Agilysys Inc. (NASDAQ:AGYS) Q1 2021 Earnings Conference Call - Final Transcript
Jul 28, 2020 • 04:30 pm ET
[Operator Instructions] Our first question comes from Matt VanVliet with BTIG. Your line is now open.
Yeah, hi guys. Thanks for taking the question. Well done in the quarter given the very difficult operating environment, you find yourselves in. I guess, first, you highlighted a lot of the good wins, especially with some of the newer products that you mentioned, weren't even available two years ago. Wanted to dig in there a little bit and just kind of get a sense of the bookings trends within the quarter and even into July, what level of mix are from I guess existing customers buying some of these sort of new normal social distancing elements and how much of the sort of pipeline rebuild is from those versus just sort of ongoing discussions that you had about broader POS modernization or PMS upgrades with existing customers?
Yeah, hi, thanks for the question. I mean and thanks for participating in the call. We normally monitor our sales in four categories. One is existing products where a customer buys an additional terminal or buys services, things like that where there is an existing product and there is more business around it.
Now, what we call as competitive sales is the other three categories. The first one is new logos, where a new customer signs up. The next one is a new site where a customer is already signed -- already our customer, but they go live in a new site with our product. And the third category is additional products or new products, where a site already has at least one of our products and they buy at least one other product.
Now what we have found and we were -- we have all -- we have ourselves been a bit surprised since April that the new logos business and the new logos opportunities, we are looking at is reasonably healthy, I wouldn't compare it to the peak time like last the January, February or so, but it is quite high and we were surprised by the number of new logos, number of new customers who are talking to us about system replacements. In fact, there is a seven-digit -- there is a big deal that we signed recently with the new customer. So the new customer business is doing better than we expected it would in April. That's number one.
Number two, what is really doing well for us is new products. And what we mean by new products is additional products, where a customer has one of our products and they are actually buying the other products, many of them are these new products that help with social distancing and the other current needs. And also, when they look at those products they are surprised by the -- how many things we now have to offer and then they take a look at that entire lineup, even products that are not necessarily directly related the social distancing.
Now what has not done well,