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 |
|---|
| I am very pleased that these are now advancing and securing these programs, will be meaningful to our group |
| The success of Thermite will mean diversification of revenue for the Engineering business and improved margins |
| And those again, will be good opportunities for business, because now it's in the production fees, not the design fees for our business |
| While the Marine Technology business revenue was down at $3.5 million compared to $3.8 million in the first quarter of 2023, I am pleased with the recovery progress that this part of our business is making |
| In the first quarter, we saw increased utilization of our rental assets, which I am very encouraged by, and this trend is continuing |
| What I'm saying to you now, what I am seeing in terms of the utilization rate for rental, it is very, very encouraging |
| So, I'm very, very excited |
| So, I definitely think that, there are positive signs that, some of these programs are going forward |
| Although these are early days, this is good news for the marine industry and certainly for us |
| So, we've now successfully, and I don't have permission to identify the group, but we've now successfully hired, a focus group in the U.S., a very, very well-established focus group, in the defense space |
| So I think, please report, we've made really, really good progress since we last spoke |
| So I'm very, very excited about that |
| We also made good progress in advancing the DAVD untethered system customization and hardening program, and based on the ongoing evaluation, we have received overridingly positive feedback on the system and its potential |
| We believe the results of the Engineering business will improve in fiscal 2024 |
| And I'm pleased that they'll be very impactful for our business |
| So I think what I am seeing is, and I'm excited about, as I said, the program for the DAVD tethered system going forward |
| Notwithstanding these challenges, we have made some encouraging operational progress with our engineering business segment, and I will discuss this later on in the call |
| And another thing I'd like to mention on the DAVD, too that I see and it's very encouraging for our company, is the level of engagement we're enjoying with the key customers on the program |
| So, I'm really super, super excited about those two programs that, we have back there and they're on, we've now received |
| We've now got the small batch orders, and why I'm excited about this and see the promise, of returning the business to the $10 million |
| This is great news for the success of the DAVD technology and our company |
| All of the feedback overridingly positive for the business |
| As I mentioned, we saw increased traction for our Echoscope rental solutions |
| Encouragingly, though, margins have continued to improve in the Marine Technology business |
| We believe these investments will increase shareholder value as we continue our focus on increasing sales across our whole group |
| We are also encouraged by the engagement we are seeing with the customer and the pace of the program |
| Following a fleet-wide survey by the Navy of the users who were previously allocated DAVD Tethered Systems, we received broader positive feedback from the various current users |
| And we're seeing traction with new programs, which will assist in achieving this goal |
| So I am excited about that part of the business |
| We continue to believe in the growth prospects, and strategy, built around our disruptive technologies |
| Statement |
|---|
| A contributory factor to this is weak demand from China caused by macroeconomic factors and increased geopolitical tensions |
| Notable in the first quarter is that outright sales in Asia, a key strategic market for this segment, fell by 26% |
| As reported earlier by Annmarie, the decline in our consolidated revenue was largely as a result of the service businesses, reduced orders and supply chain issues, which have impacted our short-term ability to convert booked engineering projects to revenue in the current quarter |
| Fiscal 2023 results were impacted by the downturn in offshore renewable projects due to inflation, higher interest rates and supply chain problems |
| You've talked about last earnings call as well as this earnings call about industry cancellation, shelving of major offshore renewable projects due to inflation, higher interest rates, and supply chain problems |
| We, therefore, anticipated in our first quarter that outright sales would be down as typically customers postponed significant investment decisions until after this event |
| In the past, when do you see the impact on new orders from this conference? Is it a couple of months, a couple of quarters? Maybe give us a sense for the sales cycle post this conference? Annmarie Gayle Well, what we noted in the first quarter, is that sales from Asia continue to be down, and although China plays a part, so does Japan and South Korea, where we saw reduced demand |
| The Marine Technology business, our products business, generated revenue of $3.5 million, compared to $3.8 million, a 7.4% decrease from the first quarter of 2023 |
| side for engineering business, this last year revenues were significantly down, because of the, it's like the priorities had shifted, for the main customers and they were really pursuing a lot of land-based applications |
| In the first quarter of 2024, we recorded total revenue of $4.5 million, compared to $5.6 million in the first quarter of 2023, a reduction of 20.3% |
| So, and I think that that market, will purchase in Q2, not necessarily China, because we've lost visibility of demand from China |
| engineering business, which had been significantly affected by delays in receiving orders in fiscal 2023 |
| Our Marine Engineering business or services business generated revenue of $0.9 million, compared to $1.8 million, a 48.2% reduction from the first quarter of 2023 |
| Operating income in the first quarter of 2024 was $0.6 million, compared to $1.3 million in the first quarter of 2023, a reduction of 58.7% |
| Is though - these parts that now, we've received the small batch orders for - are for established programs of record and the engineering part has is a result of obsolescence |
| So the limiting factor, has really been more a bit of COVID, the slowness, the recovery from COVID, but also, the engineering business, they go through different fees from, they get a new program, where they're doing the design fees |
| The relevant trials with our Thermite Octal were completed pre-COVID where these programs had stalled due to the pandemic |
| And we don't feel there are huge hurdles for us to overcome, in terms of the technology, its fitness for purpose and the path that we're going down |
| This is largely because of reduced availability of funding for defense programs due to the use of continuing resolutions resulting from the upcoming U.S |
| It's one of the barriers always is the sense that, it goes much slower, but we've seen them doing several dives with the on tethered system |
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