Wireless Telecom Group Inc. (NYSE MKT:WTT) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 08:30 am ET


Wireless Telecom Group Inc. (NYSE MKT:WTT) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Q2 Earnings Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Mike Kandell. Sir, the floor is yours.

Michael Kandell

Thanks, Paul. Good morning, everyone, and thank you for joining us for our second quarter 2019 earnings call.

Before we begin, I would like to remind everyone on the call that our remarks today could include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. The Company's forward-looking statements are based on management's current expectations and assumptions regarding the Company's business and performance, the economy and other future conditions and forecasts of future events, circumstances and results.

Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Important factors that could cause the Company's actual results to differ materially from those in its forward-looking statements include those risk factors set forth in the Company's annual report on Form 10-K filed with the SEC. The Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of anticipated events or otherwise.

Also, we want to point out that in addition to GAAP information, we will provide information relating to certain non-GAAP measures. We believe that presenting these non-GAAP or adjusted measures provides additional meaningful information to investors, which reflect how management views the business. Detailed reconciliations of non-GAAP measures to GAAP measures are set forth in a reconciliation table in our press release issued earlier this morning and furnished with the Form 8-K filed this morning with the SEC.

I will now turn the call over to Tim Whelan, our Chief Executive Officer.

Timothy Whelan

Thank you, Mike. Good morning, everyone and thank you for joining us.

Our Q2 results were as expected, and a slight improvement on the same quarter of 2018, driven by our Embedded Solutions business where we continue to see high volumes of hardware cards. We are pleased with our first half results, which reflect higher revenues in Network Solutions and Embedded Solutions, offset by lower revenue in Test and Measurement. We expect to see improvements in Test and Measurement revenue in the second half. Our results are also very consistent with our budget plan coming into the year and consistent with our expectation that 2019 will see more revenue growth opportunity in the second half of the year. Mike will provide further color on the financials in just a bit.

On a strategic and operational level, we are exceptionally pleased with our R&D and product accomplishments in the first half, which we view as drivers to future longer-term growth opportunities, and you will note our increases in R&D of approximately 30% for the first half of the year as compared to last year. These R&D investments are focused on