Peraso Inc. Q1 2023 Earnings Call
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Good morning and welcome to Paraso Inc's first quarter 2023 conference call.
At this time, all participants are in a listen only mode. If anyone that needs assistance at any time during the conference call, please press the star key followed by the zero key on your touchtone phone. As a reminder, this conference call is being recorded today.
Tuesday, May 16th, 2023. I would now like to turn the call over to the host for today's program, Jim Sullivan. Please go ahead.
Good morning, and thank you for joining today's conference call to discuss Parasso's first quarter, 2023 financial results. I'm Jim Sullivan, CFO Parasso, and joining me today is Ron Glebary, our CEO .
Yesterday, after the market closed, we issued a press release and related form 8K, which was filed with the SEC.
The press release and for May K are available on Prasos website at www.prasoink.com under the Investor Relations section.
There is also a slide presentation that we will be using in conjunction with today's call that may be accessed through the webcast link on the investor relations website.
As a reminder, comments made during today's conference call may include forward-looking statements.
All statements, other than statements of historical fact, could be deemed as forward-looking.
Proceed advises caution in reliance on forward-looking statements.
These statements include, without limitation, any projections of revenue, margins, expenses, non-gap gross profit, non-gap gross margin, non-gap operating expenses, adjusted EBITDA, non-gap net loss, cash flows or other financial items.
including the anticipated cost savings. Also, any statements concerning the expected development, performance, and market share or competitive performance of our products or technologies. All four looking statements are based on information available to Praso and the date here us.
These statements involve known and unknown risks, uncertainties and other factors that may cause process actual results to differ materially from those implied by the forward-looking statements.
including unexpected changes in the company's business.
More detailed information about these risk factors and additional risk factors are set forth in process public filings with the SEC. And, so, what do you think? We need to apply questions. And, so, what do you think?
Procso expressly disclames any obligation to update or alter its forward looking statements, whether as a result of new information, future events, or otherwise, except is required by applicable law.
Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of gap and non-gap.
Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in terms of GAP and non-GAAP . Included in the company's press release issued yesterday.
are definitions and reconciliations of gap to non-gap items, which provide additional details. For those of you unable to listen to the entire call at this time, a recording will be available on the Investor Relations section of our website.
Now, I'd like to turn the call over to CEO Ron Glybary for his prepared remarks. Ron?
Thank you, Jim. Good morning and welcome to everyone joining today on the phone and via webcast.
I'm pleased to report that ProRes had a strong start to the year, highlighted by continued growth driven by record product revenue from a combination of our millimeter-wave solutions for the fixed wireless access market, as well as our Memory-IC products.
More specifically, total revenue in the first quarter increased 29% sequentially and 48% year over year with product revenue coming in at $4.9 million.
Our near-term focus remains on expanding for our leadership in a millimeter-weight fixed wireless access as wireless ISP seek to aggressively deploy multi-gigabit ton activity in the unlicensed 60 gigahertz spectrum to secure market share of a rapidly growing subscriber base. Today, there are approximately 6.7 million with subscribers.
broadband access are also helping to fuel the market's growth, especially in rural communities.
In addition to the momentum with wisps, Fix Wireless Access is continuing to capture a growing share of the broadband market. According to latest third-party market research, Fix Wireless Access has consistently represented over 90% of the net ads by the top broadband providers in the US over the past three quarters. As discussed on previous calls.
Six wireless access to the natural extension of 5G deployments, enabling carriers to maximize available bandwidth capacity while also offering faster, lower latency and symmetrical connectivity to customers.
As further validation, T-Mobile and Verizon collectively added nearly $3.2 million fixed wireless subscribers in 2022, which represented 300% growth over 2021.
The market opportunity across just these two leading carriers is truly substantial, with each having 5G fixed wireless access service that has the potential to reach tens of millions of homes.
Importantly, 5G mmWave fixed wireless access isn't unique to North America and is increasingly being recognized and ramped globally. Leading carriers in multiple countries, including Australia, Italy, and India, are either actively or have plans to deploy 5G fixed wireless access in the 28 and 26 GHz bands. We are seeing this ramp in the form of prospective engagements, which increase meaning of the
is ideal for enabling cost-effective end equipment needed for deployment of high-speed fixed wireless access.
Turning to slide seven, I want to share something new to convey the recent significant progress we've been making to expand our engagement pipeline. Keep in mind that Perazo has historically been focused on supporting a very constant group of core customers. Late last year, we began a strategic initiative to extend our commercial reach to the entire world.
and diversify our customer base.
This included the appointment of Mark Lunsford, who is fundamental to our ongoing efforts to expand Peraza's new business pipeline.
This slide is a simplified version of one of the tools we use internally to measure both the breadth and projected economic value of our existing pipeline. Although we've removed the implied economic values that we use internally, the number of engagements indicated on this slide represent our current pipeline.
Therefore, this shows that our combined funnel and active engagements have grown from 60 in the first quarter to 75 as of May 2023. In addition, this light shows the progression of customer engagement phases through to pre-production.
As of May 2023, you can see that an increasing number of customers in the technical design process.
which includes schematic capture, layout, design, prototyping, test verification, and early pre-production.
So not only do we see the overall level of customer engagement increasing, we also see an increasing level of the status of those engagements as well.
Switching gears, I want to review an important update related to our Memory IC business, which as a reminder, Perazzo acquired as part of the business combination with Moses in late 2021.
The sole foundry for our memory devices is TSMC. They recently informed us that the manufacturing process used to fabricate wafer for our memory ICs would be discontinued in a second half of 2024. Given these are legacy products and require unique, non-standard process, which is not easily transferable to another foundry,
we've begun notifying customers of end of life of our memory devices.
As part of the EOL, we requested our customers to provide us with a forecast and purchase orders for last time buys by the end of 2023.
We currently expect to fulfill last time by IPOs for our memory ICs through next year 2024.
That said, the timing of EOL shipments will ultimately depend on both delivery timelines for our suppliers as well as the scheduling requested by our customers.
Although it is too early to forecast the size and linearity of customers last time purchase orders, we do anticipate the implemented EOL to result in a potential pull forward of future demand and revenue related to our memory IC products as we fulfill customers' POs during 2024.
We now turn back to our core millimeter wave silicon business, which has placed to become the primary driver of Perazzo's growth.
As I previously mentioned, the resilient goal to the fixed wireless access market has been impressive, especially considering the ongoing macroeconomic uncertainty.
Our near term focus for 2023 is to further capitalize on paralysis existing leadership position in the unlicensed 60 gigahertz segment of the Fixed Wildest Market, where whips are aggressively going subscribers from multi gigabit connectivity. In addition, our highly integrated 5G beam form of product positions as well for emerging opportunities.
as well as future Wi-Fi standards.
In closing, we believe we are well positioned with leading technology and a strong product portfolio in our millimeter-wave business, and we continue to be encouraged by the sustained momentum in the fixed wireless market.
acknowledging the current macro-emarmament, we continue to prudently manage its fences and cash.
As we begin to realize the benefits from previously taken actions to streamline our organization. Looking ahead, we are focused on driving an expanding pipeline of new business engagements, both domestically and abroad, as well as the births of the occasion of our customer base and support of future growth.
With that, I'll turn the call back to Jim to review the first quarter financials and speak to our outlook for the second quarter.
Thank you, Ron, and good morning, everyone. It's great to speak with you again today. During my remarks, I'll make several references to non-get numbers.
Unless otherwise indicated, referenced amounts excuse stock-based compensation expense, amortization of reported intangible assets, impairments of goodwill, and the change in fair value of warrant liability. These non- GAAP financial measures and the reconciliation of the differences between them and comparable GAAP measures are presented on our press release.
and related form 8K, which was filed yesterday with the SEC. Turning to our first quarter, 2023 financial results. Total revenue in the first quarter increased to $5 million, from $3.9 million in the fourth quarter of 2022, and compared with $3.4 million during the same quarter a year ago.
Product revenue from the sale of our integrated circuits and millimeter wave integrated antenna solutions in the first quarter was $4.9 million, compared with $3.8 million in the prior quarter and $3.2 million in the first quarter of 2022.
The sequential growth of first quarter product revenue was primarily attrudable to increase sales of millimeter wave integrated solutions.
The significant year-over-year growth was driven by increased shipments of both millimeter-wave products and memory ICs.
Royalty and other revenue comprised $0.1 million of royalty revenues from licensees of our memory technology in the first quarter of 2023. Gapcross margin was 38.3% in the first quarter compared with 44.2% in the prior quarter and 42.8% in the year ago quarter.
An ennongat basis, excluding ammonization of acquired intangible assets, gross margin for the first quarter was 45.4%.
Compared with 53.4% in the prior quarter, and 53.3% in the first quarter of 2022.
Non-gap product growth margin decreased to 43.8% in the first quarter, compared with 52.6% in the prior quarter and 50.4% in the first quarter of 2022.
The sequential and year-over year decreases in gap and non-GAP gross margins for the first quarter were primarily the result of revenue mix. We're selecting increased revenue contribution from a millimeter wave integrated solutions. Although gross margin was lower in the first quarter of 2023, we continue to target a corporate non-GAP gross margin over approximately 50%.
The combination of the benefits from increased scale and reduced production costs on our millimeter wave integrated solutions.
as well as the contribution from sales of our higher margin memory IC products. Gap operating expenses for the first quarter were $5.7 million, which included a $0.4 million gain.
and a previously completed license and asset sale.
This is compared with $16.2 million in the prior quarter, which included a $9.9 million non-cast charge for the impairment of goodwill and $8.2 million in the first quarter of 2022.
Total operating expenses for the first quarter of 2023 in a non-gap basis, which is good stock-based compensation and amortization of reported and intangible assets were $4.3 million compared with $4.8 million in the prior quarter and $6.9 million in the same quarter a year ago.
In February 2023, we announced that we had implemented cost reduction initiatives to reduce operating losses and streamline operations.
which collectively are expected to decrease our operating expenses by approximately $5 million on an annualized basis.
As reflected by our results, we began to realize the initial benefits from these targeted expense reductions during the first quarter.
We continue to anticipate realizing further benefit from these actions over the coming quarters. Gap net loss for the first quarter of 2023 was $3.1 million.
or a loss of 15 cents per share, compared with a net loss of $14.6 million, or a 71 cents per share in the prior quarter, and compared with a net loss of $6.8 million, or a 34 cents per share in the same quarter a year ago. On a non-gap basis, net loss for the first quarter of 2023 was $2 million, or a loss of $0.9 per share.
which will exclude the stock base compensation, amortization required intangibles, and a recorded gain to the change in fair value of warrant liability.
This compared with a non-gap net loss of $2.8 million, or at their teen cents per share in the prior quarter.
and a net loss of $5.1 million or loss per share of $0.25 in the same quarter a year ago. The weighted average number of basic and diluted shares outstanding for purposes of calculating both GAP and non-GAP EPS for the first quarter of 2023 was 21.6 million shares.
Which excludes 1.8 million shares of our common stock and exchangeable shares that are escrowed pursuant to the terms of an escrow agreement related to the December 21 business combination between Paraso, Moses, and subject to an earnout based on achievement of certain stock price targets.
Adjusted EBITDAW, which we define as gap net income molasses reported, excluding stock-based compensation, amdization of reporting intangibles, changing fair value of warrant liability, goodwill impairment charges, interest expense, depreciation and amdization, and the provision for income taxes.
with negative $1.8 million in the first quarter compared with negative $2.5 million in the prior quarter and negative $4.8 million in the prior year period.
From a balance sheet perspective during the first quarter of 2023, we collected approximately $2 million, previously outstanding from a lead customer, and recognized approximately $1.1 million of revenue as a result of the collections.
From a balance sheet perspective, during the first quarter of 2023, we collected approximately $2 million, previously outstanding from a lead customer, and recognized approximately $1.1 million of revenue as a result of the collections. The company has no past due amounts in this customer.
On March 31, 2023, we had approximately 23.4 million shares of Comestock and exchangeable shares outstanding. This amount includes 1.8 million shares subject to S-GRO as noted previously.
Regarding our business outlook, there are currently two unrelated customer sales transactions that we are actively working to close. The ultimate outcome and timing are uniquely difficult to predict, and either one or both of these pending agreements could potentially have a meaningful impact on anticipated revenue for the second quarter. As such, today we are not in a position to provide specific guidance for the current quarter. To the extent the outcome of one or both of these pending transactions becomes more certain, we will consider providing future potential updates.
from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one if you wish to ask a question and please hold while we pull for questions.
The first question today is coming from David Williams from Benchmark. David, your line of life.
Hey, good morning. I say a question and I apologize for the background noise. But wanted to see that there's a couple of things here that are definitely interesting that I wanted to touch on. One is on the memory pull forward. And I know Ron, you said too early to fill within the live potential pull forward could be. But as you kind of think about the working capital here and in terms of that impact, how do you think that the revenue trajectory could be from this? Do you think that all of the revenue would have expected to catch?
you know that outline revenue into 2024, 10 to 2024.
From a capital perspective, this situation where we're looking to the customers to participate in that cash process. I mean, it's just the message is, hey, we're...
You know, our boundary has just continued this process. You know, we're gonna try to keep it going as long as possible than in order to purchase the inventory necessary to satisfy your requirements. We'll need essentially a prepayment for that.
Okay, very helpful. And then maybe say on the just the customer, you talked about in the script there, Jim. Any more color around that? You talked about two of them, this effort and the same from one another. Is there anything is this related to the NRE? And maybe you should give us any more color on that NRE. If that's moving forward and maybe help what big a portion that could be or what was. Thank you.
Yeah, no, absolutely, it involves, there is NRE licensing components. And as such, given the complexity, the revenue recognition rules around it, and timing of payments, et cetera, we just felt it was very challenging kind of put a number out there, obviously. Thank you.
You know, for example, a $5 million number in Q1, it doesn't take much to kind of move that and, you know, create a, you know, create a miss or put us out of balance. So we just felt the prudent thing to do, particularly in this market with, you know, the inventory situation across the, across the industry right now, you know, on the, on the, even on the product side, because there is the potential for some.
you know pushouts pulling right up to the you know the you know last day or the second month of the quarter. You know we just felt it was prudent to you know hold off on the guidance number at this time. We certainly as we said in our comments would like to provide an update you know when we can. I'll be at revenue recognition all this has to be you know the company's conclusions need to be signed off by the
So, you know, they will definitely, you know, key to our revenue and liquidity having these transactions closed.
Okay, all right. Fantastic. Certainly appreciate the color there and understandable on the book end of that revenue. I guess maybe from a broader perspective, fixed-marital fact that you just kind of the rest of the business can feel pretty comfortable with design activity. And we're all maybe even speaking to county if that's the accelerator or kind of what you said outside, maybe a little more sellers from which you brought in the script. Thank you. Of course, they might my pleasure. Yes, so.
I think there's a theme moving forward for Peraza, which is really to last November
You know we were our team is really to diversify customers. I mean so to eliminate this constant cause. Hey, I'm here for something else. Yeah.
Can you give me the? I can, I can, sorry. So, so our theme is really to diversify a custom foundation. We really pre-limited interability to do that to last November . We brought Mark Lundford on board and Mark's goal is as you can see from our pipeline is to really diversify that.
So yeah, by our estimate right now, we've got about 75 engagements up from about 16 Q1. And so we're just, you know, we're just really, really focused on the commercial side of diversification of that customer base. And so, so far, so good markets to an amazing job. Well, frankly, the whole team is doing an amazing job.
that we're seeing that design activity increased substantially. But you know, and again, just to kind of maybe close that off, certainly, you know, Fix Wireless is a big part of that. But also we're seeing, you know, some of the kind of shapes of progress and things like high speed video.
So that market, we've got a lot of intellectual property for things like low latency wireless video, be it VR or be it educational systems or be it docking stations. So more, even though we've been, of course, fixed wireless is our focus, but we are starting to see some diversification in terms of the applications as well, which of course we're pleased with. Bach and his wife have helped expect it to become a more efficient setup than other things like broadband and is now becoming a more competitive way to bring models into a more intensive way of getting more secure. So for this foreign say, even for the anxious market, it is fiat, paying for millions of dollars withena ed umph gotta beSupport the next year. S l"...
We're just really focused on really diversifying that customer base so that we're not really relying on a couple of customers but really the whole industry. Thank you. And the next question is coming from Kevin Liu.
really focused on diversifying that customer base so that we're not really relying on a couple of customers but really the whole industry. Thank you. And the next question is coming from Kevin Liu from K. Liu & Co.
diversify that customer base so that we're not really relying on a couple of customers but really the whole industry. Thank you. Gave
Hi, good morning. One of that also asks a question on the memory business first. Just in terms of the actual production, can you talk a little bit about when TSMC would actually stop producing any more product to give us kind of a sense for how far in the 24 customers can wait for their orders?
And then beyond that, when you look at your memory business today, just curious if the revenue you do on kind of a annual or quarterly basis, how many months of inventory or years of inventory are your customers typically purchasing it in a given quarter or a year?
Do you want to speak to that Gemma? Do you would like me to?
If you want to go for a strong I can chime in. What did I start and then hand over the image voice out of things? So you know basically.
I guess at some level the TSMC timing is confidential proprietary information to TSMC, Kevin, but suffice it to say, you know, we've got
We've gotten the order of let's call it six quarters of flexibility there, not counting any inventory. So this is not going to happen overnight, but those are kind of the broad timeframes is kind of late 2024 for production and then...
You know, presumably there'll be some carryover in terms of the inventory. So that's kind of the broad, I would say the broad, you know, timing of this situation. However, we like to give our customers a lot of time. They've invested a lot of money in these products. And so we want to make sure they get the big, full value. I'm not as close to the inventory situation. And maybe you could step in on that side of the things.
Yeah, sure Ron, our customers, like everyone, our peers out there, others in the industry, we always seek to ascertain exactly how much inventory the customers are holding. Certainly we make our forecasting a lot easier. Most customers keep that pretty tightly held. We generally ship direct to customers or
In the case of one customer in Japan, we go through a local Disney, although they do not stock inventory. So we don't have Disney's holding inventory out in the channel. But it's difficult to get a handle on inventory. I will say the memory business is seeing the impact of Q2.
Q3 of the inventory management issues everyone is having out there and have seen some push outs of orders, etc. So we are certainly not immune to that. But hard to have visibility. As we announced, we...
expect to see the impact from the EOL in 2024. As we do expect customers, I think it's, Ron answered initially on David's question. We hope, hope, expect, use an encircleward looking verb to see the seed pull-ins as customers.
You don't need to pull in future demand to ensure they're adequately stocked.
Yeah, understood. And you mentioned kind of the industry why inventory correction is going on currently. From your perspective, are you guys seeing that only within your memory business here, or is there any sort of correction that needs to happen on a millimeter wave? Just wondering what you're seeing from an end-cause-well standpoint, cost-for-products? We're seeing it on both sides of the business.
Neither one is immune. We're definitely seeing some desire. In the case of our memory, the purchase orders.
do have within a window push outs. We have not seen any cancellations on the memory side of purchase orders. We've seen some push outs.
Although we're optimistic they're pulled in. Again, being a relatively smaller provider, it's meaningful to us, but the challenges, the contract manufacturer, the algorithm says push out.
You know, machine driven and then, you know, we can get a pull in a couple of weeks later to bring it back. So very, you know, difficult to measure. We're also seeing it on the millimeter wave. I think there's been, you know, a little bit of a knee chart. Let's, you know, let's push things out and then just pull them back in later.
There's not as much flexibility for our customers and then Millimeter Waveside generally does POs are not reschedulable. So we will ship what we have in some cases.
If it's to the mutual benefit, kind of work with the customers on that. We are also seeing that customers are taking longer to pay.
you know, and holding, you know, holding our usual issue where customers will hold the receivables at quarter end and, you know, we'll do quite well in collections in the first half or the first month of the subsequent quarter. And just on the two large customer transactions you referenced, any sentiment in terms of how far...
to close and you know and teach you in case one of them it's taken you know a little longer than expected but we do expect it to command and as I said it's you know we'll have a you know beneficial impact on our on our balance sheet.
Obviously when you have different components involved, I mentioned the...
the various deliverables, it's always tough to determine the revenue recognition and the impacts again at our side. So, we just felt it prudent to kind of hold off, but we do expect those to close and certainly we're always subject to customer confidentiality, etc. But would expect to
subscriber growth even for kind of the licensed 5G spectrum. Just on the licensed 5G side could you talk about whether you know you guys expect to see more demand or more wins coming initially you know domestically or internationally there and any sort of update in terms of when you could start to see you know your first major customer win there.
Well that's a good question. I mean, I think the first message, you know Kevin, I mean, as we all know, 5G fixed wireless millimeter wave.
was slow in 2022 because of the mid-band deployment. But what we are seeing, now we are seeing over the last few weeks and months just really a spike in activity in terms of our engagements. I mean we are talking
We're talking like top self, you know, partners, customers and partners here. So still a bit hard to judge. Like I think globally in terms of the deployments initially was Verizon. Verizon is still shipping, but you're seeing, you know, other signs of light like NBN in Australia has deployed well basically country wide.
Well Italy is more of a 28 gigahertz, very substantial presence of fixed wireless. But probably what's driving a lot of activity right now is India. And I think we all know that India has licensed the low band 26 and 28 gigahertz, 4 fixed wireless.
Fibers is just not that popular in India so it looks like mostly India is going to go fix wireless.
So we're seeing, that's where we're really seeing momentum. And I mean, again, very significant conversations going on there. And specifically what we're finding is that our thesis that the way fixed wireless is successful is with really cost effective equipment.
And so unlike most of our competitors, we designed a 5G chip absolutely focused on reducing the cost of consumer premise equipment. And so there's very, very strong interest in that chips. So we're thrilled with the progress there.
use of equipment has to be cost effective. We're as initially all the millimeter weight design wins mostly were in the base station. Now vendors are looking at who's got the right answer for the end equipment. We're definitely seeing some nice activity there.
So I would summarize it for you, Kevin, is kind of globally the service providers that I suggested now, and starting to see some activity on the SATCOM side of things as well. So I would say a scene for Q1 and now to Q2 is the 5G market in Millimeter Wave, takes wireless.
is starting to heat up for us. So we're pretty happy with that.
All right, that's great to hear. And one last question for me, just in terms of the OPEX savings, could you just talk about how much more you expect to be able to save kind of on a sequential basis heading into Q2? Sure, Kevin. You know, we obviously announced that mid-February and made some, you know, employee reduction.
over where we were in Q1. You know, obviously subject to other movements and also subject to these kind of revenue transactions and some incremental costs that may be associated with those.
Which could offset that, but obviously would more than offset that. But, you know, obviously it takes some time to have the full benefit kick in, particularly when there are headcount reductions, because obviously you have termination payments, et cetera. Understood. I appreciate you taking the questions and go back to your second board.
Thanks Kevin, appreciate it. Thank you, and the next question is coming from Tim Savagow from Northland Capital Markets. Tim, your line is live. Great, thanks and good morning. I had a couple of questions. We're going to follow up on the...
the kind of pending agreements that you mentioned and ask whether those are new or extended agreement with current customers. And also trying to relate that to the pipeline slide that you put up. I think you showed
Two customers going into pre-production and a few more moving through the pipeline kind of above that. Should we relate those two developments or those separate?
I'll follow up from there as well as the current your new customer question. Thanks.
It doesn't show customers in production already. It's like people pending production and then you know production is separate so one of the customers does not show up on that pipeline slide and the other one does so So that would be the summary how those two customers relate to what's on the pipeline slide
Great. And I know you. Great.
indicated you removed the economic value but
I wonder if you might have any color and kind of the weather in the aggregate or anything else just from a total funnel perspective or for the ones that you're farther along on. What sort of market opportunity you see there and given the uptick in the funnel, would you attribute that? Obviously, there's been a lot of company specific activity, but...
You know have you seen an uptick in overall activity across the fixed wireless access market is contributing to some of that funnel expand Well, definitely it's overall you know engagement like We're actually calling from Washington today because we're actually in Washington.
with the Wildlife ISP organization speaking to Congress or congressional members about the benefits of fixed wildlife especially with regards to the $44 billion BEED funding. So there's a lot of money there and I think in parallel with that, so we're working on, we're actually I've said in the past, we're working with WISPs.
to really promote millimeter wave technology in that market. Yeah, kind of the key benefit that were the message that we're bringing to that market is.
you know, Perosus Technology brings gigabit links, you know, it's highly competitive with fiber. It's the symmetrical links, the low latency. So that's starting, no pun intended, that's starting to resonate with those customers and we have some early wireless ISPs who are embracing that fully and just basically saying look, you know, fiber is a big deal.
primarily at the OEM level, but even at the service provider level where they are using our technology to get to gigabit links. I mean, another message we received from the WISP is of course, people with 10 megabits are happy with 50 megabits, but our view is if you provide a...
We're bringing the Congresses that, you know, Wallace is absolutely a central part of the B program because come is like, Parazo are providing these giga, these giga at links at a very, very aggressive price point, under $200 for the box. So to speak specifically to your question, that constitutes a significant portion of the pipeline.
You know, fixed wireless access from where we were back in November . But, you know, and I think more broadly, you know, I mean, the pipeline does include some indoor, you know, high speed wireless, also some, you know, quite a bit of defense and also some transportation. So we are just broadening our market markets, but...
to question him? Absolutely, really helpful. Thanks very much. Great.
Absolutely, really helpful. Thanks very much. Great. Thank you.
There were no other questions in queue at this time, and this does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.