ADDvantage Technologies Group, Inc. (NASDAQ:AEY) Q4 2022 Earnings Call Transcript

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Unidentified Analyst: Okay. And then ongoing, we talked a little bit in the last call about change outs in equipment that are going on the towers, and you’ve related to that in your last comment you’ve made. But how do you see yourselves, do you see chances for the company to get involved in going away from the towers and getting more broadly associated with sub-work away from towers? Can you talk about that?

Joe Hart: I’m not sure what you mean by sub-work? Are you talking about like underground work?

Unidentified Analyst: Underground, right. And just taking the signals further away from towers and making sure that they equate appropriately getting further away. And I assume that there’s a lot of equipment that has to be installed further away from the towers. And does this open up an avenue for you to get more broadly involved?

Joe Hart: I think medium to long-term, meaning sort of 3 to 5 years. Look, there’s plenty of opportunities today for us to enter into fiber optic network construction, but that’s not our core competency. That’s not the — I’ll say, the motor vehicle and equipment fleet that we have set up. We have it set up for Wireless. So there could be small cells, which are really telephone poles, light poles, pole-like structures that are not big towers. Those need to increase in volume over the coming 10 years. That’s something that if we had the opportunity next week, we would probably take advantage of it. So I think there’s other ways for us to play. But we’re still so young in this business inside of ADDvantage Technologies that we need to get really good at what we do already and very profitable and consistently profitable in what we do.

first, before we start trying to expand sideways into additional services. If it flows from either the customer that we have in the location we’re at and they offer us the opportunity to do additional services, if it makes sense, we’ll certainly take advantage of it.

Unidentified Analyst: Right. Well, I appreciate very much your analysis of this recent response to my last question here. And it’s a very positive feeling that one can get about the real opportunities. And just in closing, I’m sure that there’s going to be more opportunity on the towers as we move away more from China equipment that’s up on towers and the encouragement that’s in the United States now that we’ve got to reduce our capacity coming in from China in terms of equipment and it has to grow from here. And I would think that that would offer you more opportunity going forward.

Joe Hart: Yes. Yes, it should. Yes, it can. I think there’s a lot of fanfare related to the rip and replace of Huawei or ZTE equipment that’s out there in the network. The current Congress has not really funded that effort yet via the FCC. So I think there’s still a lot more politics involved in that, George, than I ever hope to understand be involved with so.

Unidentified Analyst: Okay. All right. Thank you kindly. And good luck to you guys this year. Hopefully, this is going to be a great 2023, and that it will lead to some very significant expansion going forward. Take care.

Operator: . There are no further questions at this time. I would like to turn the floor back over to Mr. Joe Hart for closing comments.

Joe Hart: Thank you, operator. I just want to thank everyone for their participation in the call today and any interest that you have in ADDvantage Technologies. We have a good, strong management team, and we’ve added to it recently on the Wireless side. We continue to believe in this business. We feel like we made a significant turnaround on the bottom-line between 2021 and 2022. We have every intention of continuing that for the full-year 2023. So thank you for your support and thank you for your attendance today.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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