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 |
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| At the same time, our three separate areas of growth, solutions, defense and automotive continue to generate multiple independent opportunities, that many of them have the potential for tens of millions of dollars of new revenue per opportunity, resulting in a healthy pipeline of large-scale opportunities that any of them alone can be transformative to our business |
| So I think we’re going -- we’re doing very well |
| and Europe is very strong, even if the consolidated numbers don’t show that |
| This is the customer is actually extremely confident in their solution and the superiority of their solution |
| We see a bright future and a growing company because of their dedication, patience and hard work |
| All of those, we have two camera systems -- two separate camera systems that we’re working with customers on that show very, very promising results in that direction |
| But realistically, I think, what we’re seeing is, a very strong drive towards integrating more and more passive detection capabilities such as infrared cameras for detecting some of those drones |
| Results so far are very positive and our customers are in fact very confident and so confident about their solution that they’re looking to begin investing in production of the units even before an official decision is made |
| So from a cash flow perspective, I feel pretty confident that we’ll be okay |
| So baked into this quarter, we actually were or this first half of the year, we were operating cash flow positive and will continue to be operating cash flow positive |
| The first of which was our innovative Mantis broadband infrared camera, which enables both new applications and capabilities for our customers and significant growth in that direction coming from the Visimid acquisition |
| And while our strategy for having three pillars of growth are designed such that we don’t put all our eggs in one basket or one product for that matter, this award by a major prime with the massive potential for revenue on the manufacturing side is seen by us as a big win to our strategy and the execution of that through the acquisition of Visimid and our own investment in expansion in the U.S |
| With thousands of dollars per unit and tens of thousands of units expected in that program, the ultimate selection of Light -- of Lockheed Martin by the military would likely result in a substantial revenue opportunity for us |
| We’re in very good standing now |
| I feel better and I appreciate the aspirational goals that you have outlined in the presentations as well lately |
| The company is going to look completely different a few years from now and I’m excited to continue along this path |
| Last question, while I appreciate the strong demand from the defense industry, although we know it’s like lumpy and can be unpredictable, your products, and Mantis specifically, has really strong commercial applications, like the flame detection recycling centers that you’ve mentioned in the past couple quarters |
| A major win for our directions |
| We have a very strong presence these days in free space optical communication, primarily in space, and that ties very much directly into some of the quantum communication, and also indirectly into some of the quantum sensor work that’s being worked on by many companies, Infleqtion being one of them |
| So I think we have something very unique there that will pay off really well |
| And we’re always very, very happy to see optics find -- finding more uses in more places |
| That’s why Lockheed actually was extremely supportive of our acquisition of Visimid |
| Sam Rubin Very well |
| It’s going really well |
| Sam, I hope you’re feeling better |
| We don’t expect any major developments in the very short-term, but we’re still confident that this technology is going to be implemented in the automotive space and that we’re one of the leaders in this technology and use cases |
| However, in the first half, revenue increased in infrared components, assemblies and solutions, and engineering services, which aligns well with our strategic plans |
| Additionally, the volumes for follow-up production have also increased, with the potential now for tens of thousands of units |
| In the first half of the fiscal year, infrared component sales increased almost $1 million or 14% |
| All three pillars of growth tie and support our transition from a component manufacturer to a provider of engineered solutions based on our proprietary technologies |
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| And to recap, it was pointed to us by some external group that there were some problems in the registration of the company that went back all the way to 1995 when a 7-to-1 split or reverse split was done and was done incorrectly or so |
| This quarter we also experienced declines in Europe due to recessionary conditions, particularly in Germany and in the U.S |
| However, we also experienced declines in Europe due to recessionary conditions and in the U.S |
| Turning to the results for the first half of fiscal 2024, revenue was $15.4 million, only a 3% decrease from $15.8 million in the same period of the prior fiscal year |
| If I take a step back and look at revenue, our visible components are declining |
| The decrease in EBITDA in the second quarter of fiscal 2024 was primarily due to lower sales and gross margin, again partially offset by the mentioned Chinese subsidiary |
| Gross margin in the second quarter of fiscal 2024 was approximately $2.2 million, a decrease of $1.1 million or 33% as compared to the same quarter of the prior fiscal year |
| Our revenue in China is very low and we’re not counting on that part really recovering, if you would, to anything near what it was |
| Assembly solutions revenue decreased approximately $241,000 or 20% and that’s primarily due to timing of shipments against a multiyear contract with a defense customer |
| What we’re seeing is that, things have gone got an even worse with Germanium |
| The increase in net loss of approximately $1 million for the second quarter of fiscal 2024 as compared to the same quarter of the prior fiscal year was primarily due to the decrease in revenue and gross margin, partially offset by other income of approximately $190,000 from our Chinese subsidiary for the return of funds previously misappropriated by our former Chinese management team as a result of the ongoing legal proceedings |
| So it’s interesting that the situation, the softening in Europe is really more around the visible optics where there’s a lot more competition globally and a lot of price pressure, a lot of production capacity and all that kind of good stuff |
| Our EBITDA for the quarter ended December 31, 2023 was a loss of approximately $454,000, compared to an income of $207,000 for the same quarter of the prior fiscal year |
| I mean, just to recap, the China operation was delivering about $12 million of revenue in 2020 and it is down to $3 million or so |
| Compared to the end of fiscal 2023, our total backlog decreased by 2% during the first half of fiscal 2024 |
| Sam Rubin So, my gut tells me that this past Q2 was the soft this quarter we’re going to experience |
| We even took the step a few months ago of proactively canceling some customer orders for Germanium optics to free up our capacity for making optics from these new materials |
| Visible components sales decreased approximately $1.2 million or 31% |
| Our total backlog at December 31, 2023 was approximately $21.2 million, a decrease of 28%, as compared to $29.4 million as of December 31, 2022 |
| Visible component revenue decreased approximately $1.8 million or 25% |
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