VOXX International Corp (NASDAQ:VOXX) Q1 2020 Earnings Conference Call - Final Transcript

Jul 11, 2019 • 10:00 am ET

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VOXX International Corp (NASDAQ:VOXX) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

(Operator Instructions). And our first question will come from the line of Eric Landry from BML Capital. You may begin.

Analyst
Eric Paul Landry

Good morning. Thanks.

Executive
Patrick M. Lavelle

Good morning.

Executive
C. Michael Stoehr

Morning.

Analyst
Eric Paul Landry

So the EyeLock deal that you're currently in negotiations but can't say anything, with this is -- did I hear that correctly? This is one deal?

Executive
Patrick M. Lavelle

Yeah. This is a one deal that is essentially a multi-year deal.

Analyst
Eric Paul Landry

In the healthcare space?

Executive
Patrick M. Lavelle

Yes.

Analyst
Eric Paul Landry

Okay. So the number of facilities is -- I mean, shot in the dark, is in the tens or the hundreds or thousands as far as facilities go?

Executive
Patrick M. Lavelle

I -- it could be very substantial because we're still in negotiations with the company on the final numbers and everything else. I'd like to pass on that, and hopefully come back in the third quarter.

Executive
C. Michael Stoehr

We have a nondisclosure at this time.

Executive
Patrick M. Lavelle

Yeah. We're working on a nondisclosure at this point, but...

Analyst
Eric Paul Landry

Okay. Thanks.

Executive
Patrick M. Lavelle

It is significant to our numbers.

Analyst
Eric Paul Landry

Got you. great. Okay, I thought I'd give it a shot. The inventory issue with the NXT and the EXT, is it safe to assume that the sales would have sort of been at the normal run rate in the quarter had that not happen in the couple of hundred thousand range?

Executive
Patrick M. Lavelle

A little bit higher because of the fact that we had the EXT's were all new, okay. The NXT's were being upgraded and modified to the latest software. And the EXT, which is the outdoor unit were all new, those would have been our first shipments. So we were anticipating a higher run rate than last year on the hardware sales.

Analyst
Eric Paul Landry

Okay. And on the vending machine, you mentioned that it was a manufacturing issue. I just want to make clear that there hasn't been any sort of adjustment on the number, the initial forecast has -- is still intact as far as the eventual number of those things in the market?

Executive
Patrick M. Lavelle

Yeah. This was a launch for them. They wanted to make sure that it's a very expensive machine, and they wanted to make sure that everything was right. So the launch was scheduled for the first quarter. They didn't make it in, but they are now shipping product. And not only are they -- they are quite bullish about the number of units that they're going to be able to build. They think their biggest hold back right now is the ramping up to the numbers that they have.

Analyst
Eric Paul Landry

I got you. Okay. Shifting gears here a little bit, was there any key product True Wireless revenue in the May quarter?

Executive
Patrick M. Lavelle

No.

Analyst
Eric Paul Landry

Okay. I'm assuming that, that is starting to shift this quarter if it hasn't already?

Executive
Patrick M. Lavelle

Yes. It started this month, yes. And we're getting rave reviews on the True Wireless.

Analyst
Eric Paul Landry

Believe me, I've read them. Great. Is that a product that we can assume is at the segment margin?

Executive
Patrick M. Lavelle

Yes. You can assume that, yes.

Analyst
Eric Paul Landry

Great. And is that going to be on Tmall?

Executive
Patrick M. Lavelle

Yes. Those are