exiting CC https://www.baylintech.com/earnings-call-audio-recording-baylin-technologies-inc-fourth-quarter-2020-earnings-call-on-march-11-2021/
Randy Dewey – President and Chief Executive Officer, Baylin Technologies, Inc.
Thank you, Daniel. Despite the ongoing challenges we are navigating through, we have started to see some very promising signs: a healthy pick-up in our backlog and positive momentum in the form of projects delays that are now moving forward. We are more optimistic about a more robust return starting in the second quarter. Our order backlog is building in all four business units. Cellular stores are reopening in North America and soon in Europe. Cruise ship activity has picked up and demand for our Satcom products is now increasing. In January, in fact, Satcom had its highest order booking in the past three years. Planning for stadium cellular upgrade programs which were delayed in 2020 have now commenced, and Infrastructure had their best week in bookings since 2019.
In addition to the completion of the C-band auctions in December, which is also a very important step forward for us, we are starting to see a pick-up in capital spending amongst the U.S. wireless carriers with the final piece of the 5G puzzle now put in place.
While all these positive developments are expected to improve financial results starting in the second quarter, the pandemic, of course, continues to impact operations in the fourth quarter of 2020, which resulted in lower than forecasted revenue and profitability. We expect this to continue into the first quarter of 2021, in particular Infrastructure Products and Satcom product revenues have been lower than expectations while the C-band auction was finalizing. A delay in finishing our massive MIMO factory in Vietnam due to travel restrictions continues to stretch out the timing of the start of revenue until the second half of 2021.
Airline and marine travel industries have obviously felt (phon) significantly as an industry which had an impact on our business as well. This had a direct temporary impact on Satcom product revenue. In addition, despite recent cellular store reopening, the fourth quarter COVID-19 lockdowns in Europe impacted cellular sales, resulting in significantly lower sales volumes and delayed the new model launches. We have not lost any customers or orders, but the softer period as affected the business on a short-term basis. Our focus continues to be on securing new orders and long-term contracts while continuing to implement the cost saving initiatives that commenced in the fourth quarter of 2020.
https://www.baylintech.com/earnings-call-audio-recording-baylin-technologies-inc-fourth-quarter-2020-earnings-call-on-march-11-2021/