Q1 2024 Peraso Inc Earnings Call
Good afternoon, and welcome to Perazzo, Inc. First quarter of 'twenty 'twenty four conference call.
At this time all participants are in a listen only mode. If anyone 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 Monday may 13th 2024.
I would now like to turn the call over to the host for todays program. Mr. Jim Sullivan. Please go ahead.
Good afternoon.
And thank you for joining today's conference call to discuss process first quarter 2024 financial results I'm, Jim Sullivan CFO process and joining me today is Ron <unk> our CEO.
Today after the market closed we issued a press release and related form 8-K, which was filed with the SEC.
The press release and form 8-K are available on process website at Www Dot for ASO, Inc. Dot 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.
We're also advises caution and reliance on forward looking statements. These statements include without limitation any projections of revenue margin expenses non-GAAP gross profit non-GAAP gross margin non-GAAP operating expenses adjusted EBITDA non-GAAP net loss cash flows or other financial items.
Including anticipated cost savings.
Also any statements concerning the expected development performance and market share or competitive performance of our products and technologies. All forward looking statements are based on information available to cross sell them to date Europe. These statements involve known and unknown risks uncertainties and other factors that may cause process actual results to differ materially from those in.
Slide by the forward looking statements, including unexpected changes in the Companys business more detailed information about these risk factors and additional risk factors are set forth in process public filings with the SEC.
<unk> expressly disclaims any obligation to update or alter its forward looking statements, whether as a result of new information future events or otherwise, except as 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 GAAP and non-GAAP with respect to remarks on today's call involving non-GAAP numbers, unless otherwise indicated referenced amounts exclude stock based compensation expense amortization of <unk>.
Reported intangible assets and the change in fair value of warrant liabilities. These.
These non-GAAP financial measures definitions and the reconciliation of the differences between them and comparable GAAP measures are presented in our press release and related form 8-K, 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 page of our website.
Now I'd like to turn the call over to our CEO, Ron <unk> for his prepared remarks, Rob.
Thank you Dan good afternoon, and welcome to everyone on the phone and webcast. We appreciate you joining us.
I wanted to start with a few brief comments on the first quarter and our current outlook, then I'll get into more detail on the key developments in progress we've been making since our last conference call.
First quarter revenue increased sequentially and was above the midpoint of our guidance as customer demand for memory products improved and we had increased shipments of our memory IC products and fulfillment of our backlog and end of life orders combined with positive market indicators, we began to see MMA business, we're increasingly confident in our.
Our expectation for 2024 to be a year of solid growth for Perazzo.
Turning to slide four I want to provide a brief update on the end of life of our memory IC products shipments against backlog orders increased to $2 $4 million in the first quarter. We also received an additional $2 $9 million of end of life orders late in the quarter, which increased our total remaining purchase order backlog to approximately 12.
$6 million at March 31st 2024.
We anticipate shipments of our memory IC products to increase sequentially in the second quarter and we expect to fulfill the total remaining backlog by the end of the first quarter of 2025 <unk>.
Collectively these shipments will contribute meaningful revenue and cash flow in support of the continued execution of our growth initiatives to expand our <unk> customer base.
Flipping to slide five as I've stated in the past one of our key strategic initiatives continues to be building, a larger and more diversified customer base for the memory business.
And again, we're approaching this both from a geographical perspective.
In terms of end market applications, although it's been a relatively short period since our last earnings call. We continue to make progress on culminating new engagements.
It's an existing opportunities in the sales funnel.
A number of these new engagements continue to be targeted outside of North America to further expand <unk> global each I'll discuss a few of our most recent successes and secured design wins in the next few slides.
Turning to slide six I want to profile what the problem was more notable recent design wins.
In April we announced Panasonic as adoption of our <unk> chipset and his newly introduced 60 gigahertz WLAN solution.
This was a significant win for our team and it serves as further validation of our leading <unk> technology.
Panasonic is wireless Lan solution Etsy is high speed low latency communications, that's equivalent to wildland performance over distances of hundreds of meters with.
The solution is easy to install and operate thanks to its use of unlicensed independents pretty 60 gigahertz band, coupled together with PRASM narrow beam directional antenna control.
As I've discussed on previous calls the 60 gigahertz unlicensed band provides extensive RF spectrum, which is ideal for fixed wireless applications delivering multi gigabit data service.
Now looking at slide seven as further proof points of our focused efforts and initial success towards diversification I wanted to briefly highlight some of them are examples of our recent activity.
First for houses and Emily solutions are now a key enabler of the 60 gigahertz radio for high speed trains it stays in communications for a Chinese rail system more.
Specifically our partner Jaguar wave is deploying a 60 gigahertz and then wave radio system that utilizes PRASM ex 720th chipset to provide up to two gigabits per second for high speed data communications.
Cranes approach one kilometers of the station.
Separately, we have now shipped proof of concepts of our new dual platform to multiple with providers targeting deployments across Africa.
Additionally, mill away, a south Korean equipment manufacturer recently announced a new fixed wireless product line using prizes X 720 chipset.
Lastly, we also continue to gain traction in defense applications with the introduction of our new M. M lab solutions for battlefield communication, which I'll expand on in a minute.
Collectively these examples demonstrate the progress we continue to make expanding their market reach both geographically and by application.
Turning to slide eight I wanted to go a layer deeper on Indian are dense urban network environment platform for fixed wireless access that we launched earlier this year.
Do it addresses the network access problems experiencing spalling urban neighborhoods, where conventional of connectivity solutions are too costly physically impractical or saturated many technology simply werent designed to work well and density can concentrated population centers, especially those found in emerging markets such as India South America.
And Africa.
As previously mentioned in recent months, we have shipped proof of concepts to multiple wisps in Africa.
Brazos Dune platform originated from our firsthand engagement with numerous wisc and equipment suppliers to understand the specific deployment challenges they face in these environments.
In addition to significant upfront infrastructure and deployment costs why buy technology for example, struggles with the wireless congestion and interference, resulting from high numbers and the density of connected devices Mauro.
Moreover, electricity can also will be limited and less reliable in these emerging markets in order to avoid service interruptions infrastructure and equipment must be able to remain operational for extended periods or utilize alternative power sources, such as solar and battery.
Having said that I want to emphasize the need for dense urban environments solutions is not exclusive to emerging markets.
<unk> benefits and the challenges that it solves are equally relevant in other geographies, including here in North America.
As one prominent example, and potential use case, Los Angeles County has announced plans to deploy its own high speed wireless broadband service targeted and serving low income residents Los Angeles recently contracted a well known ways to lead the project, which is expected to leverage at 60 gigahertz millimeter wave fixed wireless solution to deliver two gigabits per second.
Wireless connectivity to qualified residents for as low as $25 per month.
Regardless of this geography. These types of urban Fitzwater's deployments are exactly with dune was designed to enable.
Broadly speaking, we're very encouraged by the initial positive feedback of our dune platform and we expect further engagements and expansions of these opportunities in the coming quarters.
Shifting to slide nine.
To briefly touch on our recent success in the aerospace and defense sector. As we believe it's a market that is ideally suited for and then wave technology solutions.
Our advanced integrated antenna technology allows with communications using unique narrow and focused beams, which make it more difficult to intercept and even detect sensitive data communications in March we released our PRN 21, 36 platform for stealthy Tactical Communications.
This platform solution to offer support for high bandwidth low latency applications using unlicensed M M waves spectrum and guarantees a reliable high throughput connection between users.
All of the PRASM 60, gigahertz modules enable multi gigabit data transfer rates, which can be mission critical and military operations that require sharing data in real time. Additionally, the P&L 21, 36 incorporates our proprietary adaptive beam, forming and narrow pencil beam capability.
For highly directional communications, which are inherently stealthy and lower probability of interception and detection acknowledging that it takes some additional time to cultivate and realize material revenue in the market due to typically longer evaluation and design in cycles, it's clear that M. M waived dispense applications represented incremental market opportunity with <unk>.
Significant potential.
In closing with our expanding engagement pipeline for MMA of solutions across an increasingly diverse customer base and market applications as well as initial indications of renewed customer demand for fixed wireless access we feel highly confident in the companys outlook for strong growth in 2024. Additionally, we expect the <unk>.
Backlog, our E O L shipment IC products to provide meaningful revenue and cash flow to improve our financial position and outlook.
As we continue to execute on our strategic initiatives to expand the customer base, where MMA products. We believe there is a large opportunity to realize significant growth over the coming years.
With that I'll turn the call back to Jim to review, the first quarter financials as well as our revenue expectation for the second quarter of 2024.
Thank you Robert turning to the results of the first quarter of 2024 total net revenue was $2 $8 million and above the midpoint of our guidance compared with $1 $8 million in the prior quarter and $5 million during the same quarter a year ago.
Product revenue from the sale of our memory integrated circuits and millimeter wave integrated circuits and antenna modules in the first quarter was $2 $7 million compared with $1 $5 million in the prior quarter and $4 9 million in the first quarter of 2023.
Royalty and other revenue for the first quarter of 2024 was zero point $1 million compared with zero point $4 million in the prior quarter and zero point $1 million in the same quarter a year ago.
GAAP gross margin increased to 46, 4% in the first quarter compared with a negative 147, 3% in the prior quarter, which reflected the impact of $3 million of inventory write downs and gross margin of 38, 3% in the year ago quarter.
On a non-GAAP basis, excluding amortization of acquired intangible assets gross margin for the first quarter was 66, 4% compared with negative 116, 6% in the prior quarter, which again reflected the previously mentioned inventory write down.
non-GAAP gross margin of 45, 4% in the first quarter of 2023.
The improvement in gross margin for the first quarter of 2024 was attributable to increased revenue contribution from memory IC products.
GAAP operating expenses for the first quarter of 2024 were $4 $9 million compared with $5 $5 million in the prior quarter, which included zero point $2 million of asset write downs and $5 $7 million in the first quarter of 2023 non.
non-GAAP operating expenses, which excludes stock based compensation and amortization of intangible assets were $3 5 million.
Compared with $4 million in the prior quarter and $4 3 million in the same quarter a year ago.
The sequential and year over year reduction in first quarter operating expenses were the result of previously implemented cost reductions and cost containment actions taken by the company beginning in the second half of 2022.
GAAP net loss for the first quarter of 2024 was $2 million or a loss of $1 seven per share compared with a net loss of $8 9 million or $12 48 per share in the prior quarter and a net loss of $3 $1 million or $5 54 per share in the same quarter a year ago.
On a non-GAAP basis net loss for the first quarter of 2024 was $1 6 million or a loss of 83 per share, which excludes stock based compensation amortization of acquired intangibles and the change in fair value of warrant liabilities.
This compared with non-GAAP net loss of $6 $1 million or a loss of $8 52 per share in the prior quarter and a net loss of $2 million or a loss per share of $3.49 per share in the same quarter a year ago.
The weighted average number of basic and diluted shares outstanding for purposes of calculating both GAAP and non-GAAP EPS for the first quarter of 2024 was approximately one 9 million shares.
Which excludes approximately 45000 shares of our common stock in the exchangeable shares that are currently yes growth.
Adjusted EBITDA, which we define as GAAP net income or losses reported excluding stock based compensation amortization of acquired intangibles changes in fair value of warrant liabilities interest expense depreciation and amortization and the provision for income taxes was negative $1 $4 million in the first quarter.
Compared with negative $5 $9 million in the prior quarter and negative $1 8 million in the prior year period.
From an equity perspective in February we completed an underwritten public offering of common stock and warrants generating net proceeds of approximately $3 $4 million.
As of today May 13, 2024, the company has 2 million 690236 shares of common stock and exchangeable shares outstanding.
In addition, as of today 116190 pre funded warrants with an exercise price of 0.001 per share remained outstanding from the public offering completed in February 2024.
Turning to our outlook as Ron discussed we have begun gaining traction on multiple new customer engagements for our millimeter wave solutions, which we expect to incrementally ramp throughout the year. We also have a significant remaining backlog of noncancelable purchase orders for our end of life memory IC products.
The company currently expects total net revenue for the second quarter of 2024 to be in the range of $3 7 million to $4 million.
This concludes our prepared remarks, and I'll now turn the call back over to the operator to assist with the Q&A session.
Operator.
Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, please press star one on your phone at this time, if you wish to ask a question and please hold while we poll for questions.
First question today is coming from David Williams from benchmark, David Your line is live.
Good afternoon, gentlemen, and congrats on the progress here, it's it's really great to see the development in millimeter wave.
The memory side so congrats.
Thanks, Thanks, David.
Yeah. So.
Ron maybe first if you if you're thinking about the magnitude.
Demand being generated within the millimeter wave and kind of the proof of concepts that you're shipping to today and maybe what your what you have coming up the pipeline. What do you think the volumes could look like as you get ramped here just trying to think about maybe not even this year, but maybe more so for next year.
Should we think about those volumes looking like.
Well, thanks, Dave good.
Have you on the call you know we've got we've got third party research reports that indicate the overall market.
Let's say focus on certainly on fixed wireless a little about 4 million units a year and we're really trying to ramp our business to at least a quarter of that.
So you know.
Our goal is to is to really take it a quarter of the market you are in.
In terms of unlicensed fixed wireless is really what the simple metrics boils down to frankly.
So so so this is all just basically based on market research.
And so it gives us but it gives us some nice metrics in terms of what our goals are over the next 12 to 18 months.
I don't know if that helps answer your question.
No. It absolutely does thanks for the quantification there I guess about if I look across the landscape there doesn't seem to be a lot of competitors at least domestically. What are you seeing in terms of your your competitive or your competition in these other markets as we think about Africa and India are there any others that are out there that you're maybe locally which are competing.
With.
Well in the 60 gig and 60 gigahertz, specifically I think we really are taking on a a dominant position.
And it's it's.
From my perspective, what gives me comfort is the more we win the stronger we get it because people you know people just get more and more comfortable with the technology in the company and I think you know frankly, the Panasonic design win underscores that Panasonic is a very conservative old Japanese company and so for them to go to market with our technology.
Allergy I think speaks volumes I mean in terms of just the you know the confidence they have in and it took a long time, but it leaves the confidence they have in our in our technology and the technology and the company itself. So I think from a competitive perspective, what you'll find is every quarter.
Youre going to find that we really are the absolute dominant player and 60 gigahertz technology.
Just and just sorry, one final follow up comment on that I mean, you.
You know certainly over the last year, Dave what we've what we found is that compared to maybe another competitor, which is like five and six gigahertz technology.
You know, where we're winning there where we want and you know in places like Africa and now we've seen 60 gigahertz penetrate a Los Angeles is against this concept of dense urban environments right. Like this idea that in large cities with very very high dense populations.
60 gig is is.
Is a is a superior technology than traditional Wifi technology, because there's a ability to handle that density. So I I think Bose on you know within 60 gigahertz marketing within the unlicensed market generally.
Were really taken on it.
Our dominant position if you will.
Okay great.
Just one last one here if I may then I'll jump back in the queue, but just kind of wondering if you could talk through your go to market strategy. It seems like you have a lot of shots on goal here that have developed here fairly quickly, especially thinking about the aerospace and defense end and that's historically been a challenging market to penetrate but just kind of curious how youre thinking about your go to market strategy, how that's developing and maybe what other.
Opportunities are out there today that maybe as an investor we are not yet.
Yes.
Well I mean look I mean, I think we've talked about fixed wireless so just basically gigabit broadband internet for a long time, and that's really our bread and butter and frankly right now the military.
You know I mean, unfortunately, what's been driving that over the last couple of years is real conflicts, where you know militaries are discovering the traditional wireless technologies easy to triangulate and so that really its been a been a function of actual war zone, you know feedback, which says you know the beauty or they would be there.
Vantage of of millimeter wave technology is the very focused transmissions that allow the allowed to be stealth and stealthy. If you will in those environments. So that you know we've always kind of liked military but now were really the proof is in the pudding, where we're seeing these design wins because of.
Regional splits very specific conflicts.
And another.
If you will another.
Aspect to our growth is and again it comes down to the same concept with versus Wifi is in consumer electronics, we are seeing some really nice traction in video and wireless video and the problem. We're solving their again as congestion every phone in the world as a lifestyle and so theres a lot of people using <unk>.
But when you want to have the kind of mission critical specific applications.
You know like video, it's very it's a very challenging environment with with traditional Wi Fi. So we're seeing some so I think you know consumer specifically.
Specifically high performance video and consumer electronics is it's kind of a third pillar if you will.
We see over the next 12 to 18 months.
Lots of great color there. Thanks, so much gentlemen, my.
My pleasure.
Speaker Change: Thank you. The next question is coming from Kevin Liu from K, Liu and company Kevin Your line is live.
Hi, good afternoon, guys and good to see that.
Actual improvement in the business here maybe.
Kevin D. Liu: Maybe just starting on the millimeter wave side can you talk about kind of the inventory levels. You think are still persist that your largest customer now has that largely been absorbed and you are now capable of seeing a sequential improvement there or is there still some sort of overhang that you have to get there.
Yeah, I mean, there was a lot of Bill Miller and there was a lot of inventory buildup. So you know we're certainly.
She you know improve great green shoots of improvement, we're starting to get some orders, we really think that momentum Kevin will be you know late late third quarter into the fourth quarter. This year just in terms of just in terms of kind of what we're seeing and kind of what we're hearing from our customers I mean, I think the good news again, though is oh.
Our historic customers.
Our actually it's not like it really is an inventory situation I mean actually they're seeing terrific sales, what's the getting back to us. So we really see it as a second half of 'twenty, four, but but but I guess what would it helps our outlook is that is that the sales of 60 gig are from what we're hearing from them.
Customers is actually improving significantly so that's so we hope to believe lead into out of that inventory into new orders show later this year.
Yeah, and I mean, you alluded to one of your customers are winning a deal in L. A county, I mean would you assume that kind of incremental to your business.
Is that product that they may have had a law that they can ship as they start to ramp up against a bad engagement.
Well I mean that customers actually you know what I mean, when he was there really no public information on who the chip supplier is for that for that deal, but speculation from our speculation perspective I would say.
Kevin D. Liu: Certainly later this year.
But very much so into 2025.
Understood and then maybe this one for Jim but you know looking at the gross margin that improved quite a bit I know you guys pointed to the memory side of the business there.
Wanted to understand how sustainable the gross margin as we go into Q2 and the back half of the year, given you'll continue to see a high mix of memory cells there.
Yeah Kevin.
Kevin D. Liu: Thank you for the question certainly we are gross margin profile will benefit from that.
Our corporate targets, you know, 50% and higher you know obviously the memory stuff runs in the high <unk>, maybe even pop 70 on onside at times, So that will certainly help the keep the margins are.
Higher as we look for yeah.
At a higher level as we move forward through 2024 and.
So we said on the call we will see the expect current expectation is to complete those memory shipments by the first quarter of 'twenty five.
Kevin D. Liu: But we obviously expect continued ramping in our millimeter wave business.
Frankly on the millimeter wave side, it's just been on the stops and starts associated with the inventory correction.
Just not having a consistent production flow I've made it challenging to kind of get over that 50% level.
But we're obviously pushing towards that.
Kevin D. Liu: And obviously you have the benefit of the memory stuff from the next you know year to kind of help us on that front.
Yep sounds good.
And then just lastly, you know with the wrap up.
You guys will happen on the memory business some of our system improvements on millimeter wave I'm. Just curious if we should expect you guys to start to build more inventory here or if the current inventory levels you have.
Kevin D. Liu: On the balance sheet.
Shouldn't be able to sustain that kind of business or revenue levels.
Speaker Change: Yeah, we should be able to sustain with with what we have there was a slight increase at March 31 up from December 31, which was all memory related we obviously have a.
So a fair amount of millimeter wave inventory on the books you know some of that's a different stages of production needs to be built out on the memory side, we've got some more wafers to order and the exact numbers and as a function of yields et cetera. So we are you know we did have a couple of at least a couple of wafer purchases.
In Q1, I think we've already done one here in May there's probably another one coming so definitely.
Definitely to fulfill those orders will be building more on the memory on the millimeter wave side, it's really we build based on the specific order.
You know on some of the new customers.
Yep understood. Thanks for taking the questions and good luck in Q2.
Thanks, Kevin.
Thank you and we did have a follow up coming from David Williams from benchmark, David Your line is life.
Hey, guys. Thanks, again, I I felt like I I Should've asked Jim a question.
[laughter] I just want to come back in and get went into you, but just kind of thinking about the cash flow as we as we work our way through the memory is there or do you expect some of that memory to be maybe more backend loaded into the first maybe in the first quarter or will it be more linear you think through the year.
Speaker Change:
Speaker Change: You know I think it'll be fairly.
Fairly linear for the rest of the 24 and then you know Q1 'twenty five we'll we'll go down right now.
We booked at new order here in.
In late March to $88 million order.
Right now I'd say of that order, you know, 25% to 30% of it it'll be shipped in the fourth quarter and the rest would or at least the dollar equivalent value, maybe it's not that specific customer which shipped in Q1. So I think we'll be pretty linear on the memory side across the next.
Three quarters yourself.
Speaker Change: And then it will decline in Q1 and right now we're projecting subject to.
No receipt of additional orders, which is still in play.
Yeah, well expected decline in Q1 25.
Okay and do you think there's if you were going to try to handicap the potential.
Potential for additional <unk>.
Speaker Change: Orders do you think there's a good chance or just a moderate chance there.
Oh, you know I think there's a good chance that list in the million dollar range you know we'd be.
Right now the foundry I think the orders don't need to be and until the end of August or September somewhere in that late summer timeframe. So you know theres still still time here and obviously, we saw an additional large order in March and you know the <unk>.
Customers are just wants to be served on its design and you know we're we're optimistic we would see that come in and that's for you know that one that I'm at least very optimistic guidance for our bandwidth engine three product for which we have adequate.
Adequate inventory to fulfill against so yeah, I agree frankly, tickled pink because I wouldn't have to go build it you know buying this.
Complete and build out.
But we'll wait and see is that we've got time.
Speaker Change: Fantastic well, Ron Jim Thanks, again for the time and the best of luck on the quarter. Thanks.
Thank you so much Dave.
Thank you and the next question is coming from Jon Hickman from Ladenburg. Your line is life.
Hey, I might have missed this and maybe you didn't even say it.
But did you break down the product revenue between millimeter wave in memory.
Speaker Change: We did not we generally break that out in the there's tables in the 10-Q, which we're going to file.
Probably after market close maybe before market opens tomorrow on a high level.
<unk> had in the first quarter about $2.68 million of product revenue about two point created that was memory and the remaining 300 carriers. So it was a millimeter wave I see the modules.
Speaker Change: Okay. Thank you and then could you give us an idea of on the millimeter wave side.
Kind of current number of customers you ship to recently.
And what the pipeline looks like as far as the numbers are.
Different with spore.
But customers.
Yeah, I think in the first quarter, we shipped.
Wanna say in the range of kind of eight to 10 customers.
Okay.
Different you know different vibe was obviously none of them are two big based on the revenue number I gave you and you know looking forward I think we'd expect to stay kind of in that range wrong.
Yeah, maybe yeah, I mean, we had a one of the new Dune you know what you know what I consider kind of on the June front, we had an initial shipment to that customer and are targeting a larger one in June but is that a kind of a fair way to put it Rob.
We've got five five dune customers are two proof of concept. So we expect to be shipping those in the second half. So those five additional there right. So yeah I mean, we hope to grow from eight eight to 10, maybe from 10 to 10 10 to 15 in the second half, but yeah. I mean, I think you know where I was.
Are you trying to diversify that.
Speaker Change: Customer base for sure.
So and then the L. A thing that you mentioned is that an RFP or did you win that business.
Well just to be clear like Gee.
We we we can't really say, Jon, but I mean are there.
But it is public information is available if you. If you wanted to you know look it up it's like highly visible, but well we don't know it's like like like like the D. I S. P uses various vendors, but but one thing that is public for sure is that it's a 60 gigahertz the design win and.
You know what what's important about that and in our mind is that it's again emphasizing this this advantage at 60 gigahertz as in urban environments. Just this ability to really speak to well I think that with some you know some of the analysts say is that the number of Paas residents is about to.
<unk> hundred 80000, so you know I mean, so that that's really the advantage of a tissue computers technology is its ability to provide advantages in those dense urban environment because of the or beam forming technology. So I think first and foremost I know that that's an important that's an important message for that for that.
Program, but it's not a pea its been awarded by the way.
It's been awarded Okay, yes. So.
I have to do some big and then on the military side is it is the technology mobile like can I put this on the trucking.
So from one battlefield to the next.
Or.
Speaker Change: I'll cover a mile away and.
Set it back.
Oh, the use case that we've described as our soldiers are connecting to their humvees.
And so typically the range there is call it maybe at the most two I don't think the soldiers wont be too far away from their hunter used to call. It 102 hundred meters.
So and then and then and then the Humvee itself would probably be backhaul to a satellite link, but you know theres a lot of information on the humvee itself and in a server on the hungry. So let's say they want a download maps are in area B you know the one gigabit links that we have with our with our using our tech.
And you can quickly get those maps downloaded to the essentially the mobile devices. The soldiers use our mobile actually so their mobile and they can leave their home D and you know be within or let's call. It 200 meters of the humvee, but that are that is the use case for that application that we've described.
Okay and then.
Are you one last question sorry, sure Panasonic deal.
Are you currently shipping to them or is that to come.
No we're shipping to them yeah, no absolutely like we have been working on.
Don't want to say how long we've been working on design, but it's that it's been several years right. I mean these guys are very very careful so but we are actually shipping that's in full production.
Okay.
Well. Thank you for the information I appreciate it a pleasure and thank you for joining the call today.
Hello.
Thank you there are no other questions in queue at this time and this does conclude today's conference. Thank you for your participation you may disconnect your lines at this time.
Thank you.