VirTra(US:VTSI)2020-03-24 02:57Financial Data and Key Metrics Changes - In Q4 2019, the company generated $5.9 million in revenue, a 133% increase from $2.5 million in Q4 2018 [33] - For the full year 2019, total revenue increased by 3% to $18.7 million from $18.1 million in 2018 [33] - Gross profit for Q4 2019 was $2.6 million, representing 44.8% of revenue, up from $957,000 or 37.8% in Q4 2018 [34] - The full year gross profit decreased by 12% to $9.7 million, or 51.9% of total revenue, from $11 million or 61.1% in 2018 [34] - The net loss for Q4 2019 was $66,000 or $0.01 per diluted share, compared to a net loss of $1.3 million or $0.16 per diluted share in Q4 2018 [38] - Adjusted EBITDA for Q4 2019 was $729,000, compared to an adjusted EBITDA loss of $246,000 in Q4 2018 [39] Business Line Data and Key Metrics Changes - The company successfully converted a record backlog of $11.3 million into revenue during Q4 2019 [12] - A significant follow-on order of $2.3 million was received from the Arizona Department of Public Safety in October 2019 [13] - Bookings for Q4 2019 totaled $4.2 million, with a backlog of $9.6 million at year-end [40][41] Market Data and Key Metrics Changes - The company has positioned itself strongly in the law enforcement and military training markets, launching new products and enhancing existing offerings [18][50] - The introduction of the world's first 4K 300-degree simulator and the virtual driving training simulator (VDTS) has expanded the product portfolio [19][21] Company Strategy and Development Direction - The company aims to strengthen and diversify its business by enhancing technological capabilities and expanding its sales footprint [17] - New products and curriculum were launched in Q4 2019, including updates to the certified V-VICTA curriculum [26][48] - The company is focused on maintaining a strong balance sheet and exploring acquisition opportunities in the current environment [57] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the impact of COVID-19, noting that no orders had been canceled as of the call [8][55] - The company is monitoring the situation closely and believes it is in a better position than many competitors due to its strong electronic marketing and sales infrastructure [56] - The core mission remains to improve and save lives by providing effective simulation training for law enforcement and military personnel [58] Other Important Information - The company has issued two new patents related to training tools, enhancing its competitive position in the market [29] - The staff is currently working from home to mitigate COVID-19 impacts, demonstrating the company's commitment to employee safety [57] Q&A Session Summary Question: Has the sales cycle been elongated due to COVID-19? - Management indicated that there has been no significant elongation in the sales cycle, as many setups for purchases are already in motion [61] Question: Can you quantify the number of customers signed up for the STEP program? - Management refrained from providing specific numbers but mentioned that depreciation of STEP hardware is reflected in financials [63] Question: How is the company approaching operating expenses and investments in the current environment? - Management stated they are proceeding cautiously but maintaining staff and infrastructure while continuing to invest where opportunities arise [65]