Q2 2022 FLYHT Aerospace Solutions Ltd Earnings Call
Thank you for standing by this is the conference operator welcome to the flight Aerospace solutions second quarter 2022 results Conference call. As a reminder, all participants are in listen only mode and the conference is being recorded after depressed sensation there will be a.
Thank you for standing by. This is the conference operator. Welcome to the Flight Aerospace Solutions 2nd Quarter 2022 Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.
The opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero due to the volume of questions expected on today's call we ask.
To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then 0. Due to the volume of questions expected on today's call, we ask that you please submit your questions to 3 to allow time for others in the queue. If there are any outstanding questions at the end of the call, the company will be happy to take them by email to investors at flight.com
That you. Please limit your questions to three to allow time for others in the queue. If there any outstanding questions at the end of the call. The company will be happy to take them by email to investors at flight Dot com.
I would now like to turn the conference over to Bill Company, Chief Executive Officer for flight. Please go ahead Mr Company.
I would now like to turn the conference over to Bill Tempeny, Chief Executive Officer for Flight. Please go ahead Mr. Tempeny.
Thanks, very much and thanks, everybody for joining our call today.
We've got.
Thanks very much and thanks everybody for joining our call today. We've got some pretty exciting news that came out on the wire a few minutes ago about growth in our executive team and our capabilities globally on the sales front that we're going to talk about in detail a little later on. I think the important thing for everybody to note is that we're getting attention both in the airline space and in our competitor space with the products we've built over the last...
Some pretty exciting news that came out on the wire a few minutes ago about growth in our executive team and our capabilities globally.
On the sales front, we're going to talk about in detail.
Later on but.
I think the important thing for everybody to note is that we're getting attention both in the.
The airline space and in our competitor space with the products. We have built over the last two years. So I think our Q2 results show that we are getting traction in that area that our acquisitions, both of cross consents and W. D SaaS.
Our paying dividends to our shareholders and that were on the growth path that everybody had hoped we'd be for quite some time.
I'm going to have a ladder and go through the financial results and then I'll talk in more detail about some of the exciting news from this quarter.
And then we will answer questions that anybody may have so atlanta over to you.
exciting news from this quarter and then we'll answer questions that anybody may have. So Alana, over to you.
Thanks Bill.
I'll take a run through the balance sheet and then the income statements.
So starting with the major areas of change on the balance sheet and our cash balance is currently running at $2 4 million.
Thanks Bill. I'll take a run through the balance sheet and then the income statement. So starting with the major areas of change on the balance sheet, our cash balance is currently running at 2.4 million. We've got that L3PO that we started delivering on in Q2, will continue to deliver on and there will be bigger shipments throughout Q3 and Q4 and those together with our other revenue sources and sources of cash.
When you've got that L. Three P. O that we started delivering on in Q2, we will continue to deliver on and there'll be bigger shipments throughout Q3, and Q4 and those together with our other revenue sources and sources of cash well supply the cash that we need for the foreseeable future.
You'll notice the increases in both our accounts receivable and accounts payable balances. There were two contributing factors mainly to those changes one being the addition of a full quarter of cross consent.
will supply the cash that we need for this foreseeable future. You'll notice increases in both our accounts receivable and accounts payable balances. There were two contributing factors mainly to those changes, one being the addition of a full quarter of cross-consents and several large sales at the end of Q2 that were collected
And several large sales at the end of Q2 that were collected after the quarter.
The you'll notice also it.
Intangible balance.
We continue to work through the accounting for the acquisition of the cost concerns.
You'll notice also an intangible balance. We continue to work through the accounting for the acquisition of the cost consents, valuing the assets and the liabilities that we require. That activity continues. It's quite a technical exercise and we do need it to be audited as well. In the meantime, the amounts that we're not certain of.
Valuing the assets and the liabilities that we required that activity continues will.
Quite a technical exercise.
And we do need it to be audited as well in the meantime, the the amounts that were not a certain oh.
In terms of their accounting valuation remain in that intangibles balance for future.
in terms of their accounting valuation, remain in that intangible balance for future assessment and finalization.
Assessment and Finalization.
The contract liabilities balance. It's that's also that's the AGA for S term for deferred revenue those amounts represent.
The contract liabilities balance, that's also the IFRS term for deferred revenue. Those amounts represent amounts out of the cross-consent books that are billed annually but delivered monthly. So that line in the balance sheet shows the balance of those items at any given reporting date.
The amount out of the cross consents books that are billed annually, but delivered monthly so that that shows that line in the balance sheet shows the balance of those items at any given reporting date.
Turning to the income statement our revenue increase.
Turning to the income statement, our revenue increase, this was our first full quarter, including all of cross-consensus results, which we see an increase based on that. And then also an increase in our licensing revenues, as we see here, the impact of the first few licensing shipments on that PO for 5.65 million USD.
Which we see an increase based on barge and then also and increase in our licensing revenues as we see here the impact of the first few licensing shipments all of them.
P O for 565 million USD.
Cross consents contribution we're not segmenting their results, but we could we can say that their contribution to the quarter was about $1 1 million top line, 70% of which was sad and they also contribute to a small profit to the bottom line.
Cross consent contributions, we are not segmenting their results but we could we can say that their contribution to the quarter was about 1.1 million top line, 70% of which was SACS and they also contributed a small profit to the bottom line.
Alright back over to you Bill.
Okay. Thanks, a lot.
All right, back over to you, Bill.
Maybe a couple of things.
But I'd like to note about.
Okay, thanks Alana. There's a couple of things that I'd like to note about, particularly the revenue side. We ended the quarter just short of $5 million, but in the first week of July we shipped over $900,000 worth of product that was intended to be shipped in Q2. A lot of that was high value, high margin license business.
Particularly on the revenue side.
We ended the quarter, just short of $5 million, but in the first week of July we shipped over $900000 worth of product that was intended to be shipped in Q2.
A lot of that was.
High value high margin license business, which wasn't really pushed us very very close to EBIT breakeven.
which would have really pushed us very, very close to EBITDA break even. It's one of those good news, bad news stories. We didn't get it recognized in Q2, but it's going to make Q3 even that much better. So we've told everybody on all the conferences and seminars we've been to in the last quarter that it is our full intention that we will be EBITDA positive, cash flow positive on the year in 2022. And we continue to do it.
One of those good news Bad news stories, we Didnt get it recognized in Q2, but it's going to make Q3, even that much better so we.
We've told everybody on all the conferences and seminars we've been to in the last quarter that it is our full intention that we will be EBIT positive cash flow positive on the year end 2022, and we continue to maintain that that is the intent and we're on track to do that.
Any unforeseen circumstances.
maintain that that is the intent and we're on track to do that, barring any unforeseen circumstances.
Some of the other things that happened during the quarter.
There were again, some onetime charges around the edge the completion of the design certification work on the edge.
Some of the other things that happened during the quarter, there were again some one-time charges around the edge, the completion of the design and certification work on the edge. That is progressing nicely. We sort of have the hardware, the software and the customers all converging towards the end of this quarter for the first implementations of the edge.
That is progressing nicely.
We sort of have the hardware the software and the customers all converging towards the end of this quarter for the first implementations of the edge our COO.
Oral jet.
Has already paid for the edges.
People working with us on the STC for the.
Coral Jet has already paid for the edges. They have people working with us on the STC for the A320. And that installation will hopefully be finished end of this quarter. There was an incident with Coral Jet at one of their MRO facilities while they were getting their aircraft ready to go into service where somebody drove a forklift through the belly of the aircraft that could cause some delays to them.
<unk> hundred 20, and that installation will hopefully be finished.
The end of this quarter.
There was a.
An incident with coral jet.
One other MRO facilities, while theyre getting their aircraft ready to go into service, where somebody drove a forklift through the belly of the aircraft.
Cause some delays to them going live with this as they affect those repairs to that aircraft, but things are on track with the edge program.
We have a 737 STC in development with <unk>.
Calgary based airline that is going to give us access to that 737 market. We've got really good news yesterday from U K Matt.
The installation of the third EW VSS units that they had announced it.
It has been delayed because easy jet is busy trying to get their business stood back up and doesn't have time to work through a new program with us and UK Matt.
of the 30 WVSS units that they had announced has been delayed because EasyJet is busy trying to get their business stood back up and doesn't have time to work through a new program with us and UK Met. So the UK Met authorities met this week and approved Logan Air to do the first 12 or 13 units of the edge and that they'll buy the full 30 units this year.
So the U K, Matt authorities.
Matt This week and approved Logan Air to do the first 12 or 13 units of the edge and that they'll buy the full 30 units this year.
We don't have the contract signed yet so we cant press release that but.
We don't have the contract signed yet, so we can't press release that. But it's been a long time coming. We bought the WVSS system almost a year ago. And this order for just the hardware for Logan Air for the WVSS is about $2.5 million for a business that we spent $500,000 on. And it's certainly high margin both now and in the future as we get paid for the soundings.
It's been a long time coming we bought the W. BSS system, almost a year ago.
And this order for just the hardware for Logan Air for the WPS Asses is about two $5 million.
For a business that we spent $500000 on and it certainly high margin both now and in the future as we get paid for the soundings from Adobe VSS unit. So.
Very good news on that front, it's going to be exciting to work with Logan are they fly.
Embraer regional Jets.
<unk> hundred 40 fives.
And we've got a partner in England to get the STC done. So we will have those systems installed probably end of first quarter first part of second quarter next year, and we continue to work with U K met and other carriers for the other 13 units, they're going to <unk>.
And we continue to work with UK Met and other carriers for the other 13 units that they're going to purchase this year. So WVSS is moving very nicely. We've done a fair amount of work with the folks in Frankfurt on getting our products aligned and everybody understanding all of the products that Flight has to offer. We actually have Axel from Frankfurt in our office this week working with our team to put
Just this year so.
W. VSS is moving very nicely.
We've done a fair amount of work with the folks in Frankfurt on getting our products aligned and everybody understanding all of the products that <unk> has to offer.
Actually have Axel from Frankfurt in our office this week working with our team to put together a plan for how we're going to do the training in September for everybody. So that we can go out and sell all of our solutions to all of our customers around the globe.
That is ongoing work that.
Right now things are moving very nicely with the traditional cross consensus business, we're making.
Good progress with the customers the customers are happy now we're going to go and expand our footprint in Europe with the resources, there and additional resources that we talked about in our press release. This morning. So.
in Europe with the resources there and additional resources that we talked about in our press release this morning. So if you saw the press release that came out a few minutes ago, we've hired three new salespeople, which makes five, six salespeople that we've added in the last 12 months to the crew. A year ago in June , we added Willie Cecil to the mix. And he's helped a lot in the design and development of...
If you saw the press release that came out a few minutes ago, we've hired three new salespeople, which makes five six salespeople that we've added in.
In the last 12 months to the crew.
A year ago in June we added really seasonal.
So the mix and he has helped a lot in the design and development of the edge product. We've had a couple of more people join us that were colleagues of willie's.
For many many years.
And Murray have joined and are going to look after sales.
In North America, South America, Europe , Middle East Africa.
We hired a person about six months ago in Japan.
It used to work with Wella and these other guys and we actually had a team go to Japan.
Three weeks ago and present to 16 Airlines in Japan, and it was extremely well received Japan, obviously being a technology leader is moving to <unk> quicker than other parts of the world and they need a solution for their aircraft.
and we actually had a team go to Japan about three weeks ago and present to 16 airlines in Japan and it was extremely well received. Japan obviously being a technology leader is moving to 5G quicker than other parts of the world and they need a solution for their aircraft and we've brought them one that works and is ready for market. So after that trip the guys went down to Indonesia and presented to some airlines in Indonesia.
We brought in and one that works and is ready for market. So.
After that trip the guys went down to Indonesia and presented to some airlines in Indonesia.
Indonesia, Malaysia, the Philippines have all been more affected by Covid, then than any other part of the world and it shows in our revenue both in our weather and in our.
SaaS revenue Air Asia.
In 2019 was by far our largest SaaS customer and they are still in a position where they're only flying 10% of their fleet.
The same things happening to Lion air and other big carriers in Southeast Asia.
The waves of the pandemic continued to disrupt air travel and business as normal down there, but there is light at the end of the tunnel. The governments that are opening up and allowing people into the country and they are trying to get the economies restarted and we will be a big part of that because we have people on the ground in Indonesia as well.
and other big carriers in Southeast Asia. The waves of the pandemic continue to disrupt air travel and business is normal down there, but there is light at the end of the tunnel. The governments are opening up and allowing people into the country and they're trying to get their economies restarted. And we will be a big part of that because we have people on the ground in Indonesia as well that are talking to these people and helping them see our actionable intelligence solutions as a way to help them get to the right place.
They're talking to these people and helping them see our actionable intelligence solutions as a way to reduce the amount of manpower they need to get back on their feet and get back moving so.
Overall, Q2 was a solid quarter weed.
For a little better, but if you take the one time charges in the supply chain issue of not getting $900000 worth of product out until a week late it would've been a tremendous quarter would have been one of the first EBIT positive quarters.
For a long time for the company.
And gives us great confidence that Q3 is going to hit that mark in upwards and onwards from there so.
and gives us great confidence that Q3 is going to hit that mark and upwards and onwards from there.
Again I think.
Key points are that our team is growing with people that are industry experts that don't take a long time to get up to speed.
key points are that our team is growing with people that are industry experts that don't take a long time to get up to speed. The acquisitions that we made last year are panning out extremely well and adding value to the business on a day-to-day basis. The product is nearing completion and being rolled out. There's probably close to 30 units that have been committed and another
The acquisitions that we made last year are panning out extremely well.
Adding value to the business on a day to day basis.
The product is nearing completion and being rolled out.
There's.
Probably close to 30 units that have been committed in another two to 300 that we're working on contracts for so.
I believe we're in the best position. This company has been for many many years as far as resources people the market the industry and our ability to deliver so we're very excited about where we're going and we're looking forward to all of the quarters coming but the next two quarters, particularly.
you know, two to three hundred that we're working on contracts for. So I believe we're in the best position this company's been for many, many years as far as resources, people, the market, the industry, and our ability to deliver. So we're very excited about where we're going and we're looking forward to all of the quarters coming, but the next two quarters particularly, and a really aggressive growth path with the addition to our
And a really aggressive growth path with the addition to our sales force.
So with that we'll get a lot of the read some questions that have come in by email and then open up the line spore.
Any other questions.
Okay. So the first one there is an email here there are several points. We can go through when they won the first one is an update on the 30 unit order for WPS, whether some serious from you came out which I believe you addressed previously in your remarks.
And then the second question here is can you comment on the.
previously in your remarks.
The pipeline sales pipeline.
And then there was the second question here is, can you comment on the pipeline? So the sales pipeline, I guess, involving more than 15 prospects of 7 million or greater.
Involving more than 15 prospects of $7 million or greater.
Well, it's actually.
More than that now and it continues to grow and I think.
Well, it's actually more than that now and it continues to grow. I think the pipeline
The pipeline.
Is going to grow even faster with the addition of the new people. So again very excited about that pipeline.
is going to grow even faster with the addition of the new people. So again, very excited about that pipeline.
The next question is in reference to any new opportunities through partnering with Peter.
The next portion is in reference to any new opportunities through partnering with CETA.
That's an ongoing process with <unk>, what we call dancing with the elephants, you got to watch your toes.
That's an ongoing process with CETA. It's what we call dancing with the elephants. You've got to watch your toes. CETA is a very large organization, and they're doing their due diligence on our products and all of those things. In the old days, when we did the AFERS 228, you had to go through a certification process, I think called ATP and OQP or something, with both CETA and AirInk to get your products on the ACARS network to be able to transmit data through ACARS.
It is a very large organization and theyre doing their due diligence on our products and all of those things.
The old days, when we did the <unk> <unk> you had to go through a certification process I think called ATP and <unk> P or something with both Cedar and ARINC to get your products on the eight cars network to be able to transmit data two acres.
Similar processes going on right now with eight cars over IP.
With the.
A similar process is going on right now with ACARS over IP with the air guys. And summertime, it's very difficult to get anything done in any part of the world, and it's been slowed down by vacations and so on. But on track, and there are several opportunities that are being worked with today.
The ARINC guys in summertime.
It's very difficult to get anything done in any part of the world and it's been slowed down by vacations and so on but on track and there are several opportunities that are being worked with seeded today.
Great and I'll combine a couple of them together there.
Can you comment on China recovery, the effect on our orders and in particular progress with installations on the coal Mac aircrafts.
Okay and I'll combine a couple of them together. Can you comment on China recovery, the effect on our orders and in particular progress with installations on the COMAC aircraft?
The commack aircraft certifications have been disrupted by the Lockdowns in China.
The COMAC aircraft certifications have been disrupted by the lockdowns in China. We actually had five AFRs units sitting on the Shanghai dock when they did the test plate of the C919. That equipment has now been delivered to the factory and is installed. It was designed in, it was just a matter of logistics, very similar to what happened to us at the end of June with our shipments.
Actually had five acres unit sitting on the Shanghai Doc when they did the test flight of the <unk>.
<unk> 909.
That does.
That equipment is now being delivered to the factory and this is installed it was designed in it was just a matter of logistics very similar to what happened to us at the end of June with our shipments or.
Not being able to get it to the right place at the right time.
The ALJ is live I think we are working right now on orders for five more args and we're continuing.
not being able to get it to the right place at the right time. The ARJ is live. I think we are working right now on orders for five more ARJs. And we're continuing to watch China.
To watch China.
Coming back from Covid in China's rules when Covid strikes are different than any other part of the world when they have a lockdown. It do it means you stay in your apartment you don't grow doors in.
come back from COVID and China's rules when COVID strikes are different than any other part of the world. When they have a lockdown it means you stay in your apartment, you don't go outdoors and everything grinds to a halt. And we experienced that over the last few months. It's starting to open up. But let's wait and see if there's another wave in China. Our relationship with the airlines and the regulators in China is very strong.
Everything grinds to a halt and we experienced that over the last few months, it's starting to open up.
But.
Let's wait and see if theres another wave in China.
Our relationship with the airlines and the regulators in China is very strong.
Being a Canadian company has kind of helped us with some of the geopolitical things going on these days.
Being a Canadian company has kind of helped us with some of the geopolitical things going on these days.
We've.
Ben.
<unk> now that we let Ms Guangzhou out of jail here.
been accepted now that we let Ms. Guangzhou out of jail here. China's
China is.
We're back on friendly terms with China.
Canadians and I've never really had any problem.
We're back on friendly terms with China as Canadians and have never really had any problem with our commercial relationships the way things are. China continues to play an important role in what we're doing and where we're going. We look forward to stronger and better relationships with China in both the AFER's edge and the weather business as they look at how they're going to collect better data for their own weather.
With our commercial relationships the way things are so.
China continues to play an important role in what we're doing and where we're going.
And we look forward to stronger and better relationships with China in both the acres acres add Jan the weather business as they look at how they're going to collect better data for their own weather. So.
Great.
Can you comment on Air Asia recovery in particular, where the returns are weather data revenue.
Great. Thank you for joining us today.
I think I talked about that early ages is running about 10% of their fleet today.
I think I talked about that. AirAsia is running about 10% of their fleet today, and recovery is slow. They're talking Q1, Q2 next year. But we do have a good relationship with them, and we're working with them to get through. One of the things that deal we made with them a couple of years ago was we'll keep service to your aircraft if you pay your current charges and something against your debt each month. And
And recovery is slow they're talking Q1 Q2 next year.
But we do have a good relationship with them and we're working with them to get through.
One of the things that deal we made with them a couple of years ago was we will keep service to your aircraft. If you pay your current charges and something against your debt each month and they have been doing that religiously we've been getting monthly payments and the bad debt reserve, we set up for them as being eaten away on a monthly base.
They have been doing that religiously. We've been getting monthly payments and the bad debt reserve we set up for them is being eaten away on a monthly basis. So, I've got really strong faith that AirAsia will come back and be a good customer as they were before once they get through the issues that are facing them.
So I've got it.
Really strong piece, there Asia will come back and be a good customer as they were before once they get through the issues that are facing them.
Great.
Is there any updates on our efforts to get prior boxes Phillips with Airbus and Boeing.
Is there any updates on our efforts to get prior boxes sold through Airbus turned on?
Yes.
Next question.
To answer Bill.
And then finally effects on research coverage.
Yes.
Next question. Good answer, Bill. And then finally effects on research coverage.
We're working with the new group out of Minneapolis to get research coverage I, certainly don't have any guarantee that we're going to get it but we're working on now.
We're working with a new group out of Minneapolis to get research coverage. I certainly don't have any guarantee that we're going to get it, but we're working on that. I think as prices and volumes increase, we're getting more and more interest from investment banks both north and south of the border. And I think we've proven to a lot of them that what we did over the pandemic is paying dividends and we're on the path to...
I think as prices and volumes increase we're getting more and more interest from investment banks, both north and south of the border.
And I.
I think we've.
Proven to a lot of them.
What we did over the pandemic is paying dividends and we're on the path.
More than recovery to accelerated growth and hopefully we will get stronger analyst coverage from all the efforts, we put into the business and the Investor relations part of the business.
Okay. So onto the next question.
The first one will be edge be certified on the 820.
When will look barclift holes in the aircraft to be repaired.
It'll be this year.
of forklift holes in the aircraft be repaired. It'll be this year.
The work is ongoing we expect to have all of the STC package done.
The work is ongoing. We expect to have all of the STC package done.
Probably by the end of September maybe the end of October because of access to the aircraft.
probably by the end of September , maybe the end of October because of access to the aircraft. And then the application is filed. We're having all kinds of fun like everybody is with any government agency with the work from home policies with the governments. The people that have to sign off on the certification for the aircraft are working from home. If you want a passport, they're working from home, just wait a year, we'll get right back to you.
And then the application is filed we're having all kinds of fun like everybody is with any government agency with the work from home policies with the governments.
The people that have to sign off on the certification for the aircraft are working from home.
If you want a passport they're working from home just wait a year will get right back to you.
The disruption in government services for a lot of the things that we're doing globally we.
the disruption in government services for a lot of the things that we're doing globally, we don't know the answer. We don't know when they're going to come back. I was on a call
We don't know the answer we don't know when theyre going to come back.
It was on a call.
A couple of weeks ago with the President of Con Air the firefighting company RBC and they had done some modifications to a water bomber for the U S.
A couple of weeks ago with the president of Con Air, the firefighting company out of BC, and they had done some modifications to a water bomber for the US. They put those modifications in for approval to the US government for approval of the STC. It's almost a year later and it hasn't been approved and the fires can't be fought because the aircraft can't be flown until...
Put those modifications in for approval too.
So the U S government for approval of the STC.
It's almost a year later and it hasnt been approved and the fires cat before.
Does the aircraft can be flown until.
The government employees get back from work from home and actually do something so.
the government employees get back from work from home and actually do something. So a lot of things outside of our control as we recover from the pandemic.
A lot of things outside of our control as we recover from the pandemic.
Okay and a follow on question is there a contract to the edge with Airbus like the Apus protocol.
Okay, and a follow on question. Is there a contract to the edge with Airbus like the APHIRS product has?
No there isn't today.
And.
We haven't we haven't been working on that we've been working with a couple of large suppliers to Airbus on some opportunities that could end up there, but nothing nothing yet at this point.
No, there isn't today.
No, there isn't today.
We haven't been working on that. We've been working with a couple of large suppliers to Airbus on some opportunities that could end up there, but nothing at this point.
Okay and then from basketball question first what is the current orders backlog city edge product.
Okay, and then some backlog questions. First, what is the current orders backlog for the Edge product?
The signed backlog counting counting UK met which the contract is signed but they've told everybody in the world. They're buying 30 of them is in the $3 million to $4 million range the opportunity pipeline for four.
The signed backlog, counting UK Met, which the contract isn't signed but they've told everybody in the world they're buying 30 of them, is in the $3-4 million range. The opportunity pipeline for the Edge is significantly higher than that. We've got several multi-hundred aircraft opportunities that we're working on right now.
We urge is significantly higher than that.
We've got several multi hundred aircraft opportunities that we're working on right now.
We're in the typical aviation chicken and egg thing, where yes, it looks like a great product to me on an aircraft and working and we've got launch customers for at least four aircraft types now.
We're in the typical aviation chicken and egg thing where it looks like a great product, show it to me on an aircraft and working. We've got launch customers for at least four aircraft types now. By the end of the year, we'll be able to help the people from Missouri, the show me state, that this actually works. We've got –
So by the end of the year, we will be able to to help the people from Missouri. The show me state that this actually works in and we've got.
The products that everybody expected to be there so.
I think next year is going to be a tremendous year from both a sales and delivery point of view.
the product that everybody expected to be there. So I think next year is going to be a tremendous year from both the sales and delivery point of view. And we're on track to deliver the Show-Me State people.
And we're on track to deliver the show me state people.
Great.
And then overall backlog and I can answer that is also what is the total orders backlog for all products.
Great. And then overall backlog, and I can answer this also, what is the total orders backlog for all products? That's currently sitting at just over 28 million. And has this number been revised up due to the increase in travel? In previous quarters, this number was scrubbed down. We scrub it every month and therefore every quarter. It's been revised up and revised down as we include.
Sitting at 20, just over $28 million.
And has that number been revised up due to the increase in travel in previous quarters. This number with stepped down.
Scrub it every month.
And therefore every quarter it's.
It's been revised up and revised down as well.
We include include backlog from cross consent.
And then increase in travel and North America decrease in travel and some areas of Asia.
backlog from cross-consents, and then increase in travel in North America, decrease in travel in some areas of Asia. It is the scrubbed number.
It is the script number.
There were some questions from this.
Mr about weather.
There were some questions from this investor about whether AirAsia, UKMet, I think all of which have been addressed. How much of the US$5.6 million from our OEM partner has been recorded as revenue in this?
Our Asia U K, Matt I think all of which have been addressed.
How much of the $6 5 million or it's actually $5 6 million U S from our OEM partner and recorded as revenue in this quarter.
One 4 million if you look at the licensing line of revenue on our financials that is <unk>.
quarter that was 1.4 million. If you look at the licensing line of revenue on our financials that is directly related to that relationship. So you can look at the historical.
Directly related to that relationship.
Look at the historical.
How much and then also.
Wondering if this investors are wondering about the impact of cost concerns in our financials, which I believe etc.
How much, oh and then also.
wondering, this investor is wondering about the impact of cross-consents in our financials, which I believe I've addressed.
So that's everything that we received by email Sharon would you like to take questions from investors to Herndon.
So that's everything that we received by email. Shan, would you like to take questions from investors who phoned in?
Sure. Thank you.
We'll now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad you were here at Cowen acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any key.
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The first question is from Jason Smith with Lake Street Capital markets. Please go ahead.
The first question is from Jason Smith with Lake Street Capital Markets. Please go ahead. You're welcome.
Hey, guys. Thanks for taking my questions I just wanted to start with the supply chain, obviously had some impact in Q2 and it seemed like the.
Yes, thanks for taking my questions. I just want to start with the supply chain. Obviously, it had some impact in Q2 and it seemed like the push out into Q3 has already been shipped. But just curious what your expectations are for the second half. Are you expecting any sort of incremental improvement in the backdrop?
The push out into Q3 has already been shipped but just curious what your expectations are for the second half are you expecting any sort of incremental improvement in the backdrop.
Yes, we are.
There is there are several.
Yes, we are.
Several orders that will be.
There's several orders that will be delivered in the second half. And on the license revenue, as Alana said, the full $5.6 million will be delivered this year. So there would be a significant part of it delivered in second quarter or in the second half. Sorry. But the...
<unk> delivered in the second half and on the license revenue is Atlanta said the.
The full $5 6 million will be delivered this year, so there'll be a significant part of it delivered in in second quarter or in second half sorry.
The.
The supply chain issue, we had was strictly trucking it wasn't material shortage of suppliers or anything like that it was this logistics getting the.
The supply chain issue we had was strictly trucking. It wasn't material shortage of suppliers or anything like that. It was this logistics getting the material from Europe to Canada and into our shop in time to ship. What we've been doing on...
The material from Europe to Canada and into our shop in time to ship.
And what we've been doing on <unk>.
Maybe even a weekly basis, but certainly a monthly basis as go through our delivery backlog and make sure that we've got all of the components we need.
maybe even a weekly basis, but certainly a monthly basis, is go through our delivery backlog and make sure that we've got all of the components we need and have them in-house at least 30 days prior to shipment to make sure that we don't run into issues with this. The delivery of the licenses required modems from Iridium and their supplier got slow in delivering them.
Have them in house.
At least 30 days prior to shipment to make sure that we don't run into.
The issues with this.
The delivery of the licenses required modems from iridium and their supplier.
Got slow in delivering them and so.
We're working really really hard on supply chain to make sure that it doesn't become an issue to us and one of the advantages of our increased SaaS revenue.
We're working really, really hard on supply chain to make sure that it doesn't become an issue to us and one of the advantages of our increased SaaS revenue and our reliance on revenues for services and SaaS from cross-consensus is that we're not subject to supply chain issues with those revenues. Their installed equipment and SaaS revenue as it grows is...
And our reliance on revenues for services and SaaS.
Cross consensus is that we're not subject to supply chain issues with those revenues there instead.
Install equipment in SaaS revenue as it grows is exempt from supply chain issues. So.
We're working hard to increase the percentage of revenues in SaaS and services and making sure that we don't have.
exempt from supply chain issues. We're working hard to increase the percentage of revenues in SaaS and services and making sure that we don't have problems with supply chain in the financials going forward.
Problems with supply chain in the financials going forward.
Okay that makes sense and then just want to make sure I heard you correctly Bill you expect to be EBIT positive in Q3.
Okay, that makes sense. And then just want to make sure I heard you correctly, Bill, you expect to be EBITDA positive in Q3? Okay.
Yes.
Okay Perfect and then just the last one from me and I'll jump back into queue, obviously the announcement with.
Yes.
Okay, perfect. And then just the last one from me and I'll jump back into queue. Obviously the announcement with some new hires, just curious if from a sales infrastructure and personnel standpoint, everything is now in place.
Some new hires just curious if from a sales infrastructure and personnel standpoint, everything is now in place.
Yes, yes.
But we've got people in Japan, Indonesia, Europe , North America, South America, we are Salesforce is complete.
Yes. Yeah.
We've got people in Japan, Indonesia, Europe , North America, South America. Our sales force is complete.
Okay. Thanks, a lot guys.
Thanks.
Okay, thanks a lot guys.
The next question is from Bruce crucial a private investor. Please go ahead.
Okay, thanks a lot guys. Thanks.
The next question is from Bruce Crudjel, a private investor.
The next question is from Bruce Crujal, a private investor. Please go ahead.
Hi, they both Atlanta.
How about several questions I suspect, they're all interrelated, so I'll ask them in one fell.
Hi there both, Elena.
I've got several questions. I suspect they're all interrelated, so I'll ask in one fell swoop and perhaps you can decipher the correct way to answer it. So in your letter to shareholders, you said that this is the biggest opportunity, the edge is the biggest opportunity in 20 years for the company. You talk about developments coming this quarter, alluding to Q2.
Fell swoop and perhaps you can.
The fact that the correct way to answer it so.
In your <unk>.
A letter to shareholders you said that.
This is the biggest opportunity the edge is the biggest opportunity in 20 years for the company.
You talk about developments coming this quarter, leading to Q2, and then you make announcements of these three salespeople highs.
What I find interesting about the salespeople hires is that come from Teledyne, which is effectively one of your competitors.
and then you make the announcement of these three sales people hires. What I find interesting about the sales people hires is they come from Teledyne, which is effectively one of your competitors.
these three salespeople hires. What I find interesting about the salespeople hires is they come from Teledyne, which is effectively one of your competitors. So-
So.
Can you just put that altogether and.
All these statements interrelated and how that's helping our hiring people from Teledyne help you.
Can you just put that all together and are these statements interrelated and how does hiring people from Teladon help you?
They are definitely related.
The edge is the biggest opportunity flights ever had because there's a mandatory change coming to the world for five G.
They're definitely related. The Edge is the biggest opportunity flights ever had because there's a mandatory change coming to the world for 5G. Aviation typically lags behind any other changes in that kind of industry by 10 to 20 years because that's how aviation works. They don't have a choice on the 5G networks.
Aviation typically lags behind any other changes in that kind of industry by 10 to 20 years, because that's how aviation works they.
They don't have a choice on the <unk> networks.
Globally.
More and more countries are moving to five G because of demand from consumers and from the telco industries. They don't want to maintain multiple.
Globally, more and more countries are moving to 5G because of demand from consumers and from the telco industries. They don't want to maintain multiple...
Versions of equip.
Equipment and software from the hardware manufacturers Apple would love to sell everybody a brand new <unk>.
versions of equipment and software and from the hardware manufacturers. Apple would love to sell everybody a brand new 5G cell phone. They don't want anybody using a 3G cell phone anymore and go out and buy a new one. So a lot of pressure to move to that.
Cell phone they don't want anybody using a <unk> cell phone anymore, and now go out and buy a new one so a lot of pressure to move to that.
We went looking for industry expertise in our sales and marketing team.
We went looking for industry expertise in our sales and marketing team. I think this is a very unique industry and what you need to know, your relationships in the industry, your technical ability to represent the product properly. We went on a search to find the most qualified people to take advantage of this 5G opportunity.
<unk>.
Thank you.
This is a very unique industry and what you need to know.
Your relationships in the industry or your technical ability to represent the product properly.
And we went on a search to find the most qualified people to take advantage of this <unk> opportunity.
That is coming down on us very very quickly.
And.
Through employee existing employee contact and searches of available resources.
that is coming down on us very, very quickly. And through existing employee contacts and searches of available resources, all of these people kind of bubble to the surface as the key players that would help us drive this solution quickly into the marketplace. And we were very pleased that they were...
All of these people kind of bubble to the surfaces. The key players that would help us drive this solution quickly into the marketplace.
And we were very pleased that they were available and willing and anxious to come work for US we had.
They've seen our product at a couple of shows they see and what we were working on for futures to that product in.
available and willing and anxious to come work for us. They had seen our product at a couple of shows, they'd seen what we were working on for futures to that product and saw it as an opportunity for themselves to contribute to the industry making the shift as painlessly as possible to 5G. So I'm very, very excited and pleased about the people that came.
So it is an opportunity for themselves to contribute too.
The industry, making the shift as painless as possible painlessly as possible two five G. So I'm very very excited and pleased about the people came.
Don Wilson has been in this industry for 30 plus years selling hardware keeping.
Don Wilson has been in this industry for 30 plus years selling hardware, keeping track of it through the ILS system, has contacts with pretty well every airline in the world and has joined us to help bring some sales expertise to cross-consents outside of their focus area which is aviation maintenance software to help expand the capability in Europe into our other product lines. So
Keeping track of it through the ILS system has contact with pretty well every airline in the world.
Has joined us to help bring some sales expertise to cross consents outside of their focus area, which is aviation maintenance software.
To help expand the capability in Europe into our other product lines. So.
Very key hire for us.
I think extremely good fit with existing staff and existing customers for.
For these guys to come in and be knowledgeable and effective immediately in the market.
Okay.
Uh huh.
Two other questions.
In the quarter, you sold 12 acres boxes.
What's the Apus pipeline looking like for the balance of the year.
pipeline looking like for the balance of the year.
It's not.
it off. It's not
It'll be solid it's not going to be strong.
We've talked about this every quarter for the last six quarters, but the airlines are using the aircraft that don't need to go into C check as they recover so that they can.
It'll be solid. It's not going to be strong.
We've talked about this every quarter for the last six quarters, but the airlines are using the aircraft that don't need to go in to sea check as they recover so that they can...
Manage their overhaul costs in their maintenance costs. So that is starting to come to an end as as slight increase.
manage their overhaul costs and their maintenance costs. So that is starting to come to an end as flights increase. Those aircraft are getting their cycles and times in where they're going to have to go in for sea checks. So I think the backlog will start to be drawn down.
Those aircraft are getting their cycles in times in where theyre going to have to go in for C. Check So I think.
The backlog will start to be drawn down slightly higher over the coming quarters each quarter over quarter.
We are continuing to sell acres acres is a great product and it solves a lot of problems, but the focus is going to be on edge sales because that drives our actionable intelligence capabilities.
slightly higher over the coming quarters, each quarter over quarter.
We are continuing to sell AFERS. AFERS is a great product and it solves a lot of problems, but the focus is going to be on edge sales because that drives our actionable intelligence capabilities. We announced a relationship with WestJet for APU monitoring about, I don't know, four months ago or five months ago and people are paying attention to that. It's something that is a real
We announced our relationship with west jet for Apu monitoring about.
Four months ago, five months ago and.
People are paying attention to that it is something that is a real measurable benefit to the airline from a cost perspective and to the industry from a.
measurable benefit to the airline from a cost perspective and to the industry from a greenhouse gas emissions point that we can save emissions and save money with the software that we've got and you need the edge on board to be able to do that. Over the next two or three quarters, I think you will see the number of edge units far exceed the number of AFERs units and shortly the revenue from the edge units will exceed the revenue from the AFERs unit.
Hey, greenhouse gas emissions point that we can.
Save emissions and save money with the software that we've got and you need the edge on board to be able to do that so over the next two or three quarters I think you will see.
The number of AD units far exceed the number of acres units and.
Shortly the revenue from the edge units will exceed the revenue from me for unit, but that doesn't mean, we're not going to be selling acres. It doesn't mean that people still don't need.
Certified Satcom, and we will continue to build and sell acres for the foreseeable future.
Okay.
And then finally technical service reps increased quite nicely in the way I've looked at technical services is normally this is a prelude to revenues down the line because you have to compete to engineering and clients pay for the engineering.
Is that the correct way to look at technical services now.
Yes.
Is that the correct way to look at technical services now?
It's definitely STC work, but it's also part of cross consensus revenues are viewed as technical services as opposed to SaaS.
It's definitely STC work but it's also part of cross consensus revenues are viewed as technical services as opposed to SaaS.
So it's a mixture in there of both.
Cross consents and engineering revenues, but engineering revenues are growing because we are charging for STC work on the edge.
So, it's a mixture in there of both cross-consents and engineering revenues. But engineering revenues are growing because we are charging for STC work on the edge.
Great. Thanks, Paul.
Yep.
Great. Thanks, Paul.
The next question is from Peter Davis, a private Investor. Please go ahead.
Yep.
The next question is from Peter Davis, a private investor. Please go ahead. Please read the question to who is going to need to take the beloved version
Hi, Bill.
Not quite as good.
Hi Bill and Lana. Not quite as good a quarter as I hoped for, but still better than the last quarter.
Quarters, alright hoped for but still better than last quarter.
On my side were really struck but today's news about these two guys until we're done.
I was really struck by today's news about these two guys from Teledyne.
Edge, plus I believe they said well let's targeting.
Your Edge Plus product, I believe, is the one that's targeting
The box that they sell.
They don't have slide <unk>.
by the books that they sell.
It has been.
The cost of adding edge plus.
which they don't have 5G for yet. You advertise it as being the cost of adding edge plus is the cost of an upgrade.
The culture right.
Gee, they have an installed base of over 14.
I wondered how many of these do you expect to get there.
to 5G and they have an install base of over 14,500. How many of these do you expect to get before they've got 5G working?
So I'll, let Jim King.
Well I can't comment on what Teledyne may do from a development point of view, but.
Well, I can't comment on what Teledyne may do from a development point of view, but the Edge has been designed with more than just the 5G upgrade. The capabilities that we announced in March with MBS and being able to do remote data loading of avionics software is a big plus. The Edge is an aircraft interface device with a compute program on board where we can run third-party software.
The edge has been designed with more than just the five G upgrade.
The capabilities that we announced in March with MBS and being able to do remote data loading of avionics software is a big plus.
The edges.
Aircraft interface device with the compute program onboard where we can run third party software.
We have all of the <unk> technology moved onto the edge. So we can do basically real time folk on the aircraft and transmit only the data that's required.
We have.
Service capability on the edge, which I don't believe anybody else is working on as far as the wireless QE hard technology goes and we have the wireless QE, our technology working to do everything that the.
The legacy boxes do through <unk> and <unk>. So.
technology working to do everything that the legacy boxes do through 2G and 3G.
Yeah.
It's something that.
We built this product over the last two years, which is kind of a record in the aviation industry to get a product from <unk>.
It's something that, you know, we built this product over the last two years which is kind of a record in the aviation industry to get a product from Pencil to approved and certified in two years and the main reason we could do that was because of the technology we brought over from the AFERS unit. So we've got a jump on the competition I think of
Pencil to.
Approved and certified in two years.
And the main reason, we could do that was because of the technology. We brought over from me acres unit.
So we've got.
Jump on the competition I think of of anywhere from three to five years.
Because it's going to take that long as they started today to build something to come up with a solution that.
of anywhere from three to five years because it's going to take that long if they started today to build something to come up with a solution. That lead with the sales force that we've put together should stand us in good stead to win a significant number of those upgrades, I believe.
That lead with the sales force that we've put together should stand us in good stead to win a significant number of those upgrades I believe but I.
Don't do forecasts as you know so I'm not going to tell you what I really think but I'm excited about it.
I don't do forecasts as you know, so I'm not going to tell you what I really think, but I'm excited about it.
Thanks, Bill that's all for me.
Thanks Peter.
Thanks Bill, that's all from me.
Once again, if you have a question. Please press Star then one.
Bill, that's all from me. Thanks, Peter.
Once again, if you have a question, please press star then 1.
The next question is from Mark <unk> with <unk> Associates. Please go ahead.
The next question is from Mark Berger with MKB Associates. Please go ahead. You're welcome.
Hi, Bill sorry.
Bruce took most of my questions and.
Hi Bill, sorry but Bruce took most of my questions and I'm pretty much questioned out so thanks very much but the future looks pretty good. Teledyne guys look like we're going to make a big dent in that $14,000-$15,000 aircraft out there.
I'm pretty much questioned out so thanks, very much but the future looks pretty good teledyne guys look like are we going to make a big dent in that 14 and $15000 aircrafts out there.
I agree.
On your feet.
The next question is from George Melas with <unk> K H management. Please go ahead.
The next question is from George Melis with MKH Management. Please go ahead.
Hi, good morning.
Donna.
Turning to earnings.
Good morning, Taylor and Alana. Good morning, Drew.
Great development lots and lots of information.
Can I ask you to sort of summarize it in a way.
great developments, lots and lots of information. Can I ask you to sort of summarize it in a way by sort of going through the big chunks of revenue and how you can do that?
So I'll sort of going through the big chunks.
Revenue.
So we didn't have inquiries will have.
Then we will have AI, we have crossed the sense we have.
So we're going to have eight years, we'll have edge, to some extent we'll have AI, we'll have cross-consents, we have the weather, we have the licensing.
The weather.
You have to license.
It's sort of.
Going down one by one and see which one.
Where the opportunities lie.
going down one by one and see which, you know, where do we need the opportunities lie.
Thanks James.
Lot of things going on at the same time.
And how do I will connect.
Because it seems you have a lot of things going on at the same time.
Sure.
Okay. Okay.
And how are they connected to some extent?
I mean, our focus is to drive SaaS revenue and increase the percentage of total revenue in SaaS year over year every year to do that we've got to get the hardware platforms onboard and whether it's WB SaaS or the edge or the acres unit. Each one of those will contribute to us being able.
Okay, I mean our focus is to drive SaaS revenue and increase the percentage of total revenue in SaaS year over year every year. To do that we've got to get the hardware platforms on board and whether it's WVSS or the EDGE or the AFERS unit, each one of those will contribute to us being able to drive SaaS revenue. I think maybe the deal that's coming together with UK Met and Loganair is a really important
To drive SaaS revenue and I think maybe the deal that's coming together with U K met and Logan Air is a really good example of.
How I see building out this market and kind of becoming the the Apple store for aviation with the edge.
If you look at apples financial statements today, I think you'll probably see that 30% of the revenues hardware and 70% of it is coming from the Apple store from applications, and that's where I want to take this so if you look at the deal we.
Our working with U K met in Logan Air.
They're going to pay.
Well, let's just throw a number of $30000 to put.
Logan Air, they're going to pay, let's just throw a number of $30,000 to put a WVSS sensor on the aircraft.
W. VSS sensor on the aircraft.
They're also going to spend another say $20000 to put on edge with service capability on those aircraft because they are flying across water and you can't get the weather data.
They're also going to spend another say $20,000 to put an edge with CERTIS capability on those aircraft because they're flying across water and you can't get the weather data via the cell network so you need an iridium capability on there.
Via the cell network. So you need an iridium capability on there. So we got hardware revenue coming up in 'twenty three four.
So we we got hardware revenue coming up in 23 for
The the hardware.
The edge.
Service connectivity.
the hardware, the edge, the service connectivity, and
<unk>.
Let's say, that's going to be $3 million for the fleet and I am just picking numbers out of the year the contract for the sauce for the weather observation services off that box are gonna be another $5 million over the next 10 years. So there is a recurring revenue going to happen from putting that hardware onboard.
Let's say that's going to be $3 million for the fleet, and I'm just picking numbers out of the air. The contract for the SaaS, for the weather observation services off that box, are going to be another $5 million over the next 10 years. So there's a recurring revenue going to happen from putting that hardware on board that will continue to grow, and it will be accretive year over year as it continues to expand with the number of units we've got out, number of aircraft flying and so on.
They will continue to grow and it'll be accretive year over year as it continues to expand with the number of units. We have got a number of aircraft flying and so on.
On top of that once Logan era has got an edge installed and we can help them with Apu usage or we can help them with fuel burn or we can help them with turn management, we will install other applications on that edge device that could very easily exceed the SaaS revenue from the weather data over there.
10 years.
They were contracting for the for the weather observation.
Those aircraft. So the picture will change year over year and increased the percentage of SaaS revenue over hardware revenue as we expand our capabilities as we expand the number of units out there and as the airlines find new applications for the things that we can do.
on those aircraft. So the picture will change year over year and increase the percentage of SAS revenue over hardware revenue as we expand our capabilities, as we expand the number of units out there and as the airlines find new applications for the things that we can do on these boxes.
On these boxes.
So SaaS will continue to grow and we are working very hard to get that growing as fast as we can the next couple of years hardware could be continuing to be kind of the dominant part of our revenue stream as we build the base to be able to generate that SaaS from there.
So, SAS will continue to grow and we are working very hard to get that growing as fast as we can. The next couple of years, hardware could continue to be the dominant part of our revenue stream as we build the base to be able to generate that SAS from there.
Did that help.
This is Jordan, Serbia and low power.
Did that help? It sure did. It sure did. And then tell us how co-extensive sort of part of that picture.
<unk> stood out part.
Part of that picture.
How quickly what sorry.
Gross incentive as part of the picture.
How quickly? What? Sorry.
Yeah.
First incentive is part of the picture.
Sorry, I missed it again George.
Thank you.
Computer Beeped.
Sorry, I missed it again, George. My computer beeped another meeting. The German opposition is in the picture.
German acquisition.
Sure.
Boy very very nicely.
Cross consensus has got 20 odd customers in Europe that are very solid easy jet with Lufthansa Condor Norse.
Very, very nicely. Cross Consensus has got 20 odd customers in Europe that are very solid. EasyJet, Wizz, Lufthansa, Condor, Norse, very, very good airlines that are very, very forward thinking and they've got great relationships with the maintenance departments. What we're doing right now is getting the people trained to go back and talk to those customers about the edge, about...
Very very good airlines that are very very forward thinking and they've got great relationships with the maintenance departments, what we're doing right now.
It is getting.
The people trained to go back and talk to those customers about the edge a boat.
Some of the software that we have for apu or fuel burn or or airport management.
some of the software that we have for APU or fuel burn or airport management and expand that. The people, the relationships, their ability to work with those customers and be the flight representative in Europe is very, very strong. We're in the process of making that happen. We didn't get the acquisition finished until March.
And expand that.
The people the relationships their ability to to work with.
Those customers and B the flight representative in Europe is very very strong.
We're in the process of making that happen we didn't get the acquisition finished until March but.
Since March we've been working on this one is an ongoing process and we've got a couple of joint customers that we're working with.
Since March, we've been working on this as an ongoing process. We've got a couple of joint customers that we're working with that are looking really good, one in North America and one in Europe . And I think that...
Better looking really good one in North America and one in Europe .
And I think that.
The add of Dawn and Marie in Europe are going to accelerate.
the add of Don and Murray in Europe are going to accelerate the opportunities and the growth of that part of our business.
The opportunities and the growth of that part of our business.
Okay, Great sounds very good thank you.
Sure.
Okay, great. Sounds very good. Thank you.
No problem. Thanks.
The next question is from Mark Berkshire with Kb Associates. Please go ahead.
No problem. Thanks.
The next question is from Mark Burtur with MKB Associates. Please go ahead.
Sorry, Bill I did remember our question.
With regard to the communication companies shutting off <unk> is there a time limit as to when that's going to happen and.
Sorry, Bill, I did remember a question. With regard to the communication companies shutting off 3G, 4G, is there a time limit as to when that's going to happen? And when that does happen, is there any alternative other than the box that we have for those 14,000 planes that are out there?
And when that does happen is there any alternative the box that we have for those 14000 planes that are out there.
You'd have to go through I know that AT&T announced that <unk> networks are going to be shutdown the end of February .
You'd have to go through, I know that AT&T announced the 3G networks are going to be shut down the end of February . I don't have a list by jurisdiction of when those things are going to be shut down, but if you don't have 3G, a lot of the existing technology out there today does not work. And so there's more than just the Telvine boxes out there that are reliant on...
I don't have a list by jurisdiction of when those things are going to be shut down.
But if you don't have three G. A lot of the existing technology out there today does not work.
And so.
There is more than just the telephone boxes out there that are relying on.
<unk>.
A lot of it I think is political too.
China, Japan have all gone five G. I think Malaysia has gone five G. I think Indonesia is in the process of it.
I'm 3G. A lot of it I think is political too.
China, Japan have all gone 5G. I think Malaysia has gone 5G. I think Indonesia is in the process of it. Not sure where we are with India. Europe , each country is different in when they're rolling that out. But I think France is way ahead of the curve as far as 5G at airports. They don't have any 3G around airports anymore. I think they've gone straight 5G, including private 5G networks for Degas Airport.
Not sure where we are with India.
Europe .
Each country is different and when they're rolling that out, but I think France is way ahead of the curve as far as five G at airports.
They don't have any <unk>.
Around airports anymore, I think they've gone straight <unk>, including private <unk> networks for Degaulle airport to manage the volume of traffic that is coming from from aircraft there. So.
to manage the volume of traffic that's coming from aircraft there. So, it's something that I haven't had any research done on what the schedule is. I just know it's coming and I went and upgraded my cell phone to 5G because I found it was getting so slow on 3G, you couldn't do any research or look stuff up. It just took forever to get things. That drive by consumers is what's going to affect the airlines.
It's something that I haven't had any research done on what the schedule is I just know what's coming in.
And I went and upgraded my cell phone to five G. Because I found it was getting so slow on three G. You Couldnt do any.
Researchers look stepped up it just took forever to get things in that drive by consumers is what's going to affect the airlines.
So therefore with regard to major amounts of orders I can assume that the orders that we already get should be coming within the next six to nine months.
So therefore with regard to major amounts of orders I can assume that the orders that we ought to get should be coming within the next six to nine months.
Well I'm, hoping we got lots yet.
Okay.
Well, I'm hoping we got lots yet.
Okay. Thank you.
That's no problem.
This concludes the question and answer session I would like to turn the conference back over to Mr. Bill <unk> for closing remarks.
Okay, thank you.
That's all I can do.
This concludes the question and answer session. I would like to turn the conference back over to Mr. Bill Tempeny for closing remarks.
Okay. Thank you very much well thanks, everybody for your questions your attention.
Okay, thank you very much. Well, thanks everybody for your questions, your attention. Hopefully you can see the excitement we have around this company about what we've done and where we're going and what we've got as an opportunity. I think this morning's press release about the quality and number of people that are joining the team should show that the industry is starting to pay attention to what we're doing and that's what we've been looking for for a long time. I think that we've got...
Hopefully you can see the excitement we have around this company about what we've done and where we're going and what we've got is an opportunity.
I think this morning's press release about the quality and number of people that are joining the team.
Would show that the industry is starting to pay attention to what we're doing and that's what we've been looking for for a long time.
I think that we've got.
Incredible team pulled together with incredible talent and products that are going to drive some pretty exciting results for our investors in the short and long term. So thank you everybody for your time.
an incredible team pulled together with incredible talents and products that are going to drive some pretty exciting results for our investors in the short and long term. So thank you everybody for your time and look forward to the Q3 results in November .
Look forward to the Q3 results.
In November so.
Atlanta anything you'd like to add.
Alana, anything you'd like to add?
I think we've covered it.
Okay.
Our scripts worked again.
I think we've covered it.
[laughter].
Okay.
Thank you very much operator.
Our scripts worked again.
Thank you. This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a platform.
Thank you very much operator.
Thank you. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
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Yeah.
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