Earnings Labs

Core AI Holdings (CHAI)

Q3 2019 Earnings Call· Fri, Nov 15, 2019

$1.04

+4.01%

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Transcript

Operator

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Siyata Mobile Third Quarter 2019 Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. [Operator Instructions] Please be advised neither TSX Venture Exchange nor its regulation services provider as that term is defined in policies of the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this release. This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within other than statements of historical facts are to be considered forward-looking. Although the company believes these expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing and general economic, market or business conditions. There can be no assurances that such statements will provide accurate, and therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements expect as required under the applicable laws. Thank you. I would now like to hand the conference over to Marc Seelenfreund, CEO. Please go ahead.

Marc Seelenfreund

Analyst

Thank you, Amy. Good morning, everyone, and thank you for joining the call. First I have to apologize in advance that I am very limited on time today due to the Sabbath, and won't be able to open a question-and-answer period following my statements. However, I'm available to answer any questions that you may have on Monday. Siyata Mobile reported it's 2019 Q3 financials this morning. Revenue for the quarter was $5 million compared to $3.1 million in Q3 2018, an increase of 61% over Q3. As mentioned in the press release, prior Q3 revenue was mainly contributed to sales of the Unident UV350, Push-to-Talk over cellular smartphone in North America and of other ruggedized 4G devices sales worldwide. We reported record gross margins in Q3 of 31.5% versus 26% in Q3 2018. Again, this was driven by our new 4G portfolio. Looking forward, we anticipate that these margins will continue to grow as the UV350 and 4G sales mix continues to be a larger part of our overall revenue. Costs in the quarter were mainly attributed to the additional marketing costs to promote our new products in North America and globally, including trial samples, trade shows and targeted promotional activities to position the company launch of a new product line, which I'll get into in a bit, and investing in key carrier network approvals. This results in launching the both Rogers Wireless in Canada and a Saudi Arabia Tier 1 operator. Both of these carriers gave purchase orders for the UV350 within the quarter. In Saudi Arabia, the first purchase order was to begin installations and a 200,000 plus ambulance fleet, and we expect additional orders from this carrier as they continue to equip the fleet with UV350. Additionally, the Rogers order for 150 units are expected to grow…