Baylin Technologies Inc Q3 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : My first question was around the financials. I saw in your release that there were the covenants. You renegotiated some covenants favorably that extends to Q3 and Q4. Just wondering if you could provide an update or any color around how you see the covenant situation as we look towards 2022? What kind of options are you looking at?

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : Okay. Good to hear. Next, just turning to the backlog. So you mentioned it being at record levels, but at the same time, you're managing supply chain issues and the COVID-related issues. I was just wondering if you could kind of characterize the backlog increase whether it's coming from -- or maybe I should say, how the backlog should ramp into revenue, whether it's coming from just delayed demand, increased demand or just supply chain issues that are leading to orders not being able to be placed within earlier time periods?

Question: Daniel Rosenberg - Paradigm Capital Inc., Research Division - Analyst : Okay. And then just turning to the cost profile. So you guys made some progress in controlling costs and just -- and it was nice to see cash flow from operations turn positive. And so just trying to understand what the cadence is in the near term. I understand there's a lot of moving parts here. But are we going to see lumpiness in that cash flow from operations line? Or do you expect to be able to maintain kind of your cost profile in the face of this growth that you just spoke about? Cliff Gary So Daniel, it's Cliff. So we do expect some outflow in cash that in the fourth quarter largely related to working capital. But in terms of the actual operations, should be fairly consistent with what we saw in the third quarter.