Question · Q3 2022
Private investor George Gaspar inquired about the sales contribution from products introduced in the last 12 months and questioned why the company hasn't pursued a broader financing program. He also asked if the company is nearing a positive inflection point for margins due to stabilizing costs and price increases, and requested a breakdown of the sales backlog by new versus older products.
Answer
CEO Ted Grauch highlighted significant growth in newer, higher-margin product lines like NXG (up 52% YoY) and encoders (up 9.1% YoY) but did not provide a precise sales percentage for all new products. CFO Eric Skolnik explained that financing opportunities are limited for a company of their size but noted they successfully extended their credit facility. CEO Ted Grauch added that while raw material costs have stabilized, not decreased, the company has raised prices and is nearly caught up on lower-priced backlog orders, which should improve margins going forward. He could not provide a specific breakdown of the backlog but confirmed a healthy portion is from new product lines.