Northern Technologies International Corporation (NASDAQ:NTIC) Q1 2023 Earnings Call Transcript

Gregory Weaver: Okay, great. Thanks, Matt. That helps. And you hit my next question on China. So just in the current fiscal Q2 here, is it getting worse or is it about the same as what you saw in the just reported quarter?

MattWolsfeld: Well, in the just-reported quarter our Q1, it was — China in our first quarter was in a loss position given everything that was going on there compared to first quarter last year China made $200,000 of profit, which is still down compared to where it was a couple years ago as far as the amount of income that it was contributing. And first quarter this year was actually a loss position. Second quarter, I don’t know if second quarter is going to be significantly better. You’re also dealing in second quarter with Chinese New Year. I think from my expectation it’s after Chinese New Year, into our third and fourth quarter is when we’re going to see a rebound in China.

Gregory Weaver: Okay, fair enough. All right. And the Taiwanese thing, so I guess how long does it take to get back those sales that you had before?

Patrick Lynch: We got them all? Basically, the widow of the former partner sold the business to us, but she didn’t sell us the company. We just took the book of business.

Gregory Weaver: Okay. And now that it’s under your direct control, what do you think about growth prospects there? Maybe a little more robust than they’ve been historically? I don’t know how the guy was running it.

Patrick Lynch: I think there will be a pickup, yes.

Gregory Weaver: Yes. Okay, good. All right. That pretty much does it for me, and appreciate the hard work and maybe get Gautam on the call one time here to tell us about all the good stuff going on in oil and gas. So thanks.

Patrick Lynch: Yes.

Operator: I’m showing no additional questions in the queue at this time. Gentlemen, I’d like to turn the conference back over to you for any closing remarks.

Patrick Lynch: Thanks for listening in today. I hope you have a great week. Thanks.

Operator: Ladies and gentlemen, thank you for participating in today’s conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.