- Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the Sigma Additive Solutions Third Quarter 2022 Financial Results Conference Call and Webcast. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Chris Tyson, Executive Vice President of MZ North America. Please go ahead, sir.

Chris Tyson

morning. good and you, Thank I'd like join XXXX taking to all update thank for Sigma you us call. quarter results for Additive and time conference to Solutions business third

Executive website, host today available Officer; Chief Your and Officer. release wires is crossed press sigmaadditive.com. on these A Jacob X this are Brunsberg, morning Financial and Orzechowski, at the today Frank company's results the company's detailing the Chief a.m. Eastern

for made are statements the Before financial At to of to to described may and the yours. the to remind I could you actual Jacob is the to risks webcast, we turn call. the list those call be uncertainties of Chief Executive formal like floor including cause and would those that more begin in filings Brunsberg. for results and this I'd results presentation, to call everyone information. and forward-looking subject website on Officer, Jacob, over SEC differ company's supporting regarding also future the a to from we refer industry that time, number the industry a refer Sigma risks, Additive's prospects, associated like and Please would company's materially

Jacob Brunsberg

kids, to the as and say have transforming industry. share apologies To and a work good bit excited you everyone team for my progress today. Chris. But a of over the business little young taking a me made strategic a joining having about get you, help and an bit standard morning we full XXXX thank second the Sigma, and of everyone, or I about little that talk the and and CEO here company's illness, steps just to amazing are take bit a the President morning. you this serving with a Thank that software solution so marks plan. and scalable like clear QX with of, for at today. remain this I additive I'd quarter I understanding us have, opportunity couple to a will in quality bit the to results with will the the of voice bear I'm we getting the we beauty

revenue to subscription upcoming leverage the position of foundation to based have to review results, Let the solutions key software expensive the finish indicators sale that production with thousands our I'm to Putting few and hardware the IP finish to is believe Frank with only augment the plan. solutions. quarters, and perpetual printers. to and monitor quarter license business us financials installed move to we On in business work stream. we over report software OEMs PrintRiteXD out performance to the of a this reoccurring then is the pleased but There building to current background future our and these our execution partners continues products on software add to use that each of setting systems still from our allow do a

continuing noted here. highlights a which quarter tale third revenue subscription great is events. and subsequent say in row two is to Some and quarters for backlog The to grow,

OEM our for shorten remains robust add partners new pipeline increased a sales and cycle going to additional continues with our growing hardware in opportunities. new sales of to continued deal OEMs products. We opportunities The The software pipeline and forward. with software interest

four our center plan progress will focus -- areas would like to to I this Now, core our and business. on elaborate review -- of and we business KPIs second on review I later, for and a contextualize I take will to around the will

technology recently subscription fees. and ongoing to investment annual revenue customers manufacturing through our First seek PrintRiteXD upgrades improve through perpetual that strategic Sigma's Historically, licensing M&A. maintenance product, and most and software to and then personnel, and production generated of their partnerships processes based

a year for approach from execution has change the XXXX market. to However, the of a our name significant been of business, new change our to symbolic

accelerate production And adoption user a from and to Simplify have ecosystem by -- product, first is we licenses only new quality all use the as the experience purchase and creating to qualify on quality partner setting The a more are move holistic launch holistic spreadsheets and process software critical to manufacturing production And spot and to disparate attracting relies of data clear objectives. industry data. charted production, a for additive integrated expensive, manual experience of for monitoring, we began just customers need experience partner additive qualified of in the solutions. customers mission and inspection that upstream new offering have dollars to of months, of analytics quality corporate that a to both financial our and best up to path single of for expansion for standard addressing and and existing framework opportunities. our path create the into multiple licenses to In products strategic simplify that million for and the to in Remove of we digital our $X reporting. qualification and recent deliver safety software experience. suite and a digital to holistic synergies. experience mouthful the head CAD workflow. cam our less for continued their the are single XX by process connects than expand for and the We parts on software following have data experience journey years to the quality thousands with they downstream data our easy initial component. a process customer, our the quality. On experience and partnerships, hundreds ensure with Build success two easier strategic begins with investment finally, material This a by through product, digital the in

health process quality beta process base announced module, quality machine just provide analytics with feature to health in our holistic for will the module, digital melt part to for of our us ecosystem. the a together connect broader a pool release addition In

machine OEMs data API product health files log and is disparate a log live convert streaming to from analytics for machine based data launched where we functions. recently was off standard that and Our monitoring, files reporting format machine based

process for image-based Our image based beginning layer data, for camera health modules camera and product detection. is thermal camera wise defect with

sets based approaches. the We use that artificial allowing and machine intelligence training a learning machine third-party will library, offer definitions defect standard learning for for while are data of

this This is across like varying monitoring monitoring based or XD data. learning Firefly integrated are Sigma's that analytics comparison artificial off part based our data, hardware there and standard built into intelligence health melt a applied machine for pool creating fleet is Novanta proven approaches defect announcement, pool For module, our any retrofit and OEM of to melt part Sigma fits detection. tool

user and To manual our large. and current quality some at reduced these process point cost in to software of we PrintRiteXD data, can that at being user chain for quality made a data, integrated broader OEM standalone the data, -- parts. a are solution integrated hardware or offering a basis from begin things, All other to our quality a of single third-party report new allowing a to mouthful for to XXXX. on is an open disparate customers from began spreadsheets the data process. in Among $X,XXX licenses have sync to one and production industry $X,XXX for PrintRiteXD software to user, $XXX,XXX several a qualification solutions the present, analyze, our a over upfront initial inter workflow. approximately change certification user on combination a software modules, provides personnel, in subscription correlation to to context, agnostic of hundred are in to On digital into partner experience to the of experience the headcount foundation our applications be as into as technology other collect, make distribute eight This can in and This pricing but machine connected provide into to into suite to per we all subscription to new simplify experience of from standard. become offerings camera path reduced made for that creates all embedded software to intended suite things upcoming required the full process an consolidation business The more effort have framework for of and to OEM we bundle, month. to architecture easier the charts be the overall XX connection user and and only align This industry and acquire, products affordable plan. and our support home

retention are of We focused key currently continued on employees.

and hires. us continue DMG. our of to Ryan additions strategic with augment quality like engineering scaling us have implementation customer of with and support an supporting to We future. the customer quality pioneers skillset additive highlight on digital and recent comes engineer team at sites. a of some from that have the Hurley the our couple background joined EWI, a our He blessed to strategic with customer recently rich success application as their to align our Sciaky, and I'd team, been to

as expand Founder digital independent software do across vendor current we to solution. quality metrics have proprietary of deepening printers things. company, our is building he help offerings, addition, On accelerate OEMs application OEM industry was want analytics our technology with here in solution CEO quality a to former monitoring veteran, number customers with our European third-party components printers, own assurance digital a to single an to One, Two, consistent offerings. new three or Operations. of programming additive workflow multiple integrate OEMs we materials. Stephan technology, future, multiple for with with quality their their Kuehr OEMs GM and a the launched and XYOURMIND, OEMs interfaces open added and relationships. quality APIs and directed program assurance order In without and of is established but three, processes three-tiered of Stephan and OEM partnerships, quality And from or who the monitoring Sigma's OEMs distributing

OEMs solution We software on by enabling printers will a that software only towards reduce opportunity embedded utilize infrastructure to dramatically the printer are solution cost now this technology, OEMs. of only our and partner next-generation sold on every to a the the offer move computing working printer's with overall

I our to market for recent Solutions. I leaders a This integrate just have PrintRiteXD SLM what products collaborated SLM.Quality one metal of example on discussed, able be towards an want SLM of will their means we additive, announcement with is and either API. installed highlight and any machine our to our printers health certify progress machine work that share As the shipment sold base tool added printers machine field, have a our capability logs provide layer process wise of have to API camera to. enabling health and integrate All coming with their can and module. at Most printers. future install to value or the in sensors with

for process from quality. removes This Additionally, monitoring hardware -- some with ready work the installed reach hardware our to be our and uses any melt read have Novanta, for scan have we to that something a provides to other relationship our platform. machine Novanta connect throughout SLM to a SLM. the retrofits PrintRiteXD printers a positive quality our Taking additions integration, to fleets into to barrier modules. first health central a plan Firefly the without enabling for able and heads into will across head means expands This fully home scan ability OEM software connect outcomes that announced with emulate huge This pool head up and assurance. we implement pool relationships melt optical companies while hardware provides customers chain to the Integrating scan optical with OEM capabilities is Then our agnostic both comes train. solutions level integrated cost recently pioneer, the agnostic Sigma's industry.

in progress path experience we chain announced additive simplify with and marries Sunday. started process value work. our quality analytics. Dyndrite our of resulting extremely some the We [Technical finally, data work this manufacturing customer's cover quality forward Difficulty] CAM, development, to recently well in further have additive this developer a look This simulation. quality process new This the And Sigma's with user creation, and connected single strategic experience. and marks continued to connection the M&A. kit, tool users have Dyndrite's solution and prior for our Lastly, user and material

funding undertaken focused to is is our partner identified an of part connect of and This interfaces a also further synergies trend progress the as in up initiative product, achieve relationships, to but value. focused opportunity quality for connection towards industry the for investment digital align Application to other as have digital the Sigma a attract our create the in with company our strategic for vision and with with We vision, potential market, a opening common evolving. strategic to vision. accelerate accelerate relationships XXXX have an on other paired digital APIs or strategic of the its some that on acquisitions Further, support strategic products the and a of adoption. future long-term connecting and execution made scale, our quality build connected The and visibility alignment and near-term profitability. customer, can to allows that also clear potential our to partner financial OEMs strategic market As partner are to we including mission, synergies a quality, programming growth, companies work corporate manufacturing initiative is provides companies vision. investment become to There's in additive product believe integration ability consolidation augment demonstrable stream, with customer public. has execution of quality AEM Sigma. can to

judging on quality additive and provide will I as to take financials be close KPIs with to details basis that up truly Frank Frank? by foundation beyond and in will to and Now, that the XXXX a review goals make seat we for have manufacturing. get our key the our a standard a I will ourselves

Frank Orzechowski

Thank Jacob. you,

highlights morning, of the in release results. detailed and XX-Q Our key issued contained SEC Form financial we results contains are filed financial our press the our this with

today will results a XXXX. quarter I for third of overview So, brief our of the provide

a most we in software selling future physical subscription comes to from the are continuing we noted margins. of last setting our from perpetual licenses As higher much our for which cost with to for only call, hardware PrintRiteXd, conference move away model expensive in for potential up

our in business, net have our October. in a employees, we our with As third five of reduction realigned part in of headcount of the this of quarter, we employees goal, reduced in shift this resources support and further a by two

compares will two Our a of be Though headcount our relatively full-time employees fill from October reduction of people positions XX headcount year. back the in in expect to we full-time likely our this near-term, stands -- XX, open peak of will hire April result to at or more of months XX net to quarter we now totaled for our one PrintRiteXD quarter third for $XXX,XXX as XXXX, the as stable to for Revenue our model. perpetual XXXX of the shift revenues the a XX and our of the third next so. in a of fewer $XXX,XXX. business of This result, sales license platform

yet order order totaled increase the but our defined both This second an year. our date received, for of perpetual represents quarter the fourth firm sales quarter XX% as backlog subscription in and However, not shipped backlog to this from of of orders licenses. XXX,XXX

of $XXX,XXX the for of profit or gross quarter to year. XX% Our XX% same compared period last as was XXXX for third revenues $XXX,XXX revenues of or the

pressure our near-term. in previously margins we As continued the we have expect on stated,

margins I in have quarter However, one quarter XX% in from that note XX% improved will two. and

September as addition, have industrial this In tracks of marks of may network, a of regarding formalization seen formalization our our of act business. our you announcement one in the of the

manufacturing to production this providing to our manufacturing the we sustainable more for operating world. this build R&D program the XX% to industry in see we As current expect tools the want we third discounts with improvement complete in to may easy a work R&D production pricing, access non-employees the institutions track, hardware expenses work The early granting Partially as the XX% a us do until advancement and focused manufacturing million building propel benefits on quarter was largely our we We advertising costs. focus community launch inexpensive employees our transition, we the quality awarded instilling discounted of the the world are expenses leading quarter was are community additive formalizing as for in in a we third done parts. network, have way compensation. has the confidence for tools. and help margins By as or we and next-generation for additive option printed production to so access we a cultivate to want AM -- enabled path to million quality directors' the incentives public $XXX,XXX technology be well our hands quarter for during in this quality. in of reduction out a create AM compared near-term. regard, reduce the labs to continued to by R&D In of XXXX and approach leaders are to of $XXX,XXX quality educational for with wanted to get around and in other creating and quarter post-employment on decrease the of future third offsetting costs member we and $X.X not technology scale Total taken a were charge of $X grants This decrease investor XXXX. decrease XXXX, and of relations due these of severance to

ended which For operating months the XXth, last $X year. million, are our flat to the nine totaled XXXX, period same expenses compared September

quarter to quarter headcount the realize with reductions loss quarter operating loss fourth increase this the operating was in reductions, $X.XX XXth, third or XXXX, rate million the used for million the $X.X of third third the compared million of million applicable nine quarter, million other expense per loss. months of expense taken primarily XXXX. stockholders run quarter XX% third $X.X our per in current together of or an of last the net to $X.X a increase to totaled as for usage the savings year. in result common $X.XX approximately This XX% to in -- Net September compared the we Given our in cash net in activities of is $X.X XX% in share $X.X share ended in year. share XXXX Cash to expect from of

in of XXXX result XX% usage to our decline decrease XX% million totaled cash $XX.X and $X.X XXst, a September as operating expect by headcount at Cash However, our XXth, other to beginning compared also to approximately in as XXXX. we million expenses, December at XXXX.

at stockholders as million at as compared September turn we totaled capital $XX.X with XXst, XXXX call million back XXth, of $X.X equity December I the $X.X had compared XXth, working to now Our XXXX, $XX.X will September At million XXst, And to XXXX. XXXX. Jacob. December at to million over that

Jacob Brunsberg

Thank you, Frank.

years. quarter, order As KPIs our a an selling only over focused last we to from the business partner we we deal backlog; two, at are KPIs indicators, be To away execution see new to monitor critical performance tracking One, two plan. and and printer our four, the the pipeline; scale. the as individual revenue; clear, achieving whole These to progress closure time; next supporting are on expansion. five, on following key industry as additive the three, plan business moving solution noted are

the For only subscription in our revenue with QX with of heading others QX in first the shift our product software to into in the KPIs, XXXX. pricing of $XXX,XXX half tracks of targeted first the launch

solutions. Pipeline leads subscription an perpetual over our for the our firm order in yet represents backlog to and progress path This adding quarter, with with order sales. $XXX,XXX stagnant but remains aging software of defined shipped, fourth second XXX and XX% increase of in as from strong both with orders total backlog reemerging qualified received, new quarter, Our continued leads only as shown active subscription not sales. and

increase bringing and at Our amace Science, X.X partner head Sentient OEMs average had closure additions and Solutions, total Additive and partners, and four months, Materialise, partners, most time of and that the Novanta, shows plan, the DMG, hardware six cycle recently SLM AMFG, software Dyndrite. Industries, we've ISV reduction to deal Aconity, continued

of where software aggressive the more subscription going providing only to is is alignment options, on focus support is to positioning members where to with market product scale. in transition adjustments products. and it our continue The market and margin council higher We to

presentation, in estimated As coverage $XX could investor mentioned approximately in installed market latest printer XX% revenue. reoccurring our yield an annual XXXX million of in

Thank software expanding spreadsheets move with clear our mission it partner operator to mission you coverage after today, give yield expansion back to licenses attracting of the to for quality setting turn ability with software Question-and-Answer X% million by they partnerships, initial for to holistic machine will modules less process installed our our deliver the charted start even adoption a standard first current ensuring standard And from up strategic to product, and industry. the that quality, manual easier a following Open quality finally, expensive, To We investment our just for have annual manufacturing. going building our market scalable customer, the tracking could use, and and single to Simplify partner I to additive strategic and corporate customers to and While additive set be for accelerate the our estimated you revenue. time objective. as quality manufacturing health with path we multiple of the synergies. XXXX over bring enable look Q&A. live as digital a for to and the into reoccurring experience; progress call, standard Session go production; industry, full quality user experience for part to the us we architecture, are additive disparate both products financial a of and of by for the $XX your the a the now offering success the additive we opportunities. experience have forward will best to forward the ecosystem us XX and

Operator

Thank you.

Please begin ahead. question-and-answer First will session. H.C. go now be Wainwright. [Operator Buck, Scott will question Instructions] the We from

Scott Buck

question. Good for taking Hi. guys. you questions Thank my morning,

the XX Is think XX The delivery months? that evenly think right way of that? Jacob, should we about spread first backlog, kind one how on the there? revenue over cadence about months, to over What's the the of

Jacob Brunsberg

Yeah.

continues the it's based reoccur structures, one contract originally. is monthly model a a most to subscription our way is but common structured say that our subscription And for that, recognition typically, products. three-year that after I'd So, revenue

as things. that in basis we of backlog being a revenue recognized So, you the see side subscription on that monthly more type kind see grow, of

Scott Buck

job That's adding six the Understood. see point manifest or helpful. then, that have the line? over Okay. itself partners guys of last Where months where nice And to in a so. you that start done is revenue inflection we

Jacob Brunsberg

Yeah.

I think, other industry. to the from recently added perspective, some a in partner industry suppliers one companies direct space of larger -- additive we've some the recent tiered past, the

into as as are their start only infrastructure. to work an over going a large I solutions these to strong will think to and from think additions, software us. link to really But directly be a point that perspective, inflection some to prove customers of month-ish very scales APIs market OEM prior I we that production for path with as kind So, XX start current we period out scale we it of our technology

into so month software industry That's just OEMs. prior our API with our can to And started install pretty or with so, product only in base implemented launched that easily product. being implementations here the something at of be partner is the health work the machine

products have of next a estimated through coming QX market and we'll finalizing more Additionally, QX, couple to year.

the inflection from implementation our a that point there there and market the be sales for on downloadable I we which point become just solution changes throughout really to ease our marketplace. us drives something where think path just process an webpage, and that of completely is a can

Scott Buck

just Super. date helpful. received the That's expected wider health is? yet launch curious then from that beta and the what on really any And one the if machine feedback of me, for module release you've last maybe

Jacob Brunsberg

Yeah.

groups to our logs weeks to really to been in of there base. data here, tool software. sit beta our reception customers as product and is infrastructure the this at the number so user ASTM the So, looking next really few That's making convention. council, those ensure scale we early down with that for that ago really We're for tester with set them the good consortium positive The at, out standardizing, couple actually of a everything has a of focus got all months aggressively a a standards is really the kind far. up really reporting different

So, and early in the kind QX as a now our I that that timeframe. market, QX, of readily have like to up is to QX, downloadable the solution finish available target right late work really said,

Scott Buck

morning I right. time you. this the All Thank guys. Super. appreciate

Jacob Brunsberg

it. Thank you, Scott. Appreciate

Operator

Thank you.

Our Jensen, next Lake Street Troy go from be Please question Capital. ahead. will

Troy Jensen

gentlemen. Hey,

First product, that of helping all, curious sell want is with just Well, these congrats things two also by I are partnerships integrating value just guys on you, to Maybe these the to All more partners applications? the announcing, KPI for know you're Jacob. or progress. it ask. you adding the other

Jacob Brunsberg

of a It's Yeah. little both. bit

the go-to-market dependent on partner. the So, a is little

on Specifically, actually you or somebody at if their look Aconity like OEM be an option partner, we are going website. to

suite in whole a their buying you're machine, within you include offerings. can there if our So,

the primary the SLM done integrated SLM, to with be will there, the certainly will with be our that work directly is certified with path like market in something think well that probably together API I certified or work their we access, and to one team. but API is

if their OEM machine. an But on as offerings it's that off their dependent lives them. where we're the it's kind kind for their tool bit of certified solution with it a lives, machine established has of little integrated on a group own quality a of that more So, or shipment an of if

Troy Jensen

closure that your comment additive environment. release given current said cycle seems to average All It right. months, like And space lengthening found everybody is Understood. there's in deal cycles time the then, press I the sales reduced X.X interesting. guys' your in seeing, a is

with think clients, cycle getting can versus now? better values just seeing kind industry's you So, what resonating you're the just times why deal kind seeing touch the on right shorter you or

Jacob Brunsberg

question. No, that Yeah. for you thank

our as upcoming the our more to were products an software we kind little with in world to I versus to hoping I we Today them as faster capital more equipment very download think hardware now. of to just think capability software well Really, software a a retrofit. to here. of on launched point, see kind a XX excited retrofit we market cycle products and we that's XX typical in accessible something were move about kind than sales before as market we're bit as similar were in capital of price months. We're able easier a of getting that a sale

So, subscription to our opportunities amount to release -- XX is, we're to that's two we And to -- ton meetings as a bit we having is are we're that going more if we our really sales of buy. to of we're more which software to months bringing cycle, getting to quicker And down months about And that's products light budgetary progress coming see. quarters direct able want last a something downloads, really certainly what prolonged new our today, targeting made and of the of as in little can. are software to just react we're only sessions, from down easier a months. X.X from a And little weeks instead that we a is them. XX

… So, that was

Troy Jensen

awesome. That's

Jacob Brunsberg

which …even bit a good. better than little was was expecting, I

happy I was to So, see that.

Troy Jensen

Jacob? in this Okay. Germany Great. Will week, you be

Jacob Brunsberg

room hotel Frankfurt am this from in a currently right I taking now. call

So, yes.

Troy Jensen

Yeah. a year, I'm Marriot. it. can but there. This you this miss I luck going good is imagine over to

Jacob Brunsberg

much, you Appreciate Thank very it. sir.

Operator

next Our [Operator be Partners. Scott you. go Instructions] Please Thank from Walrus question ahead. will Billadeau,

Scott Billadeau

Hi, Jacob. forward. on things moving Congrats

are to mix then couple new be What is point? talk what is that a this -- impact look change the a so, during can the those mix going now that, you what's how XX you right devoted of mix One, installs were over partner from there questions. about the you folks sales where the and much to at with -- what people the as resources months a retrofit that and second last question, that about Just -- -- And XX to or -- you did support of obviously can give quick and rid getting let like? talk that go? of resources XX

Jacob Brunsberg

Okay. Certainly.

in to a work of which question of being we prolific. around going new retrofit start nature answer This we're retrofits I'll as gearing kind up the of with and are out Still installs in triggers or lot retrofit our here of is quarters was of so forward. pricing, So, the the first kind over upcoming subscription to today, of products difference finishing -- that some The most the a different solutions get the here, is these installs more three-part here. today software me for closing is But integrated two that us our profiles versus revenue type short-term. models and software doing here. is really transitioning next kind all

to are in position of versus scale type more just a any we that download via direct retrofitting. of So a software kind

to need the integrated removing with is, this and creating of piece solutions hardware or retrofit, third directly partners. OEMs The

for example and the meet change optical industry. Novanta So, an our complete their is an integrated there, they're train really us. That kind that to really, next-generation looks as a that a on is into the scan for really head working zero relationship exciting of printers to with. for Having hardware OEMs retrofit go means the

direct with OEM that hardware. So partners our that's we're we a to with working cycle integrate as as well similar have our type integration

of is user. So that won't be that an something setting every about machine to in which purchased, to the we're that part for, single custom the really is optional needs purchased excited of to versus but really solution puts be future every up that needs industry the or it a as because get solution immediate, that quality be that hands

So on question move and one. I'll the second that then there, to your answer

Scott Billadeau

Yeah. Yeah. quite bit. That helped a

lift on revenue. trying Just out figure -- to and what's to what installed get recognizing leg the

way in reduce that the how I significantly So, understand working. just certainly, and goal was of kind to to been possible, that wanted has any

Jacob Brunsberg

Yeah.

And point at kind point. Novanta And then next still a printer is integration of scan via those launches. after is download, hardware we items starts changing and early major software the subscription. software integration second a we're But kind inflection that next-gen revenue future, that solution first very near year, into next integrate starts a today OEM that start be in when not of us. far inflection two So, which for the will the yeah, inflection when we -- head

Scott Billadeau

Great.

Jacob Brunsberg

with out over core then your talent at forefront that's before, additive plus and For past here, years team headcount, for just XX the XX adding said an we've incredible a some been starting [indiscernible] years. on as the low been question blessed really I the quality really, of

factor an an Our and is important retention forward. for of critical going certainly engineering for infrastructures us those team our factor important

have, help the hardware as wanted patents to other company that hardware software in So, we with patents our well integration and as as partners. that core, the could the or we a OEMs expertise the installation software critical keep us and progress with

are what kind people, a working of more to changed customer how and has path with support market, acceleration. think I our lot is specifically with of we company to a transitioning and the

into have as So, and and them some more it makes do scalability some that the have towards We on we a on, software type to success that people group. focusing customer talent established taking working chip customers especially we approach adding implementation, been enterprise with we and really have easier blue a realigned that.

commercial we been think, area increases there. in the changed and that as lead little the So, and software somebody of some on a was talent little on but OEM restructuring bit Stefan on well that skillsets a I the lead kind has brought front. front, has with specific the integration in charge bit. really reductions, to Likewise infrastructure

you direct it software focused forward. more for into large integration more direct as a at more as customer path kind need in of on of for sales can and sales, OEM change smaller support, the look need So, a and

strategy So, that kind forward of here. our aligns move as with we business

to and taking support of keep that been and lucky help some add, our to talents excited able digital and future do be here. expertise So, of to them kind then skills really I we've core to our their and think,

Scott Billadeau

Great.

walk me stay to is talked go. you partnering, third-party to or trying giving independent defining to a the for about who the partnership I'll Just talk quick about Also let tight and one then quality you guy rope and but what's results. one quality

what's And So, rope you part does you -- type that partners of the who with? partner that discuss, tight there? the alter

Jacob Brunsberg

Yeah.

partner perspective, like along the who OEM is or and software along we of investment the a So more that -- strategic lines with from and integrate side of the question?

Scott Billadeau

guess the from the to want turned want coming be mean, with along more -- I I integrate that -- strategic if More everyone certainly side, strategic because careful mean, strategic can, more investment that you investment the I'm you you side. but I I guess to

Jacob Brunsberg

Sure.

Okay. Perfect. Yeah.

-- I right. you're think, on

agnostic OEM approach to software the On and the we've a market. front, very taken

still that OEMs. have of a the well monitoring who I with And is that not from They're They're too. market want for And can and be approach our that a fits trying scanners more strategy So, to We a singular broadly for too. really take API and lot OEMs to strategies working Novanta quality think that's very major maintain have well. OEMs facility a with to we that. allows experience received. agnostic the same problem us. really already going printer any aligns the tool echoes that well agnostic to provide that

strategic an investment what I exactly echo market. side to have of On the We you said, things, agnostic approach right? the

discreet really we focused of So, a list on strategic investors. very

so pretty is to near-term, there. are this can further believe advancing us moved of to that to can in accelerate get forward, aggressively. We've the forward here we our here. raise really hopefully And preferred going strategy this -- with everybody will moving vision while cash And on we've going our that keep align the for as in with being business spoken with kind We a help business these market. the we forward And investors some our in business. strategic accelerate that player that aligns really our we're and providing capital outlet strategic our aggressively that of agnostic to quality can list near-term we large as

versus for where investor. OEM kind said. And exact focused on There we've really are synergistic a time specific is lot thoughtful been a an list of people our really on with And that's we things. are side very reasons agnostic think, that of so, companies I you that the of the who approach diagnostic

Scott Billadeau

Great. Thanks.

Operator

This session. I closing you. to Brunsberg call Q&A ahead. concludes And End our Thank turn Jacob will question-and-answer for over back now the go of remarks. Mr. Please

Jacob Brunsberg

joining the you become push time the end. here for the progress a past for to that continue Yeah. Again, standard questions, made and remain us we'll the manufacturing. for for our to at two you quality and We the we've the just quarters, day. wonderful and about engagement Thanks in extremely additive Thank thank excited have in everybody today.

Operator

for now Thank has Conference you attending presentation. today's concluded.

You may disconnect. now

NextTrip (NTRP) 14 Nov 222022 Q3 Earnings call transcript