LiqTech International, Inc. (NASDAQ:LIQT) Q4 2022 Earnings Call Transcript

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Simon Stadil: So Rob, Simon here. So first of all, I think the key thing here is to focus on what we have been trying to achieve over the last six months after they arrive and other seems to be the stronger and more predictable business. Again, with our pool marine scrubbers, aftermarket, EPS plastics and in membrane business. So again, that’s what we call the recurrent business. And that is showing very solid progress. And you’ll also see that when we disclose all the details on our Q1 basically, 45 days. So I think going — and looking forward, and that’s basically what you’re asking for here. For us, it’s a matter of creating this predictability, improving our recurring business. So we can basically have a more sustainable business with shorter, you can say, shorter decision cycle on the recurring business, but more importantly, revenue to pay for our fixed cost and OpEx. Now the more lumpier sizable growth projects, we still have some uncertainty with regards to the timing and hence, we will not guide on specific quarters.

But as Fei alluded to, I think the commercial efforts both with strengthening of our internal sales team and distribution agreements give us a higher comfort that we’ll deliver on these large growth projects later this year. So again, we can’t specifically comment on the timing of those larger projects, but we can comment that we have increased confidence in our ability to deliver and secure those orders this year.

Robert Brown: Last question is on kind of pricing actions you’ve taken. Have those start yet? Or are those more 2023 impact?

Simon Stadil: So I guess the key thing is to — if you look at the Q4 numbers, and I guess, 2022 few as a whole has a lot of non-recurring items into it. But what I can confirm is definitely that we are reaping the benefits of both our cost reductions, but certainly also our profitability improvement measures on the pricing side. One thing that is also worth mentioning is that we in the latter part of the year really benefited from having our ERP system fully up and running. So we basically have full visibility on our individual orders on a cost basis. So again, our pricing has become sharper, but we have also been better at evaluating where we make money and where we want to put our focus. So long story short, we do expect to see significant improvements going into this year, both due to the fact that we don’t have the non-recurring items, but certainly also because of our pricing and cost reductions combined delivers a significant impact to our business in a positive context.

Robert Brown: Thank you. I’ll turn it over.

Operator: And ladies and gentlemen, at this time, I’m showing no additional questions, I’d like to turn the floor back over to the management team for any closing remarks.

Fei Chen: Thank you. I would just like to say thank you all very much for being with us today. We look forward to communicating with you very soon again. Thank you.

Operator: And ladies and gentlemen, with that, we’ll conclude today’s conference call. We do thank you for attending. You may now disconnect your lines.

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