BK Technologies Corporation (AMEX:BKTI) Q3 2023 Earnings Call Transcript

John Suzuki: Yes. I think, there’s about 20 field trials going on, Orin roughly.

Orin Hirschman: Wow.

John Suzuki: So yes, it’s pretty significant. Let me — yes, so from a total revenue standpoint, it’s still very small. It’s a handful of customers that have actually paying customers, right. So, it’s not that big. But let me walk you through and this, we see almost every week, right. We’re at a trade show and we had a state customer come by and the salesperson pitched InteropONE, says, hey, here’s a solution that provides on-demand emergency communications using your smartphone and cellular system. And the person was so intrigued that we were invited back to make a presentation to the broader audience at the state level. And so, we did that, expecting it would be like a one-hour meeting. The meeting took six hours. And the beauty of the meeting was it started off as an InteropONE conversation, but it quickly moved to a BKR 9000.

I mean, they had — we had not gotten in front of this customer with this new radio. And for the next five hours, they spent time getting that radio operating on the state system. And they were just totally excited about the radio and then the connection of the radio to InteropONE and that whole vision of tethering these devices together. And so, I kind of look at InteropONE on a service on its own, it’s still TBD in terms of how much revenue that’s going to generate for the business. but in terms of pull-through and our ability to get in front of customers that perhaps it would be more difficult for us to get in front of, if we didn’t have it. That’s really proven itself out. People are interested in this service and it gives us a great opportunity to present the 9000.

Orin Hirschman: And I was going to ask you, specifically, it’s supposed to get in nicely with the 9000 or it goes even with the 5000 or really, the 9000, that’s why you keep mentioning it like that.

John Suzuki: Yes, it’s both radios. but to be honest with you, when we’re in front of those types of customers, they’re interested in multiband radio. So yes, it tethers with the BK series radio, so the 5000, the 9000, and any other radio that we bring on under the BKR series radio line.

Scott Malmanger: Okay. great. I mean, even if it’s small revenues, obviously $1 million or $2 million is higher margin recurring —

Orin Hirschman: Yes.

Scott Malmanger: — with the 3.5 million share accounts. It’s quite meaningful. And obviously, it’s nice to pull through the hardware also on the 9000, the high margin 9000. Thanks so much.

Orin Hirschman: Thank you for the question.

Operator: Thank you. That concludes our Q&A session. I’ll now hand the conference back to John Suzuki for closing remarks. Please go ahead.

John Suzuki: Thanks, Matt. Thank you, all for participating in today’s call. We look forward to speaking with you again, when we report our Q4. All the best to all of you and have a great day.