Teligent, Inc. (NASDAQ:TLGT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 04:30 pm ET


Teligent, Inc. (NASDAQ:TLGT) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to the Teligent, Inc. Third Quarter 2019 Results Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will a question and answer session. [Operator Instructions]

Except for historical facts, the statements in this presentation, as well as oral statements or other written statements made or to be made by Teligent, Inc. are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties.

For example, without limitation, statements about the Company's anticipated growth and future operations, the current or expected market size for its products, the success of current or future product offerings and the research and development efforts and the Company's ability to file for and obtain U.S. Food and Drug Administration, FDA, approvals for future products are forward-looking statements.

Forward-looking statements are merely the Company's current predictions of future events. The statements are inherently uncertain and actual results could differ materially from the statements made herein. There is no assurance that the Company will achieve the sales levels that will make its operations profitable or that FDA filings and approvals will be completed and obtained as anticipated.

For a description of additional risks and uncertainties, please refer to the Company's filings with the Securities and Exchange Commission, including its latest annual report on Form 10-K and its latest quarterly reports on Form 10-Q. The Company assumes no obligation to update its forward-looking statements to reflect new information and developments.

I would now like to hand the conference over to your speaker today, Jason Grenfell-Gardner, President and CEO. Thank you and please go ahead, sir.

Jason Grenfell-Gardner

Thank you, Chris, and good afternoon, ladies and gentlemen. Welcome to the Teligent business update covering the third quarter 2019. I am Jason Grenfell-Gardner, the President and CEO of Teligent and I'm joined today by Damian Finio, our Chief Financial Officer. Thank you for joining us this afternoon.

I'll be providing you an update on the core elements of our business and the latest on our development plans. Damian will then provide a more detailed breakout of our financial performance for the third quarter of 2019.

Today, we announced solid results for the third quarter that showed continued performance in our base business with revenue for the quarter of $18.5 million. The gross margin for the quarter was also consistent with our expectations based on the mix of customers at 39.4%. Year-to-date, our gross margin of 43% is tracking slightly ahead of our guidance for the year.

Our focus as in prior quarters has been to drive profitability on an adjusted EBITDA basis in the business. We're pleased to note the progress on this with adjusted EBITDA for the quarter of $2.1 million, evidencing our continued efforts to drive margin and control costs.

The improvement of inventory positions in Canada, recorded on our last earnings call helps drive strong revenue in our international operations of $5.1 million. These inventory