Q4 2024 Airgain Inc Earnings Call
Okay.
Julie: Good afternoon, welcome to air gains fourth quarter and full year 2024 conference call. My name is Julie and I'll be operator for today's call.
Speaker Change: Joining us today, our arrogance, president and CEO, Jacob Suen and CFO, Michael how about.
Speaker Change: As a reminder, this call will be recorded and made available for replay via a link found in the Investor Relations section are games website at investors that are gain dot com.
Speaker Change: Following management's prepared remarks, the call will be opened for questions.
Speaker Change: From air games covering analysts.
I caution listeners during this call.
Speaker Change: Yeah.
Speaker Change: And again management will be making forward looking statements about future events as well as their games business strategy and future financial operating performance.
Speaker Change: Actual results could differ materially from those.
Speaker Change: <unk> or implied by these forward looking statements due to risks and uncertainties associated with the company's business.
Speaker Change: These forward looking statements are qualified by the cautionary statements contained in todays earning release and air gains SEC filings.
Speaker Change: This conference call contains time sensitive information that is accurate only as of the date of this live broadcast February 27 2025 are.
Air gain undertakes no obligation of advise or update any forward looking statements to reflect events or circumstances. After the date of this conference call.
Speaker Change: In addition, this conference call will include a discussion of non-GAAP financial metrics.
Speaker Change: Please see today's earnings release for further details, including a reconciliation of GAAP to non-GAAP results now I'd like to turn the call over to Eric Games CEO Jacob Suen.
Speaker Change: Okay.
Speaker Change: Good afternoon, and thank you for joining us today in.
Speaker Change: In the fourth quarter, we reached a key milestone with the successful Marshall deployment of lighthouse.
Speaker Change: Marking significant progress toward our strategic objectives.
Speaker Change: We closed one in 'twenty four with strong execution across our egg and connects fleet and lighthouse Smart network Lee Peter Clark.
Speaker Change: Positioning or gain for its next phase of our calls.
Speaker Change: 2025 is the year of execution and expansion.
Speaker Change: We remain laser focused on scaling deployment.
Speaker Change: Celebrating customer adoption and expanding into high value markets.
Speaker Change: Momentum, it's already building a strategic partnership with Montel demonstrates lighthouse ability to deliver high performance network solutions with significantly reduce deployment times and a lower total cost of ownership.
Speaker Change: 'twenty 'twenty four let's say that's all year.
Speaker Change: Marching our transformation from a component supplier to a high value wireless system solutions provider.
Chip: This is chip.
Chip: Until the redefine our business.
Chip: We have more sub $5 a S piece for embedded antenna systems to a S T exceeding $20000 for all of our lighthouse solution.
Chip: So just any us in higher value higher margin markets.
Chip: Over the past year.
Chip: <unk> expanded our portfolio six year, our key customer wins.
Chip: <unk> strengthened our position in both markets.
Chip: Stating the stage for sustained long term cool.
Chip: With fire S T.
Chip: Expanding market opportunities we have.
Chip: Cole our serviceable addressable market, so $1 1 billion in 2024 to two 6 billion loss in 2025.
Chip: Lastly for our AC fleet.
Michael: Michael Good way.
Michael: Lighthouse Smart Lee Peters.
Michael: And we expect our sand to continue growing.
Michael: All of our most significant milestone was launching and expanding key product lines across multiple high growth markets.
Michael: And a key plan solidify our market position and spurred accelerated adoption.
Michael: In consumer we ran well at five seven and 10 of shipments to a tier one at missiles.
Michael: Forcing against position I'll say leader in next generation connectivity.
Michael: And I L T I say trucking.
Michael: Launched a T flight.
Michael: AI power solution designed for the health care sector the insurers.
Michael: Compliance and delivers over a year of battery life for temperature sensitive medical assets.
Michael: The initial purchase order so I'm, a major health care provider validates its market potential with shipments scheduled to begin this year.
Michael: Additionally, we introduced to our bench railcar asset truck hearse.
Michael: We are actively building out a deployment with a leading railcar provider.
Michael: Provider in North America.
Michael: In the second quarter of 'twenty 'twenty four will launch later.
Michael: Alcohol <unk> fixed wireless access solution.
Michael: Additionally, again to see opportunities in there.
Michael: Nathan enterprise sector.
Michael: W a market.
Michael: In the third quarter of 2024, we launched Hagen connect Felipe.
Michael: While five G vehicle gateway.
Michael: Securing commercial certifications from T mobile and AT&T.
Michael: Simultaneously, we accelerated customer trials across domestic and international markets.
Michael: Riding towards broad market adoption.
Michael: In the fourth quarter of 'twenty 'twenty four we completed the first commercial deployment of our <unk>.
Michael: House Smart network control me Peter.
Michael: These milestones highlight it against capacity to drive innovation.
Michael: Expand into high value markets and strengthen our position as a leading provider of advanced wireless connectivity solutions.
Michael: Okay.
Michael: Multiyear strategic commercial partnership with Montreal is a major leap forward in scaling lighthouse deployment.
Michael: Further reinforcing our position as a leader in Pi G wireless connectivity across indoor and outdoor markets.
Michael: This agreement not only validates our technology.
Mitel.
Michael: Also we'd be D establishes a strong foundation for sustained revenue growth and deeper market penetration.
Michael: Our collaboration goes beyond deployment.
Michael: It is about 40, Valentin advanced solutions pay either to the unique needs of the middle East.
Michael: By leveraging <unk> deep expertise in wireless connectivity, although side or Montel's telecom leadership.
We are jointly enhancing network performance optimizing coverage.
Michael: Pioneering new by G being Smiths.
Michael: Which secure the old montel construct by demonstrating the commercial viability of all of them.
Michael: Lighthouse smartly either solution in a large scale deployment last December.
Michael: Sheathing.
Michael: For inclusion in network speed.
Michael: The seamless integration with existing infrastructure.
Michael: This milestone highlights the scalability.
Michael: The ability.
Michael: Efficiency of our technology.
Michael: Further cementing against role as a key enabler of next generation connectivity.
Michael: Our cost effective capex and Opex optimized approach.
Michael: Salaries and time to market.
Michael: While our commitment to a strategic co development and research and development has resulted in Taylor <unk> solutions designed specifically for the Middle East.
Michael: Building on these significant network performance improvements, we have leverage our partnership with Oman pill.
Michael: Pioneer, even more advanced and sustainable connectivity solutions.
Michael: This commitment to innovation and environmental responsibility.
Michael: Culminated in the development of lighthouse solar.
Michael: Our groundbreaking self sustaining solar power network control leave either.
Michael: We defined network expansion with telecom operators.
Michael: Engineer with cutting edge renewable technology, it upgrades entirely all great delivering rapid reliable connectivity, while reducing both deployment time and costs.
Michael: This innovative technology all versus a differentiated solution in MBS lateral electricity access.
Michael: Championing environmental sustainability.
Michael: <unk> seen carbon footprints.
Michael: Calling green energy initiatives across the telecom industry.
Michael: Okay.
Michael: Design with versatility in my lighthouse Stoller targets telecom operators seeking to expand by G coverage into remote rural areas in challenging urban landscapes.
Michael: Their traditional infrastructure may falter.
Michael: Fast to deploy igo friendly.
Michael: TS are designed to enable up lasers to overcome geographical constraints and meet growing connectivity demands without heavy reliance on conventional power grids all fiber backhaul.
These projections are game.
Michael: In front of next generation wireless solutions, enabling faster fiber rollouts in pool.
Michael: Even sure experiences and.
Michael: As long term operational cost savings.
Michael: While advancing global efforts toward a more sustainable future.
Michael: In 2025, we are aggressively driving the adoption of the egg and connect fleet solution, which helps deliver superior connectivity for mission critical fleets.
Michael: AC fleet eliminates unnecessary external components, and reducing installation complexity maintenance costs and total cost of ownership while enhancing performance.
Michael: Ability for our customers.
Michael: Feedback from our players has been really positive.
Michael: Specifically, highlighting AC fleet's exceptional performance and compact all in one design that simplifies installation and deployment.
Michael: We are targeting key markets, including law enforcement fire E M S N utility fleets.
Michael: Our structure go to market strategy.
Michael: To accelerate adoption across fleets of all sizes.
Michael: Our tiered approach allows us to align sales are first with customer needs.
Michael: Streamline adoption and drive scalable growth in the fleet connectivity market.
Michael: Tier one customers comprise large scale fleets with over 500 vehicles.
Michael: Representing high value opportunities with a 12 to 18 months sales cycle, we target these opportunities both directly and through strategic partnerships with operators.
Michael: Example of a direct sales opportunity. We are working on is with a six hour some vehicle law enforcement agency.
Michael: An example of a strategic partnership is all our active engagement in a large 30000 vehicles deployment with a U S up later for a leading utility provider.
Michael: With an initial trial plan for the first half of this year.
Michael: You go to customers include midsized fleet, ranging from 50 to 500 vehicles with a shoulder six to 12 months sales cycle.
Michael: Sales in this segment.
Boss and system integrators to expand market reach.
Michael: We are actively working with several leading law enforcement agencies across the U S with a handful of trials underway.
Michael: Tier three customers are smaller fleets with fewer than 50 vehicles.
Michael: Operating on a faster moving three months sales cycle.
Michael: These customers represent an immediate revenue driver for 2025.
Michael: Pursuit to direct sales and channel partners.
Michael: Along with our product and certification investments.
Michael: We are aggressively building the sales and marketing resources.
Michael: Squire to capture that short term opportunities this year in building a strong pipeline for 2026 and beyond.
Michael: With these growth initiatives.
Michael: The way I will.
Michael: Now I'll turn it over to Michael to walk us through our financial performance for Q4, and 2024 as well as our outlook for the year ahead Michael.
Michael: Thank you Jacob.
Michael: Before diving into the numbers. Please note that my review of our financial results and guidance refers to non-GAAP figures.
Michael: Information about the non-GAAP financial measures, including GAAP to non-GAAP reconciliations can be found in our earnings release.
Michael: Now, let's turn to our fourth quarter results.
Michael: Q4 sales came in at $15 $1 million, which was in line with the midpoint of our preliminary results announced in late January.
Michael: While these results marks a 6% sequential decline it represents a 50% increase year over year.
Michael: We've been largely by the consumer market recovery.
Michael: Consumer sales reached $6 $5 million, reflecting another strong sequential performance as a robust tier one <unk> sales, partially offset the anticipated moderation in our tier one M. S. So why five seven sales.
Following initial Q2 shipments and a strong demand ramp in Q3.
Michael: Automotive sales came in at $3 $3 million.
Michael: Although sales were one $7 million higher sequentially, a high point for the year.
Michael: Yes short of our expectations driven by channel excess inventory, resulting in some delayed aftermarket and customer deployments.
Michael: Enterprise sales were $5 $3 million.
Michael: Reflecting a sequential decrease of $1 $3 million and a low point for the year.
Michael: This decline was mainly due to reduced sales of embedded modems and costume Iot products impacted by excess customer inventory.
Notably we recorded our first lighthouse commercial deployment revenue in Q4.
Michael: In Q4 gross margin reached 40 people, 4% more.
Michael: Marking its fourth sequential increase.
Michael: It improved by 50 basis points, driven primarily by operational efficiencies and a favorable sales mix.
Michael: Q4, operating expenses totaled $6 $5 million.
Michael: $4 million lower sequentially, primarily due to lower variable compensation expenses.
Michael: In Q4, adjusted EBITDA reached zero point $2 million.
Michael: In line with that January pre announcements.
Michael: This positive result.
Michael: It was driven by higher gross margin and lower expenses.
Michael: Which helped mitigate the negative impact of a $2 $1 billion revenue shortfall.
non-GAAP EPS can meet that breakeven.
Michael: As of December 31, 2024, our cash balance was $8 5 million up $1 $2 million sequentially.
Michael: The increase was driven by net cash proceeds of $1 $1 million from our ATM offering.
Michael: Turning to our results for the full year.
2024.
Michael: Sales totaled $66 million up $4 $6 million or 8% compared to the prior year.
Michael: Consumer sales increased by $2 $8 million or 15%.
Michael: Driven by the tier one MSL Wi Fi seven transition.
Michael: And the ramp in demand for tier one and then no SWA antennas.
Michael: Okay.
Michael: Following the Q1 negative seasonal impact.
Michael: The consumer market to experience steady, but modest growth.
Michael: Through 2025.
Michael: Enterprise sales increased by $2 3 million or 8%.
Michael: Driven primarily by strong sales of embedded modems and costume for Iot products in the first half of 2024.
Michael: The combined sales of these two product lines declined by approximately 50% in the second half of 2024 compared to the first half of 'twenty 'twenty four.
Michael: The decline was due to customer specific excess inventories.
Michael: Which we expect to last through the first half of 2025.
Michael: We expect the contributions of our growth initiatives specifically lighthouse.
Michael: Positively impact the enterprise market sales in the second half of 2025.
Michael: Automotive sales decreased by $5 million or 5% due to aftermarket excess inventories.
Michael: Partially offset by again connect shipments.
Michael: We expect the aftermarket excess inventory to also last through the first half of 2025 and for Agi Tonight design wins to drive growth.
Michael: In the second half of 2025.
Michael: Overall, we are driving to deliver quarterly growth through 2025.
Michael: The Q1 seasonal impact diminishes in inventory headwinds ease.
Michael: Gross margin was 42%.
Michael: Reflecting an increase of 410 basis points from the 37, 9% reported in 2023.
Michael: This improvement was primarily driven by steady margin gains in our enterprise and automotive solutions.
Michael: Resulting from ongoing cost reduction initiatives and the launch of differentiated automotive and enterprise products over the past year.
Michael: Looking ahead, we expect the growth of <unk> connect and lighthouse solutions to further drive gross margin expansion in 2025.
Michael: Operating expenses totaled $26 $8 million.
Michael: A 2% increase year over year.
Michael: In 2024, we reduced our non-GAAP G&A expenses by approximately 15%.
Michael: To expand our R&D and sales and marketing investments and drive our strategic initiatives.
Michael: Looking ahead, we plan to streamline expenses tied to our existing product lines, while continuing to enhance our engineering marketing and sales functions to support the ramp of AG Tonight, and lighthouse design wins and solution sales.
Michael: Adjusted EBITDA was negative $8 million for the year, an improvement from negative $4 $5 million in 2023.
Michael: The year over year, adjusted EBITDA improvement was driven by higher sales and gross margin.
Michael: Partially offset by slightly higher operating expenses.
Michael: Through 'twenty 'twenty, four we were able to lower our quarterly adjusted EBITDA breakeven point.
Michael: Primarily through gross margin rate expansion.
Michael: Now.
Michael: Moving to our outlook for the first quarter ending March 31 2025.
Michael: As a reminder, we provide quarterly guidance or sales.
Michael: non-GAAP gross margin and expenses non-GAAP EPS and adjusted EBITDA as we believe these metrics to be key indicators for the overall performance of our business.
Michael: For the first quarter of 2025, we project sales between 11 and $13 million.
Michael: With a midpoint of $12 million.
Michael: The midpoint represents a 20% sequential decline primarily driven by the consumer seasonal impact.
Michael: And the aftermarket excess inventory.
Michael: We expect non-GAAP gross margin for the fourth quarter to be in the range of 42% to 45% or 43, 5% at the midpoint.
Michael: We expect operating expenses to be approximately $6 $5 million.
Michael: non-GAAP EPS is expected to be negative 10 cents at the midpoint of our guidance.
Michael: Adjusted EBITDA is expected to be negative $1 $1 million at the midpoint of our guidance.
The impact of the negative adjusted EBITDA on our cash balance in Q1 will be mitigated by a one $6 million processing and receipt of an employee retention credit in Q1.
Jacob Suen: Now I would like to turn the call back over to Jacob for his closing thoughts.
Jacob Suen: Jacob Thanks, Michael.
Jacob Suen: Tony for let's say a year of strategic transformation for air again.
Speaker Change: Mark by continued gross margin expansion disciplined expense management and the successful execution of our growth initiatives.
Speaker Change: Our short term challenges such as inventory constraints impacted certain lines of business, our focus on higher value system level solutions like light House and again connect continues to drive a long term shift toward profitable growth.
Speaker Change: Okay.
Speaker Change: With this solid foundation in place.
Speaker Change: Our focus in 2025 is clear execution we.
Speaker Change: We are committed to scaling deployments accelerating market penetration.
Speaker Change: Leveraging the momentum we have built.
Building on these efforts investors can expect us to remain laser focused on our strategic objectives.
Speaker Change: For AC fleet.
Speaker Change: We are thriving to secure change certifications for first responder use some but horizon Potline AT&T first net and T mobile T priority.
Speaker Change: Along with CE certification to support international expansion.
Speaker Change: Our commercial strategy is centered on qualifying new opportunities.
Speaker Change: And visiting them into trials in converting existing trials into designs and ultimately design wins.
Speaker Change: For White House, we are.
Speaker Change: Actively securing FCC certification in the U S up later upsell votes.
Speaker Change: While simultaneously pursuing CE certification to accelerate additional international markets.
Speaker Change: We expect our partnership with Montel well Neil.
Speaker Change: New customer opportunities across the Mena region.
Speaker Change: We concurrently so on multiple new trials across Asia.
Speaker Change: Latin America.
Speaker Change: And North America to expand our global footprint.
Speaker Change: In 2025, we anticipate deploying lighthouse across more than 50 sites.
Speaker Change: Establishing the foundation for a larger scale commercial rollouts in 2026.
Speaker Change: At the same time, we will remain disciplined and proactive in navigating short term industry headwinds such as inventory constraints affecting the broader Iot in component sectors.
Speaker Change: We expect to persist through the first half of the year.
Speaker Change: These temporary pressures so we're not indicate weak demand with our robust product pipeline, increasing customer engagement and clear commercialization strategy. We believe we are well positioned for sustainable growth in the years ahead.
Speaker Change: Four years ago, we embarked on a boat journey to transform <unk> into a premier systems solutions company.
Speaker Change: Vacated two delivering advanced wireless connectivity and pioneering <unk> innovation.
Speaker Change: By anticipating industry trends and customer needs.
Speaker Change: These cutting edge products like lighthouse taken correctly and long term.
Speaker Change: As we accelerate our go to market strategy and commercialize our technology.
Speaker Change: Our north Star strategy is paying off.
Speaker Change: And we are excited about our prospects.
Speaker Change: Before we conclude I would like to highlight the key takeaways from today's call first 2024 was a transformative year as we transition into a high value wireless systems provider.
Speaker Change: And our addressable market and position ourselves for long term call.
Speaker Change: Second our strategic initiatives, including lighthouse and Aegean connect fleet are gaining traction in high growth markets.
Speaker Change: <unk>, our commitment to innovation and differentiation.
Speaker Change: Further despite near term industry challenges.
Speaker Change: Laser focus on execution.
Speaker Change: Scaling deployments driving customer adoption and strengthening our go to market strategy to accelerate revenue growth in 2025 and beyond.
Speaker Change: I extend my sincere gratitude to all of our employees for their dedication and hard work in making these achievements possible youll commitment to innovation and execution propelled and again Paul.
Speaker Change: I also want to thank our customers partners and investors for their containing trust and support.
Speaker Change: Energized by the opportunities ahead, and confident in our ability to deliver value as we execute our vision.
Speaker Change: With a strong foundation and clear growth initiatives.
Speaker Change: Quite optimistic about against future.
Speaker Change: Operator, we're now ready to take questions.
Speaker Change: Thank you we will now.
Speaker Change: Now take questions from Eric gains sell side analysts 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.
Speaker Change: Press Star two to remove yourself from the queue for participants using speaker equipment. It may be necessary to pick up the handset before pressing the star keys.
Speaker Change: One moment, while we poll for questions.
Speaker Change: And our first question comes from Anthony Stoss with Craig Hallum. Please proceed with your question.
Anthony Stoss: Good afternoon Jacob Michael.
Speaker Change: Jacob I wanted to focus.
Speaker Change: More on the enterprise segment, and I think when you guys pre release the quarter you talked about two customers delaying projects.
Speaker Change: And that seems to be your weakest segment, what kind of visibility do you have that gives you the confidence that you expect a snapback in the second half of the year and then for maybe for Michael on the lighthouse product.
Speaker Change: Maybe you can help us gauge or some kind of a detail or color on what kind of contribution in terms of revenue as you might expect in the second half of 2025 or is this more of a really beginning of revenues in 2026.
Speaker Change: Okay, Hi, Tony Yes, Great question, Seth suddenly getting the Iot.
Speaker Change: The two customers are all relating to the custom projects, we've been doing and the thing there is that they have not been able to give us the visibility because of the the inventory issue they have been having.
Speaker Change: However, a lot of them tell us that they should expecting the second half to be better. They are working on a couple of key projects with a couple of key customers and they expecting.
Speaker Change: Some some turnarounds.
Speaker Change: Say studies in second quarter. So those are the feedback we got that gave us some assurance that second half should be getting better.
Speaker Change: Certainly we are still don't have concrete evidence of that.
Speaker Change: But we.
We're hopeful so to speak.
Anthony Stoss: Now regarding the revenue for the lighthouse, maybe I'll comment before turning over to Michael So lighthouse as we indicate that we have.
Anthony Stoss: Secure a strategic contract partnership with of Montana and in the contract part of the contract.
Anthony Stoss: <unk>.
Anthony Stoss: Revenue element to it where they are committing to.
Anthony Stoss: <unk> revenue for the next several years so for 2025, even though it'll be small there's already a plane for deployments starting you know starting this quarter.
Anthony Stoss: And Mike can add more color to it sure that would add to this Ah Tony first of all the lighthouse the partnership itself and this is not a supplier type of agreement. This is really a strategic partnership where we are.
Speaker Change: A long term partner too.
Speaker Change: Oh Montel, but at the same time there is also a joint sales and marketing effort is what two initiative.
Speaker Change: To be able to penetrate not only Oman, but also the middle east in the Mena region altogether and.
Speaker Change: So we are as you know also very much focused on the customer trials that we have a we have a couple this quarter. We have a couple next quarter already scheduled.
Speaker Change: Our planned and we expect to see.
Speaker Change: See through so that we can have a customer pipeline that is really ready for FY 'twenty six.
Speaker Change: In terms of the enterprise business a couple a couple of additional comments on that.
Speaker Change: The asset tracker is really a source of potential growth for us specifically star.
Speaker Change: Starting in the first half of the year. This has to do with the strategy shift that we've done last year toward the railcar, but also the air transportation.
Speaker Change: Our sectors and so we've had.
Speaker Change: New products and does a overall partnership with.
Speaker Change: Some of our key customers.
Speaker Change: But yet I have to say that there is a lack of visibility primarily because of some of the macro factors.
Speaker Change: That we're seeing specifically in terms of tariffs in terms of sanctions or at least the threat of that and so there is an overall lack of visibility in the short term I hope this is helpful.
Speaker Change: That's helpful. Thank you and then if I could sneak in one more and maybe I missed it in your prepared remarks, I think last quarter, you talked about Jacob having 40 different trials ongoing for the new <unk> connect product.
Speaker Change: Are they still ongoing would it be followed.
Speaker Change: Kind of what's the hit rate.
Speaker Change: From a trial to revenue.
Speaker Change: Yes, so Tony yes, so the trials so actually the feedback that we have received so far on the trials have been very positive.
Speaker Change: Overall, the performance improvement was.
Speaker Change: Well spoke all all of them really was in place when we impressed with the performance improvement we were able to get connected in the area, where they could not get connectivity before.
Speaker Change: That was.
Speaker Change: For them that was.
Speaker Change: It's been impressive and certainly the way the ease of installation.
Speaker Change: That was also something that they really do need to enjoy about the product.
Speaker Change: Now.
Speaker Change: How many.
Speaker Change: Design wins, these and OLED, we are able to get a few of them out there for the doing trials and as I described in the early in the call. We are now.
Speaker Change: We're seeing the.
Speaker Change: Three different tiers for the projects that are in the tier one those are the $1 500 or more.
Speaker Change: Longer time, usually it takes about 12 to 18 months close for those bigger deals typically taken a golar into an RFP, even though like they like our product. They still didn't have to go through what they call an RFP process and that's why it takes much longer duration.
Speaker Change: Smaller deals those are the ones that tier four is 50 to 500.
Speaker Change: What do you see that some of them, they're going to be able to to be able to come to a couple of things.
Speaker Change: Amendment a lot sooner they may not have to go through an extensive IP process such as the bigger deals. So those are the ones. We think that you can secure the wait six to 12 months and then the smaller deal those are the ones. We on the 50 in it. So we feel like those are the ones. We already won a few of those.
Speaker Change: Those are the ones could be we can convert them into revenue also earlier within three months.
Speaker Change: So you're going to continue to grow the pipeline, but we're now having a very clear strategy on how to attack them, which I described earlier with a truck with a partnership and where they bought a system integrator model.
Anthony Stoss: Got it thanks for the color Jacobs I appreciate it.
Tony: Thank you thank you Tony.
Speaker Change: Thank you and our next question comes from Tim Savvy Joe.
Speaker Change: Northland Capital markets. Please proceed with your question.
Speaker Change: Hey, good afternoon I had a.
Question on the lighthouse side.
Speaker Change: Where are you guys had mentioned.
Speaker Change: I guess, what I'm looking for trying to get to.
Speaker Change: As a metric or a set of metrics to assess the size of these opportunities that you are facing.
Speaker Change: And I don't know whether its based on subscribers with a certain carrier or.
Speaker Change: Base stations.
Speaker Change: And.
Speaker Change: And you mentioned 50 sites to be deployed.
25, with Oman, So I imagine.
Speaker Change: That represents a small fraction of the opportunity there.
Speaker Change: But would be interested into two any color you can give there as well as higher level, how should how should we be thinking about.
Speaker Change: The addressable market opportunity for a lighthouse.
Speaker Change: Based on some of those metrics out throughout their subscribers base stations et cetera.
Speaker Change: <unk>.
Tim: Yes, great questions Tim.
Tim: And then having Michael chime in so yeah, right. The 50 deployments that we announced both US certainly relating to the Oman tail commitment. So we feel really good about that and it would be a small fractions of what we're going to be able to do it then.
Tim: Certainly.
Tim: Working with them on a much more strategic sales and marketing plan outside of Oman.
Tim: That is something actually we're going to we're going to we're going to actually have a joint announcement next week to Amp WC. That's next Wednesday. So so so certainly been our CEO now expecting another announcement, we're gonna adult in depth about what the partnership is going to look like with a very innovative solution that was going to be announced as well that's where you.
Tim: You're going to be addressing that Mena region, and the middle East.
Tim: North Africa region.
Tim: Now talking about the market size, we talk about on the sand that we display the OLED talk about 700 million relating to the lighthouse and I would say that's the only taking into account some of the opportunity. We are chasing now in a much bigger scale, we certainly.
Tim: In the U S and the rest of the world, we can see a much bigger Sam now I think.
Tim: They are two different major application that we're seeing one is <unk>. The other one is alcohol.
Speaker Change: The deployment in December.
Speaker Change: You know that will be split the commercial deployment is relating to a indoor application.
Speaker Change: Those are the ones that we're going to also describe a lot more next week those are the ones that require a solution approach means we're not only selling just the lighthouse product itself, we are actually going to be going they're acting as a what they call a <unk>.
Speaker Change: And many times a.
Speaker Change: Teva telecom equipment manufacturer.
Speaker Change: A total solution to ensure that site.
Speaker Change: Both will be up and running with <unk> and we are able to accomplish that with the lighthouse being a big part of that but are there.
Speaker Change: Call that all the other devices as well to ensure that the system all the sites up and running.
Speaker Change: So that is the indoor approach the outdoor it's more of a product sale means there'll be rural area there'll be areas.
Speaker Change: In the urban environment, where if they have a coverage gap and this is where we're going to be able to sell just the lighthouse product itself.
Speaker Change: And it's really complementing what's out there today with the base station with the small cell and we talked about earlier.
Speaker Change: Earlier this week, we talk about our sustainable lighthouse solar so that solar device. The lighthouse solar device will be to go out there without any require backhaul without any required electricity to the out there you just taking advantage of the solar Mb.
Speaker Change: It will provide.
Speaker Change: Cellular and Wi Fi connectivity within a day.
Speaker Change: So that's that market is actually we really think that it's a it's a huge market and.
Speaker Change: And we're going to try the sizing a market in the coming in coming weeks, but certainly you can see the potential that that when they say.
Speaker Change: Within three miles of a base station you can pull as lighthouse solar there within half a day and then you can have.
Speaker Change: And we are up and running and with cellular and broadband connectivity.
Speaker Change: And I really think this many application.
Speaker Change: Well as I can think of right now it's like L. A where they just went through a wildfire and really there is no more electricity. There is no more cellular tower nearby and they can actually placing a lighthouse solar there.
Speaker Change: Thats a great way for the.
Speaker Change: The people there to be connected readily even though walker stay assay.
Speaker Change: Restoring the size that can be they can you can see how our lighthouse solar.
Speaker Change: Ill hop out that cellular and broadband connectivity. So I really think that the market is huge we just don't have the right sizing just yeah and Michael you can maybe comment a little bit more.
Speaker Change: I think you said well thank you Jacob.
Speaker Change: Tim.
Speaker Change: In terms of the internal work ahead of us.
Speaker Change: Our team has been on the ground with Oman with about six months on and off and we are still working with them very very closely in terms of developing the overall deployment plan.
Speaker Change: Are those the 50 sites that we just mentioned, but there is a lot of work in terms of making sure that.
Speaker Change: We are part of the process we.
Speaker Change: We are aggressively pursuing all of those opportunities and meeting all the customers.
Speaker Change: Satisfaction, a requirement by the same time being ready as what two to expand in the overall middle East region.
Speaker Change: In parallel we are also engaging quite a number of customer trials.
Speaker Change: Those also pretty complex our goal ultimately is to have a trial a month and this is really to secure that customer pipeline.
Speaker Change: And we expect to do so in South America in Europe in the U S and so it's really building not only the short term, but also the long term approach.
Speaker Change: Great and if I could just follow up on that.
Speaker Change: I know you mentioned I think a trial a month, but.
Speaker Change: Either currently ongoing or expected throughout 25 can you quantify.
Speaker Change: Is it 12.
Speaker Change: But can you quantify the number of trials ongoing or are expected to be ongoing this year for white house.
Speaker Change: Yeah. So right now we in Q1, we already.
Speaker Change: Completed two trials, starting Q1 regarding lighthouse in second quarter, we already have full committed.
Speaker Change: For the lighthouse in Q3, we already have one committed so the two that was done it was all in the middle East in Q1 in Q2, we expect a long trial to be done in Latin America, and then another trial to be done in middle East in Q3, we'll do they have.
Speaker Change: <unk> committed in Asia, and we're also having another trial pending CE certification for Iraq.
Speaker Change: Those are the ones that we have clear visibility we already have strong interest.
Speaker Change: And we're just not importantly, with the with the local team to be able to make it happen.
Speaker Change: Okay. Thanks.
Thank you and remember these are very sizeable opportunities all of these are major mobile network operator.
Speaker Change: That's millions of subscribers.
Speaker Change: Thank you.
Speaker Change: At this time does conclude our question and answer session.
Speaker Change: Your question was not answered you may contact Eric gains Investor Relations team, our Investor Relations team at Air G Gateway Dash DRP dotcom.
Now I'd like to turn the call back to Mr. Shaw for any closing remarks.
Speaker Change: Thank you for your engaging questions. We appreciate your continued support and look forward to connecting with you again soon.
Speaker Change: Operator, please conclude the call.
Speaker Change: Thank you for joining us today for <unk> fourth quarter 2024 earnings Conference call. You May now disconnect your lines.
Speaker Change:
Speaker Change: [music].
Speaker Change: Hum.
Speaker Change: Yeah.