Pason Systems Inc Q3 2021 Earnings Call Transcript

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

Question: Keith MacKey - RBC Capital Markets, Research Division - Analyst : Just curious about the margins in Q3 and the incremental margin outlook. I guess in general, how many -- or how much of the incremental cost that you would have or expect to incur were built into Q3 margins? And how should we be thinking about incremental margins over the next, say, 12 months as the industry continues to add rigs? Is that 70%, 75% range still a good target to be in as things ramp up? Or are there going to be incremental costs that might change things from that level?

Question: Keith MacKey - RBC Capital Markets, Research Division - Analyst : Perfect. Okay. And just on Energy Toolbase. So you commented about starting to see some hardware revenue come in from prior bookings. Maybe just give us a little bit of context on how we should expect that to progress over 2022? And should we then even start to think about that segment contributing positively on a gross margin basis through 2022 as well? Or is it still more of a longer-term ramp? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 04, 2021 / 1:00PM, PSI.TO - Q3 2021 Pason Systems Inc Earnings Call