Yahoo Finance LogicMark Inc (LGMK) Q4 2023 Earnings Call Transcript Highlights: Key Financials and Strategic ...
Revenue Growth (Q4): Increased by 13% year-over-year.
Gross Profit (Q4): Rose by 21% compared to the same period last year.
Annual Gross Margin (2023): Highest in comparison to the previous two years.
Q4 Gross Margin: Improved to 66%, a 450 basis points increase from the previous year.
Operating Expenses (Q4): Total $11 million, including a non-cash goodwill impairment charge of $7.8 million.
Net Loss Per Share (Q4): $1.73 on 1.7 million weighted shares outstanding.
Annual Revenue (2023): $9.9 million, a 17% decrease from the previous year.
Annual Gross Profit: $6.7 million, down from $7.2 million the previous year.
Annual Gross Margin: Improved to 67.1%, a 640 basis points increase.
Net Loss (2023): $4.3 per share, improved from a net loss of $15.15 per share in the previous year.
Cash and Cash Equivalents: $6.4 million as of December 31, 2023.
Release Date: April 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide any feedback on the reception of Aster since its launch? A: Chia-Lin Simmons, CEO of LogicMark, highlighted that Aster represents a significant expansion of their business, targeting a broader demographic from active seniors to lone workers. Initial feedback suggests that the product, especially when paired with the Bluetooth button, has been well-received. This pairing allows for emergency services to be alerted without needing to interact directly with a phone, which is a unique feature in the market.
Q: Are there any ongoing discussions about integrating with third-party connected and wearable devices and services? A: Chia-Lin Simmons confirmed ongoing discussions for integrating various products and devices into their cloud-based service. She emphasized the strategic focus on enhancing product offerings through partnerships, particularly in health monitoring like blood pressure and pulse oximetry, which could be integrated without needing new hardware due to their platforms design.
Q: Can you confirm whether the goodwill impairment was related to transactions predating the current management? A: Mark Archer, CFO of LogicMark, confirmed that the goodwill impairment was related to the acquisition of the LogicMark business, which occurred before the tenure of the current management team. He noted that the impairment was strictly related to goodwill, with no impairments found in other intangibles acquired through the transaction.
Q: What are the financial highlights from the fourth quarter of 2023? A: Mark Archer reported that Q4 2023 revenues were $2.4 million, marking a 13% increase from the previous year, driven by higher unit sales and average sell prices. Gross profit rose by 21% to $1.6 million with a gross margin improvement to 66%. However, the quarter also saw a significant noncash goodwill impairment charge of $7.8 million.
Q: How did LogicMark perform financially over the full year of 2023? A: For the year, LogicMark's revenues were $9.9 million, a 17% decrease from the previous year, primarily due to lower unit sales. The gross profit was $6.7 million with an improved gross margin of 67.1%. Total operating expenses were stable around $14.2 million, excluding the goodwill impairment.
Q: What new products did LogicMark introduce in 2023? A: Chia-Lin Simmons discussed the launch of several products including the Freedom Alert device with WiFi and hybrid capabilities, and the Freedom Alert Mini featuring GPS monitoring and geo-fencing. Additionally, the standalone software application Aster was launched, targeting a broader range of users with features like the Follow Me function for enhanced personal safety.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
