Data Communications Management Corp.

Q1 2024 Earnings Conference Call


spk00: Hello, everyone. We just released our quarter on results. And in this video, I'll share highlights of our quarter, recap our financial performance and review our priorities for 2024. I'm pleased to report on our continued progress in the quarter, executing our plans and the recent completion of our first year as a combined company. Our focus in the first quarter and for the balance of the year is delivering on our post-merger integration commitments. On that front, we have advanced our plant consolidation planning and are on track to complete the remaining facility closures and production transfers well within the next 12 months. We also made progress during the quarter harmonizing our back office and integrating legacy MCC systems. To support our goal of building profitable growth, our commercial team completed a top to bottom review of our full account base to identify strategic revenue management opportunities. These include improving our product mix and leveraging our expanded suite of product and service offerings. Overall, I'm pleased with our first quarter performance. Our post-acquisition integration is on track and we are encouraged about the outlook for the full year based on order trends we are seeing, new logo wins, and continuing progress improving our operating performance. Turning to our financial performance in the quarter, here are some key takeaways. Our Q1 revenue was $129.3 million, up 69.9% versus the prior year. Revenue growth came in a little lighter than expected. This was primarily due to the shifting of certain projects for some of our large enterprise clients into later quarters this year. Gross profit increased 57.9% to $37.3 million. Gross margin for the quarter was 28.9%, reflecting continued progress towards returning our gross margin to the plus 30% range. Our top three priorities for 2024 are as follows. First, complete the post-merger integration of MCC and deliver on Synergy commitments. Second, drive improvement in our gross margin with a focus on enhancing profit margins in the legacy MCC business. And third, deliver profitable growth by leveraging our larger scale, expanded products and services, and the skills and capabilities of our combined team. Finally, I want to extend my thanks to the DCM team for your contributions in the quarter and your continued focus on delivering results. I look forward to reporting on our progress in the future quarters. Thank you.

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