LSI Industries Inc. (LYTS)
F1Q09 Earnings Call
October 23, 2008 3:00 pm ET
Steve Brunker – Chief Information Officer
Robert J. Ready – Chairman, Chief Executive Officer
Ronald S. Stowell – Chief Financial Officer
David W. McCauley – President, LSI Graphic Solutions Plus and
President of Grady McCauley, Inc.
Scott D. Ready – President, LSI Lighting Solutions Plus
Fred D. Jalbout – President, LSI Technology Solutions Plus
Glenn Wortman - Sidoti & Company, LLC
Josh Baribeau - Canaccord Adams
James Ricchiuti – Needham & Company
Lenny Bracken - Bracken Capital
Peter Lisnic – Robert W. Baird
Previous Statements by LYTS
» LSI Industries Inc. F4Q09 (Qtr End 30/06/09) Earnings Call Transcript
» LSI Industries Inc., F2Q09 (Qtr End 12/31/08) Earnings Call Transcript
» LSI Industries, Inc. F4Q08 (Qtr End 06/30/08) Earnings Call Transcript
Robert J. Ready
Thank you. Good afternoon everybody. As in prior conference calls our team is here Scott Ready, President of the Lighting Group. David McCauley, President of the Graphics Group, Fred Jalbout President of the Technology Side and Ron Stowell our Chief Financial Officer.
Steve Brunker is also here, our CIO, and Steve you have something to relate to the folks as far how this is being recorded and what access they can have this evening, so if you would please??
Yes good afternoon everyone and welcome. As with our prior conference calls there are visuals that are going to accompany today's presentation that you can access by visiting our website which is www. lsi-industries.com and clicking on the investor relation's tab.
If you're not within a convenient access of the Internet right now you can find our presentation available and replay of today's presentation on the Web site after about 5:00 pm this evening.
Robert J. Ready
Thanks, Steve. As in prior conference calls what I think we would like to do is merely share with you some of the good points. I have had a number of conversations in the past few months and what comes to mind is the Clint Eastwood movie of years past, The Good, The Bad and The Ugly.
And when we looked back to '07 and having the greatest year in our history, that being the good part, the bad being obviously the fact that we couldn't repeat those big programs that we were so successful in the roll out the Dairy Queen, the 7-Eleven a certainly a slow back on the Wal-Mart and a pull back on the Chevron and obviously the ugly is the economic conditions that we're all faced with today.
However with all that said, I am very confident at the level of our market penetration specifically or especially, I should say, in the tremendous success that we're now experience with the solid state technology which Scott will share with you in a couple of minutes.
Obviously the biggest challenge we have is on the graphic side and David will be certainly addressing that and Fred will be bring you up to day a little bit on some of our international direction, that we have actually started to develop a strategic direction and working toward an international presence by using some of our solid state technology.
I think that you folks are going to probably have a lot of questions, so our presentation doesn't have a lot of slides, but I'm going to turn the first phase of our discussion over to Scott and he's going to share with you a little bit of the success with the Crossover product line. Scott.
Scott D. Ready
Thank you, Bob. Good afternoon everyone. The short time I am going to speak today I am really going to focus on what we've accomplished so far in our solid state lighting market initiative. And as Bob mentioned the overall strategic directional lighting group remains solid and steadfast and methodically moving forward.
Not necessarily the kind of exciting volume that we'd like to share that often we do have the opportunity to share when we connect with major programs. But we certainly do characterize our business right now as steady and strong and growing stronger in some specific areas.
But the Crossover marketing plan is certainly the most exciting initiative that we have on the plate today after multiple years, several years now of technology development, testing and evaluation we are bringing to the market products that are proving themselves both from a performance perspective and most importantly from a economic perspective.
The goal to establish products that achieve a reasonable ROI with technology that is exciting to say the least has really been accomplished first and foremost in the petroleum market. A year ago we introduced Crossover as a solid state lighting brand and brought forth specific products into the petroleum market for petroleum canopy installations.
We sold multiple thousand units now. We've had units in the market place for some time. We've actually accomplished exposure in the market across the United States, Mexico and Canada, as well as overseas. The map that you're looking at here briefly illustrates just some of the locations that are currently installed with the Crossover system.
And I am happy to report to having had the system in the market now and in the field for many months the level of excitement is only accelerating. It's a proven system. It's really – it puts LSI in the forefront of lighting manufacturers that have been able to achieve repetitive consistent business now with white solid state lighting.
But more so than just the canopy fixture design and what we've achieved so far, we're creating an identity now in the marketplace that even extends beyond the petroleum market. We were awarded a best in class status, if you will, within the petroleum market and' selected as retailer's product choice of the year for 2008.
With the innovation of the Crossover design and we're building on that now with the remaining products that we had outlined for this fall both in interior applications and exterior applications. Building on a very strong performance platform and economic platform for multiple market use specifically the commercial, our general commercial industrial lighting application in building lighting and parking garage lighting and other types of multipurpose applications, and last but not least the golden egg at least this year of the market is a successful area light fixture which we'll be will bringing into the market here in November.
Certainly the canopy lighting is producing results financially for the company, the rest of these products are built on that same platform and frankly have yet to contribute because they've only been introduced and gone in – and we're currently going into production in the product this second quarter.
So the results that we have been able to achieve so far, built on our standard product offering is strong and when combined with what we can accomplish in solid state lighting products it promises to be even stronger.
The area light itself is designed on a format to actually penetrate several different market opportunities for LSI. Certainly have strong opportunities in small site, multisite retail, national retail facilities such as the petroleum facilities, such as QSR markets.