Q3 2023 Laser Photonics Corp Earnings Call

Greetings and welcome to the laser Photonics third quarter financial results and webcast. At this time all participants are in a listen only mode.

A brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being recorded it is now my pleasure to introduce your host Brian Siegel Senior manager director of Hayden Investor Relations. Thank you Sir you may begin.

Thank you with me today are way to call, our laser photonics, CEO and Jade Barnwell the company's CFO any forward looking statements made during this conference call and webcast other general or specific in nature are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates. These risks.

And uncertainties include but are not limited to specific risks and uncertainties discussed in the reports that we filed periodically with the SEC.

Laser photonics assumes no obligation to either update any forward looking statements that we have made or may make or to update the factors that may cause actual results to differ materially from those that are for cat.

I will now turn the call over to Wayne take it away.

Good morning, ladies and gentlemen, thank you for joining us today for laser Tony of course, Q3, 'twenty to 'twenty three earnings call I went to policy all the Tonics Corp. Here to provide an overview of our financial performance and discuss our future outlook.

Lets start by addressing our operating loss for the quarter, which was under $1 million. While we encountered this loss, it's essential to provide context and no car Q3 year over year increase of one 4%.

This increase reflects our efforts to improve our financial standing by challenges faced throughout the year.

Looking at the year to date figures for Q3, we experienced a decrease of nine 1%.

As we stated on the past few calls the all economic environment, including the substantial increase in interest rates has taken some time for our potential customers to get used to I want to assure you that our company has a robust pipeline of opportunities that we expect to positively impact.

Our fourth quarter and allow us to finish the year on a positive note.

One of our strengths lies in our high power laser products, which have consistently led the pack in revenue generation.

This success played a significant role in the increase from Q2 to Q3, and we expect this trend to continue in the coming months and years.

The outlook remains positive for leased Photonics Corp, Despite geopolitical and economic disruptions, we remain dedicated to serving the global community. Our company's diligence has allowed us to navigate these challenges and sustain our growth plans, which we anticipate will yield promising results.

<unk> and 'twenty 'twenty four as we are seeing an uptick in interest from major distributors who possess.

Potential sales forces.

We are optimistic that these new distributions.

Can leverage their unique market exposure to enable us to solve more laser blasts of units.

Development positions us well for the future success and we expect these relationships to ramp in 2024.

We also have some exciting news of our Marlin lineup laser cleaning products for the maritime industry as we're putting together a commercial target potential buyers of this product.

To the best of our knowledge this will be the first laser cleaning commercial of its kind to be aired to the public and we can't wait to see the results. Additionally.

Additionally, we have experienced growing interest from international markets.

As a part of our expansion strategy, we have increased our internal sales force to take advantage of these opportunities. We are already experiencing orders from the department of defense, which represents over 35% of this quarter's revenue with our service partner Network program also receiving orders from <unk>.

Why and abroad.

In spite of a strike driven downtick in the automotive industry ladies.

Ladies the Chinese court is still receiving orders from tiered customers, while the oil and gas industry should start to see sales in 'twenty to 'twenty four.

As I had mentioned in our last earnings call. The company has announced plans to expand its product offerings by enhancing the clean tech laser cleaning product line with what we believe to be a revolutionary change by using a larger format class one product and closure that enables and users.

And users laser safety product protocols for most industrial manufacturing environments to that effect in October we acquired a new license horizon investments that will allow the company to pursue opportunities with major aerospace companies, which are struggling to apply fiber laser cutting material process.

Prone to heat affected zone that are critical to stress cracks we plan to introduce a line of products called <unk> Tech.

Cole cutting and trouble piercing technology to address this problem marketing efforts have begun and we are excited about this new addition to the laser photonics product lineup.

In conclusion, we remain focused in our growth plan and future opportunities with a healthy pipeline, leading high power laser products and increasing interest from major distributors in international markets, we are well positioned to achieve positive outcomes in 'twenty to 'twenty four.

Thank you for all your continued trust and support now I will turn this call over to Jay to explain the financials.

Thank you Wayne good morning, Thank you everyone for joining us.

On the call I like third quarter revenue increased from the same period last year by one 2% to $110 million.

Our gross margin under Q3 revenue increased by nearly 2800.

Yeah Yeah.

73 quick ones.

That was it mix was more heavily weighted towards our higher margin.

Uh huh.

Operating loss was one call a million dollars a pound from operating income of $10 million.

Yeah.

A significant change in our operating cost structure like that increase in sales and marketing with.

NASDAQ and I think he complains call.

On a linked quarter I like New York City.

This increase in our Australia.

Maybe you can travelers chunky crunchy cruise market reach in states of course.

Yeah.

GAAP net loss and loss per share were at 1.1 billion nowadays that coupon.

That to me down from last years, net income and EPS I'll be clear point $2 million of course once respectively.

From a balance sheet.

And a cash flow perspective, we finished the quarter with $8.3 million in cash and no attack. This.

This balance represents a 1.6 million cash out trying to third quarter.

Or is there anything from $1.4 million cash used CT our operating activities during the period.

Turning to our outlook for the fourth quarter of 'twenty, three we expect to see double digit growth in our revenues sequentially and ourselves you know every year based on the Koran Oh.

Looking at our operating expenses, given our continued get cooked to investments in R&D and marketing and expanding our distribution channel. We expect at least constantly ourself right Scot or Paul.

Sorry.

That concludes my prepared remarks.

We can now move to questions.

Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question. Kim you May Press star two if he would like to remove your question from the queue.

Ask that you limit yourself to one question and a follow up so that others may have an opportunity to ask questions for participants using speaker equipment. It may be necessary to pick up your head handset before pressing the star keys, one moment, please while we poll for questions.

Okay.

Hey, operator, there is no webcast questions either.

We can just close out the call.

We have reached the end of our question and answer session, which concludes today's conference. Thank you for your participation you may disconnect your lines at this time.

Okay.

Okay.

Okay.

Yeah.

[music].

Okay.

Uh-huh.

[music].

Uh huh.

Mhm.

[music].

Uh-huh.

Okay.

Hello.

[music].

Okay.

[music].

Hum.

[music].

Hum.

Hmm.

[music].

Yes.

Okay.

Uh huh.

[music].

Okay.

[music].

Hum.

Uh huh.

[music].

Hum.

[music].

Hum.

[music].

Mhm.

[music].

Uh huh.

Okay.

[music].

Okay.

[music].

Okay.

Hum.

Yeah.

Okay.

[music].

Okay.

Okay.

Okay.

Okay.

Yeah.

Yeah.

[music].

Okay.

Yeah.

Uh-huh.

[music].

Hum.

Mhm.

[music].

Okay.

Uh-huh.

Okay.

Hello.

[music].

Hum.

[music].

Yeah.

[music].

Okay.

Okay.

[music].

Okay.

[music].

Hum.

Okay.

[music].

Hum.

[music].

Okay.

Okay.

Mhm.

[music].

No.

[music].

Hum.

Yes.

Hum.

Yeah.

Okay.

[music].

Yes.

Okay.

Yeah.

Okay.

Yeah.

Okay.

[music].

Uh-huh.