VTSI A few notes from call
Looks like they bent backwards to do a good on the military contract, so that hurt their bottom line.
Not long to wait for next sets of results:
Q1 results out by Aug 12th
Q2 results out by Aug 19th
It sounded like they plan to have a conference call for these also.
Margins were lower mainly caused by pursuit of military customer.
CEO likened it to paid R&D.
2022 gross margins to improve. Military project largely complete in 2021.
Questions:
Someone asked a question about their space in Orlando
Ans:
CEO says that is the acquisition center where all the buyers are located.
All those acquisition officers are there and can come into the office there.
Regarding their technology he said that some is as the industry has and much is tech they don't have.
Law enforcement. Untapped market for this product.
Supply chain headwinds?
COVID and supply chain did hurt in 2021 in some places. Especially scheduling of when Virtra was ready versus customer was ready.
GA jumped $400K, how much to ERP?
Quite a bit of one-time impact in that quarter. Sounds like that should not be present in Q1 and Q2 results.
NDA signed on military contract so couldn't say much about the military contract. Good in positioning for future work.
Canadian market:
Virtra was winner previously of a contract in Canada. Canada could have awarded to more customers but only selected them. First order has come in. Not alot of press release. Standing offer and unique opportunity, criss-crosses every non-military across Canada. Really good future for that they are working hard on.