Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What kind of working capital needs are you anticipating for this fiscal year given the $5 million rollover from Q3 to Q4 and some orders rolling over from Q4 to Q1?
A: (Robert Capps - President, Chief Executive Officer, Director) Working capital needs are complex and influenced by the timing of shipments and vendor payments. While exact figures are hard to predict, the company believes it can fund these needs from existing operations. The cash balance, although appearing sufficient, will be actively managed to meet these variable demands.
Q: Are you anticipating growth off of the Q4 run rate?
A: (Robert Capps - President, Chief Executive Officer, Director) It would be aggressive to assume growth directly from the Q4 run rate due to the nature of order flows and timing. The company aims for steady operations but cautions against expecting a straightforward increase based on the previous quarter's performance.
Q: Can you provide any insight into the current backlog and cash standing at the end of April?
A: (Robert Capps - President, Chief Executive Officer, Director) The company avoids projecting financials at the quarter's end due to the variability in business operations. However, the general business progression is viewed positively, aligning with discussions in the earnings call.
Q: What is the composition of the backlog in terms of full systems versus parts?
A: (Robert Capps - President, Chief Executive Officer, Director) The majority of the backlog consists of full systems due to their higher value, with the remainder being spare parts and smaller components. This composition impacts revenue recognition and the timing of cash flows.
Q: Is there a military application for your AI software in targeting?
A: (Robert Capps - President, Chief Executive Officer, Director) Yes, the AI software can be used in military applications, particularly in data handling for targeting. However, military clients typically prefer to integrate their own models for actual target recognition, aligning with regulatory and operational preferences.
Q: How does the AI software integrate with different systems, and what are the financial benefits of the licensing arrangements?
A: (Robert Capps - President, Chief Executive Officer, Director) The AI software, primarily used with the company's hardware, is being adapted to be universally compatible with other systems. Licensing fees from these adaptations are seen as a pure profit opportunity, enhancing the financial outlook for the company.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.