Research Frontiers(REFR) - 2019 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Fee income increased by 29% year-over-year in Q3 2019, with automotive fee income up 49% and aircraft fee income up 28% compared to the same quarter last year [5][6] - Sequentially, overall fee income rose by 54% from Q2 2019, with automotive fee income up 73% and aircraft fee income up 27% [6][11] - The net loss for Q3 2019 narrowed to just one penny per share, indicating progress towards break-even [11][88] Business Line Data and Key Metrics Changes - The automotive sector showed significant growth, driven by increased use of SPD-Smart Glass by manufacturers like Mercedes and McLaren [20][22] - SPD film sales through Q3 2019 exceeded total sales for the entire previous year, indicating strong demand across various markets, including automotive and architectural [19][35] Market Data and Key Metrics Changes - The architectural market is beginning to see increased interest, with projects primarily located in Europe and the Middle East, and a focus on the U.S. market [28][33] - The automotive market is projected to grow due to the shift towards electric vehicles and new regulations in Europe regarding CO2 emissions [25][26] Company Strategy and Development Direction - The company aims to reduce the cost of SPD-Smart Glass technology to enhance market penetration and explore new applications [17][88] - The strategy includes maintaining financial stability, operational efficiency, and business growth, with a focus on expanding into the architectural market [7][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the positive trends in revenue growth and the increasing awareness of SPD technology across industries [88][90] - The company is well-positioned with over three years of cash and no debt, allowing for flexibility in operations and strategic investments [8][87] Other Important Information - The new Gauzy factory in Germany is expected to enhance production capabilities for SPD film, which is crucial for meeting growing demand [47][50] - The company has expanded its public relations and investor relations efforts, leading to increased awareness and interest in its technology [53][54] Q&A Session Summary Question: What is the status of Vision Systems marketing their sun visors? - Vision Systems is still working on the sun visor project targeting trucks, aircraft, and trains, with increased interest due to lower costs of SPD film [57][58] Question: Are there revenues from Panasonic? - Revenues are received indirectly through the licensee supplying SPD glass to Panasonic, with positive feedback on the technology [62] Question: Update on signed contracts by airlines? - There are no direct contracts with airlines; however, licensees have contracts with suppliers to airlines [66][68] Question: What were the revenues for the quarter? - Overall revenue was up 29% in Q3 2019, with significant increases in automotive and aircraft sectors [74] Question: Update on three automakers mentioned previously? - The projections remain unchanged, with potential for significant growth in SPD glass usage among three major automakers [79]