Hello and welcome, everyone. Thank you for joining us this morning for the Q3 2022 earnings conference call for Baylin Technologies. On the call with us today from Baylin are Leighton Carroll, Chief Executive Officer, and Dan Nohdomi, Chief Financial Officer. We will all be available for questions at the end of the presentation. Before we begin, let me make it clear that our comments today may include forward-looking statements and information and answers to questions that could imply future expectations about the prospects and financial performance of the business for 2022 and could include the use of non-IFRS measures. These statements are subject to risks, uncertainties and assumptions. Accordingly, actual performance could differ materially from statements made or information provided today, so you should not place undue reliance on them. We also do not intend to update forward-looking statements or information except as required by law.
I ask that you read our legal disclaimers and explanation of the use of non-IFRS measures and refer you to the risks and assumptions outlined in our public disclosures, in particular the sections entitled Forward-Looking Statements and Risk Factors in our Annual Information Form for the year ended December 31, 2021, and our other filings which are available on SEDAR. Our Q3 2022 results were released after market close yesterday. The press release, financial statements, as well as the MD&A are available on SEDAR and on our website at baylintech.com. I would now like to turn the call over to Leighton.
Thanks, Daniel. We continue to see significant challenges with global supply chain and China lockdowns during the Q3. That's pretty typical of just about everybody in the environment these days. Despite these macro challenges, Baylin continued to perform well overall. We'll provide additional detail about each of our business lines later, but I'd like to highlight the following. Adjusted EBITDA for the quarter was positive CAD 0.1 million, the 4th consecutive quarter of adjusted EBITDA positivity since the Q3 of 2020. While it's not as strong as we would have liked, overcoming real challenges with supply chain was a key theme this past quarter. Our embedded and infrastructure teams continued to show resiliency in the face of the zero-COVID policy in China and ongoing supply chain constraints.
Our mobile business dealt with our primary customers' reduction in volume, which have impacted everyone in their vendor ecosystem. SATCOM also dealt with significant supply chain issues at 3 key suppliers during this quarter. Despite these challenges, adjusted EBITDA in the Q3 of 2022 was a CAD 0.8 million increase compared to the Q3 of 2021. The increase in adjusted EBITDA was despite total revenue declining slightly and was primarily due to an increase in gross profit that Dan will discuss further. With regards to OpEx operating expenses, in Q3 of 2021, approximately CAD 300,000 in government COVID incentives were received. These were recorded as a reduction to the cost of sales and operating expenses. In contrast, we have not received any COVID assistance this year.
Taking that into account, this is a positive swing of CAD 1.1 million year-over-year in adjusted EBITDA, the 0.8 + 0.3. In other words, despite continuing to deal with these external challenges, which are pervasive and really almost every company is dealing with them, we're continuing to have positive results and continuing to demonstrate resiliency. Our backlog at the end of the quarter remained at a very consistent level, almost CAD 37.4 million. Backlog in particular in our SATCOM and embedded lines are very strong. SATCOM, to be sure, is seeing our business capitalize on multiple tailwinds. Overall, this translates into our backlog increasing by CAD 8 million or over 27% year-over-year at this time.
This is a reflection of improvements of our go-to-market, our business development, and a double down on specific sales activities and sales activities that are, you know, it's not just about selling, right? You can sell stuff that is cheap. You can throw concessions. We actually have been working very aggressively to right-size our product portfolio to improve our margin structure and to eliminate low-margin products. It's actually one of the things that's, when you talk about a backlog number, it's not just the number. How did you get there? If you got there by improving your product portfolio and improving your margin structure, that's a good story. In September this year, we also announced that Galtronics had expanded its multibeam antenna portfolio.
I'll save you the details, but this is really an important product set for us because it's an area where we have unique competitive differentiation. It's patent pending, and we are seeing a lot of traction with this. What's also interesting, when I say traction, European and Australian customers have proactively contacted us about these products based on the quality of our brand, the quality of the engineering we historically have, and the fact that these antennas actually do what they say they will do, and at the price points which are good for us. Given the competitors who are out there, give us a unique position relative to them. It's really an interesting time in the business. Now, these are long sales cycle products. They were just released. It doesn't mean they're gonna turn into revenue tomorrow, but it is opening up new relationships for us.
When a European carrier proactively calls us about these products, that's an interesting sign. Also same month, this is something we're very proud of, our Advantech Wireless group, the team in Montreal and in the U.S. launched a new line of solid-state power amplifiers. It's SSPAs and SSPBs, and SSPB includes a RF converter. The new line is called Genesis. Part of the reason we called Genesis, it's a bit of a rebirth of the technology. It provides a slew of high-end features that we have not had in the product line before. It is extremely modular. Something that's also very important to me is aside from the performance and the customer experience and the customer's ability to monitor and control these, is the improvements in manufacturability. We've already produced 6 of these.
These all 6 have already been purchased. Our second-largest customer has indicated that they are going to be placing significant additional orders of this architecture. This architecture is important because it allows us to retire several of the more difficult legacy amplifiers and becomes the basis for a lot of the technology we have in our SATCOM business going forward. Lastly, in August 2022, I'm pleased to announce that Bejoy Pankajakshan was appointed to Baylin's board of directors. Bejoy is the Executive Vice President and Chief Strategy Officer for Mavenir Systems. Mavenir is, you know, Leighton's opinion, a really one of the strongest, if not the strongest player in Open RAN technology, and RAN means Radio Access Networks. This is about where the puck is going.
In other words, as networks evolve to more open and less proprietary standards, Bejoy is involved in those conversations directly with operators and technology companies around the world. Obviously, he's developed a lot of expertise and insight into technology, product development, strategic development, and growth, and we look forward to him helping us on our journey as we play a role in this broader ecosystem. Given the strength of our board, we see this as a really nice fit and a great augmentation. Dan Nohdomi, our CFO, will now comment on Q3 results.
Thank you, Leighton. I'll begin with a summary of our Q3 results. Revenue in the Q3 of 2022 was CAD 30 million, which was a moderate decrease of about CAD 0.2 million or 0.8% compared to the same quarter last year. The decrease was primarily due to softer sales in Asia-Pacific business line, which was adversely affected by production volume reductions at their largest customer. The decrease was partially offset by stronger sales in Embedded, which was attributable to increased demand from new customers for home networking products. Gross profit in the Q3 of 2022 was CAD 7.9 million, an increase of CAD 1.6 million or just about 26% compared to the same quarter last year.
Gross margin was 26.4% in the quarter compared to 20.8% in the Q3 last year. The improvement in gross margin resulted from a balanced product mix due to both changes in pricing strategy and a data-driven focus on margin at the business line level, which in the Q3 of 2022 was primarily generated by operating and financial efficiencies in Asia-Pacific and consistent growth in Embedded. Adjusted EBITDA in the Q3, as Leighton mentioned, was CAD 0.1 million, the 4th consecutive quarter sequentially of positive adjusted EBITDA. What that means is on a trailing 12 -month basis, adjusted EBITDA was positive CAD 1.5 million.
Again, adjusted EBITDA for the quarter was CAD 0.8 million higher compared to negative CAD 0.7 million in the same quarter of last year, mainly due to the increase in gross profit discussed earlier, partially offset by an increase in operating expenses compared to the same period last year. Backlog was CAD 37.4 million, as Leighton mentioned at the end of the quarter. Again, mainly attributable to strong backlog levels at SATCOM in Asia-Pacific compared to the backlog level at December 31, 2021. That was an increase of CAD 8 million or 27% compared to the backlog at the end of the Q3 of last year. Again, as a result of improved marketing, business development, and sales activities that Leighton mentioned.
For the Q3 of 2022, we recorded a net loss of CAD 4.9 million, which was comparable or consistent to the loss recorded the same quarter last year. It was primarily due to an operating loss of CAD 3.4 million, interest expenses, as well as income tax expenses. On a per share basis, a net loss of 6 cents per share in the Q3 of 2022 compared to a net loss of 7 cents per share in the Q3 of last year.
Net debt at September 30th was CAD 21.5 million, which was an increase of CAD 9.2 million from the end of last year, mainly due to an increase in non-cash working capital, specifically investments in inventory in SATCOM to get ahead of long lead times and to mitigate supply chain risks to support the increased backlog and help them execute against that backlog. Secondly, CapEx, and lastly, debt service, which includes principal and interest payments. As disclosed previously, we extended the credit facilities 12 months to September 30th of 2023 with RBC and HSBC Canada.
We are needless to say very grateful for our lenders' continued support of our business, and the extension will provide us with additional time either to renew the existing facilities when they mature or to find alternative credit facilities. I'll now turn the call back over to Leighton.
Sorry, I was on mute. Thanks, Dan. As I mentioned in the opening remarks, the performance this quarter was really, in many respects, about overcoming adversity. The problems with our supply chain, the labor markets are obviously challenging and, we're still dealing with China lockdowns. You know, this affects everyone who produces in China and I don't know how many CEOs I've talked to, and we all commiserate about supply chain and labor markets and what's going on in the broader world. Regardless of these challenges, we achieved positive adjusted EBITDA in the quarter, which is our 4th consecutive quarter, which is great. We also continue to maintain our backlog at elevated levels, right?
At the end of the day, if your customers are buying from you while you're improving your business, even despite the economic conditions, that's a good thing. That said, look, I do want Baylin to have much stronger results than we were ultimately able to deliver this quarter. That's not to take away from the things that we overcame, but where we are is still not where I want us to be, and it's not where ultimately I think this company can get to by any measure. With that, let me take a moment to thank the employees of Baylin.
While the results are good, not great, we wouldn't have even gotten to good if the people at this company have not bought in, have not had the level of commitment and engagement, and in some cases really work through some challenges. You know, our turnaround strategy for this business has been to fundamentally change the culture, look at data and the way that we use it, improve our efficiencies, drive accountabilities, and have a strong customer commercial focus. Talking about culture is easy. Implementing it is not. Having your employee base buy in and help you get something as complex as Baylin with as many parts as we have to turn around, it's something that I'm honestly very thankful for.
By them embracing this culture and helping us reinforce it and grow and be empowered to make smart decisions for themselves, it's something I'm very thankful for. Leveraging, honestly, the quality of our people, obviously the strength of our engineering, given these new product developments, our unique manufacturing capabilities and geodiversity therein, I do believe that in the long term, we are gonna be in a much better place. Now, one of the things I will say is previously we had talked about the challenges in supply chain, material shortages, the Chinese zero-COVID policy, all of these things we expected to ease in the H2 of 2022. We've said that previously. Clearly, that's not the case any longer.
Obviously, at the beginning of this year, I didn't anticipate that Russia would invade Ukraine or that China would stay as locked down as long as they have. At this point, you know, there's no crystal ball, but we anticipate several of these challenges are gonna continue for the remainder of the year and likely into at least the Q1 of 2023. That just means dog doesn't eat your homework. We just have to deal with the challenges and keep moving forward. Now I'd like to speak about each of our businesses and the work that is going on within each, excuse me. In the Embedded Antenna business, we have had continued strength. It's been strong all year, but Q3 was an absolute standout for us.
We have seen strong order volume across a number of our products and platforms, and this is despite some of our customers having chipset shortages and pushing out order volume or delaying the time that they want a delivery. Despite this, we continue to be robustly profitable, and we continue to outperform from the expectation within this business. I would also like to share that we've actively been working in both our embedded and infrastructure business lines on diversifying our manufacturing base. While I don't foresee moving away from China completely, given the strength and maturity of that manufacturing ecosystem, we will begin selectively manufacturing products in countries such as Vietnam and Malaysia. Some of this is customer-driven, some of this is just, you know, candidly geopolitical risk mitigation on our part.
Speaking of the Wireless Infrastructure line, it had a slightly weaker quarter and did not perform to the level of revenue and adjusted EBITDA that we had liked. Historically, September and October for our business is a little bit lower than other parts of the year. We do expect DAS deployments to strengthen, particularly in the use of stadium and in-building wireless for the remainder of the year. We also expect these new multi-beam antennas in our small cell portfolio to open up additional opportunities to drive sales across multiple carriers. That said, the sales cycle is not overnight. You don't just show up and say, "Hey, I've got a great antenna, what do you think?" It's substantially more technically complex than that a lot of times. As an example, a Tier 1 carrier in a country.
Here's a great example. We launch a multibeam antenna. Wow. That looks great. The specifications look amazing. Hi, I'm Tier one U.S. carrier. I'm interested in your antenna. We're gonna give you a trial. We're gonna deploy a couple of these sites at a high traffic area in X or Y or Z location, and then we're going to evaluate it. Oh, now it does actually perform like you said it would. You understand that this doesn't happen overnight. You have to, in many cases with these carriers, because the customer experience is so critical to them, you have to prove yourself, and that proof point doesn't come overnight. While it is phenomenal to have all of these new products, it will take time for them to get the traction in the market that we foresee.
Now, with that being said, that's a good story, and it does mean our best is in front of us. Okay. Our SATCOM business line continues to demonstrate consistent demand with spending by our customers continuing at the momentum that we saw in the H1 of the year. Given what we're seeing in the SATCOM ecosystem, we expect this is gonna continue for the remainder of the year and through and easily into early 2023. Our Genesis line of SSPA has generated significant interest from commercial clients, particularly those in aviation and maritime, given the power frequencies. Excuse me, given the power levels within that family of product and the band, the initial band that we deployed, which is very purposeful.
Moreover, given that is a platform and not just an amplifier, we will be launching several new products in the coming quarters based on the underlying Genesis technology platform. The reason that is cool is that this is not a single event, it is going to be multiple new products across multiple different SATCOM use cases that will allow us to not just have something that is unique and that we believe our customers will like a great deal, but it also improves our manufacturability, which means it will be more efficient in Montreal. It should also be noted that for military and government related entities, we are seeing continued increases in spending. This is both driven by, you know. Look, it's unfortunate in a respect, but defense spending in the Western world is increasing broadly.
Secondly, many countries coming out of the COVID pandemic have focused on improving worldwide broadband. All of those things are good for us. Additionally, I wanna point out that the team in Kirkland has done an admirable job dealing with substantial supply chain challenges. Now, if I'm talking about Q3 results in themselves, we were lower in revenue than I would've liked. That was driven 100% by problems that we were having with supply chain and vendors, and it meant that our team had to double down, come up with unique solutions, in some cases, figure out alternative components. The engineering team in Kirkland had to deal with engineering and manufacturing challenges to how we overcome challenges in manufacturability. All of those things needed to be addressed.
With that, the nice part is we more than hit plan at the end of the quarter on a monthly basis, and we are starting to see consistency in the volume that the team is producing, which is a really favorable sign for our future. Based on these improvements, we expect the revenue and adjusted a bit of our SATCOM business line to obviously, given we had these challenges that were not what I wanted in Q3, we do expect Q4 in our SATCOM business line is gonna be substantially better. To be honest, substantially better than all, you know, on a quarter comparative basis. Substantially better in the Q4 than it was any of the prior 3 quarters of the year.
As mentioned earlier, our Asia Pacific line, which is dominated by one large customer, has had substantially lower revenue. Management of that business, we're able to limit the effect of the lower revenue by proactively managing costs. You know, if you compare that to, say, Q1 and Q2 of 2021, when the revenue in APAC was down. Q1 and Q2 of 2021, there were significant losses. That did not happen. We effectively mitigated the negative financial impact, which is part of why you see kind of even despite a material change in revenue, and one that we had not forecasted and happened fairly quickly to us, we were able to mitigate the negative financial impact. Additionally, we recently completed a restructuring of our APAC unit. This was done in conjunction with our customer in discussions with them.
As part of our work over there, I'd like to both thank and then announce that our president of our APAC business line, who has been with us since 2014, will be retiring in Q4. Through a handful of other steps we are taking, we do expect to see some improvements in our cost structure in that unit as well. Separately, given the dependency that we have on this particular customer, and look, they're a great customer, and we love them. You do need to. If you're running any business, you have to think about revenue diversity and customer diversity.
At this time, we are taking a number of very active steps to not just improve the profitability and contribution margin of that business, but to diversify our revenue streams and to diversify our business over there so that we are not as dependent as we are or have been historically on this large customer. With all of this being said, across all of our business units, right? This is one of the unique things about Baylin, is you don't talk about Baylin as a single thing. We have 4 discrete businesses. Each has puts and takes. With everything that has gone on, the way that we've been managing through it and the way that we have been overcoming supply chain, despite all these economic headwinds, we're gonna have a Q4 we believe will be roughly comparable to the Q3.
That doesn't mean we're gonna be a rock star. It doesn't mean it's gonna be awful. It means we should be relatively consistent. Reflecting on this quarter, I wanna reiterate that the resilience of this business is important. This quarter was particularly challenging in terms of supply chain and some of the things that have happened. To be able to overcome this and to have a business that is substantially better than it was a year ago, is something I believe our people are proud of. We have better operational controls, reporting, visibility, and engagement from our employee base. Obviously, with the launch of the products that I mentioned, we're investing in innovating, and that's important because it's not just about trying to run a ship tightly and having everything buttoned up.
If you're not launching new products that your customers really resonate with and that they wanna buy, you're not gonna get to where you ultimately need to be in your business. We are doing so. Even with these new products, there's sometimes the sales cycles are not overnight. Our backlog of our current portfolio remains strong, and we have been working diligently behind the scenes to improve our margin structure despite some of the things that we've talked about. None of this is possible without the commitment of our people. The sense of urgency and the engagement is critical, and it's something that I thank them for as, to be honest, as often as I can. There remains more to accomplish. I would tell you I'm not satisfied with the financial results we have.
I wanna see better, and I think we can. Actually, I don't think we can. I believe we can. With that, we have a lot more to do, and we have a lot more to get after. Operator, that concludes the formal remarks. We're happy to take questions.
Thank you. Ladies and gentlemen, we will now begin the Q&A session. Should you have a question, please press star followed by the one on your touch tone phone. You will hear a 3-tone prompt acknowledging your request, and your questions will be polled in the order they are received. Should you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question. First question comes from Andy Wynn of Raymond James. Please go ahead.
Hi, this is Andy, on for Steven Li. I just have a quick question on the backlog for Q4. I noticed that the backlog remained pretty flattish as of September compared to July. Could you please?
Mm-hmm.
Comment on the outlook for Q4 backlog? Thank you.
No, thanks for that. So, as I think some of the folks in the investment community know, there are certain members of our board who have a strong affinity for baseball. And an analogy that I use with them is, you know, we have been slowly improving. There's a concept in baseball called small ball, and it means you're focusing on your fundamentals, lots of base hits, good infielding, good pitching, but you're not hitting home runs, right? Why am I using this analogy? Well, how we have built our backlog to date has been a lot of base hits. It's been a lot of bang. Let's get the fundamentals right. Let's do the things we need to be good at every day, right? That's been our approach.
It's a lot of small things, a lot of incrementality. We are just getting to the point where we're gonna take some bigger swings. Within certain of our businesses, like obviously the mobile business, guess what? Its backlog just sits there. We're sitting at CAD 3 million in backlog on any given day in our mobile business. It'll go up to CAD 4 million, it'll go down to CAD 2.8 million, but it'll sit within that window. That business, you're not gonna have these big opportunities to have large wins or significant opportunities. In many respects, that business is about purchase order velocity, the turnover of the purchase orders you have. That's what you want within that business.
Whereas in other business, for example, SATCOM, you have opportunities for larger programs, think government and military in particular, that are unique to that business. By using this analogy, up until this point, given where our company has been, it's been about focusing on fundamentals and base hits and getting better every day. We're now at that transition point where we're going to start taking some big swings, right? If you've seen, you know, Aaron Judge or Babe Ruth or, you know, whatever baseball player you like, those are the guys hit a lot of home runs, but they also miss a lot. Which means you're in a bidding process, you're in a competitive process. We expect, as we start to take these swings, we're going to miss. As I characterize our backlog today, it is continued strength in SATCOM.
In fact, if anything, because we're producing higher volumes in SATCOM, our SATCOM backlog actually at the end of the quarter and into October started to come down. However, it's also as soon as we start to produce, your sales teams can go, "Oh, we're gonna have a little more consistency in production." Guess what? The backlog is returning back. On top of that, we're taking some big swings. I don't have anything to announce. We talk about backlogs solely as hard purchase orders, not promises, not things we're working on. Our backlog right now is consistent. It's consistent in Embedded, it's consistent in Infrastructure, which by the way, it's higher. Last year we were at call it about CAD 1.5 on average for the entire year. Our Infrastructure backlog is elevated.
Our SATCOM backlog has been consistent and really solid, and we have some big swings that we are taking. I am hopeful, but will not promise that in our future, I'm gonna have a different discussion on one of these earnings calls, and you'll see different press releases about what's coming in our future, because we're now gonna be taking big swings and like I said, we're gonna take these swings. It doesn't mean we're gonna hit the ball every time. It means we're probably gonna get a few strikes along the way. We're gonna miss, and that's okay. We have to learn from that process. As the technology that we're working on connects with the ball, so to speak, and we capitalize this into customer opportunities, it's something that I'm very interested about in our longer term future for our business.
I think in the short term, given the macroeconomic environment, it's gonna be challenging. With where we are, our backlog across all 4 of our businesses have remained consistent for what they each are, and we are working actively to try to transform that, particularly for Infrastructure and SATCOM into larger opportunities.
Thank you. Looking forward to future development.
Thank you. The next question comes from Daniel Rosenberg of Paradigm Capital. Please go ahead.
Hi. Good morning. I wanted to ask on the backlog, just, you mentioned a different kind of margin profile there. If you were to consider, let's say, that backlog being steady state, what kind of margins do you think you are at? And is it enough to turn the corner on profitability? And kind of how far are you with that?
Great question. With where we are, on a blended basis, I think we're in a decent position. You know, a way to think of this, particularly given where we've been in terms of our balance sheet. If nothing happens, right? I'm gonna keep with the baseball analogy for a second. We take these swings and we don't get anything, and we just keep trundling along doing what we're doing today. Our business is going to be fine. It's gonna be a bit of a slog. It's a journey. It won't be easy, but we're going to be fine.
Where I'm going with this is, given what we're seeing, the just kind of the incremental view of where we are on the playing field, the revenue streams we have, and what we expect in the long term will happen with supply chain and with some of our customers, we expect that we will continue this progressive march towards profitability. One of the things we do talk about internally is not just the gross profit, but the revenue attainment level, right? Because ultimately, given certain fixed cost structures that we look at regularly, the ability to drive profitability in our business is a function not just of gross profit, but of the total top line that we're able to attain based on that gross profit. It's really a balance point between the 2.
With where we are, if nothing changes, it's gonna be a slower road. That's, I think, part of the point of what we're really talking about. Really Andy's question at the beginning. We are working towards not just maintaining our current gross profitability by launching products in SATCOM like we are, that have better manufacturability. We believe that our profitability in that product line, as an example, will improve. In addition to that, as we capitalize on some of the tailwinds we have and on some of the new products that we have, we believe that the total revenue attainment, even with no improvements on profitability, will also improve. All those things drive us to getting the company to a place of real profitability, right?
Leighton, just one question that comes to mind as you speak about the focus.
Mm-hmm.
On high value products. It's just at a high level, the strategy here. Or it sounds like, you know, mobile has puts and takes. Is that the right product? Is it complementary to where you're going? Or, you know, would you rather focus on different products? Or is the mix right for you and where you wanna go?
Yeah, it's a great question. So look, the mobile product is, if you just think about putting antennas into mobile phones, that tends to be a very volume-dependent lower margin business, right? Which is fair. The thing is, one of the things that I think that we have realized, or at least I personally have realized on this journey is, at the end of the day, a mobile phone is an Embedded Antenna. One of the things that we're doing, I mentioned diversification. That base is still of value to us, even though it has lower margin profile.
There are other opportunities that, in my opinion, I don't know the company had fully realized or had gone after to leverage that both engineering and manufacturing capability to embedded-like opportunities, not just in North America, but in Asia as well. Effectively, one of the things that we have been looking at is how do we capitalize on the people, engineering and strengths of that business, not just to continue to be this volume-based lower margin business, but to look at opportunities for additional business with additional customers that rhyme a lot more with what we're doing in our embedded unit, and in doing so, start to drive synergies between those 2 businesses. It's a really interesting point in that it's, you know, it is not a business for the faint of heart.
It does have a lower margin profile. Historically, that business has done a lot of great things for Baylin. Do you just start to walk away from it or view it as something that you don't want? Or do you start to think about how do I lever some of the capabilities of that business into higher margin opportunities while preserving our base? I think that's right now, that's the direction we're going. It's a great question.
Thanks. Appreciate all that context.
Thank you. Once again, ladies and gentlemen, if you do have a question, please press star one at this time. There are no further questions at this time. I'll turn the call back to you for closing remarks.
All right. Well, look, I'll say this, like a lot of people who I'm sure you've heard from, sitting on calls, supply chain, labor markets, all this stuff is challenging. You know, the way that we look at it, honestly, is nobody cares. Everyone deals with it. We still have to deliver. I'm happy that the team was able to deliver a positive result. In some respects, it's a bit of a pyrrhic victory 'cause I want a lot better for our company. I think we're on a really interesting road right now, particularly given some of the new products that have come out. I do think there are some opportunities to have more than just base hits and, you know.
At the end of the day, it's great to talk about it, we have to convert those. Right now, as I talk to you guys, we're not there. We're working like mad on them, but we've got to convert. I appreciate that, where we were last year, particularly the H1 of 2021 was not a very good place. I am really happy with how far we've come, but we've got a lot more to do. The good news is we have some really good people in this company, some really good folks in manufacturing, really good people in engineering, and people who come to work every day with a sense of purpose. At the end of the day, that's. I look forward to seeing us capitalize on this.
It's gonna be a journey. I wish it was a sprint. I wish it was already flipped over and we were onto greater things, but we're not there yet. We got some work to do. With that, I appreciate everyone's time and look forward to talking to you everyone again in another quarter.
Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your.