the units? are you more there they're feedback, is any trigger for? what they're not as why giving ordering to currently the and information waiting that pulling ahead,

John Rice

to XD a high-technology powerful those most XXs. the the done change culture work inspection, As In who quality you result backfill looks yield are have quality. good are it's parts, familiar a very awful the because doing it in very which of verse of they metal a case and culture. with people printing I this post of think the for culture in is overtime expensive in we tell, America quality very domain parts have be who as best But slowly process lot improve slowly a their in can to very complex

have unsatisfactory dealing So, are point. with struggled an we to get to people who

want in to finding worked what don't that screw so rapid very like that. better hard change will And resistant to have because they are them than interested they up tools So, do ours also they get. to are very they help

come done arm it's of that and to And let’s to bit have a think our to So, six is you us you do so, back are say, to do we that? like wrestle. going path an define it months companies you looks us faster. is forward. of to deal that to all our And implement a what need need we know What companies been in together to with process and to solution that’s the has And say those this a what order that of is each one do and typical these typical to of for product?

decision have anxious it. introduced One production problems the start have doing other setting get things of were that the the obligations. to going, production buying into had these other the -- companies are research us They folks is implementing folks who and at the to and the and level

have initial it think for learn we we would of should start even is is as less will so, think than them to as amount found they not the take. it also, take as we like, getting the time And fast

and to to awful so an we the -- help more able truncate likely we shed And this lot so adherence. us is of but process, go, that were to XXXX light I earliest think than and

Unidentified Analyst

light the issued. versioned stocks installations PrintRite How In updates software and have of many that current? advantage been many were How not have they of out [indiscernible]? of the have them of taken these are to

John Rice

so connection he Did The understand what is bad. said? you

Nannette Toups

many except the of quite you there have versions? Not I installations versions? how many think, are are older how have out most And asking current

Unidentified Analyst

Yes, exactly.

John Rice

Nannette if go… was Paul, clearly phone a better. you're on speaker

Unidentified Analyst

not. No, I am

John Rice

You to get if we'll not you. sound somebody be send are -- you to well,

Unidentified Analyst

bad, yet. that not not it's bad that No,

Nannette Toups

Better, better now. you're

John Rice

are So, what three forward into the three of the -- the series. that we people in trying process what we’re to -- roll

and are fast moving able install new faster is upgrades where the improvements than team at versions to and point and a in can we in tech release we we Our are implement marketplace.

out what of stuff None of higher is early with anymore. a there sites, are functioning is all there X.X the But X.X deployed. bit is the and So, is a lag.

Unidentified Analyst

Recently, on indicated might software any lasers. obtained all examined, has multi-laser software Then anticipation for John, a available? when late developing work that PrintRite that multiple start for machine to become there’s with you you'll comment I've heard had stage of the have access if that

John Rice

that? get Did you

Nannette Toups

we’ll that the in version time lasers work be able at a Yes, development? four where that to we're new

John Rice

development. that in We’re

Unidentified Analyst

Can you any detail that? about offer more

John Rice

production. hear you rapidly it an adapting when what that, Usually is that rapid the we’re going likes don't not very on, somebody market in answer like what's to the like across Yes, I the the means evolution going evolution, mean they with doing board what’s on. that

that we're As probably multi-laser equipment, doubt laser OEM have you could and up you is an additive a has years on multiple multiple laser relationship read we have heavily reason our whom industries to technology. so relationship with - strategic a no

Operator

your comes Roop [ph]. with question go next Mark Please ahead from question. Our

Unidentified Analyst

I've three for questions. their first statement, forward-looking I've in XXXX anticipate will kind Sigma of got actually operations but actual one UN first of three is world. production the sales the year Labs a One questions the so PrintRiteXD the announce -- is that

John Rice

would wasn't. surprise me It it as certainly

Unidentified Analyst

not evaluations, printer reason has Sigma part and manufacturing are on except world out thoughts investments Okay, set handful by enough have design, following and Quality this that? your met, machine some engineering invest additive Labs I've next entities companies for there confounding to the pursuing the One, kind announcements of been into moneyed going technology over What to actually years additive of now, why that or six two always been been for to PrintRiteXD the seven power sensational valuable have be Assurance. last of things manufacturing been is to made technology the it fairly the for design, into there? me. frontend years everything to In-Process and What public get industry

John Rice

Mark, have in aggressive and invested some folks Sigma. forward-looking

the the high-technology and would very by begin things with manufacturing of barriers the sector I led aerospace have this mostly to cause entry And think early metal is slow. along. companies, The to So, them large us. go pushing development parts they really for in are visionaries go adopters the

for for or laser GE million or investment capital upfront to on First the did, substantial in million of as technology this technology minus like multiple requires rollout machine ways of a production more. all a of a something bucks fuel plus nozzle single

slow, I Second, months. for eight begun that manufacturing to machines granted manufacturing. problem. the was effective label only heard of taken heard to It past the parts of machine people have refer have That you metal a was the CMC these the has are shops that and classic I industry to think this additive call problem earlier model the in me look

very on of the shift a cultural for out quality up This think you the But machine for and you expense behind And then is of been I hidden in monitoring right. as that a making a will big in products I put been basis, company new very line industry happened. focused investment and think on to it folks issues large-scale whole if technical seen has you for in-process setting it a small capital-intense other that the well lots. the as make, community if a have production come the sophisticated have deal. big as

Unidentified Analyst

that it to So money you may are in some need Sigma to do be meaningful the how its to see in be Labs into this that’s you out rolled way that front invest think obviously guys that should more now center out. and much enquiries a going mean in ways? roll you I

the Or anticipate Now is large I that mean, you anticipate time you potential the for into investments coming? Company? the do do

John Rice

foreseeable. and possible entirely That’s

I think our lead with you along. investment talk bankers, can they need and James, Dawson you to

Unidentified Analyst

reporting technology at PrintRiteXD. So, looked evaluations seeing last reference in some where or Labs and quality development is not way, and instances these Sigma or question. on are many evaluated instances or worked being for on there or I’m other all in-process

of two-part has the missed a Labs they all? quality technology? open among are part Sigma patents question. guess efforts these AM Is can a instance, For take are not they the that anointed your are The opportunity efforts the like Labs of Labs. and of there going that feel How is, assurance just room and in is and second just other or a are it part out have is AM metal production other at no I Sintavia or heard pan position? Sigma out? that the enough How looking not manufacturing mention PrintRiteXD? always yet, I are recently is Honeywell Aviation and process it of be of for this how to in we Honeywell they How question mention even involving didn't knowledgeable Or Sigma that is No there possible? in-process? way GE mean just of patents not using happening the that technology.

John Rice

Labs of at than part apparent all is includes more to that it many the of Well, and you. is moment Sigma

that have do some for The bureaus number use capacity Sintavia, When is initiatives. post is to do of and a migrating will will the people going that quality the is that they're order not as they state doing in-process very accord like of committed they’re so have them forward part of on to their in not worked It the mean as inspection Boeing moment. actually quality qualifying require quality. that for process their give monitoring to and process not what for manufacturer qualifying be and them the conventional XD people does of work. of confirming they that, an Honeywell, are manufacturer time we these closely or when will them So, with procedures give Honeywell that they that that be service go specification is expensive -- the towards bureaus service own process they in through have

So coming. we’ve like whether of are been it confident, is seen has the or deal preemptive Sintavia in it deal or -- is we whether pull, push has it’s Sigma. that excluding No anyway

Unidentified Analyst

Okay, thank you sir.

John Rice

protection new the of well terms is is patents is niche question is Certainly, property, this relatively a Your technology, patent new. XD in manufacturing of interesting. our established not of but intellectual

in for patents process. over but has them a applied Sigma almost of So, dozen all are

because And what our patents so, don't competitors issue, they we can’t until read them. the have know

still. front, IT is of the a frontier this a on bit so, And

Unidentified Analyst

fine the then? to is come So, yet

John Rice

Pardon me.

Unidentified Analyst

all is apply So, it to to yet patent? the when sorts then, come of comes time fine

John Rice

were as the Oh, acquisitions, at would a interested like patent looking large in -- absolutely, looking a small company prevents future, been at in is yes. competitors violating they that company Company the Sigma their a be looking would at if them, the technology, theory of able value. enduring protection as so this use that comes and is with large to from Sigma Sigma’s be they and

Operator

comes Robertson go Please your [ph]. question with from Our next ahead question. David

David Robertson

What that was some caller can as the your very descriptions, I the technologies aware? hearing and as the has about out products they a PrintRiteXD. note get -- these might read on as far I be in with and How bit best been our folks question. of The you're folks particularly us there. last I ahead In that is difference how help has were there amongst been name technology is, competing some the products late understand of pack. his to delay own? that we’re state of was and think headed the to similarly hands knowledge have than we by at goes you I investors or we better tool massive think to there programs our able our discussion discussion be situ and EOS John, and about can When lots said reading you particular, described appear to the that and Sigma myself have, head EOS around such also better technology you of to of other of where believe others actually thought focus to technology

John Rice

this And yes, thank one. me you got on tiptoeing

and So lot you looking going know, metal in there. if as machine. actually visualize the you not is window There in of manufacturing on

the a powder at bright of laser looking of melt You’re and a pool. bed light a

know view question with any do thermally couple to to the of in But these of have can data, see of is, what seem point much of with there you the to products know line years various that Sigma's can putting the And there monitor to the data, setting. in case the folks been in pool. is you question how of actionable equipment manufacturers the from do. or their probes what's gather And do as you melt more the learn the the past the as gathering can data So number ways. is none are that in bottom you claims And simplistic question looking is be of meaning to what tended more and what what at. is visually

information but seem where away don’t to between where show can we barrier can is taken the and melt be are. what as melting, pool, the picture far that you a of can tell it's Sigma so acted understand you they and they And They can tell yet is upon. they

Unidentified Analyst

How our hopeful? advantage what could context we've if as that the advantages fair more you then within then with to can that applied John do us And the that my I -- help expert technology. it'd patent that to understand, opposed knowledge our question asked to existing consider, almost applications. you that Can characterized as information, of collects the does be in the telling to the relate would could is to and technology So patents be one you how of -- are our as folks for consulting for superior standpoint if say information? opposed you

John Rice

so which on And patents. up in merely Sigma products and is of our And I’m focus is some Alright, software, our Now, of with are sensors named that competing do that’s detail to here Cola, so differentiator aware we also or metallurgy. as method guy, far its what co-founder essentially in to to products tiptoeing. patents as primarily process and his aware with are critical nor opposed point the of we've the on endeavored of there, the co-founder skill a Mark areas. the and difference and science you composed the set that everything is CTO, metallurgist, between was

strength. and is it our what essence So that Quality means and of seeing knowing do to what the it what with Assurance are you and is In-Process

Unidentified Analyst

is knowing knowing a and something do an matter, guide, what IP not And patentable me with is patentable do idea I’m it bit than I a or conceptual to thing? what something? to is guess it’s foreign concept of with but

John Rice

Yes, else patented it, hasn’t done at generally if it's first it is. somebody

Unidentified Analyst

patent that’s So that process about? what of talking and think used just a what’s is known we you ago term I the are moment

John Rice

this often to area. on I be careful have really At is,

want to way. are of don’t heart it, too but help the value. you want -- I not to The so, companies it It's going our understand You help IP understand on well. is this you I

Unidentified Analyst

of of is on and patents the believe these likelihood high granting that of you of our that with So is position promise the increase? essential course, in some

John Rice

good, terms one terrific with world. it, patent firms I is way. asked company’s a which in the team can Townsend patent this track the are the of very top firm is area. I you in answer answer of record that Kilpatrick in professional can't in The but And country, this success they the question

Unidentified Analyst

those to are do you lead in we And good folks standing. that they pretty think believe

John Rice

Well, yes.

going think going don’t here, money our based disagreements. to It a something we got file patent. are as have not not are we to at you We waste

been reasonable chance them success of with done a on and based And we've and everything XX-XX a thing domain of has a valid success. chance is a in is has in appropriate has that to not So, expensive reasonable to try patent their area. belief

Unidentified Analyst

funds, share are sort John, about is looking additional as need funding way there private of issuance? placement in with financing to -- for you additional from public the serious much the alternative standpoint folks as a an

John Rice

Yes.

Operator

over ladies We’ll [Operator to I gentlemen, turn no Instructions] showing am And remarks. session. the any and to additional like question-and-answer I’d back questions. conference call closing Rice today's conclude John for

John Rice

appreciate that Well, joined We how We call ask the I interest this want company. us helps Company. group our really appreciate to support the you for curious, you and that. how and of people us an It thank serious challenge who questions. on way helps doing in everyone people take that and you are, us a us it

asking and So, you all for we’ll for thank you have day. and you wonderful to pushing justify. here and try with Thank you and us, and us, stick being thank a keep

Operator

Ladies and now you We attending do for conference concluded. gentlemen, today's thank the presentation. has

disconnect You may not lines. your

NextTrip (NTRP) 6 Apr 182017 Q4 Earnings call transcript