Leonardo DRS(US:DRS)2020-03-10 17:15Financial Data and Key Metrics Changes - Q4 2019 revenues reached $14 million, marking a 71% increase compared to Q4 2018, the highest in the company's history [4] - Full year revenues were $44.3 million, up 68% year-over-year, exceeding initial targets [5] - Gross margin remained stable at 36% for both the quarter and the full year [19] - Operating loss for Q4 was $209,000, compared to $102,000 in Q4 2018, while the full year operating loss was $2.1 million [20][22] - Net loss attributable to shareholders for Q4 was $295,000, compared to $86,000 in the same quarter last year [20] Business Line Data and Key Metrics Changes - The company is focusing on radar technology, particularly in counter-drone and point defense solutions, which are gaining traction in the market [6][9] - The Bradley Active Protection Program is a key focus, with qualification ongoing and production expected to follow [10][11] - Short-range air defense solutions for the Marine Corps and US Army are also significant, with a projected market of $2 billion over the next decade [13] Market Data and Key Metrics Changes - The addressable market for Active Protection Systems (APS) is estimated at $3 billion over the next decade, split evenly between the US and the rest of the world [12] - The company is seeing increased interest in its solutions globally, particularly in the US and Israel [9] Company Strategy and Development Direction - The company plans to exceed $65 million in revenues for 2020, representing over 47% growth [6] - Investment in production infrastructure in both the US and Israel is aimed at supporting future growth [16] - The company is positioned for significant growth due to its advanced radar technology and evolving market demands [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong market demand and a robust pipeline [6][16] - The impact of the coronavirus on business development is acknowledged, but current sales and deliveries remain unaffected [14][15] Other Important Information - The company raised approximately $23.5 million from investors in a secondary offering, strengthening its balance sheet [22] - As of year-end 2019, the company had $13.8 million in cash and no financial debt [22] Q&A Session Summary Question: 2020 outlook and revenue acceleration - Management indicated that they have enough pipeline and backlog to support continuous growth in Q1 and throughout 2020 [24] Question: Details on the Bradley Active Protection Program - Qualification is set to begin soon, with key milestones dependent on successful customer tests [26][27] Question: Update on the Germantown facility - The facility is expected to deliver over 200 radars to the US market, with deliveries starting soon [29] Question: Impact of the Bradley program delay - Management confirmed that the delay is unique to the Bradley vehicle and does not affect other programs [32] Question: Revenue breakdown by geography - The US accounts for about 50% of revenue, with gradual increases in other international markets [35] Question: Expectations for Q1 revenue - The fourth quarter of 2019 serves as a baseline for expected sequential growth throughout 2020 [37]