Q4 2021 Blonder Tongue Laboratories Inc Earnings Call
[music].
Good day, ladies and gentlemen, and welcome to the Blonder tongue laboratories fourth quarter and full year 2021 earnings call. At this time, all participants have been placed on a listen only mode and the floor will be opened for questions and comments. After the presentation. It is now my pleasure to turn the floor over to your host had ground Sir the floor is yours.
Thank you very much.
Hi, Good morning, everyone and thank you for joining us and participating in blonder tongue laboratories, 2021 fourth quarter and full year earnings call.
And Ted Grout, President Chief Executive Officer of the company.
As we give our remarks. This morning, we will be discussing certain subjects that will contain forward looking statements.
Managements view of our prospects and evolving trends in the market.
As you know the future is all but impossible to predict so I caution you that actual results may differ materially from those that may be projected in our comments.
We would ask you to refer to our prior SEC filings, including our Form 10-K for years 2019, and 2020 and.
And our filed Form 10-Q s for the first three quarters of 2020.
And for the first three quarters of 2021.
As well as our upcoming 10-K.
For the year ended December 31 2021.
Which also includes information about our Q4 2020 results.
Okay.
In 2021 results.
Each of those filings include additional information concerning factors that could cause actual results to differ from the information discussed this morning.
With me today are Steven Shake our chairman of the board of Blonder tongue laboratories, and Eric Skolnik, Our Chief Financial Officer, and senior Vice President.
Eric's remarks will follow mine, who will cover our detailed financial results.
All of us will be available to answer questions that you may have during the Q&A session immediately following our prepared remarks.
Yeah.
For 2021 full year results. The company is able to announce a small but positive net income of $84000.
Compared with a net loss of 7.4 dollars $7 million for the full year of 2020.
The change in year on year performance came from a combination of our continued work in progress on operating efficiencies.
An improved higher technology product mix that improved our blended gross product gross margins and.
And the recognition of significant non operating income in 2021.
The sources of our non operating income from the company's qualification for the Federal E. R. T C program in 2021 and.
And the forgiveness of our 2020 Paycheck protection program loan that occurred in mid 2021.
As discussed in previous quarterly earnings calls, both the federal E RTC and PPP programs were associated with pandemic relief.
Our improved product mix yielded a blended gross margin.
Excuse me a blended product gross margin improvement in 2021 of 39, 8% versus 30% in 2020.
And our operated our continued operating efficiency work has yielded.
23% reduction over the last two years when comparing January 2020 versus January 2022 monthly operating expenses.
In the fourth quarter of 2021, the company experienced product delivery challenges caused by semiconductor supply chain shortages with delays.
Price increases in batch size uncertainties growing throughout the quarter.
Our 2021 fourth quarter sales decreased by seven 7%.
$3, 99, 3 million from $4 $3 million to $7 million in the fourth quarter of 2020.
And our net loss for the fourth quarter was $927000 compared with a net loss of <unk>.
241 $3 million in the same quarter for 2020.
Although the quarter was the relative improvement year on year. It was not in line with our average performance. During the first three quarters of last year in particular, the company had to engage in a series of price increases in an effort to compensate for a very fast moving environment of rising raw materials costs throughout the quarter.
Conversely, the company saw continued positive movement in product demand.
Our more advanced technology products.
And that had begun during the third quarter of 2021 and was discussed in our third quarter earnings call.
Those included demand for Nx G. IP video processing products are clearer view encoder, and trans CDR product lines, and our Aercap stir professional author receiver products.
This pickup in market demand ultimately led to a year ending product backlog of approximately $10 2 million on December 31.
On the product front the company completed and released into production a total of 14, new products and product derivatives.
During the full year of 2021.
We most recently announced our Tivo specific and X gene platform configuration, and our Tivo hospitality market sales partnership.
As blonder tongue laboratories selection and product certification by Directv for a clearer view for the two IP video transcoding product line.
That announcements include.
Included are clearer also includes our clear view for the two high definition or standard definition products as well as our 24 channel and 12 channel versions of those products.
As well as those products also being qualified for direct Tvs.
<unk> subsidy program that they have for the dealers.
As the company is entering 2022, we have continued we have continued to see improving market demand in a number of areas. So far that has been an improving hospitality sector.
Increased demand for our high speed data products and a continued positive trend in demand for our latest most modern and highest technology video processing encoding and transcoding and xg and clearer view product lines.
Our biggest challenges have continued from the fourth quarter into early 2022.
And at this time supply chain issues are expected to be the primary driver of uncertainty in our 2022 financial performance.
Now I would like to pass things over to Eric Skolnik, Our Chief Financial Officer to cover our detailed financial results Eric.
Thanks Ted.
Our net sales decreased $334000 or seven 7% to $3.993 million for the fourth quarter of 'twenty, one from $4.327 million for the comparable period in 'twenty.
The net loss for the three months ended December 31, 2021 was a loss of $927000 or seven loss per share compared to a loss of $2.413 million or 23 loss per share for the comparable period in 2020.
The decrease in sales was primarily attributable to a decrease in sales of CPE products DOCSIS data products analog modulation products and coax distribution products.
Offsetting part by an increase in IP video encoder Transco to products at our Nextgen IP video signal processing series of products.
Sales of CPE products were 23000, and $1 million $114000 DOCSIS data products were $22000 and $418000 analog modulation products were 133000, and 438000 coax distribution products were 171000.
And 287000 video encoding transcoding products were $2 million 529000, and 1.381 million and our Nextgen serious products were 614030 5000 in the fourth quarter of 2021 and 2020, respectively for.
For the year ended December 31, 2021, our net sales decreased $625000 or three 8% to $15 million $754000 in 2021 from $16 million $379000 in 2020.
Our net earnings for the 12 months ended December 31 2021.
$84000 or <unk>.
<unk> per share diluted share excuse me compared to a net loss of $7 million $474000 or a loss of <unk> 76.
<unk> per share for the comparable period in 2020.
A decrease in sales is primarily attributable to a decrease in sales of CPE products DOCSIS data products analog modulation products and coax distribution products offset in part by an increase in IP video encoder tranche coated products and Nextgen IP video signal processing products sales.
Sales of CPE products were $1.120 million and $4 million $165000 DOCSIS data products were $755000 and $2 million $184000 analog modulation products were $790000 and $1 million $274000 coax distribution product.
So $1 million $266000 and $1.603 million video encoder trends coated products were $7 million $863000 and $4 million $245000 and our Nextgen series products were $1 million $924000 and $705000.
And 2021 and 2020, respectively.
The company experienced a reduction in CPE products during 2021 due to the de emphasis of this product line, which the company expects to continue into 2022.
The company experienced a reduction in duck DOCSIS data products due to reduced demand caused by the pandemic on these products that are used in the hospitality and assisted living environments.
The company expects sales of these products to improve during 2022.
The company experienced a reduction in analog modulation products due to the continued market shift away from analog modulation solutions. The company experienced a reduction in coax distribution products due to the reduced demand for legacy products. The company expects sales of analog modulation and coax distribution products to continue to decline.
In 2020 to.
The company experienced an increase in video encoding transcoding products and next Gen products.
These product lines represent newer products with advanced technologies and higher demand from customers. The company expects sales of these product lines to remain at 2021 levels or increase in 2022, depending on conditions in the semiconductor supply chain.
Although the company does not expect overall sales to return to pre pandemic levels. During 2022. The company does expect overall sales to be higher during 2022 due to approximately $10 million to $140000 of sales backlog at December 31, 2021.
The company's primary sources of liquidity have been its existing cash balances cash generated from operations amounts available under our mid cap business credit LLC revolving credit facility, which is the midcap facility amounts available under our subordinated loan facility and cash generated from sales of its comment of our common stock as well as funds.
Made available to the company through participation in several federally.
Bonded financial assistance programs implemented pursuant to the coronavirus aid relief and economic Security Act, including the Paycheck protection program and the employee retention tax credit on a go forward basis. The company expects its primary sources of liquidity will be its existing cash balances cash generated from operations and amount to.
Available under the Midcap facility. The company also may seek to raise additional capital through the issuance of shares of common stock or other securities convertible into or exercisable for shares of common stock. Although the company cannot provide any assurances that this type of additional financing will it be available on reasonable terms at all.
At all during 2021, the company received approximately $700000 under the subordinated loan facility and approximately $492000 of net proceeds from sales of common stock.
Our ability to continue as a going concern is dependent upon our becoming profitable in the future and having access to sufficient capital to execute our business plan and to meet our payment obligations on our debt financing agreements and other financial obligations when they come due.
The company had approximately $92000 and approximately $609000 available for borrowing under the Midcap facility as of December 31, 2021, and 2020, respectively.
The company's annual report on Form 10-K , which is being filed today includes an explorer explanatory paragraph going concern from its independent registered public accounting firm. Although the company is actively taken steps to address operating expenses and liquidity there could be no assurances that these actions and others that the company intends to take in the future.
We will be sufficient to address the concerns relating to the explanatory paragraph going concern.
Now I'd like to turn the call over to the question and answer session.
Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time, we ask that while posing your question you. Please pick up your handset if listening on speaker phone to provide optimum sound quality. Please hold.
While we pull for questions.
Our first question comes from Gregory Irvin.
When the floor is turned over to you. Please state your affiliation and pose your question.
Yeah.
Okay.
The floor is yours.
Hello, Good morning.
Hi, Greg.
Oh private investor.
Could you elaborate a bit on the.
Supply chain and how are you.
Managing those issues.
Yeah.
Sure.
Since.
Just before shortly before the beginning of Q4.
We started to receive a number of notices sort of one by one from different major suppliers.
All of which.
We're associated with parts that we had had on order for at least a year.
Under contract commitments et cetera.
As everybody in the electronics industry globally has been seen.
We're just we're just faced with some unprecedented situations with our suppliers not being able to supply products because of their suppliers and it's been sort of running running down through.
Suppliers of ours.
Of our raw materials, the way we've been managing through it.
He is actually before I jump into that I do want to kind of paint.
Broader picture of Av.
Where the problems are coming from and how they've been shifting over the last.
Roughly six months or so.
The problems initiated with the largest sort of highest technology system on chip very advanced micro processor products.
Price increases on memory.
And a broad set of other sort of higher technology.
Problems.
Although those have persisted.
We have seen some significant improvements in that class of semiconductor.
Some of which we were able to resolve relatively quickly.
Through a combination of negotiations sitting relative priorities with our suppliers cutting back on quantities.
In exchange for guarantees of a smaller quantity et cetera et cetera. So lots of detailed work on that that started back in late August September last year.
As the quarter as the fourth quarter progressed, we saw the problem start shifting to smaller parts unusual parts that would normally not have any problems whatsoever things like crystals and power conditioning semiconductors and <unk>.
Delays in Pcbs because of.
Shortages of copper in southern China, I mean, all sorts of different.
Things that were kind of coming out of the blue.
Those are the kinds of issues that have been persistent through Q1 as well.
So it's really a mixed bag in terms of how we're dealing with it.
Every notification and every conversation that we have with our suppliers in these areas tends to be a little bit different because the impacts are different they impact.
We've never had a single notice just completely.
Impact our entire product line, it's simply a matter of we have a problem with one part it might have that might cause a problem with us producing one product or two products or three products or one product and several product derivatives and so we basically just.
Set up the problem figure out how to attack it packaged solve it move on in some cases, we've been able to find alternative.
Replacements for the for the products that sorry for the raw materials that have shortages.
In which case they can leave.
Just go right back on to the current design and we keep producing with say a two or three week delay for example, there's been a lot of that seems to be generally the bulk of what we've seen there has been other situations where the alternative parts that we've found that are available we will require a small.
Very fast.
Board spins as we call them. So the design doesn't fundamentally change what we've we've changed very very extremely small part of the design to accommodate that alternative part we get those new boards into the QA do the testing and we're back in business in say 678 weeks kind of a timeframe.
Some cases, there arent alternative parts and we've had we've had some situations where product was not able to be produced horses for sort of in the nine to 10 week range. So that's that's been.
The general sort of scope and scale of what we've seen so it's very bad news for US of course Q4 was significantly impacted as we've already told you.
The good news is if you if you look at the half the glass half full kind of view of it we've certainly seen some of our competitors and other sectors of the electronics industry, where products have been delayed six months seven months eight months and 10 months and we have not we've been able to manage through our problems with them.
A lot less impact in our in our delay in shipping our products thus far.
As I touched on already the larger more high technology.
Our products that we had the initial problems with we're seeing very significant positive.
Movement in those supplies in general.
But we remain very very cautious because we're really in a situation here, where we keep being surprised.
Every week or two of something else.
Figure out what the problem is where the problems coming from we try to solve it and the situation that's associated with that particular product either to work around it find alternate supplies in some cases, we've had to move two parts semiconductor parts brokers in different parts of the world that we would not normally deal with we had general work and success.
With those activities finding alternate sources, we've moved to alternative parts and in some cases is sort of already pointed out we've had to do small slight redesigns on her printed circuit boards to keep production going with the with the small delay. So that's that's the way we're working it.
We do see some of our suppliers that had the biggest problems are now confirming.
Delivery dates that are a lot more confident going out starting in the September October timeframe. Some have actually resumed shipping products. So it's really a broad mixed bag of different situations vendor by vendor and different parts classes.
Well certainly appreciate the elaboration.
And I like the numbers.
On the backlog.
We're going to be able to work that down over over what timeframe.
Pinpoint crew, which I assume are you tell me.
Roughly the same battle.
Miriam.
I would only say it has not materially changed.
I think the best way to answer that question, Greg is to say that.
There's two elements to the backlog number one the fundamental part of it.
Is that we shifted our sales strategy in the early part of last year.
Taking advantage of the fact that some of our competitors we are seeing the supply chain issues hit earlier than us in some cases.
Just simply.
Maturing the relationship the sales relationship we have with some of our customers to extend.
P O coverages to longer periods of time and to put it more specifically.
We tried to push as many of our largest.
Loyal customers.
Into six month rolling forecasts that are that are instantiated into into purchase orders.
We've had very good success with that since the second quarter of last year.
We believe a portion of that kind of the.
Best practice is going to continue even after the supply chain.
In a perfect world wed actually retain a fairly significant backlog because what it is is representing us having under contract a longer.
Uh huh.
A runway.
Shippable products that the customer will not take until subsequent months. That's a very good thing that's a portion of that amount and of course, obviously theres a theres a healthy portion of that 10.2 million roughly $10 2 million backlog that we would love to be shipping faster.
We only had the parts to build products at a faster clip so those ideally.
Best case scenario, we start to see some actual material recovery in supply chain later this year, but the problem is we don't have enough broad based.
Feedback from all of our suppliers to really give a high level of confidence of exactly when the timing of a recovery will happen. We just don't and so because we tend to be a very conservative company is as it relates to prognosticating and giving future.
Wishing for and we're planning and we're working to improve the situation as fast as possible.
We're planning for the worst case situation as well.
And the truth is going to play out over the coming.
Nine months or a year or however, long it takes for that for the overall market recovery to happen in supply chain semiconductor supply chain.
On the positive side that does seem as you probably picked up a backlog this big and with all the new product announcements product releases last year, we feel really good about the companys prospects.
Sure.
A lot of demand a lot of conversations with new customers, we grew customers last year.
Large telecommunications and cable operator customers smaller ones are broad based upswell.
New customers.
If we just had the parts to build at the level that the demand was.
Is that and is growing we'd be in really good shape.
Okay.
Just my opinion.
The.
Given the supply chain issues, which we talked about on the last call.
Have you had.
Been layoffs or furloughs.
Well, we've reported in well.
As we discussed in this and as we as we released in the press release.
We'll elaborate a little bit more on our upcoming.
Annual report and 10-K.
<unk>.
We have had to do operational expense reductions that the broad base of.
Layoffs.
Two is limited to an extent as we can manage while still.
Being 100% confident we can operate the company build the products continue R&D et cetera.
And other other areas that we found to find more efficiencies in production more efficiencies in our operations reduced expenses in terms of.
Services and consulting.
And other things.
It's a broad base and it has included layoffs yet.
Alright.
We haven't talked about this last time the price increases.
Are those likely to be temporary or permanent going forward.
Our intention is that they are temporary.
And that they match the.
Cost of doing business related to our ability to build our products in a timely manner.
And the competitive environment that's out there so.
If there is if there's a silver lining to the.
The whole process of us having to raise prices.
It is the fact that all of our competitors have had to do the same from from the level of market intelligence that we have everybody is being faced with the same problem and for the most part that we've seen they've responded in the same way that we have and they've had to raise prices related to their their own.
Increasing raw materials costs, our intention and why I think we were able to generally get our customers to respond and I think I've mentioned this to your question similar question last quarter.
We were able to convince all of our biggest customers regular customers. All these customers that have moved over to six month rolling forecast with purchase orders backing them up.
We've convinced them all to take price increases.
And we were able to do so pretty rapidly and part of that process of why we're so successful relatively quickly.
<unk> was we gave assurances that when our costs were coming down we were we were not going to sit there.
Take advantage of the situation.
No.
Thats, if we want long term relationships and we want the trust to continue with our.
With our customers that we're going to honor that.
I can't sit here and tell you how long, it's going to take and I know that there are some parts that may not come down back to their pre pandemic price levels right. So.
As it relates to those prices remaining high in the future then we will not go back to the original pricing we had before.
Raw materials went up but I do expect that there should be you would think just rationally there should be some pullback we've seen a couple of vendors pullback their prices to say 10, or 12 or 15% above where they were pre pandemic where at.
At the at the height of the problem for us.
Later Q4 early Q1, they were running they were asking two times the price for the same product. So I mean, I know that's one anecdote.
Hundreds of parts of hundreds of suppliers, but.
But it is an indication that there could be some some pullback on pricing.
And as a consequence.
Margin you might be able to maintain margins.
Current level.
While our margins in Q4 really took quite quite quite a hit for the quarter.
Our product mix, our improved product mix for the year is what what yielded that just just a little under 10% improvement in blended product mix gross margin.
Without getting into specifics of how Q1 is is is coming along because we really don't.
Practices to try to.
Tell you what has happened after its actually happened as opposed to prognosticate.
You know.
It's reasonable to think that that our price increases across the board and more specifically with the most effective products.
Have yielded some.
Some recovery on our on our.
On our product gross margin.
I'm cautious to really.
That out in the future because again, we just keep getting different.
<unk>.
Surprises related to everything related to supply chain I mean, just to give you. One simple example that just happens in the news so I'm not really sure anything confidential at all.
There was a big flare up of Covid in China in different places and we had parts that were supposed to ship to us.
Just a few weeks ago, three or four weeks ago that were in the process of shipping and they closed all the airports in Shenzhen and other parts of China, and we had part stranded for two or three weeks. So we could not have predicted that even two or three days before it had happened and we just had to find out the information accommodated worker production.
Planning around those those delays.
It's literally a weekly and the other week.
Kind of.
Slogged through these kinds of.
Right.
Situations that the whole world is dealing with right now.
Yeah.
<unk> really got a proud of your patients.
[laughter].
Got it.
It's.
Yes, I totally agree with you Greg Thank you for the for the empathy.
Right.
The borrowing cap now what is how do we stand with midcap.
Do we have.
Anywhere near 90000, I see at the end of the year is going to improve.
Hi, This is Eric it fluctuates daily because of the Formula. So it's really hard to pinpoint how much we have exactly but generally speaking at a month and because of the month.
A month and results, we generally have a higher amount of availability at the month and then we kind of eat into that as the month goes on so it ebbs and flows.
It has not significantly changed though from year end.
And that.
On an average basis on an average basis correct, yes.
Right.
Agreement I think is up.
In September .
October of this year.
October .
Looking forward curve.
Reworking that.
And more generally.
No.
To continue to fund operations.
Other than can you elaborate on what's been presented so far about.
Yeah.
Lakeland enough cash to continue.
Well as far as the Midcap facility is concerned as you said it expires in October .
We are working.
With them, we haven't actually started the negotiations yet, but we generally do that about you know.
Right around now a little later.
We're gonna look at whoever as a normal course, we always look at other financing.
<unk> as well so once we have something to report, we'll be able to report on it.
Any.
Whether it would go to the equity route.
Credit in it.
Renegotiate with mid cap or with someone else.
When youre looking at both options.
The equity route it would be it would be for additional capital and we evaluate that on an as needed basis to determine whether or not we decide we want to go to the market for a private placement or an at the market or something like that but in terms of a general working capital.
Facility.
Our intent would be to engage with somebody to continue that type of a relationship going forward.
And I assume.
Given the way the announcement about the strategic.
Considerations.
Underway that you won't be able to we shouldn't expect to hear anything.
At all.
But that process.
Yes, I can answer that.
We put out the announcement because we wanted there to be.
Understanding by companies that might have an interest to talk to us that we are open to having those discussions so.
This point.
That's basically.
Where we're at and when there is actually anything to report we will go public with anything.
Okay.
And have you are you in.
Ongoing discussions or are you just waiting to hear from me about the stock lifting companion talk lifting.
<unk>.
The again the press release that we put out regarding our delisting notification and our intent to appeal remains the same nothing there was no. When we have something to report we will report it.
Alright.
Stockholder equity requirement the main criteria that Barry.
They're looking at that.
The continued listing.
Hangs in the balance is it is it mainly about the shareholder equity.
Yes.
It is the only.
The criteria that the exchanges has discussed with us.
Oh.
Okay.
Well, it's the same story.
We left it last call with the supply chain issues, which are good things.
Never ending.
I appreciate your work.
Like I say I can't imagine.
Waiting for the call from wherever to tell you what.
No.
The next shortages.
But.
You're doing your best you can.
This is an industry.
Wide problem. So it's not it's not unique to blogger.
Okay.
Nice to break into the clear at some point.
Sherwood Yep.
Okay. Thanks Pete.
To get there thank you Greg.
Our next question every quarter.
Our next question comes from George Gaspar.
Yes, good morning, good morning, Mike.
Too concentrated a little bit on the.
Recent.
Two.
Releases that you put out on the video Transcoding series and your advanced OTT to linear broadcast.
In terms of your backlog.
<unk> ended the year with two point 10.25.
That range.
Can you give us.
Hey outline.
How fast it's going to be.
How long is it going to take to get these two product lines into manufacturing and out in the marketplace.
Going forward.
And I assume that.
You Havent got there isn't any backlog in these two product lines, it's in that $10 million and so it would have to influence more.
The second quarter going forward since we're at the end of the first quarter can you give us a little range.
A range of how you are approaching this and then talk also about the <unk>.
Product line differentials that the.
That you have to get components for.
Is it better with these new products or is it just about the same with what you're experiencing crest your broader line.
Thank you sure Youre welcome.
Thanks George.
So let me break down your questions into different pieces and try to be as efficient as I can to answer them. So.
We issued a number of press releases on new products and partnerships and certifications recently.
Let me talk about the one with Directv.
So this was a press release related to our clear view Trans CDR products the.
Certified for deployment in direct TV markets.
For the same product lines to be.
Approve.
Approved for Directv dealers to submit as part of their subsidy.
Program.
Very very important press release very important activity that we've had working with Directv directly over the last year and a half to accomplish these products actually started being produced and shipped.
During last year.
And the press release.
Lagged the actual activity in the marketplace by some months just due to the normal process of discussing the crew.
Creating a public awareness of the situations et cetera. So in fact, the 10.2 or so.
Backlog does include a pretty healthy.
And a nice chunk of that is related to these clear view products that are going to be shipped into Directv markets.
But that's not that.
Far from the only.
Large large.
Elements of our backlog.
The other press release that you referred to about a brand new encoder Theyre clear view series encoder for Transcatheter.
That will that will support the ability to create video content audio content that can be streamed over the open internet or on.
Internet formats on private networks et cetera. These are products that are destined for.
Most normally.
People like large and small cable operators telecommunications companies.
Large and small and even the smaller markets such as houses of worship for their sort of internet broadcasters.
Religious services or.
Distance learning business uses et cetera. So there's a broad range of use cases for these products. We expect those products as we said in the press release to be shipping approximately.
10, 10 to 12 to 14 week kind of range from when the press release came out on that the biggest one of those products is called the clear view HD two X product and then we're going to have some other derivatives of that product as well for going after niche markets.
<unk>.
In terms of the backlog sorry in terms of the supply chain issues.
The biggest piece.
Problems, we've had the largest problems we've had in terms of how product our ability to build the product has mapped into supply chain. It is unfortunately, the biggest impact has been in the newest most high technology product. So even though you had a big increase in those product shipments last year.
We reported they could have been quite a bit larger if it had not been for the supply chain situations. They are they are the biggest products being impacted by these <unk>.
Shifting.
Shifting supply chain issues.
And I think I hit all your points did I Miss anything.
Okay.
And in terms of looking ahead.
Yes.
In terms of marketing these new.
Clients.
Is there is there a broader market for them.
You have to get into a totally different.
Of.
Connections to sell your products on these or is it.
It pretty much the same customer line so to speak.
No from our perspective, it's really the same customer base. If you include our very very long and healthy relationships with a wide range of distributors.
We use our distributors or sales channels.
For the smaller sort of integrators and other kinds of.
Uses that are out there for our products our own sales independent internal sales teams tend to focus on managing that those those sales channels with distributors and a separate set of people that focus on large service operators and small service operators, whether they be cable fiber optic.
Telephone.
Traditional telco companies.
And then one.
And venture into this particular area when you talk to customers that are.
Chip buying these products.
I'm sure that they're anxious to get them and you got your product.
The components to.
Be concerned about.
Do you ever reach out to any of your customers and say help us get product.
Give us some ideas or whatever or is that something that you don't do it.
We would not normally do that because our customers would typically not have the relationships necessary to help us with semiconductor raw materials got you apply chain their supply chain would be companies like like blonder tongue labs or other companies that are pre.
<unk> finished products right. So there have been a couple of examples where.
Some of our larger customers.
In the cable operator space have actually said, hey, we have a relationship with.
Those guys that you are having a problem with maybe we can reach out and we've taken them up on it of course, but it has not yielded any any better improvement in anything.
Versus what we've been able to do ourselves.
Okay, and just a just an observation on clothing from my point of view.
These recent developments that you've introduced I think sitting here.
Look up for more positive things to happen and it would seem to me that you are.
You are definitely expressing to the marketplace.
The ability to.
Recognize what you have to do to expand and you're right in the middle of accomplishing it and it would seem to me that that will help you in trying to generate the funding necessary to keep your company safe and moving ahead and start to broaden its.
Entity to really expand going forward. It just seems to me like it with all the technology that <unk> represent and then expanding that there should be pretty exciting for people who are looking for.
Things to happen in a company that's got a bright future in front of it. So hopefully this all really starts to come together in the next few quarters.
Thank you.
I certainly share your sentiments and I'm personally optimistic about about the future, but as we've said.
We have some challenges to get through and the and the uncertainty related to.
The whole supply chain situations some areas improving some not some getting worse.
Coming from left field. It is just very difficult for us to try to give a reasonable.
Specifics on the outlook and the timing of when we think things will improve but in terms of the overall strategy. How the strategy strategy is resonating with our customers the release of new products.
Relationships, we're having with big partners and Big Big customers. Those have all been very very positive over the last year.
Sir there appear to be no further questions in queue do you have any closing comments you'd like to finish with.
No I just wanted to thank everybody for continuing to support Blonder tongue laboratories, and we look forward to talking to everyone at the next.
Quarters' earnings call. Thank you very much.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.
Yeah.