The following is a summary of the Airgain, Inc. (AIRG) Q1 2024 Earnings Call Transcript:
Financial Performance:
Airgain generated $14.2 million in Q1 2024 sales, a 41% increase from the prior quarter.
The gross margin for Q1 was 40.2%, up significantly from the previous quarter due to inventory adjustments.
Q1 Adjusted EBITDA was negative $0.7 million and non-GAAP EPS was negative $0.08.
Enterprise sales in Q1 was $8.9 million, reflecting a sequential increase of 92%, driven by growth in custom products, embedded modems and IoT antennas product lines.
Consumer sales were $3.5 million, reflecting a sequential increase primarily due to shipments of a Tier 1 MNO antenna design win.
A promising backlog for Q2 was indicated, particularly in the consumer market, with growth expected in the latter half of the year in the consumer segment, driven by a design win with a major network operator (MNO) and early adoption of Wi-Fi 7 by multiple-system operators (MSOs).
Business Progress:
Airgain completed significant shipments in Q1 in a few of its product areas, such as custom products and embedded modems.
Airgain saw early indications of recovery in its enterprise and consumer markets in Q1 and expects this trend to continue.
The company is investing in its R&D and sales teams as it focuses on strategic initiatives in fixed wireless access, vehicle networking and Smart C-Band repeaters markets.
New products launched in 2023 for IoT custom products, automotive markets, and industrial IoT antennas are expected to ramp up throughout the year.
Airgain is developing wireless solutions to help partners and customers get connected quickly and expects to continue providing leading-edge products to the market.
The company expects its first production purchase order from another Tier 1 MSO in the coming weeks.
Airgain is developing its business with three key target areas for its AC Fleet: VAR partners, direct target list of around 80 private fleet companies, and strategic partnerships with companies like Exxon, Sierra Wireless, Motorola Solutions, and AT&T.
Trials for the 5G Lighthouse repeater system are ongoing with full-scale adoption expected later in the year.
Airgain anticipates revenue growth driven by demand in several applications like fixed wireless access and smart city traffic light applications.
More details: Airgain IR
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