Earnings Sentiment

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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Sentiment Distribution

   

Earnings Call Transcript Word Cloud

     

Bullish Statements during Earnings call

Statement
As Frank mentioned, we have been able to significantly reduce operating expenses to align with a quicker path to profitability, including our largest cost, salary expense, by 40% from the high in April 2022, while retaining key employees for our growth
We see a solid path to scale software solutions in the additive space
The quality tools we are building are proving to have value up and downstream of the program
These connections to strategic partners paired with the near-term execution can augment our ability to scale, support the market and create value
We had an extremely exciting last two weeks in this industry where we saw the launch of the first almost entirely 3D printed rocket, 84% by weight from relativity space
This has also enabled us to reduce our operations and administrative overhead while maintaining our ability to support our current and anticipated level of activity
I'm excited to share the progress our team has made, transitioning the business to a scalable software solution and connected quality standard for the additive industry
As companies align towards profitability, Sigma has made demonstrable progress in 2022, connecting to other products in the AM digital quality stream
And so as we are presenting a path to a lower-cost quality solution and one that's more scalable, I think we're feeling a lot of resonance from the end user base
In addition, we have been able to reduce our engineering headcount without sacrificing the delivery of our new software-only products, currently targeted for the end of the second quarter of this year
On our partners and customers, to pave the way for our pending software products, the commercial team is ahead of schedule on strategic partnerships and integrations that provide a path to scale our software solutions and grow our total addressable markets
It may be a little counterintuitive, but what we've seen is an acceleration of some of the work, with OEMs opening some of their platforms, as well as other software companies looking to generate more revenue by connecting solutions in the marketplace
We've gotten great feedback from early partners
I think that's plays really well with our strategy to connect and really merge some of our technology with OEMs and make us more simple user experience from start to finish in digital quality
But we're really focused on running lean and giving ourselves the ability to really grow here as we launch our software platform in Q2
On execution of the business plan, we are living our mission to accelerate the adoption of additive manufacturing by setting the standard for quality, and we are on the path to deliver the first holistic digital quality experience for the additive industry
Second, the market is showing signs of finally opening up, and we believe is ready and demanding a connected digital quality solution
The willingness of OEMs to do this, especially those with their own quality hardware shows the progress of the industry
So that tracks with our subscription plan and our software launch, which we hope will help level out that revenue over time and kind of continue the growth keeping that consistency month-to-month from a revenue perspective
SpaceX had 61 launches in 2022, nearly double the 31 launches that conducted in 2021, and we are starting to see the airline industry approach recovery to pre-pandemic numbers, with expanded 3D-printed parts and new platforms
Looking ahead, we continue to move with great urgency in our business transition to put ourselves in a position to be at the home for connected digital quality to support qualification and production across thousands of machines at hundreds of customer sites
The market appears to be aligning and our customers and partners are validating our trajectory
We've really been thoughtful about our approach to this now to really allow our ability to still grow and target the growth that we have
And I think we'll have plenty of opportunity as well to take some of the things that we built and apply them to either earlier items in the process or later, really to focus again is connecting more of the digital quality stream and keeping it in one user experience versus having to have multiple different things you're jumping around from
We were very excited to show and discuss our connection to tool path data within process data with our friends at Dendrite
We have expanded our addressable market as we are ahead of plan on our partner integrations with 8 OEM and hardware companies, Novanta Additive Industries, DMG, Economy AMAC, EOS, Dimension and SLM Solutions and 4 ISV companies materialize AMFG, Sentient Science and Dendrite, with more pending
Again, we are executing to our product path
Moving away from direct sales of perpetual licenses to a focus on sales through embedded software-only products has enabled us to reduce our sales footprint and realign some of our resources towards ensuring customer success
So I think it's continuing to augment the fact and focus on profitability
These topics have relevance to the 3D printing industry and the advancement of supply chain support
       

Bearish Statements during earnings call

Statement
As a result of the deemphasis in perpetual sales of the current version of PrintRite3D as well as the change in the manner in which revenue is recognized, we experienced a decline in our revenue for both the year and fourth quarter of 2022
And while this shift has manifested itself in lower revenue for the year, it has also had a significant impact on our operating expenses and our cash burn rate going forward
Net loss in the fourth quarter of 2022 totaled $1.9 million as compared to a net loss of $2.4 million in the fourth quarter of 2021
In the fourth quarter, however, we reduced our burn rate to $650,000 per month as a result of our headcount reductions and other expense cuts
And quality is one of the largest hidden costs in 3D printing
   

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