Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Liquidmetal Technologies Inc (LQMT, Financial) ended the year with approximately $24 million in liquid cash and investments, indicating strong liquidity.
- The company has no debt and no going concern issues, as confirmed by auditors.
- Partnership with Eontec provides access to advanced manufacturing technology and global experience.
- Recent prototype orders in health monitoring, surgical robots, and eyewear industries indicate progress in sales efforts.
- The company is strategically focusing on high-volume, large-scale customers to create long-term revenue streams.
Negative Points
- The company reported a net loss of $2.4 million for the fiscal year 2022.
- Revenue for 2022 was only $380,000, indicating slow financial growth.
- Sales cycles are lengthy, especially with large-scale customers, delaying revenue realization.
- The company has faced historical challenges in scaling manufacturing operations.
- There is no current plan to establish manufacturing operations in the U.S., which may limit flexibility.
Q & A Highlights
Q: What is the current state of Liquidmetal Technologies' technology and why have there been delays in revenue growth?
A: Tony Chung, CEO, explained that the company has faced several challenges over the years, including early manufacturing issues and cash constraints. However, with the investment from Mr. Lugee Li and the partnership with Eontec, the company has positioned itself to execute its original vision. The focus is now on large-scale customers, which have longer sales cycles, but the company is also working with smaller companies for quicker opportunities.
Q: Where is Liquidmetal Technologies with sales efforts?
A: Tony Chung stated that post-pandemic, the company relaunched its sales and business development efforts, targeting large-scale customers in industries like medical devices. While these customers have long sales cycles, the company is also engaging with smaller, more nimble companies. Recent prototype orders have been received in the health monitoring, surgical robots, and eyewear industries.
Q: What is the status of the recent Golf license agreement?
A: The company has signed a non-exclusive license agreement with ATJ Technologies to develop amorphous alloy technology for golf applications. Liquidmetal is also in discussions with a major U.S. golf company to explore new alloys for golf. The aim is to produce and market a second generation of Liquidmetal-branded golf clubs.
Q: Will Liquidmetal Technologies have manufacturing in the U.S. or elsewhere?
A: According to Tony Chung, there are no immediate plans for additional manufacturing capacity in the U.S. or elsewhere. The current operations, with a U.S. team and a Chinese manufacturing partner, are deemed sufficient. However, a second source of manufacturing will be considered when high-volume production becomes necessary.
Q: Why doesn't Liquidmetal Technologies have more company announcements?
A: Tony Chung explained that the company makes announcements for material transactions as required by the SEC. The company also posts updates on its website blog. He emphasized caution against fake news and misinformation, advising investors to rely on official filings for accurate information.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
