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PWFL PowerFleet

Participants
Chris Wolfe Chief Executive Officer
Ned Mavrommatis Chief Financial Officer
Mike Walkley Canaccord Genuity
Jaeson Schmidt Lake Street
Scott Searle Roth Capital
Gary Prestopino Barrington
Glenn Mattson Ladenburg
Call transcript
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Operator

Good morning. Welcome to PowerFleet’s Second Quarter 2020 Conference Call.

Joining us for today’s presentation is the company’s CEO, Chris Wolfe; and CFO, Ned Mavrommatis.

Following their remarks, we will open the call for questions.

Before we begin, I would like to provide PowerFleet’s Safe Harbor statement that includes cautions regarding forward-looking statements made during this call.

will future statements financial there events, regarding call, PowerFleet’s including performance. the be made forward-looking future During All statements future other offering other business for include forward-looking financial any growth, than considered anticipated industry strategy, present and regarding position, the expectations statements. company’s trends historical competitive the demand position, are plans regarding of for and for results operations, company’s future statements anticipated operation, facts, opportunities which product company’s for to, statements beyond. XXXX but expectations not company’s Such and limited the include, financial are All the such the imply presence of many of risks, contingencies, forward-looking statements uncertainties which company’s and are beyond control. The in may differ any actual materially assumed performance statement. or projected company’s or forward-looking results, from achievements those and to materially the the actual that for amongst competitive business company’s cause products Factors and economic position. emergence cash could and conditions, differ technologies could of new services, demand others, results include, factors, company’s overall SEC filings, duty to The undertake to any any company circumstances. or update events statements not does future to forward-looking intend reflect

like would in the I replay this website the section of be Relations at for to company’s will that Finally, available Investor made remind everyone www.powerfleet.com. call

Now Chris Sir, proceed. I over the turn Wolfe. please CEO, PowerFleet’s would to to like Mr. call

Chris Wolfe

everyone you doing crazy Good and the you, and Thank managing stay I safe are months. to PowerFleet’s joining challenging business well safe and operating staying thank morning, today. us hope over Prasila. these five effectively. is and for past global employees

$X.X up the with of services especially million subscriber delivered performance $XX.X results intact subscription and recurring Our EBITDA revenue steady line well. quarter top bottom this, base considering revenues presented and adjusted headwinds and with by and On XXX,XXX second solid, was holding and Nonetheless, remained of top extremely for challenges our COVID-XX. we the million. of

of customers work and I to proud our results also our X,XXX our safely remarkable and be team They our continue operate this today’s role technology unwavering job remote time. profitability. challenges meet improve reflect business executing more structure rightsize ability a financial given plan cost environment. they’re commitment environment. objectives our quickly partners to the critical and showed unprecedented PowerFleet’s and more doing globally of team’s during also revised Our our to to team’s our challenging effective helping customers a incredibly this in than against our be plays to

not comprised such will base ensure General who as timely flowing world, of Mills customer and that chain customers to Our Procter PowerFleet markets. Gamble, to supply companies like the is manner. technology are our challenged our a & of all April end in our in their May on businesses to Walmart, uninterrupted to and largest Nestlé, the some COVID. a and name the our remains destinations business, goods few, and has rely global been really immune

million-dollar several secure to able quarter. the were we However, in opportunities

the prior cost-saving implemented EBITDA $X was cost adjusted lower. where providing and initiatives line compared Additionally, leverage to quarter, This March the more QX, significantly growth. $X.X we as in QX to late structure, million our we bottom by in drive the revenue early April we in improved being saw numerous improved case revenue certainly despite our our million

As offering you equity at at-market this and our our allows us terminate to capital will see, position results time. our

highlights will turn up the our of cover our Afterwards, the open we’ll sales meeting outlook. overview over Ned, Ned? recent questions. I’ll to call results. and I’ll an who for Now operational provide this financial Then in and

Ned Mavrommatis

everyone. good Chris, Thank you, and morning,

results includes Systems. Telocation Systems ago financial period and we of from Pointer Our the include Ltd., for October the Keep I.D. XXXX. XXXX year mind results quarter financial both stand-alone second that results X, acquired I.D. on only for which in consolidated comparable

ago million QX XX% year XX% XX% compared ago from million last to last revenue million QX of XX% revenue total of qualifications, second total with which total $XX quarter or increased was to $X.X million from XXXX recurring the of revenue, compared XX% revenue to total or of services total XX% High-margin the $XX.X $XX.X for Now Revenue $X.X or of Product million future period. million increased Gross same $XX.X and to was service revenue of of those year. revenue, period. of or in the year revenue numbers. or in at $XX.X revenue drives same profit million of let’s revenue or look million total in year. $X.X the in

$X.X year. $XX.X expenses Now were in second our to last compared QX Total to million of expenses operating million turning for the XXXX. quarter of

versus selling, Looking and at of Research to year. in development in expenses of OpEx second compared of $X.X period. were non in of same QX million Depreciation QX $X.X last $X.X amortization expenses were and of the compared compared of to million million million to million expenses various ago year $XXX,XXX $XX.X $X XXXX components XXXX. included in million QX expenses the year. $X.X acquisition-related were last WebUX, the general quarter administrative and in

quarter. in cost-saving million to we COVID-XX, XX% quarter about which from March, end the in was the benefit QX. see we from The or measures, of on our at last began down proactively the the to As $XX.X WebUX second response talked of – prior call million $X.X in implemented several

the situation levers costs should further worsens. with We have COVID to additional reduce pull to

diluted improvement taxes, earnings as items totaled net Adjusted loss $X.X million define profitability compares to the total XXXX compensation non-recurring loss of $X.X an we quarter GAAP Turning EBITDA net and depreciation, $X.X $X.XX per adjusted of or of million in of and for million basic amortization, or GAAP or revenue. our This the from to $X.XX which $XXX,XXX basic QX last of is in second metric, before last second share. quarter for stock-based totaled and year. diluted share interest, This $X.XX of year. per measures. EBITDA, XXXX non-GAAP a of QX

cash million Our and liquidity cash $XX.X equivalents end position remained $XX.X of of in capital had strong. and QX, At working million. the we

termination initiated the process As with on August on Chris mentioned, ATM August facility XXXX, X, XXXX. termination our XX-day of XX, official effect take to we the

shares, facility. date, in we shares To sold will We $X.X the proceeds. further under no XXX,XXX raising gross make sales approximately ATM million of

expect high use to interest down ATM facility the rate debt. for proceeds to the We pay

to I’m to focus capital customer Chris? of comparable uncertain Our my concludes navigate be base, collections. management times. the million XXXX. we from in will our these and ended operations high-margin we report help in for approach predictable on XXXX, believe continues to encouraged successfully diversified prudent $X.X ensure That summary, six from operations, that revenue recurring is months us In the improvement cash period an prepared remarks. used cash million generated and working management the $X.X XX, we June which

Chris Wolfe

Thanks, Ned.

While logistics see and our most selected for up businesses business beginning we in world, encouraged Ruskin also and new location of was We to freight the impacted June, in customer signed U.S. This including its private that help the pick trailers. QX. has of to were solar business activity continued to not camera significant in in early QX, solution load QX, only like Packaging. tracking several our and in status fleet but deals maintain visibility around

unmatched asset super the service capacitors Our solution panels, tracking first for long-lasting event solar leveraging visibility. multi-powered batteries primary life and industry’s LV-XXX and critical is solution, tracking

our more freight logistics units. QX of Ross, This PowerFleet signed began our units and and was for in QX. $X of very is will largest was large we margin. segment, large high-end cam. Day a valued million fleets total industrial versus wide the has at shipping $X solution July. did by we selected which shipping customer the logistics a we LV-XXX scored than signed This our evaluation agreement shipping tracking also who of Canada’s a be solutions provider in extensive industrial The PowerFleet our began The sites. QX one & opportunity in two in recent million, highest win our implemented win Another competitors, been solution very In at technology because fully company product enterprise our notable a very and

and QX We additional in and implement sites plan six in progress five have QX. to sites

the this by encouraged of We’re progression development.

in QX. a visiting all you four-week on moratorium know, we their As had plants

exceed Jungheinrich with continues to partnership Our expectations.

took and Jungheinrich this more of the XX% Because year momentum, of units this in than contracted expanded the partnership. in agreement. extended we fact, In originally first July,

the on Based North America our telemetry management cost-effective logistics Europe. to now more industrial develop helping their us top market is to customers success, highly intra in a we truck safer, tapped expand Jungheinrich operations. EMEA sophisticated in partnership four the company, platform Jungheinrich, mid-XXXX, to for run integrated software their are newer by and fleet penetration those with For enabling who industrial a OEM, in combined vehicles,

pick up Israel Jungheinrich’s core to we’ve Cat team successful working really work is making enjoyed to IoT connected monitored of this, there MDA, this building North equally have of being We team Internationally, our deploying with affiliated we and our our look solutions. pre-COVID near seen with remote business defibrillators. American thousands vehicle partnership, management in Mitsubishi top our non-fleet forward America. levels. business is On Jungheinrich are progress, response up of An in emergency of example significant organization, Israeli whom an with

up Rica our non-fleet are first been division This XXX,XXX with in a Red exceptionally solutions and manufacturers. the signed proud million Recently, $X to over French opportunity X,XXX COVID in for in several medical-related by revenue support is efforts Cellocator IoT is Another monitoring its generate Africa our have to humanitarian temperature Costa valve units. and monitoring their and around management Cross bidding example of deal potential solutions selected and totaling we to tenders food Ebola the shipments. global our for over to proof-of-concept on has annual potential successful units,

our partner, about COVID impacted longstanding QX. in call, talked was I by As in greatly QX our Avis

several rightsizing with months, their in working to them fleet. efforts support last the Over been their we’ve

and as open online. seen uptick states have bring people started vehicle in they more slowly traveling we’ve Avis an activity As automobile, are vehicles to by back

to and COVID, moving still continue are the largest of car are been and engaged business forward conversations due looking rental to stabilizes. the still when And forward companies. one has when forward delayed – world’s to project the moving Additionally, forward engaged their we looking we with although business

umbrella. solution global past software other is OEM a as also agnostic, fleets demoing large of to an under rental allowing platform platform connect and This OEM are the platform integrating months. mixed combined one their We rental our outcome car company. is over rental Avis Avis our car manage and view visibility for several the both car Pointer’s companies to and This our fleet

conditions July, the will While well it to how and in in COVID impacted U.S. predict political we the by and business our as in certainly June of near-term. the nature makes as the various geographies improved hard encouraged are be unrest business erratic in social

expand. and robust remains pipeline our continues to However,

around activities have not states Pointer synergies further several integration being lost, business go suspended targeted as our are major are October our or by our countries We cost proceeding, to of you Telocation see software and of as savings bill processes. when business consolidate consolidate and cost but been delayed, acquisition optimize realized, consolidate Future and have are seen last canceled software-as-a-service materials pending we work. deals back or licenses, get platforms, being in revival can XXXX and XXXX results. our Acquisition-related

While pointed out. operate of by plan, our to strength our also foundation, according continues our post-COVID are encouraged Ned the business financial to we as

structure, normal We I and of with that, robust a ready call economic in open as appropriate $XX we position asset gives fleet powerful one to the Operator, very ability position your the most activity. important our accelerate said, global world’s new cost for optimized are things. than cash million, Our our we along confident as With that please provide we’re on companies IoT and management. growth to questions. And us to of extend instructions. our when in poised business confidence remain more achieve focused

Operator

take first today Genuity. And [Operator with we’ll Instructions] Walkley our Mike Canaccord from question

Your line is open.

Mike Walkley

customers? open is, Hey, improve just everybody how today. think and might not taking Chris, as reach July. and quarter? sound able Can you’re like of providing but things the the some my me question hardware linearity I is you us for and on you’re June install And for about it up, maybe things Hope help your to questions. shipments as of in does doing well guidance, the healthy improved first know thanks call

Chris Wolfe

going as stated, election some over – I I unrest, As and the the schools uncertainty think and November, think there’s social we’ve be what’s uptick the to mentioned, until board still seen in And actually business. because I the the I political COVID of the going It’s in hard, though, is across opening. also uncertainty. globally, then really with

is hate can So like engaging. say way there’s will to I’d something that I and that I what out step really predict. can be – But are no say customers it –

doing field and couldn’t installs mentioned I logistics plants, there their as company number in Israel. example in year-over-year that at did the even we’re were that which in And We’re Israel is Actually as that, actually out implementations. sales into exceeded. in doing of of – QX. also a large great actually get mentioned, – July, I we

there’s great get to of want just don’t again, I So points excitement, too but exuberant.

Mike Walkley

then No the again, Great. job cost a results. structure And Ned, on that’s fair. great and line better-than-expected bottom the overall,

the of basis, about think a quarter, full about the back sequential if half just year. kind these given reductions of could Or throughout of down think should to OpEx trend you for the on some us with rate just Just of it we synergies run and reductions? OpEx? some a how Is going again quarter of the an realized help

Ned Mavrommatis

similar to going is Mike. to QX. run Thanks, rate The be

we do for expect to don’t need we stay the of we remainder – the have So unless we to, because but reductions expect we – we year. flat don’t believe further OpEx

Mike Walkley

Great. pass me, And and on. question it for last I’ll

just of industries? the the did you struggled the customers with you industries are maybe where if you’re then seeing markets, or Just like with And trends back some on working customer good maybe maybe other some services business your of declines some base? how those come see sticky end where Avis and

Chris Wolfe

like for some than I’ll Chris. payments or that did hit revenue customers wasn’t In others, some growth. our discounts. yes, basically year-over-year But way, is probably that. call, recurring dip what we Again, in I was by services their a geographies in harder This Mexico, by postponing bigger our, there. the forgiveness In take Brazil, we have nature. were asking it actually saw or material any it were that

plan. of COVID, actually which So think by doing even year’s with just interesting, is Mexico Same over hard kind last XX% though they’re well. is Argentina. hit alone phenomenally I I they’re mean

we’re really globe. discounting So hit by recurring in Avis, and downsize. revenue on say their somewhat fleets a our U.S., I’d helping the working biggest with around is again, where we’re it’s impact miss the what their while them

for Now come unit, bill watch every month-by-month give we we that as being back said, units as just online. still a discount we their them

a we on that, and of fact, work a almost with weekly – matter as So on basis. Avis

material, So and customers a ask again, been it’s – nothing been it’s if case-by-case and for just to come has us basis assistance.

Mike Walkley

Great. questions. Thanks for my taking

Chris Wolfe

Yes. Thanks, Mike.

Operator

with Lake our today from next question take Jaeson And we’ll Schmidt Street.

open. is line Your

Jaeson Schmidt

for questions. Hey guys, my thanks taking

providing the improvement that Mike’s I you is Just questions. following up on to part just one but given for you of QX, the the saw sort later QX not know in of you’re year the be are bottom though? guidance, of confident fairly going

Chris Wolfe

But you’ll uncertainty see get would out out don’t of need for worse getting possible If think ever QX I we has mean because, market. can don’t is with. I over could know keep can’t don’t improve don’t happen. weird I actually mean to that the step again, think in we some the actually again, – anticipating. worst the of just it QX. even know I – worse economies we’re I not it comeback in thing what momentum some I I see the getting – stabilize again, to COVID unless, it the doesn’t stabilized, improve election and I get us there. the

Jaeson Schmidt

And direction seeing you’re engaging the any if Okay. either of in size That’s customers you’re on? then change helpful. just the deals curious in

Chris Wolfe

think across think I the matters. board, acquisition Cellocator, great of a because question size our That’s and Pointer I with

company. in as million, of over tenders year much would If Cellocator, say now million a I we are And Systems, you the the and mentioned, size on a I.D. think XXX,XXX ago, number about combined, around with of it we’re year. those that participating tenders, were that And I we vehicles. a as going $XX $XX-something larger

past – one’s out Some they’ve of expenditures, their just it’s quite some large. Industrial canceled pushed that several side, the I’ve – that mentioned those I us tenders capital That’s are we there, those. opportunities no Truck are pushing are large accounts on our some because have but are Cellocator. getting strategic told mean in

our on has industry. Ross, size the in they I seeing I is significantly. – has & would deals & when Day Ross like the of Day we’re in improving. again, the the people brought accounts, us actually traction the So increased even that pipeline those hit say know other think again, deals the And And Street,

So see success. I we’re again, to starting that. breeds And think success

Jaeson Schmidt

Okay. nicely Is this And in going the sustained a jump last margin new gross back queue. about rebounded one should of for sort how and Ned, we me, I’ll Services think in margin the level? forward? QX. gross

Ned Mavrommatis

of initiatives. Yes, especially due as the to well on some merger integration our as is the cost-saving service, this – the of the

to gross down, obviously, in be place, a of improvement up can makes service The you to the points either this put in case, gross line the product margin. the margins we couple expect product at depending margin in and continue that see which fluctuate we initiatives up the But So level. gross revenue. on obviously, the

Jaeson Schmidt

lot a Thanks guys. right. All

Chris Wolfe

Thanks, Jaeson.

Operator

And next Capital. we’ll with Scott Searle question take our from Roth

open. line Your is

Scott Searle

Thanks Hey, taking for good questions. my morning.

on quickly the good I Pointer there? sounds in, margins To lower gross it of is Jaeson’s margins follow-up in. anything product to Just gross going question margin but some front. had that mix, in on like a very know Ned, was quarter. else there gross had dive

So heard things benefit sure in the that? kind line. Is that of being team’s a should level expecting, rectified installation we of not equal? on the there have Is as if you all there? And normalized anything well, onetime some I be I’m time

weeks. couple is? an them I you you talked out a quarter, then that us update about had last being follow-ups. Could think several of And give I booked where

Ned Mavrommatis

being the But the – product big talk about the integrated and definitely, installation Chris margin. Scott, the then gross product gross I’ll margin, a on about and acquisition had team. the vertically Sure. benefit talk can

companies, margin. lines thing, gross that product product impact combined integrate – margins company the have our the we the on as and that’s And an gross the profile. gross we business margin benefits because have mix has different So continue that to different second product

So is for the a example, our Industrial in product U.S. Truck business. very high business margin

business quarter, see that during the product higher. you the when is could So be margin strong

Chris Wolfe

field take installers. the I’ll And Okay.

Just approach. train so trainer everyone have knows, a call, own, actually our we what we

So And mean way, they’re now. by installation the with not exact who well QX I’d we I right field they’re field fact, date, through don’t of of installers. we as fully but the those I a phenomenal, I accordion have engineers, probably some our installers They’re of fully And matter the certified several booked. And out engaged third-party we group just are as now, that booked I know a booked capabilities installers. say, right active. fully and they’re have because have of deals mentioned earlier. of

Scott Searle

Got get we you. share as be you It and to that follow-up into expansion relationship. the that Jungheinrich. into are can And outside the shipped? Heinrich expecting other what of that maybe I to right, Jungheinrich some XXXX, you Europe. would XXXX? of – units kind big annual opportunity of on an Great. rate of be Chris, see you. attach to mean How relative Thank takes It’s nice markets, and

Chris Wolfe

minimum X,XXX I concern remember, giving I with don’t a this have mean we opportunity. the the on phenomenally signed Again, year. for – a way, it’s contractual you of bullish like taking a units we’re number by people

They’re taking just multimillion-dollar for took the last opportunity else everybody even COVID that’s than is especially, So year. like year. globally they XX% kept last impacted COVID. And more us a through turndown. They that with

said America That bring there. hesitant. is they I’m did affiliated of where Mitsubishi being us Cat they of mentioned, are and kind I because into, that’s So

Cat the here in will to and brand-new dealer as organization us, channel states, here our So well. that’s states the selling that a complement in the Mitsubishi for sales

if – it’s I rate, pace their this So in growth it’s I opportunity. stay at it’s they a like can phenomenal – would think say

build that the part times, everyone is COVID needs our become to again, XXX,XXX built Now but to keep said, And they Jungheinrich mind, process. obviously about a in of builds, year. being in not the forklifts goal

what them our we doing we’re overall on versus if to So today. substantial of just working with on get maps see that build piece with and a we’re next-generation working can them road that

Scott Searle

And lastly, could. I if

delayed, at rate looking talked give if one least about up there that You second Like of half, I’m sound like representing, bid you where front. away, a your win if second but the the us thoroughly year. were came upside what of we’re potential evaluated, think, in are lot competitive really is about for? looking or competitive the doesn’t opportunities landscape was were they’re lot I larger It half could potentially an ahead you of a at wondering there. idea this going possibly

So going how thank about refresh kind terms you would thinking you. be helpful. of Great, forward? win That you’re your us could rate of in

Chris Wolfe

Yes. Thanks.

Truck that market. Our it connected what the whether obviously, win rate by there or car various are because – it’s competitors different in we varies geography, I vehicle market we’re our Logistics, by mean, varies in call markets, our Industrial

just Just analyst have in in I device – Industrial Switzerland investors if know Truck don’t leader new word, management. are we actually call, the of uses we us, joined have the what side, we that the another market the

OEM. And and our core neutral, we play in every over every basically a vertical. across DNA of fact, that is matter We’re

doesn’t Jungheinrich, it fleets you’re you’re if class homogenous. The with cars, your industrial we make pickup It same to vehicle. Toyota. one et every Raymond, basically run trucks. whether trucks, doesn’t We across a matter five So matter cetera,

it’s side, we very The space. we XX% So win over run multiple truck types a probably the every equipment. In in the competitive every side, of of issue Truck of type Logistics the there and that type Industrial is chassis of deals have container. again, trailer

And big of But so it’s good. very wins share is getting we’re a which our there. market,

head and I now, our XX% heads. so I blend. top, poised we’re think And it’s on think time product out a again, of with come probably to right – the portfolio on to But

Scott Searle

Thank you.

Chris Wolfe

Okay.

Operator

take And Barrington. with Prestopino Gary our from question today next we’ll

open. is line Your

Gary Prestopino

everyone. Hi, good morning,

Chris Wolfe

Hi, Gary.

Gary Prestopino

questions but – it’s book refresh an idea Or signed how your you do with revenues, just could your you when of get I on contract? my been when a installed? have Most memory, to that product answered, it’s want

Ned Mavrommatis

it’s Gary, shipped it’s product The when and title transfers. revenues Ned.

Gary Prestopino

Okay.

assumption next or basically – at is it be Would for the quarters things in X.X bad of couple is the that the quarter month, that next could for were assume quarter. that that down least – a the shut we product months sequentially? could down Or the assumption? portend that a revenues making So or

Ned Mavrommatis

a We activity think Obviously, I quarter. shutdown up I the June. order second is it of biggest saw assumption. mean, bad pick obviously, the no, was, in during the beginning

We haven’t seen third being in anything shut down the quarter.

So we don’t why it see down. would reason be any

Gary Prestopino

Yes, okay. All what get wanted it. right, I appreciate you, That’s it. thanks. guys. to Thank I

Chris Wolfe

Gary. Thanks,

Ned Mavrommatis

Welcome.

Operator

Glenn And Mattson we next will go with Ladenburg. to

Your line is open.

Glenn Mattson

on building question from and things Yes, that. another Hi. earlier about the win like rate

able you competition some to deal are in – pricing curious the or able you’re Just any hold there’s on if to – I’m firm if going recent activity? price of deal’s

Chris Wolfe

Good question.

geography it, and varies again, the think I market. also by by

competitive. through go So is, our is product feature money thing think I for good prop to better. the set just value and logistics, very The

But So a again, space. a it’s can we usually very premium. demand competitive

Industrial OEMs. So management as Truck area fleet are premium. we we are compete The The to able have we multi-OEM things we mentioned, do hold the in more space, against – to – compete competitive. actually OEM provider. the I price, logistics a We premier are but on

and subsidize but on telemetry they care be equipment of Jungheinrich one on honest it Raymond’s. then any vehicle, telemetry don’t Crown’s product their and So multiple types good on have that, another equipment to if doesn’t have they with about product do you can really to you, the because customers

can’t a that You work way facility. in

set. we It’s the competitive can honestly when that’s say quality and customer but environment the that. side. side, industrial, our them. vehicle, the gets will a that – and think multi-OEM way vehicle highest I It’s the prices way more. smaller that of customers by in the set keeps And product and the quality And pricing. day. on again, the hold your we when day product And I our end the attention, say board wins I win. buying our in at space, out have and for I treat our think get helps back our the – the side we that up quality them very us So that’s way, a like across the uphold – head-to-head The feature People quality well. rental figure fairly we then can the feature coming car how another a service and we’re in our

Glenn Mattson

maybe than you’re some Okay. much broad you Thanks. us large more to very your on used dispersion, not it’s to still Chris, that company post you’re a give compared acquisition. just but geographic footprint color you And a And let’s be, can the bigger geographic now – say.

sort of that? could possibility you get you somewhere the or like happening the as it So in just of you is there how south like or with dispersed. here, and Thanks. that? there wherever. regions of in get down shut could risk Middle flare-ups is use Just whether of give some the you geographically business challenges or the about being about – perhaps, – with – it be the stuck can inventory you else America the talk the just – logistically, so us all you challenges one color part of just or world U.S. Can in East where time, the manage And the thinking can things

Chris Wolfe

Yes.

everyone’s we – Qualcomm. so run we were to prior Just all life, I Antarctica. on even were we had a again, And in division, my division of doing continents. used Literally, business aware, in that

seasoned it’s matter of a team. management foreign it’s something have to myself. So And not phenomenally that I fact, a

is their very think safe. best enough also again, have health seasoned with to give inventory. mature, my very being advantage They all worked we had of They ministries career. the enough do I very management employees will The I people. keep global geographies team only I’ve making what said, whole the my and help we their I government taking are are CEOs them as those running cannot local professional. well sure accolades. That don’t are in – as team

we’ve keep the done about two to some and of quarters local – this is inventory is at extent, always goal Our to level.

the by obviously, over shut so because, And way, our down. has inventory things increased

surviving, over that increasing probably geography, for So the our we’ll activity. use It that areas going growing There’s of mentioned Brazil. that stopping. nothing some we we actually would they’ve thing as good using though inventory inventory. and too, see it’s next down, even some two any it’s search earlier, right? had this keeps don’t for deals year-over-year, again, I the But to And is in have potential even, say, some is COVID, that’s time, hit it the the it’s stock, didn’t though I But is. get not the mentioned, – and up same contribution actually the And at in the business business a I’d by it’s people So level its hardest Israel, in. – at actually, pandemic, come large better. even But we start was I as safety quarters And of enough these worse. activity see resurgence is indicate us stabilized. we to say,

leadership geography. So the I other questions? each without in Any couldn’t do this

Operator

This back you. for Thank call to No. you, closing session. conclude the question-and-answer I’ll turn does our Chris, remarks.

Chris Wolfe

Capital you. and XX; Genuity be the Thank XX; you September the QX. and Investor Xth September Jefferies Virtual XX. calendar today, for August XX; us I Canaccord Ned very we a virtually during Okay. Conference attending Thank and IR BIGX September active the will Annual have joining the Fall Street Barrington Market’s XX conference, Gateway Conference, X; September Lake Conference, Software and Conference, Research the

time at section for we website. you. details of Investor again, Thank We Please and will speaking again and some our which the in you today. update these giving look to the conferences, will Relations presentations of your Thank forward an stay you, be webcasting safe, soon. our be of

Operator

for our you today Thank us presentation. joining for

You disconnect. may now