Post by
Possibleidiot01 on Dec 02, 2023 7:04pm
Q2 ,2024 conference call transcript
https://d1io3yog0oux5.cloudfront.net/_3251fccbc78d82c7c1b9832071ad8c98/boardwalktech/db/489/3619/pdf/Boardwalktech+-+Q2+Fiscal+2024+Transcript+-+11.29.23.pdf
This is just a snippet of it -won't cut and paste
Mike Stevens — Analyst, Echelon Wealth Partners
Okay, no, that’s helpful. And then just the last one, it might be for Charlie, but obviously it’s great
to see the cost structure continually coming down and you guys are relatively lean yet executing at the
same level. In terms of going forward, you always say that you could use, everyone can use more
resources, of course, to kind of invest in growth. How much do you think that this sort of lean structure is
hindering progress and are there any avenues, debt wise or other, that you could get some reinvestment
into growth? Or is it kind of just waiting for that big deal to come in and then, at that point, it’s much
easier, more room to start investing in growth.
Can I say yes to all of those, Mike? It is a complicated one, because having to answer to so many
different parties and being conscious of it, when people are telling us you’re doing better than your other
comparables in the microcap sector, that’s not much consolation. We know we can grow further. There
are a lot of pots on the back burner in terms of tracking traits where we have a partner setup but we don’t
necessarily have the resources to chase it. The training, quite frankly, Mike, in terms of doing the training,
we’re doing it and we’re, I’ll say plodding along, because I think if we had some additional resources we
could get that training up quicker and more efficiently overall. So it’s that balance of being prudent where,
with the level of growth equity there, it would definitely work.
Based on our previous experience with debt, we’ve been a little debt averse, and there’s always
somebody who’s trying to offer non-dilutive financing, which usually ends up being they want another cut
from a royalty aspect. So we’re trying to play that off. But we are getting to the point where prudence
from cost cutting is, I would say, a bit of a hindrance. Like I said, there are markets, and this is one of the
things that attracted me to Andy, was Andy was not a CEO who’s going to go chase ten different markets
and do it in a mediocre fashion, but rather focus in on three or four and do it well. And that still leaves the
others that you could go into. And I can tell you that the pharmaceutical market, there’s the food safety
market area where we’ve already done testing and passed testing with the Defense Logistics Agency in
the United States where we’d be qualified, but do we have the resources to go commercializing? And
quite frankly, we don’t. We don’t have all the resources. And that’s a little bit of a high-class problem, but
it doesn’t help us in terms of not being frustrated, which Andy mentioned. It is a little frustrating overall.
And we need that snowball to pick up.
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So, I always tell [inaudible] the employees, you know, get a little, I’m a bit bipolar, I’m going to
push back on cost but give me a reason to spend. Give me a higher ROI to spend. But I’ve only got so many
arrows in the quiver at this point. But yeah, we could definitely be growing a lot quicker than we were if
we had available, mostly marketing and sales resources, not in the R&D. I just want to be clear on that.
This is not a matter of having to develop a new product or filling the gap. This is a matter of tapping into
fertile markets
Ed Sollbach, Analyst, Spartan
You talked about, you know, that you’re optimistic growth is going to resume after the headwinds
subside, I think I heard that correct, so when do these headwinds subside? Like do you have any visibility
there in terms of when you get back on that growth horse?
Andy Duncan — President & Chief Executive Officer, Boardwalktech Software Corp.
Yeah, again, we’re focused on, Ed, and I think it’s important for people understand, we kind of feel
like we’re doing this with one hand tied behind our back. So the growth is, I think, is certainly going to pick
up, but I think it also can’t be overlooked that we are also watching expenses. And the positive movement
with regard to that over this past quarter and over the past few quarters has been, I think, significant. As
Charlie said, could we grow if we had additional sales and marketing resources? Absolutely. And so we’re
threading the needle, if you will, and trying to make sure that we’re controlling costs but also growing the
company at a rate that it would be acceptable. And we’re still not satisfied. When will these headwinds
begin to lighten up a little bit, I think we’re starting to see some movement there. And again, we do have
contracts out for signature and we’re grinding through them. And I’m hoping that we’re going to be able
to get there and start to see growth like we had a year ago.
Charlie Glavin — Chief Financial Officer, Boardwalktech Software Corp.
Yeah, Ed, I would concur with Andy. I think anybody who’s lived through the 1990s remembers the
rolling recession and this is kind of the reverse of that. You’re starting to see the release, which is why we
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felt comfortable enough saying, you know, look for announcements over the next several weeks and
several months. But the one thing we learned is we’re not going to preannounce anything at this point.
And that was the biggest factor was there were a lot of customers who wanted to move forward, but they
were also experiencing things internally. That aspect, I think, has eased, by indication of what I got on my
desk or Andy and I have on our desk right now as far as pending what to sign, finalizing last deals. It is
better than, say, August, definitely from that standpoint. But it’s not across the board. There are still some
headwinds in a couple of other areas, which has been a little surprising.
But again, the point is we haven’t lost the customers. And to Mike Steven’s point, for the most
part, it’s not people coming back and renegotiating overall. I think it’s, ah, and I’ll use this reference to
PwC, they had a survey out last beginning of the year saying there is 86% of supply chain executives who
didn’t see proof of investments they’re in there and I think what we’re seeing is people doing a belt and
suspenders more than anything else. So they agree, they see the value, they’re hearing the value from
referrals. And remember, a lot of our customers are coming in from referrals of other existing customers.
I think people are just double checking the belt and suspenders and that’s really, you know, a little
frustrating for us, but, to Andy’s point, we haven’t lost anybody who’s actually engaged with us and has
begun the negotiation or done a proof of concept. Once we get them there, they see the value and they
move forward, but the closing is just taking a little bit lon