WTT - Earnings call transcript Q4 2021 | Wireless Telecom Group, Inc.

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Operator

Good day ladies and gentlemen, and welcome to the Wireless Telecom Group Q4 2021 and year-end earnings call. At this time, all participants have been placed on listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mike Kandell. Sir, the floor is yours.

Michael Kandell

Thank you Operator. thank discuss joining quarter Wireless year financial and conference on and everyone XXXX to call Telecom results. morning you us for today’s full Good Group’s fourth Whelan, company’s Tim is today me CEO. With the

performance, do as that are anticipate, conditions believe, future of statements I current to related In would as some or of terms seek, company’s forward-looking remind results. the current could Before facts. of we the similar may forecasts Securities will, plan, assumptions and and by intend, or our on based estimate, well the events, Litigation such like economy, today meaning words, as begin, historical and and remarks within XXXX. forward-looking be Private circumstances may, everyone identified statements statements and that the cases, to expectations not expect, on other The future management’s such call forward-looking the statements Act include Reform company’s regarding strictly business project,

the not revised of the on want we forward-looking the company’s assumptions, company or or are XXXX performance differ obligation information the information non-GAAP XX-K to forth We Detailed non-GAAP to its SEC. could X-K a reconciliations measures number risks results. GAAP measures Whelan. guarantees future addition additional or believe with turn statements With from which meaningful release in The call cause management to to include Tim that provide measures and in company’s today morning now of events to my changes in the that in statements Forward-looking reconciliation with Form forth out occurrence point factors GAAP annual risk our Form materially certain information, non-GAAP those views a actual Important these any that how it’s those the table filed any to pleasure otherwise. this affect actual furnished the in update results measures. reflect to press and materially that SEC. we forward-looking set and report investors of in set provides the could are business. uncertainties involve information reflect to factors today adjusted earlier issued with presenting to of filed to does unanticipated relating undertake Also, over that, will not

Timothy Whelan

in morning you long term everyone. of XXXX non-GAAP gross one company, most just Mike, and margins, backlog, improvement board, the our net the the from believe Across margin for metric good EBITDA but growth every and recovery showed important transformational in income. revenues, business. was Thank where of we we an not the years bookings realized and COVID health a

of Microlab strategically allows in Just business. on more business, to as streamlined and importantly, a our the us signed which XXXX March, closed December in sale was focus

We thankful the are employees our the and work, pleased senior to XXXX. exceptionally invaluable hard of team realized and in for success contributions resilience leadership and

financials I’ll the call more these further color. provide some touch Mike over walk and upon I in the turn through us Before detail, additional to to

ended all year groups. product and Revenues on basis, the was consolidated December a of for increased growth revenue almost T&M RBS XX, the our by is First our in driven XXXX. results which XX%

stronger measurement driven by growth Microlab, product third, our products North were legacy reflected Revenues for compared of measurement our successful in America, revenues RBS which in and our Excluding and of our increases and XXXX expanding products, reflects expansion form new XXXX. outside test and even existing XX% in to successful initiatives: higher of test program Holzworth design outside factors. three evolution focus products, success and Noisecom and of

and term more products success and quarterly convert radio-based services importantly, band revenues processing longer for orders our doubled the of signal our revenue in which also growth reflects but legacy year the software wins see and digital increases we to contracts our continue realized over revenues. and cards to as We software we prior both almost

realized In book-to-bill positive of quarters addition and to in ratio of or X.X our revenue higher four three growth We backlog realized our solid metrics, a of we bookings XXXX. increases.

a had also positive metric for We full book-to-bill XXXX the year.

in indicative opportunities drivers generation which to we our measurement, accomplished seven $X cycle; a including test growth sales they new development. sales and announced of have wins markets, figure three we backlog contracts was HCFL, Microlab, resulted revenues and a expansion with in and us noise longer six an have including earnings, and and bookings and third a additional reflect of projects measurement customer in test in sat the because of backlog quarter the opportunity. provider applications, and being XG and and custom ADVA longer book-to-bill which some creates XX% new Networks, customer also Excluding contracts over RBS growth more of application number in outstanding specialized directed wins test positive and as are selling representing in we solutions XXXX, million. as and completed which figure critical and of projects into XXXX existing provide customers weapons, were of needs open cell multiple in longer energy delivered RBS service U.K. measurement. a RBS the Booking deeply, however, backlog and complex and realized learn backlog period a largely semiconductor RBS. nearly to project closed customer We design by comm for $X close and allow the XXXX and increase increase almost small a take time In wins, more India. SmartSky our an RAN our to larger are revenue of projects entered an brands. term to Since in of products, The higher across all million, well design the

who global, provide essential the equipment calibration These year the mission million, trust recent test and RVF large, end critical included wins synthesizer was $X R&D and in and military. customers defense to at the for and as well for also years. are sector Our us highest of T&M demanding equipment applications. manufacturing metrics one backlog as chip, solutions for critical semiconductor blue

While our belief a with solid the XG year coupled it does the year solutions, increased higher a products, basis and margin we long services. term line, margin and Below established to in our to exceeding in as the in military XX.X%. our XXXX roadmap, outcome, it KPIs of gross which drivers underscoring provides term growth. increasing is XXX and strategic strategic drive one by our point another starting full plan satellite part software XX% revenue and actions points not guarantee and long our as defense, investments to We private network growth of of consolidated

expansion in introducing have and Revenue and test RBS gross increased XX.X% increases, specialty to we our service gross sustained XX% growth year-over-year income combined in and at margins, In also in above in believe and continued gross driving XXXX, from XXXX. term realized success Just XX.X% higher also XX% in margins our initiatives higher which XX% margin on adjusted to revenues, revenues. drove straight XX.X% design net with XXXX underscores margin higher have success which XXXX success also gross stickier strategic in and compares which accomplishing long the XXXX as and higher products higher importantly, and provide margins reflecting new XXXX, software price margin below focusing our pressure. solutions in margins this with GAAP XX.X% fifth We XXXX, with of and less measurement, EBITDA. year in

think XXXX focus gross about Our drive over challenging XXX% and year’s EBITDA a initiatives, driven control R&D reflects expanded market second opportunities. as a growth year of line to profitability and was a revenue continuing conditions increases, future concerns. continued EBITDA and contribution sustained driving top increase margins, continued we COVID last by strong expense Strong

allowed transformational This are us on also pay us that sheet. value. growth, across allows transaction reflects the goal transaction underway seek value. team and proceeds markets. well off to the unlock seek opportunities transaction and trends added balance our of shareholder as was our million organic for significant a strengthened cash our that leadership company Finally, to also inorganic to strongly drive net to A our allowed capitalize as commitment transaction to to The our us balance Microlab evaluating to Microlab to both the ways compelling debt, all $XX best shareholder reorganize and

through exceptionally As to a and call will as Monopoli results, RBS business executives skilled our markets. turn our their financials. lead Segment are I’m Rodriguez to going General Mike will products Alfred as and Manager Alfred lead walk respective and with over expertise us within leaders to Dan Segment and Dan the business the Manager. that, With Both T&M deep General

Michael Kandell

improved or restrictions, year. RBS increased customer T&M XX% December December the the Consolidated cards RBS year-over-year activities, and generation ended for demand revenue Tim. million review mix. COVID due year-end components balance Good again T&M margin XX, and RBS. and $X.X increased Consolidated P&L our sales million higher XX and gross internationally I’ll financial as for of and at million otherwise with rebound are Consolidated higher to XXXX customer the gross processing and of lower XXX% sheet flat due at The were increased and introductions, XXXX margins new XX, software by prior prior comparisons and year basis sheet morning results or on RF unless RFC higher XX% to then in offset sales to the gross of at our as from XXXX. revenue you services spending a margin for fiscal on million period. and relaxed the everyone. on results Microlab. product due of profit to December increased $X.X to are All revenue statements compared as digital on XX, noted. due contracts. particularly year marginally revenues from XXXX comments was the new T&M revenues XXXX XXXX include $X.X profit Thank comment a revenue prior profit XXXX $X.X balance or increased months

Specifically, software of in impacted rather R&D. engineers are of means than classified RBS costs higher service margin which more of labor concentration was revenue for our as revenue by a costs XXXX,

due aforementioned because than higher by labor decreased related to the higher salaries the material or higher prior due of Consolidated Turning general and rather and expenses approximately and increased than to impacts. groups, fees expenses of lower associated XXXX operating or process. and options. fees exchange marketing favorable This expenses, T&M contracts classification stock-based XX.X% due our party by was associated XXXX. other and third increased or revenue only professional compensation partially higher and foreign in increased the million to expenses, administrative performance-based lower foreign associated consolidated in XX.X% of expense with unfavorable commissions This R&D costs to product more consulting with RBS benefits sales expenses $XXX,XXX year strategic to impacts. headcount, and R&D our due consulting from Consolidated and due expense X.X% service to $XXX,XXX costs Microlab exchange partially offset of primarily and to divestiture, expense with was stock only review reversal the certain $X offset

expenses, have annual Year year is to equal our accordingly, of results earn-out. closed. stock Year the Additionally X live and and the recorded charge on purchase within four XXXX for purchase an non-cash results estimates the in is for on The indefinite part under installments the financial loss operating XXXX through related the of payment the intangible Holzworth payable ended Holzworth earn-out we fiscal based to due Holzworth full charge P&L in in agreement. X of earn-out impairment forecasted $XXX,XXX a our The a review contingent X consideration and related financial period measurement we is March process year recorded change earn-out asset XXXX. this final Year has as exceeded beginning accounting as initial

higher as prior accrual Overall, cash the of XXXX, in Interest sales. gains and the was payable Muzinich. year was of consideration expense net in as year extinguishment current second the million as due to contingent prior we gain exchange of Other of expense impairment loan XXXX million net other a extinguishment prior and $X.X due in PPP asset interest operations. primarily million primarily our charges, $X.X million the forgiven benefit XXXX on XXXX PPP $X on earn-out to to the prior year, to in in income $X.X XX higher by due from $X.X year in and our a stock. decreased lower loss with $XXX,XXX transactions and in quarterly primarily Holzworth and or expense compared either which were from lower lower higher for of the due current income profit quarter. the also from to the in compared December tax total generated a Non-GAAP adjusted the offset million we gain year the loan gross loan income In recognized year. only increased on was Our term and is period $XXX,XXX partially as to foreign recorded EBITDA loan and

balance the term close, was outstanding proceeds, the of Both X, to outstanding operations and we $X.X cash of accrued Bank discontinued December cash were and million Microlab. of Muzinich XX. in $XX related million from operation. as outstanding consideration revolver Bank a stub to $XXX,XXX the and million used sheet $X.X the credit and to received XXXX, our generated announced and of used was Overall, of received X. we zero was million million Microlab we our at closed of XXXX, March as interest previously the and pay which terminated the $XXX,XXX accrued to and In QX $X.X to million divestiture approximately expect pay $X.X loan, advisors. the in facilities March interest At credit of to on sheet classify related contingent Turning Muzinich principal cash facility, On debt America fees made flow, results cash in under period to in the pay the in had principal we balance payments to close. $XX.X America used in term payments in XXXX, and we

to closing expect over disclosure some units. back additional business Additionally, the and RBS remarks. we add now the turn Tim around T&M call I’ll for to

Timothy Whelan

Thank you Mike.

manage intend to discrete and and Going organize radio-based two band the measurement, forward, test business operating we and and as software. segments:

on targets, mindful work have to reductions budgetary cost built and into the but manage been counteracting are increases. we continue expense inflationary and We which our also of operating environment

projects, and opex lower investments are RBS, small believe working committed We to into to network success product top funnel themes with line and continued hard our traction remains growth services XXXX we will to backlog gains to We for and the opportunity for sell satellite our to opportunity measurement, get in XG in years. driven in applications demand specialized position network private military growth test cell defense We next and sectors and quantum expect reflect environments. several XXXX. are continue a In In coupled strong there. us solutions continued believe result in for XG increasing over our and investment continued by semiconductor for projects. solutions, into and software growth ability increased research computing and improved those communications, our spend, see XG test the

resulting in will depend Our timing the and of EBITDA profitability degree our upon of of larger recognition. funnel and RBS timing the projects our revenue backlog

profitability the segments. impacted go Last, in and Ukraine, are growth eye an driving improved on and keeping With situation remain to remaining hearts our line in the those we the committed out war. we to Microlab, carve-out of top by two

this release. now, of as only project was As we in one impacted, morning’s noted

be U.S. While in on NATO there appears the if term spend lead a allies. a limited more higher business, term bullish may the short to longer and for results to growth this this opportunity our military impact

input working by we and and Overall, direction to costs our those hard continued the headed. navigate challenges. chain also are carefully are excited watching We supply we we are are

demonstrate lines global pursue Operator, across and for as of strong position you Thank questions. we markets. may benefits open streamlined growth opportunities capital will XXXX the our expect We our compelling and the business you,

Operator

[Audio interference] instructions] [Operator

Josh Nichols

little for opportunities do interference]? ramp-up that seeing provides significant be cycle [Audio interference] would you you already, think investment something this company. Are a year [audio and to LTE a be that going that you could If the that’s the XG happens appreciated. bit, elaborate

Operator

and hold line. please Ladies the gentlemen,

the going are improve to line. We sound the reconnect please to hold again, Once speaker quality. line

and to gentlemen, for speakers Please speakers Riley, Josh you are reconnected. will Ladies could improve re-pose We hold. delay, please Apologies the if your ladies B. sound gentlemen. reconnect the from quality. question. the and

Josh Nichols

wondering and question. opportunities that XG that and business my the you’re that the measurement have could that year the taking for little was in bit I what you of test thanks on and this implications terms for elaborate could Yes, seeing the on just cycle if a presents. and RBS, investment

Timothy Whelan

quarter. Sure, Good pace two thank you for been Josh. that, QX, announced morning. and win one we we’ve per In a wins, about of on

of enthused card, presented funnel. were base received the seeing station that conference, architecture, back the those some in access very at for. which in certainly a World platform a We’re Mobile solutions We building open hopeful XG the is we so DU we’re technology additional Congress activity and radio year. as well our reference this being part attention network well were as blocks attracted In

remain does markets spend will over that activity fluid, global next seeing we’re environment definitely think the remain While the within the years. several strong and we

Josh Nichols

you’re Thanks. are terms if the is this move on opportunities that today are the next something to build or in on needle, margin? that really sales of two were one high in a it contribution could base or of from front biggest already much year, opportunities the--I to What working mind, had is software that and meaningful there about or think some you more guess to that the where for year, what

Timothy Whelan

their after private and I’ll specializing with that reflect ODM one as GENEViSiO telecom our platform going build-out, on XG which as well so Taiwanese together software. network market, two Layerscape in is Sure. infrastructure, announced, the NXP the which the brings that builds they’re we’ve that

we to enthusiastic starting build about curve continue potential the of you’re that’s opportunity. out larger of growth seeing XG and is the and moving the some market headlines to we’re enterprises there networks, private going world think much As and the

with and an that so referred networks as get built deploy for telecom continue They’re the is Indian indoor fashion partnering specialized of think cell FRX small we they think our HFCL. second HFCL looking company. a out, The what’s to FRX, to is us as in we’re them, XG solution again opportunity. more to to about opportunity creates and that XG private the enlarge a

Josh Nichols

you company lot any know to chain. supply on with been mitigate headwinds? of what’s seen the I potential a or impact kind there’s the those Have much your that doing of to business, Thanks. going

Timothy Whelan

extension that’s of One and how from to positioned weeks two observations the we starting the provide for rethink causing to us have of to is - lead much times inventory we’ve so XX Yes, times, inventory there, lead XX extended increase Josh. to we’re weeks stock, that. amount

Second, costs percentages. just are those and clearly are for increasing increases beyond cost components, far hard-to-get

We’re how that cost our the cost to certain example $XXX, for to of gross RBS, T&M you purchasing, enough we orders certain of of multiples, margin and measurement change to profile used give now solutions our and take seeing of as inventory accelerating now, a we increases. magnitude buying us going to level price we’re increasing think there’s shift. in one and some and not the time, balance to so of because components $XX boards a trying well also pricing just within it’s Right passing ahead our test that have, power on about so as

a manage spending at it increasing able to managing We’re impact, visibility more certainly seeing cycles a this we’re in reasonably week, time. well and we’ll and week be feel to we on the lot

Josh Nichols

that basis, could the clarifier. so discontinued that’s expectation business on a how to margin so a Then be pro an a you I Microlab for everyone little to opex talk become is you two-segment moved but the Thanks be for for the to think change? going - forma operations, the effectively bit going what’s has company, the should on but profile accretive, idea front

Michael Kandell

there’s here, a the forward. Yes known to are part Microlab, this there’s at so opex we bunch we opex looking of and year’s opex expenses do certain be of planning have we’re that expect going in to reductions obviously to Josh, more initiated cycle, efficient so as decline that obviously with addition things

Josh Nichols

to is guess, or is a to of little you bit? fair change I right, would kind that that it going profitability, assume maintain

Michael Kandell

going recognition That’s are managing we’re going the complex of the going big type which revenue be impact some we’re to each the to complex big of with Obviously is contracts and complexity These revenue seeing and deals things, several forward. those. with biggest RBS and the that’s profitable. dependent on to recognition, business our be deliveries the milestones so that seven-figure with of profitability volatility of our

Josh Nichols

thank Great, you.

Timothy Whelan

Thank you Josh.

Operator

ask your Thank a you. announce Once from line is on if wish star, pose Nick is you coming time. your [indiscernible]. question question, The your Please question. Nick, to gentlemen, enter again press please live. at and to ladies this phone the one next affiliation and your queue

Nick

Patrick’s St. Day Happy morning. to everyone. Good

Timothy Whelan

thank Nick, Good to you. you. morning Same

Nick

huh? Tim, luck our with Wildcats, good And

Timothy Whelan

Very good, thank you Nick.

Nick

Okay. bunch I questions. have of a

break like First versus revenue software of in fourth you all, services RBS, can quarter? out the for

Michael Kandell

the the this at within to quarter, the that months were XX were and XX-K about about between it’s generally - Of within but some on software footnote T&M and X.X. I’d is Nick, for the for calibration million. the services look not $X.X is you X.X revenue million, that which if XX, $X.X aggregated point services licenses number, million you there December ended $X.X

Nick

that cash buying the this anything? can fellow B. so as generate with to Okay, year there any forward, certainty asked, cost right without going you say structure you’re going Riley the now from

Michael Kandell

we’re cash so profitable managing the flows. Yes, to generate company to and be

to lead time that our the and we that levels our the the to times that end cash in going two To disproportionate have long cash the impact that lead that’s to to negotiations these significantly we flow to drive inventory that the up, increases is and tend increase a cash have. going going big our issues if of perspective, also front, if of the things, it inventory receivables, for rec components complex one deferred we from working can perspective, is components, One is projects, rev hard-to-find we determine collected the as Tim meaning that we RBS flows, hard have then unbilled going a being up extent forward. our cash our and severity up at as to flows second that things of they but capital from supply is these big do addition the are revenue, negotiate so shows chain is project, or impact and mentioned, cash or

Nick

certainty Right, you’re this generate words I of you you-- to but degree going in cash year? what that other do mean, have any can

Timothy Whelan

Nick, we’re targeting budget for operating on a that’s that’s sure. EBITDA profitability,

but that out call at deployment in budgetary I still think little called it But is what are running that cases we figure, a position large, of to the because less drive profitability the the is year our end. of multiple technology are deals terms of large certain where contracts internally, targets customers the there’s and seven we couple within around in of are so timing which outcome, EBITDA funnel and designed comfortable seven feel still timing but business is RBS certainly figure then building providers, our technology close themselves we certainly remain in we confident the blocks, building are the stack for to closing these a of in, uncertain. our the

Nick

are they I’m in still, located about U.K. way, the By Okay. over the all or ignorant that-- if CommAgility,

Timothy Whelan

good location, the rest XX% are there, and of Germany XX% around in another to a them call people the it portion of are, world. XX% No, Duisberg, the the are

Nick

is any there that opex to there to with can--I the consolidate is way CommAgility or is so anything, word regard in guess the anything affect being I’m for looking U.K. Okay, piece? located that

Timothy Whelan

to downside. deep I distributed relationships us and think customer allows there’s have contacts. mean, like that being don’t We necessarily

wins project Just and around for for in in world. which was good U.K. a connectivity, business have positioned and winning a presence think we of the win. we U.K. ADVA Previously, I different in hubs so world, called German we’re ability car company people a about that the was large QX, it’s to one a that technology think it with the we’ve funding, but so around us presence the won announced research a XG thing have our

I think it us. benefits

Nick

maybe that better, it Look a would like big software you had big, try I would so companies understand, or to Rodriguez fine. and even the there’s get conversation, bug, that’s when lots something, superior. just Then about - I special crush to mean, Tim, understand like the I that from someone, really hear could--you what and it? are highlight you of you why have, Okay, Mr. fear can our know, business I we maybe your is more, solutions they could to that like

put the Networks out revenue SmartSky your for I solution. much that, release. don’t a but they reason how nice example, For know was some chose for

I demonstrate to is holders need shining think we is, why it a this to star. what

Timothy Whelan

ourselves, LX and first is the point. that’s we includes I’ll The software the seven so layer layers, where the FI one really protocol make includes silicon, then two in to physical which it is. seven. It That the layer stacks, to software distinguish designed application layer, the Sure, layers typically comes key LX for what there. remarks end application closest We the through the includes - is [phon] in which specialize layer.

us on Second key collaborated that the sales with collaborate mutual has so working platform. led point That is Semiconductor, our partnership that been we’ve and to engagements. to NXP to software beneficial working and and so silicon partnered we’re Layerscape has NXP is

that collaboration We our with specifically LX That’s distinguished NXP. to point. amongst LX stack LX, are in the one in key

miles after The more for so thousands hundreds what’s the are we application. the We signal to but markets silicon a also require takeaway approximately silicon applications in to Those second that moving We which at that’s units handed be specialize that, XXX hour, work go if than faster as expertise, at devices per a solution. to specialized speeds don’t and the defined the allows how have key to solved allow solved of a off Shift, software has of space not standards after is, of we’ve against units. the defined - having there Qualcomm the speeds we’re and software end takeaways your current of then by work. key you be the or that to are to designed question than of units, not up is perhaps two as interested called to just of end to the problems SmartSky and have in competing how and which less niches either those specializing as defined are can millions those is in millions go millions providers tens the that’s in by end solution of what or Doppler adjustment are the that that

Nick

I in know, this--you everybody, this Okay, that some manifest where evidence in that’s it revenue. fair enough. contracts Again, at see to hopes will point we’re going some these guess, year

Okay, one other thing--

Timothy Whelan

is key the Nick, on that and the backlog, itself our that’s of terms out already we increase called so the point, manifesting one in backlog. points of bookings increase I the think in in

Nick

All on enough. price? the the right, final Holzworth, what fair By was way,

Michael Kandell

Nick. $XX.X million, About

Nick

Okay, cash or so the you curious, going pay balance how stock? are to much--I’m just with

Michael Kandell

We our quarters cash have and we each make next that. to greater with decision with sheet, of the we’ll think or position how option in about the quarters. four balance think the that Certainly in each coming stock, the I have of terms pay on greater cash forward, of flexibility we

Nick

guess whatever, big at use and know, these it’s I stock at just--you with the a I why well cash amount, $X.XX $XX whatever, it’s no don’t know I deal. or or levels, stock but small Okay, would million you

Michael Kandell

with Yes. No, I you. agree

Nick

but send time, reasons, you been encourage this time, take up I’d to not for don’t of Over shares members. own own has some right, mentioned sell the know, Either XX if members buy I want my their does for and than don’t positive think this of I why years one. insiders a understand it’s you. this been by cliché only it more I’ve one not to just but everybody your know? understand just lots doing thing, long just that--you signal, old more I’ve buying value I - that’s they all but and all works, and this, doing I a bargain, see that. I and time, the anyone thing, Tim, I it’s a it of Okay. years the not insider to for don’t many but convince is really you the it’s and you but need there’s board doing board

Timothy Whelan

management, are and the blackout where to which-- board in one Nick, from forbidden stock, an subject we insider periods we policy, that. The are trading comment trading which on includes

Nick

there’s when Yes, well, a blackout. not

Timothy Whelan

windows. the When of more look there open at blackout the periods than whole you are there’s year,

Michael Kandell

Yes, I of made am shareholder, you’ll that especially transaction, so of significant so. given stock, and time period we’re purchases when I significant Nick, recall a a have a negotiating

Nick

understand. I

Timothy Whelan

appreciate Nick, appreciate it, you, thank you. I we and feedback, you. though. hear Thank do that

Nick

Okay.

so value, something the you paid just now, you but you The value to sure build worth look can to in at but things go be acquisitions, general with us-- acquisition, Tim, mean, a nervous is to us a at give $XX future you, you at timing said company think CommAgility, buy, other CommAgility destroying going bright terms back not buying question did of--you - you that what you’re and may a as and [indiscernible], with again be sense that if I’m road have go for I you market know, I again at looking we’re when cap in down of this I and you can it’s I is what look assure look shareholders of so that now million might

Timothy Whelan

than eyes building Listen opportunity Nick, at years. significant open we’re cash I flow rate that’s today. the the a wide think faster the excited early hardware declined went generated into we that acquisition EBITDA The about anticipated, CommAgility but and software in

very-- still We’re

Nick

you a million-- but $XX - spent minute Yes, wait

Timothy Whelan

bullish acquisition. We’re still that very about

we are do tax We and good opportunities about The the we EBITDA at that, about results feel cash year every optimistic the not include get ahead. refund very the from opportunity.

going we forward. at of the as the looking how we cash going think about we to said press As we’re of about acquisitions committed and to and use future, use excess remain cash releases, our think in

Nick

market not for argue but you the but Holzworth, and now, $XX million well-- the paid company of to XX. point whole Go you paid cap look at what Okay, the going is

Michael Kandell

didn’t $XX Nick. We for $XX.X We million paid CommAgility, pay million.

Nick

and wasn’t said with all was it XX? done than and cash higher stock, When it

Michael Kandell

No.

Nick

$XX in worth have right. math all if values--four back worth, that’s left it’s you and right then those million, years and Okay, or But doesn’t-- go of ago, cash what million to other worth, $XX I something - stand Holzworth’s stock words, you what still, be what still ought the corrected. through buying if

Timothy Whelan

feedback. it. you, definitely appreciate hear your We do I we get Nick,

as about We’re think we very, very acquisitions. contemplative

with board, We have acquisitions. have very diligence a deep on our we’re process we gated do we careful our a process, very, how

We few growth for company that a didn’t exist two with We’re the opportunity ahead that the think we’ve allowed that a very done. CommAgility pleased the opportunity has tremendous years back.

also we also and we We’re revenue common Holzworth as existing your been opening about into think Keep Holzworth hear customers Holzworth. business, our Nick. I leveraging us mind, other pleased definitely in customers. from definitely the for brand solutions very with we customers, that’s have you, leveraging almost feedback. into where successful and have I new the doubled then opportunities Holzworth appreciate

Nick

I a point. you’re agree saying, what good that makes

going doesn’t where, What and do I telling did point laid story, company, something. additional the I’ll story appreciate terms this getting just of time. we’re and missing a because let go the you research of Just if out a - it’s a to make you micro final or you again know coverage you cap, sum additional--I parts are it out but going on in sense, or this

Timothy Whelan

Yes, that there’s with I of current agree in a a in that so parts the I definitely valuation shows market, sum the that. valuation agree the gap

Nick

And repurchase-- share that’s with

Timothy Whelan

feedback. do get many that we getting analyst a to we things, we closed, point and coverage, again appreciate we is key even on can we are but too, Nick, cap, to that hard we as we’re Again, some see have. your cap, what coverage. we transaction working a the amongst you that Microlab of A analyst a about it, working on now always always as small hear are It’s Nick, think extend of micro as just working other or challenge and

Nick

appreciate a repurchases for. luck. value time, at share the that do the if leave you more what of I but believe it that. some company exactly and gap long is situation, to well a and by would see Okay, And just these good like term This things. shareholders the manifestation good of price, between are meant I’ll the the share way, that’s there’s

Timothy Whelan

Very good, thank you Nick.

Nick

Thanks.

Operator

are other time. no there and you, queue at questions in this Thank

Timothy Whelan

to for you look future. joining us Great. a the near Thank with today. you in day. We Have forward speaking great again everyone

Operator

gentlemen. does conference today’s This conclude call. ladies Thank and you

day. your for a You may your wonderful lines Thank at you and participation. have time disconnect this

Timothy Whelan	Chief Executive Officer
Michael Kandell	Chief Financial Officer
Josh Nichols	B. Riley
Nick -

Wireless Telecom (WTT) 17 Mar 222021 Q4 Earnings call transcript