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[Interpreted] Good morning, everyone. Thanks for joining us, and welcome to one more video conference from Positivo Tecnologia to discuss Q2 2023 earnings. I'm here today with Helio Rotenberg; Caio Goncalves de Moraes, CFO; and Norberto, VP of Corporate Consumer Business and Mobility. We will have a brief presentation and then open the floor for Q&A. Helio?
[Interpreted] Good morning, everyone. We have results for the previous quarter that are very aligned with what we've said last quarter. The first semester was a little bit weaker and the second a little stronger.The major highlight of this quarter that makes us very happy and excited about the future was the launch of Positivo SEG. This crowns our strategic plan. We had defined 9 avenues for growth. This was the ninth. And so, we complete the first phase of our planning that was defined 5 years ago, which is our entrance into the security market. We began with smart home and moved on to security. Smart home is much more strongly linked to the do-it-yourself market. This will allow us to explore the major group of sales that can be tapped in Brazil. This includes household alarms, cameras, access control, not only for personal homes, but also for closed gated communities.We also crown this launch with the acquisition of one of the main security product distributors in Brazil, SecuriCenter, which is headquartered in Sao Paulo and Brazil and Recife and has 13,000 integrators. This accelerates our entrance. We could accomplish this with our channels. We could accomplish this with everything that we have made our competitive advantages. And acquiring SecuriCenter gives us 13,000 clients. I met some of these clients in Sao Paulo, and let me tell you, the market is absolutely sensational. It is an BRL 11 million market and it grows constantly. I think we don't need to explain why security is important in Brazil. So, this makes us very happy. Our strategy involves doing what we have always done, but adding more markets, more products that give us bigger margins and make us more competitive. So, this was our major highlight of the quarter.Other than that, everything else is aligned. Our revenue was much weaker than the second quarter of '22 because we had a few important one-timers last year like the Petrobras project, a major HaaS service project and the electronic voting booths that we delivered in [indiscernible] in the second quarter of last year. So, we grew a little bit this year -- this quarter. Our EBITDA is BRL 97 million, which is a solid landmark. Although it is below the company's balance point, it is still solid because we were able to increase our margin.Our profit came out to BRL 21 million, which is also strongly linked to the company's financial costs. Our interest rates are still dropping, and we hope that we will continue to see them go down. This will bring our profit closer to our EBITDA.Our cash generation was BRL 320 million in the first semester. This reduces our net debt. We are down to 1.7x now in this quarter compared to 2.1x in last year. And our net debt dropped to BRL 925 million. So, we are very excited about the future and about completing our initial implementation of the avenues for growth. Of course, there is a lot of work ahead of us, but we are very well aligned.As you can see in this graph that we have been showing, you will understand a little bit about the division. Consumer markets have grown a little bit in highlight. There is a bit of a tail end of the electronic voting booth. And 62% for the corporate market. That includes PCs, Hardware as a Service, payment solution, tech services. These items will be gone into more detail in a bit when we talk about tech service, but we are very excited about that too, service and solutions and tablets too. And as for retail, we have tablets, smartphones, accessories and PCs for the smart house.Now, talking about the consumer market, this is flowing along pretty smoothly. We had a peak of retail sales last year. The market was still pretty large after the pandemic. Then it plummeted because everyone had an excess of stock that actually made sales in the consumer market for computers and smartphones drop in the second semester of 2022 and in the first quarter of 2023. Now, in this quarter, these numbers are already positive. They are not yet at an appropriate level, but they are rising. We see improvement month after month. And because of inventory level, everyone was very inventoried because retailers started compressing their stock level. So, that made the manufacturers acquire and accumulate more stock. So, as we see the margins start to drop now, we gain a bit more market share in computers, specifically in the Vaio computer.Now, in the Infinix brand, we have broken a few boundaries there. We set a new record in July with 9,000 activations in one week. This was an absolute record. We've been seeing lots of growth there, and that makes us very happy. Even though the smartphone market is dropping this year, our smartphone market is growing. We think that this gradual recovery of the margin is set to continue now into the third and fourth quarters, especially now in the third quarter.We launched an absolutely sensational product line, and the media is going to start airing now. This is the first computer in the world, right from entry level, that has a facial illuminator called Lumina Bar. This lights up the user's face during a video conference, and it's automatic. You do not need any outside or third-party lights. We did lots of research, and we saw that everyone here in Brazil is using these lights in hopes of getting a better transmission of their face, so we included that in our machine. We're all very excited to share our Tech Day, which will be on the 23rd and 24th of August, and we'll share these models firsthand.Now looking at commercial, I have a little bit to share about public institutions, and then I will pass the mic on to Rodrigo to talk about corporate. Well, this is a new administration. We had expected this, but we didn't expect to see such a delay in the federal power in really taking up its space. So we've been fostering business, but it hasn't yet been realized. We have BRL 1.35 billion in backlog of contracted sales for 2023. We see that now after the pandemic, the Brazilian society has been becoming more and more digital, but not as fast as we hoped. There are a little bit weaker sales in tablets for the public school systems, but within the public sector as a whole, demand is still very strong. There was a large bid process for the Ministry of Economy that we won, Banco do Brasil and Caixa Economica also that are planned.So we are still very excited, not as excited as we were last year, but as we publish this year, we are publishing at a very strong level. So we have BRL 336 in gross revenue for this quarter. Guercio?
[Interpreted] Thank you, Helio. Good morning, everyone. Thank you for being here. Now, let's go into some detail about the corporate market. I'd like to start by talking about the variance in our revenue. This is in line with what Helio showed us. This is a trait, a characteristic aspect of our business. There are variations over time. And I always say that we need to look at the video, not the photograph, because not every quarter is going to be aligned with other quarters.There has been some revenue transfer this quarter, but if memory serves, this number is in our release. HaaS, Hardware as a Service, is one of the foundations, one of the pillars that we want to set for this year. Last year, we invested heavily in one single business in the first quarter. But when we look at the first and second quarters of '23, you'll see that revenue is pretty much equal. This is common in our business, this type of shift between quarters, but we are trying to build a solid foundation, while bringing more focus in medium and long terms, while dividing our business into more -- to make it more stable over time.Now, because of macroeconomic reasons that we all know have to do with high interest and a scarcity of credit as well, this is an industry that has suffered, even though we have been recovering in the second semester, and we've been seeing more heat, more business. Whilst looking at sales to new customers, 40% of our sales were for this customer group. So this is totally in line with our goal of being more profitable. This is added value that we are bringing to our clients, and this shows that our intentions, our energy has been successfully winning over new clients who see the value of Positivo products and the offers that we bring to the market.Now, also within large accounts, I'd like to highlight a project that was highly publicized, the Connected Learning Project, which is a consortium from the 5G network auction. This is a complete solution that includes hardware, software and various services, a whole suite of fully outsourced services, where we become the IT department for these major companies. We're going to see lots of results for the third quarter. This involves connecting every school in the most remote reaches of the country, and we're only at the baby steps of this very large project. There is a huge pipeline involving this particular project, and we've been breaking ground in this segment as we have been in many others.Now, looking at tech services, I'd like to highlight that over the course of the first semester of the year, we won over one more large bank. So now, our client base, of course, it's not limited to the financial sector, we have many clients from many different industries. We have 2 of the major brands here in the country as clients. And we continue to grow, continue to expand, not just our core offering, what we can offer to these clients, which may or may not be linked to our hardware. This is a business that does not depend solely on hardware sales. We have many different businesses that are -- many different deals that are often signed regardless of hardware. And under HaaS, we've been very happy to see a very diversified customer base. We launched a contact control portal that can, in real time, manage our customer relations, and this will bring more automation for these recurring processes. This will make us more agile. It will improve our NPS ratings. And lastly, I'd also like to highlight something that's not on the slide is, we're starting to see many clients adopt our HaaS with a zero carbon footprint option. This makes our hope of bringing to fruition our ESG proposal very realistically.Now, in servers and solutions, we had a very successful launch of the PSS Connect project, which is a program to connect many different value chains, including retailers -- resellers, pardon. And we are really starting to see growing adoption of channels in this ecosystem that have not, historically speaking, been working with us. So, these are new channels. And they are fruit of the recruiting process that we've been organically using to increase our sales capacity. This involves more capillarity as well. Now, as we mentioned, there is a variance in revenue because we had a very large one-time deal in the second quarter of '22. If you look at our pipeline, it is very robust for this quarter. It's approximately BRL 1.5 billion, which allows us to, of course, surf this wave and capture part of this revenue that is still in the pipeline.And last but not least, payment solution. It's critical to highlight that 6 of the top 8 acquirers in the country are Positivo clients. We have been, over the year and over the second semester, seeing more revenue and a better margin by offering a bigger suite of services along with these sales.And now, I'd like to pass the floor back to Caio.
[Interpreted] Thank you, thank you, Guercio. Now, as for financial highlights, I'd like to highlight that our second quarter revenue is in line with our expectations as set forth in the beginning of the year. The first quarter was lower, and so the second half of the year is going to accelerate as expected. In the consumer segment, we are still recovering. It's a challenging macro environment that we see. But now that interest rates are dropping, things should look up. We have BRL 561 million in this quarter, which is 16% better than the first quarter of 2003. So, we do see acceleration. Now, compared to Q2 2022, we have seen a drop. And as we mentioned, that quarter was much higher than average. And we have been selling more personal computers and Infinix devices.In the corporate environment -- in the corporate segment, we've seen a significant drop in sales -- in revenue, pardon, 61%, as Guercio mentioned. We provided services to compose a supercomputer for Petrobras at the time, so that's why we see such a drop. And today, our dynamic is less favorable for small and medium enterprises due to the still high interest rates. But we have been recovering our revenue. We see 6% growth compared to the first quarter, especially in the HaaS segment, which was better than the second quarter of '22, and the growth of services as well. We are very confident that when we see our results, especially for small and medium enterprises, things will look even better in the second half of the year.Looking now at the public sector, as Helio mentioned, we are seeing impacts on the one hand from delays in payment and in appointing leaders here for this government. But there is also a new bid law that came into effect. And in the corporate sector, we expect to see resumed growth as the different positions in the government are filled. And there is a need for the government to re-subscribe to certain technology pacts that it has made in the past and that it has promised for the future.Now, looking at gross income and gross margin, we see a very strong development and record margins, 30.5%, in the second quarter of '23. This is due to a mix of our product mix. Our margins have been recovering. And in the public and corporate segments, a more complete portfolio, which involves more services, more HaaS, and in addition, lower costs in raw materials, for instance, RAM, motherboards, monitors and other materials that we purchase for our products.We've already discussed our EBITDA. We have a better EBITDA, and this reflects the same dynamic as our gross income, which has an impact and results in less fixed expenses. We have billed much more from Manaus and Ilheus. So this means that we have practically no revenue from the electronic ballot boxes, as is natural. We've started billing the last phase of the electronic ballot boxes, and this should have an impact on the second half of this year. Our EBITDA improved by 0.8% in this semester compared to the same period in 2022. This shows that our dynamic is very good. We are very resilient in our business model. We have better margins and a more diversified revenue stream.Now looking at net income, we have a lower net income, which is due to the EBITDA, as we mentioned, and we have a better trajectory now. This revenue is already 140% higher than what we saw in the first quarter, which had similar revenue. So we can see that our business, structurally speaking, is doing much better than in the first quarter, and so this means we will produce more profit over the course of the year.Now, this is a new slide that we haven't shown before. It's important to look at our cash generation, our cash dynamic. We are turning around a cash consumption trend that we saw in the previous year, and our cash flow dynamic, our operating cash dynamic. In the first quarter, we had a significant drop in accounts receivable. This contributed to a drop in our indebtedness. And in the second quarter of this year, we also have a very similar, very positive dynamic for inventory level.Our inventory remains constant compared to the first quarter. But if we look at what composes this number, we were able to reduce, over this quarter, our stock of finished products in BRL 160 million, so that means older inventory that costs more. This is balanced in comparing the first and second quarters because we were able to increase our inventory of raw material to present a better situation when we look at consumption of electronic products.Once again, looking at cash flow generation, we generated BRL 79 million in cash for this quarter, and BRL 320 million total for the year. This is due to operating cash flow. So this turns around the trend that we find the first 2 quarters of 2022 when we consumed BRL 405 million in cash flow. So this has allowed us to reduce the company's net debt. Thank you, [ Rafaella ]. And we are leveraged by 1.7x. This has been highlighted already. This means that our leveraging is very controlled, and the second quarter is usually, historically speaking, the quarter with the highest net debt. This allowed us to improve the profile of our debt. Our debt is now much more healthy, much easier to deal with, and this allows us to capture more opportunities. And so, I'd like to highlight some of the conversations that we are having with investment banks that will allow us to extend even more our net debt and reduce their costs.Now, back to Helio to speak a little bit about our guidance.
[Interpreted] Our guidance will remain at between BRL 5.5 billion and BRL 6.5 billion. We are looking at -- we are going to be closer to the bottom end of this window because of some of the impact from public projects, but our revenue remains very high in the second half of the year, as we've seen in July and August. We've got contracts, public sector contracts that are very strong, and some corporate sector contracts as well.Retail remains healthy. Consumer habits remain healthy. Payment machines as well. There's a very interesting pipeline of contracts in that segment, and this [ leads ] us to estimate, and of course the ballot box contract. There is going to be a large purchase in this semester, as the government has announced, so we think that this will bode well for our guidance over the year. We are very, very anxious to see this improved result.We are following an innovation, a very innovative strategy. We've been seeing results from major projects now and into the future. That means 2026, 2027. We've been doing very well overall. Our corporate dynamic is very interesting, and we may be perhaps at the peak levels of the company. I don't think we've ever done so well, and we're very excited about this new heading that the company is looking toward.So, thank you for joining us, and we're now opening the floor to Q&A.
[Interpreted] Remember that to send in your question, please use the Q&A button at the bottom of your screen. We do have a few in the queue already. The first question comes from Andre Salles from UBS. He's going to ask his question live.
[Interpreted] I have 2 questions. The first, I'd like to see a little bit more texture in the public sector project. If we look at the ballot boxes, we are looking at something around BRL 200 billion. So this is going to be somewhere between '23 and '24, right? So how could we see this division? Where does it stand? And my second question is about Positivo SEG. What is the penetration like in the market, specifically for the companies you've acquired recently?
[Interpreted] Well, for the public sector, yes, you are right in combining the ballot boxes with other projects. That's approximately [ 2.8 ] here for us. So we're looking at -- our estimates are probably going to be kept. Now, the computer market as a whole is smaller. So every competitor is fighting tooth and nail. We've seen now a very tight bid for Caixa Economica and Banco do Brasil. We got -- we were -- we sold very good -- we did very good in sales for those 2 sectors in public sector companies.Now, as for the dynamics for the SecuriCenter acquisition, it's still too early to give you objective data. We actually closed on July 31, last Monday. On August 2, I went to welcome our recently acquired employees. I was very happy to see how excited everyone was that they now belong to Positivo. And I went with the SecuriCenter folks, with [ Tobias ] as well, and to visit our main clients, the main SecuriCenter clients, and the response was sensational. Everyone was very excited that they can now lean on a company like Positivo with a full portfolio of products. We were talking about how we can create links and servers, how we can have better electronic reception centers. So everyone is very excited about the project. But I don't yet have any numbers because it's still too soon. Positivo sales started a week ago on the 1st. We are now starting to penetrate many of the SecuriCenter clients and other clients that weren't yet clients of theirs. And we're also working with the SecuriCenter sales team. But we're very excited even though we don't have numbers.
[Interpreted] That was super clear and totally understandable. Still, it's important for us to get a little bit more texture.
[Interpreted] We have another question that was sent in, in writing from [ Mateus Goulart ]. Can we consider that the margins that were posted for this quarter are the company's new level, the new baseline?
[Interpreted] Well, let me tell you, structurally speaking, we are doing better. This is the key takeaway for this quarter. Our revenue wasn't as high, and of course, it was a tough quarter to compare with Q2 '22. But in terms of gross margin, we are seeing great numbers, much better because the cost of inputs has dropped. Structurally speaking, this is still a very relevant contributor. And it's also due to our product mix. We have more services, more HaaS, Hardware as a Service. So this is definitely here to stay. So certainly, we are likely to be seeing the company's new baseline. We are not likely to go back to the 20% level. We're probably going to be somewhere around 25% to 30% in gross margin, as we've been doing in the past 2 semesters, both for the product mix and for the input dynamic.
[Interpreted] Mateus has another question with regard to cash flow, which is lower than the short-term debt. Is the company likely to do a new round to lengthen its indebtedness?
[Interpreted] Well, we always run these bidding processes to normalize our debt. This is standard for treasury. Now, this year, 2023, is the year of amortizing our debt. We've already done that in the first half of the year. And now, in the second half, we are still going to amortize our debt. We have been paying off some of the short-term debt, and this has been crucial in improving our balance. This was at [ 53 ] at the end of the first quarter. And so now, working with the investment bank and some other businesses, this is likely to improve even more, bringing us closer to [ 70 ] in the medium term. So this is the management that we're likely to do over the course of the year.
[Interpreted] We have another one from Thiago Mendes from [ Nexus Investment ]. Congratulations on your results. Can you talk about the servers pipeline? Are these bidding processes that the company will participate in? Or are these projects that you've already won? And about the growth of Infinix, is this being brought forward by the entrance into new retailers or higher sales at the same retailers?
[Interpreted] For our servers, our pipeline is an opportunity pipeline. It's important to highlight that this pipeline has -- this is due partly to servers and solutions. This is an existing business. But a great deal of that that we've been exploring is a new pipeline. So these are locations where we didn't yet have any exploration. This is due to the digital transformation unit. This is a newly created department, and we are building the plane while it's in flight. And this is also due to recruiting new higher-value clients with PSS Connect, which is the project that we created during the first half of the year. So these are projects that are giving us a very robust [indiscernible] for the second half of the semester.
[Interpreted] We have some other questions that were sent through the Q&A. Can Norberto answer the Infinix question?
[Interpreted] Yes. To be very objective, Infinix has been growing in market share within the retailers where it's present. So we do see more capillarity. We are nearing 7,000 points of sale. But the major surprise in Infinix is the increased market share among the clients where we are already present. This is perhaps the best news of all because as we start to see recurring sales that increase over time, this gives us a very good cycle, a very virtuous cycle. This means that we're not concentrated in large retailers alone. A great deal of this is in countrywide retailers. This means that we have a large increase in market share for Infinix overall.
[Interpreted] We have another one from Otavio Tanganelli from Bradesco. Could you speak a little bit more about your forecast for the second half of '23 for each segment? Where do you see the margin trending towards?
[Interpreted] I'd like to give you an overview and then I'll open the mic to see if any of the VPs would like to add some texture. We've been seeing in public institutions a growth dynamic. It's become very clear for us, 1,350,000 in existing clients, and of course the ballot boxes, which was a very large contract, and we're likely to deliver a very significant percentage of those [ 1.4 ]. Other than that, we are looking at the normal public sector margins.As for corporate per se, we've been seeing in small and medium companies significant growth for the second half of the year. These are likely to be delivered not at the exact same level as we saw last year. Interest rates still affect small businesses. And as for the medium and large companies, since we are increasing market share, we are going to continue to grow in this segment as well. Now, as for Haas, our numbers for this quarter are likely to be higher than last year. As for services and solutions, this is a considerable pipeline. We're likely to reach the expected numbers. And within retail, Infinix continues to grow, and we have gained more market share for the computer market with higher margins as well. So we're likely to see the margin being sustained, as Norberto mentioned. But with a higher EBITDA, because with more revenue, we move away from the balance point. So this is how we see the second semester looking. Otavio, I hope I answered your question.
[Interpreted] We have a question now from [ Gilberto Soares ]. Caio mentioned about the impact in the drop of financial credit to EBITDA. How is Positivo preparing for the tax reform and potential impact of this fiscal benefit? Will you absorb that into the margin? Or are you going to seek another alternative?
[Interpreted] Well, for us, the fiscal reform is something we've been tracking very closely. We work in a sector that is incentivized. There are 2 laws, the IT law and the Manaus law. These 2 laws protect local Brazilian manufacturers, and it does require some actions on our part. So even if the IPI drops, another tax will replace it. But this is all foreseen in the law. So regardless of what happens, the laws remain. This law, this bill that is being discussed, we don't yet know how exactly it's going to be handled. But certainly, the improvements will be felt, absolutely.Now, in terms of accounting, this is part of EBITDA, not gross revenue. This is a discussion we've already had, not just ourselves, but other companies that also benefit from this incentive loss. Now, economically, this may not make much sense because it's operational. This comes from an R&D obligation. We have mandatory R&D investments that must be made, and this is part of the margin. It's just not included in the gross revenue, although it should, in our opinion, but it is part of the EBITDA result. This is part of the production mix. But we had much more of our revenue coming from Manaus than from Ilheus, and that's because of the ballot box business. Now, likely there's going to be more balance. So this is not an issue in and of itself.
[Interpreted] Let me try to round out the answer. The computer and smartphone market is similar to the auto industry. There is a Brazilian ecosystem. Every automobile within a certain value that is produced in Brazil is only competitive if it's produced here. This is the same thing that we see in computers and smartphones. Up to a certain value, you're only competitive if you produce it in Brazil. If you had more volume, it would work, but this is what the pyramid looks like. At the top of the pyramid, we have imports, and everything else is produced in Brazil. Every single player produces computers in Brazil. Every player produces smartphones and tablets in Brazil. There is no player that fails to do this and remains competitive. And the same holds for servers. These laws generate a lot of jobs, and so this is why protecting these laws seems very likely. So we have a double protection, as Caio mentioned. There is the IT law that will not be impacted by this fiscal reform because it deals with credits from the public sector. There's no specific name assigned to this type of incentive. And this bill, the Manaus bill, maintains that the Manaus free trade zone will be [ persistent ]. We don't know exactly how it's going to be [ persistent ], but the bill does set forth that the Manaus law will remain. So we're not losing any sleep over this. We're very confident.And just to explain a bit more for those who are not yet familiar, the difference between Manaus and Ilheus or any other location outside of the Manaus free trade zone is that the IT law gives you federal credit, and in the free trade zone, you have a drop in IPI tax. So there are 2 different mechanisms. So that means that some products should be produced inside Manaus and some should not. This also gives us a cash flow balance because the credit takes a while to be consumed, but it creates more of a margin compared to a lower margin in Manaus but one that gives you more cash flow instead. This is what our day-to-day business is about.
[Interpreted] The next question comes from Jorge Santos from Banco do Brasil, and it goes to Guercio. Could you speak a little bit about sales to corporations and what are the opportunities that you see for expansion over the next few years?
[Interpreted] Well, I'd like to answer in aggregate. First, we have a huge greenfield in the corporate sector. If we look at our timeline, this is not a business or a segment that has already stabilized. It's a relatively new business if we compare with the other segments. So, for opportunities, what I see is, first, we have enormous room for growth in every segment organically in what we've been already practicing, but I see some very, very interesting opportunities ahead of us. And I see room for portfolio improvement and development. Our clients are increasingly expanding and looking for more solutions. These have 3 pillars. Generally, it's hardware, software and service. And these services are becoming increasingly sophisticated. So we have a very clear roadmap ahead of us for this service portfolio to meet business needs. This goes -- this ranges from public and private and hybrid cloud to services where we will support clients in their digital transformation and full outsourcing services, where we go all the way to the end point. There is a digital transformation occurring at the margin. This involves all the different devices that Positivo has, PCs and tablets and our whole product mix. And we have what happens in the core. That means data centers, infrastructure and cloud services. So we have enormous opportunities, and I think we've been paving very good ground. So I'm absolutely positive that our numbers are going to increasingly show this. We are being seen more and more as a company that doesn't just sell hardware. We're not only on the margins, on the edges of this digital transformation. We are immersed in the entire ecosystem, and we have been successfully and increasingly winning more and more market share, more and more space. We are becoming competitive compared to the other players more and more. So it's a very interesting dynamic that is becoming more and more established.
[Interpreted] Thank you, Guercio. The next question comes from Joao Martins from Constancia Investments. Could you tell us a little bit more in detail what is the makeup of your inventory in different products and segments and what should this look like for the rest of the year?
[Interpreted] Well, I won't go into so much detail per segment, but it's important to speak overall. Now, the graph we posted on the presentation shows our inventory history. This has been a dropping inventory because over the past few years, we financed strong growth for the company. And, of course, inventory is part of it. We had to buy inputs. We have a production system. That means we need to buy inputs 4 or 5 months before we use them for each segment. So if I need to bring those inputs from Asia, which is very far away from Brazil, we need to ship this overseas. We need to bill and sell. So this means we need to have adequate inventory to supply the company's operating cash. This graph shows the results from the first quarter of 2022. So the trajectory, the trend line has been dropping. And I think it's important to mention that near the end of the pandemic, companies were experiencing higher stocks. This was a bit of a problem. It needed to be managed, specifically in the consumer markets. So we were able to reduce these numbers. And as I mentioned, between the first and second quarters, we reduced our inventory in almost BRL 200 million. Today, 74% of our inventory is inputs, raw materials. And we've got the sales already in -- the sales have already been made for these products that we're going to produce. So this dynamic is trending downward. We always anticipate these purchases so that we can deliver the products when we sell. And so, over the remainder of the year, these inventory numbers are likely to drop. Of course, there is a balance point, but they are likely to drop slightly at least. We do expect the company to remain at the same level in revenue or even to improve revenues. Now, that includes the corporate market and the public market as well. It's very important to highlight that there is a drop in finished product inventories. This is turning around very well. And what we have on hand really is inputs. The major excessive inventory that we had was in consumer products. This has basically normalized. All of our different lines are very balanced. So today, I would say that our inventory is very healthy.
[Interpreted] Excellent. Thank you. We have another one from [ Felipe Caballero from Wiser Research ]. He has 3 questions. First, I'd like to learn more about the options for entering the security market after this latest acquisition. Are there any other sectors where the company has its eye? And about the invested companies, any news about Hilab?
[Interpreted] Well, as I mentioned before, we have some segments where we've been investing, where we've been diving in, and this was the ninth segment. This means we've completed our project. Of course, we are always open to new opportunities. The technologies segment is in constant change, and we're not likely to move to a different sector. At least for the next 2 to 3 years, our plan is now to consolidate and establish our position in these segments where we have already entered. Hilab is doing well. Hilab has recently launched a blood test product. This is a very difficult market, and we're very excited to be working in this new and challenging field.
[Interpreted] All right. Well, this completes our Q&A session. There are no more questions. So, Helio, please.
[Interpreted] Well, as we mentioned at the beginning, this semester is highly aligned with our expectations and forecasts. We really expected exactly what happened. We now expect a very strong second half of the year. Our guidance remains within the forecast window, probably closer to the bottom end, but still within the window. This entrance for Positivo SEG has brought the company new perspectives. The launch of notebooks with Lumina Bars has been sensational. Infinix has been posting good results. The services segment is also making us very excited. We have 2 of the 4 major Brazilian banks as clients. The payments [ regime ] is very strong. The public sector contracts are also very healthy. We've been winning many very large bids and even sophisticated bidding processes. This means very robust technology solutions. So, it's a very interesting time for the company. We're very happy. Thank you very much for joining us.[Statements in English on this transcript were spoken by an interpreter present on the live call.]