Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We remain optimistic that over the next few quarters, we can continue to expand our offerings, drive a high level of new revenue and better utilize our capabilities |
| We believe that the environment is beginning to improve and that broadband opportunities will provide a significant growth opportunity for AEY in 2024 as the spending patterns for both wireless and equipment sales begin to normalize |
| But those companies that can weather this lull in activity will come out the other side in 2024, better poised to take advantage of a market that has reduced competitors and a broader opportunity for growth |
| Government infrastructure spending serves as a catalyst for this initiative |
| We think we have a much improved future and that the worst is behind us |
| We continue to trim our operating and SG&A expenses by almost $2 million this year to position us for profitability in 2024 as revenues normalize in both the telco and wireless broadband divisions |
| This will help us expand our services business to design and build fiber cable and fixed wireless networks to serve the broadband needs of underserved communities across America |
| We have proven capabilities that are in demand, especially as others in the industry have struggled with quality and capacity, creating additional opportunities |
| We have just recently seen an uptick in orders for the optical transport business that give us reason to believe that things may be normalizing |
| Our objective is to diversify our revenue, expand our presence across wireless, broadband and fixed wireless to facilitate cross-selling and to create a major new source of revenue to Fulton Technologies |
| We are aggressively pursuing opportunities to design and build fiber networks across multiple regions as a complement to our current wireless infrastructure offerings |
| Wireless construction is expected to pick back up in 2024 as wireless data consumption and network demand continues to accelerate the need for increased bandwidth, which leads to the need for more cell sites and more cell site capacity |
| The environment for both our telco and wireless segments remains challenging, and we have taken positive and proactive steps to better position the company to navigate these challenges and to expand our market opportunity |
| Operating expenses decreased $600,000 or 27% to $1.7 million, reflecting the previously announced cost reduction initiatives |
| I would like to conclude with thanking everyone for their continued interest and investment in ADDvantage Technologies |
| Statement |
|---|
| As we discussed last quarter, the rapid normalization of the supply chain and resolution of the chip shortage over the last nine months has significantly slowed demand for our telco business |
| As a result, orders for used and refurbished equipment in our telco segment were drastically reduced |
| The recent slowdown in wireless construction activity was unexpected and sudden |
| As has been widely reported, several wireless carriers have paused CapEx investments slowing the deployment of 5G upgrades due to a higher cost of capital and economic uncertainty |
| The situation with our telco segment has also been challenging |
| To be sure, these results are not acceptable to management, and we are frustrated by current market conditions |
| Consolidated sales decreased $15.6 million or 60% to $10.3 million for the third quarter from $25.9 million for the three months ended September 30, 2022 |
| But things continue to remain a challenge |
| Companies no longer needed to build inventory to account for supply chain challenges and the chip shortages and many customers had significant inventory in-house that they needed to work off before resuming purchases |
| Additionally, while 5G-capable handsets continue to be sold at a brisk pace, many of the apps on these devices do not yet benefit from 5G speeds, suppressing the need for expensive 5G network build-outs |
| The decrease was primarily due to a decrease of $11.4 million in telco revenue and a decrease of $4.2 million in wireless revenue |
| Net loss for the quarter was $2.7 million or $0.19 per basic and diluted share compared -- a $0.19 loss per basic and diluted share compared to net income of $1.5 million or $0.11 per basic and diluted share for the same quarter last year |
| We have also responded by methodically reducing our telco inventory levels in light of lower demand |
| Consolidated selling, general and administrative expenses include overhead, which consists of personnel, insurance, professional services, communication and other cost categories decreased $1.4 million or 31% to $3.1 million for the three months ended September 30, 2023, from $4.5 million for the same period last year |
| As of September 30, 2023, the company had net inventories of $7.8 million, down from $8.1 million at June 30 and $9.6 million at December 31, 2022 |
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