Full Year 2024 Maris-Tech Ltd Earnings Call
Operator: information about what the market is looking for and we are developing our products accordingly. The worldwide age computing market is growing rapidly.
Operator: The modern battlefield or modern warfare, we clearly see that drones, robots, and other technologies are used in the battlefield, and the Maris solution is now deeply deployed and used in the battlefield, and the opportunities are just growing, and the market is increasing significantly. In terms of our core business strategy, we will discuss later on, but we are moving towards final solutions and we are leveraging our strategic partnerships with other partners worldwide, and we are aiming now mainly the U.S. and the Indian market, and we continue our activities in order to bring unique edge computer solutions and increase their performance and answer new requirements coming from the market.
Operator: So I would say that Maris now is becoming a leader, a real leader in regards to when it comes to edge computing solutions, and especially when it comes to miniature low-power solutions.
Operator: Just a few words about the financial results, although Nir will go into details, but we had a revenue growth of 50% this year, and we have decreased our loss in 54%, and let's continue with some other details.
Operator: When it comes to the worldwide presence, we have increased our presence in the world. Israel, although is the main market, we are here, we are answering the market requirements, but we have a lot of activities in Western Europe, in the UK, based on the relationship we have with a distributor in the UK.
Operator: We have activities in every location where we have a flag here, but we are going to emphasize during 2025 in markets such as North America for sure, Eastern Europe, India, and some other markets where we feel there is a need and clear demand for the technology. We have made a few announcements during this year. I won't go through all of them, I'm sure that you are familiar with the announcements, but I would like to mention some of them which are key announcements. During January and April, we made two announcements related to intelligence gathering. I can tell you in general that we have been selected by intelligence agencies to develop unique and very powerful intelligence gathering solutions.
Operator: We have been dealing a lot with situation awareness during February 21, June 10, and August, 1st of August. We have received big orders for situation awareness platforms which are deployed in the battlefield during the last 12 months successfully and saving lives on a daily basis. We have developed a unique solution and we have announced in June a new order which is related to a new solution for a drone video payload with unique capabilities. And an important order coming from the US, a $1 million order, based on what we call the Amethyst 5G. It's a platform which is supporting video streaming over 5G in a narrow band, not narrow band, 5G is not narrow, but the streams are in a narrow band and this is a real penetration in the US market.
We're dealing with a variety of markets are there.
The main market as discussed later is the defense market Homeland security.
Unmanned.
Vehicles intelligence gathering aerospace and smart city although.
Although I'm not going to discuss the aerospace later on but I can emphasize that we have been involved in some spacecraft applications. The Israeli satellite that was launched to the moon and we have a cooperation with a space company in the U S. In terms of customers and partners, we have a long list.
Operator: Let's discuss typical applications. What we can see here are, I would say, the four typical applications that we are involved with. One of them is the drone scenario. Maris is already mounted on thousands of drones worldwide, in Israel, in Europe, in India, and some other locations. On the drone, we are providing everything necessary to serve surveillance applications, target tracking, loitering munition, and we are becoming the main computing platform on the drone which communicates with the sensors, with the autopilot, with the radio communication and many other capabilities.
Customers.
Can't emphasize the customers, which are these really defense industry is like a fed I I L. B L. A which is not going to the hill.
And the minister of defense the ideas.
And and other customers in Israel.
We have partners our main partner when it comes to AI is Halo and Israeli company, which is providing excellent low power AI accelerators, we have customers worldwide.
Working with slow now go and other customers and we have a relationship.
In partnership with Renaissance.
Speaker Change: A giant Japanese providing video solutions and light pass a U S company, providing a tomo cameras, which were going to design a mutual products.
Operator: Another important application is the Situation Awareness. When we are talking about Situation Awareness, it can be a solution for a site. Although during this year we have provided solutions mainly for armored vehicles, I can say that we have equipped technology on more than 1,000 tanks. I believe that is one of the biggest deployments of a Situation Awareness platform coming from a single company. And what we are doing, we enable threat detection based on cameras mounted on the armored vehicle, detecting the threats coming close to the tank, either 360 or three-dimensional. And we are alerting about these threats and saving lives, I would say, this very moment.
Speaker Change: A few highlights on 2024 first of all we can say very clearly marriage became.
Speaker Change: A defense industry, that's that's clear.
Speaker Change: It happened during the end of 2023 and during 2024.
Speaker Change: Main activities are related to the defense market due to the circumstances here in Israel worldwide and the fact that the world is now trying to get a more defense technology, even more different solutions and in mice is with the right technology on the right time.
Speaker Change: And we can see a strong revenue generation during 2024 coming from this market, we have created strategic partnership and and we have a launch new products, which are answering the requirements from the market and we have a lot of insight and information about what the market is looking for.
Operator: Intelligence Gathering, I've mentioned, in Intelligence Gathering, we enable from remote platforms to collect information and send it over narrowband communication based on AI capabilities so we can detect important information and send it whenever necessary. And we are also providing tactical devices for special operation forces here in Israel and worldwide.
Speaker Change: And we are developing our products accordingly.
Speaker Change: The worldwide.
Speaker Change: <unk> age computing market.
Speaker Change: He is growing rapidly the modern battlefield or modern warfare.
Operator: What is our strategy for 2025 and for the near future? First of all, we intend, and as a matter of fact, we already started, to provide final products. When we're talking about final products, we're talking about a platform within enclosure which is serving certain applications. As of today, we have solutions for armored vehicles, missile launchers, but we intend to provide some other solutions which will be described later on. And of course, this will have an influence on margins and the opportunities in the market. We see a clear demand for miniature low-power solutions for miniature drones.
Speaker Change: Clearly see that drones robots and other technologies.
Speaker Change: Using the battlefield.
Speaker Change: And the marriage solutions is now.
Speaker Change: Deeply.
Speaker Change: Floyd and used in the battlefield and the opportunities are just growing in the market is increasing significantly.
Speaker Change: In terms of our core business strategy.
Speaker Change: We will discuss later on but we are moving towards finding solutions.
Speaker Change: And we are leveraging our strategic partnerships.
Speaker Change: With other partners worldwide and we are aiming now mainly in the.
Operator: You cannot imagine how big the drones market is becoming. For example, in Ukraine, they are producing yearly hundreds of thousands of miniature drones which will need video capabilities, streaming capabilities, and maybe other age-computing capabilities. We have created solutions. For example, if you will see on the right side corner, the Mars RF, this is a platform that we have designed which is consuming very low power and serving miniature drone applications. And I can tell you that we have a specific customer which is using this technology and collecting information for intelligence gathering. Tactical devices, we are developing some wearable and miniature and lightweight solutions which will be used by special operation forces.
Speaker Change: The U S and the Indian market and we continue our activities in order to bring unique edge computing solutions and increase their performance and answer new requirements coming from the market. So I would say the smallest now is becoming.
Speaker Change: It'll either aerie real data.
Speaker Change: In regards to when it comes to edge computing solutions, and especially when it comes to M. A miniature low power solutions.
Speaker Change: Yeah.
Speaker Change: Just a few words about the financial results, although Neil will go into details, but and we had a revenue growth of 50% this year and we have decreased our.
Speaker Change: Loss.
Speaker Change: 54%.
Speaker Change: And that's continue with some other details when it comes to the worldwide presence we have increased our presence in the world are Israel. Although is the main market. We are here, we are answering the market requirements, but we have a lot of activities in western Europe and the U K.
Operator: And we will also provide products through a strategic partnership worldwide which will promote our solutions, either OEM solutions or finite products. And we have, I would say, hundreds of different platforms, but they can be divided into certain groups, which are based on the main processor that we are using.
Speaker Change: Based on the relationship we have with a distributor in U K.
Speaker Change: We have activities in every location, where we have a flag here, but we are going to emphasize during 2025 and in markets.
Speaker Change: Such as North America for sure Eastern Europe, India, and some other markets, where we feel there is a need and clear demand for the technology.
Operator: I won't go into technology details, but I can tell you that we have four family products, the Jupiter, the Mars, the Uranus, and the Venus. The Uranus is serving the situation awareness. The Jupiter is serving intelligence gathering and drones applications, the Mars as well. And the Venus is more related, FPGA-based, serving some other applications, which are more heavy in terms of video functionality.
Speaker Change: We have made a few announcements during this year.
Speaker Change: Well I won't go through all of them I'm sure that you are familiar.
Speaker Change: With the it was the announcements, but I would like to mention some of them, which are key announcements during January and April we made two announcements related to intelligence gathering I can tell you in general that we have been selected by intelligence agencies to develop unique and and and they vary.
Speaker Change: A powerful.
Speaker Change: <unk> intelligence gathering solutions, we have been dealing a lot with situational awareness during February 'twenty one.
Operator: Our roadmap will focus this year on final products. First of all, integration of the MARIS solution with thermal cameras, together with our partner in the U.S. that will be a unique small miniature low power solution which will integrate the thermal camera and the Maris video solution together with the Halo AI capabilities and we will create a product which doesn't exist which will be a thermal IP AI based camera. The Diamond Ultra is based on the final product that we have designed for armored vehicles and we will integrate also drones detections, UAV detection on the platform and the last one the Peridot.
Speaker Change: On June 10.
Speaker Change: And August.
Speaker Change: The first of August and we have received big orders for situational awareness platforms, which are deployed in the battlefield. During the last 12 months successfully and saving lives on a daily basis.
Speaker Change: We have developed a unique solution.
Speaker Change: And we have announced in June and you.
Speaker Change: Oh, the which is related to a mixed solution for a drone video payload with Eh Eh.
Speaker Change: Unique capabilities.
Speaker Change: And and important order coming from the U S.
Speaker Change: $1 million order based on what we call the Amethyst five G. It's a platform, which is supporting video streaming over five G. In a narrow band in a narrow band not never been there five years no panel, but the strains in the narrow band and this is it.
Operator: is going to be a unique passive radar combining a few cameras and creating a sort of a AI-based detection solution which will be passive, not active as a regular radar. And this will include the cameras and the enclosure and a solution which can be used for border control and some other areas of protection.
Speaker Change: Real penetration in the in the U S market.
Speaker Change: So let's discuss our typical applications, what we can see here.
Speaker Change: I would say that the fourth typical applications that we are involved with.
Speaker Change: One of them is the drone scenario Molly's is already mounted on thousands of drones worldwide.
Operator: So this is our roadmap for next year.
Nir: And now I will give the stage to Nir to continue with the financial information. Hi, everyone. My name is Nero, and I am the CFO of the company. In the following slides, I will show you some highlights from our financials focusing on what we can disclose as a public company. Our revenues continue to grow, increasing from $1 million in 2020 to approximately $6.1 million in 2024, representing a growth of more than 50% in our revenues compared to 2023. Our backlog as of the end of March this year was approximately 9.9 million dollars, which we expect to recognize as revenue in the coming years.
Speaker Change: Israel, and Europe, and India, and some other locations and on the drawn we are providing everything necessary to.
Speaker Change: Surveillance applications.
Speaker Change: Target striking.
Speaker Change: Lightning munition and and we are.
Speaker Change: Becoming the main computing platform on the drone.
Speaker Change: Communicates with the essentials is the outer pilot with the radio communication and many other capabilities.
Speaker Change: Another important.
Speaker Change: Application is the situational awareness and when we're talking about situational awareness it can be.
Speaker Change: A solution for a site although during this year, we have provided solutions mainly for almost vehicles I can say that we have equipped.
Speaker Change: Technology on more than 1000 tanks I believe this is one of the biggest deployments of a situational awareness platform.
Speaker Change: Coming from a single company and what we are doing we enable.
Nir: Alongside with the growth of our revenues, our net loss continued to decrease from $3.7 million in 2022 to $2.7 million net loss in 2023 and to $1.2 million in 2024. It's representing a decrease in net loss of more than 54% compared to 2023. Our cash and cash equivalent as of the end of December last year was approximately $2.3 million. We believe that our cash flow together with proceeds from our customers and using our line of credit will be sufficient for us to support our growth and operation in the coming 12 months.
Speaker Change: Threat detection based on cameras.
Speaker Change: I wanted on the AMA vehicle detecting the.
Speaker Change: The threats coming close to the to the tank either a 360 or three dimensional and we are alerting about these threats and saving lives.
Speaker Change: I would say this very moment.
Speaker Change: Intelligence gathering I've already mentioned.
Speaker Change: Intelligence gathering we enable it from remote platform to collect information and send it over narrow band communication based on AI capabilities. So we can detect important information and send it whenever necessary and we are also providing technical devices for special operation forces.
Speaker Change: Here in Israel and worldwide.
Speaker Change: Yeah.
What is our strategy for 2025 and for the near future and first of all.
Speaker Change: We intend and as a matter of fact, we already started to provide final products. When we're talking about final products, we're talking about a platform within and closure, which is serving certain applications as of today, we have solutions for almost vehicles missile launches, but we intend to provide some other salute.
Nir: Thank you.
Operator: Okay, thank you, Nir.
Operator: And just to summarize what has been discussed, we have discussed our leadership in the defense and homeland security market, and we have discussed the expanding market opportunity, our core business strategy, our position as a supplier of video and edge computing solutions, and the financial highlights described by Nir.
Speaker Change: <unk>, which will be described later on and of course this will.
Speaker Change: They have an influence on margins and the and the opportunities in the market.
Speaker Change: We see a clear demand for miniature low power solutions for a minute you'll drones.
Operator: And we are now open to any questions from the attendees. Just a second, please. Okay, I'm going to answer a question which is related to our agreement with the Indian distributor. The question is that there is a limited information available about Swishka technology, which probably contributed to the drop in Maris stock yesterday. I can tell you that we have signed an agreement with a distributor which is dealing a lot with defense markets. We believe that this distributor will open some opportunities in the market. We have just started and I don't see any relation between this agreement and the share price.
Speaker Change: You cannot imagine how big the Jones market is becoming for example in Ukraine they are producing yearly.
Speaker Change: <unk> have thousands of miniature drones, which will need video capabilities streaming capabilities and maybe other edge computing capabilities and we have created solutions. For example, if you will see on the right.
Speaker Change: Syed.
Syed: Cornell the Marcellus is a platform that we have designed which is consuming very low power and serving a miniature thrown off the applications and I can tell you that we have a specific estimate which is using this technology and collecting information for intelligence gathering.
Syed: The tactical devices, we are developing some wearable.
Syed: And miniature and lightweight solutions, which will be used by special.
Syed: Operation forces.
Syed: And we are also providing and.
Syed: And we will also provide a.
Syed: The product suite strategic partnership worldwide.
Syed: And which will promote our solutions either OEM solutions or final products.
Syed: And we have I would say hundreds of <unk>.
Syed: Different platforms.
Syed: They can be divided into a certain groups, which are based on the main processor that we are using I won't go into that technology.
Syed: Technology details, but I can tell you that we have for <unk>.
Assembly products the Jupiter the Mas.
Syed: Do you run offs and the venues they run off is.
Serving the situational awareness, the Jupiter, serving intelligence gathering and drones applications applications, the mouse as well and the business is more related.
Syed: FPGA base serving.
Syed: Some some other.
Syed: Applications, which are more heavy in terms of video functionality.
Syed: Our roadmap will focus this year on final products first of all the integration of the multi solution with thermal cameras and I together with our partner in the U S that a pause would be a unique.
Operator: We have another question regarding the decrease in revenues between the second half. in 2023, compared to the first half in 2024. At this stage, we are still a project company with a set of different orders from our customers. Our revenues are not linear through the year.
Syed: More miniature low power solution, which will integrate a thermal camera.
Syed: The Morris video solution together with the Halo AI capabilities, and we will create a product which doesn't exist, which would be a tomo IP AI based camera now.
Syed: The Diamond trial is based on the final product that we have and design for almost vehicles and we will integrate also drones detections UAV detection of the platform and the and the last one the paradox.
Operator: We want it to be linear, but this stage is not linear, and for this reason, there will be sometimes a decrease in revenues between different periods.
Syed: Going to be a unique passive rather combining a few cameras and creating a sort of a AI based detection solution.
Operator: This is the answer for this and regard the future expectations, there is another question about it, our forecast, this is not public information that we can share at this stage.
Syed: Which will be passive not active as a regular rather and this will include the cameras and the enclosure and a solution, which can be used for border control and and some other M. M M.
Operator: OK, since I don't see any more questions, and then I would like to thank you all for participating our webinar. and we will be happy to update you more in the future. Thank you. Thank you very much.
Syed: <unk>.
Syed: Areas of protection.
Syed: So this is our roadmap for next year.
Syed: And now I will give the stage two near to continue with the financial information.
Speaker Change: Hi, everyone. My name is narrower than I am the CFO of the company.
Syed: And defined client always share with you some highlights.
Speaker Change: Our financials focusing on what we can disclose.
Syed: As a public company.
Syed: Our revenues continued to grow increasing from <unk> 1 million.
Syed: The 2020 'twenty to approximately six 1 million.
Syed: In 2024.
Syed: M representing growth of more than 50%.
Syed: In our revenues compared to 2023.
Syed: Our backlog as of the end of March this year was approximately $9 9 million.
Syed: Which would be Italy.
Syed: Expect to recognize as revenue in the coming years.
Syed: And in fact with the growth of our revenues.
Syed: Our revenues.
Syed: Net loss.
Syed: Continue to decrease.
Syed: Oh man $3 7 million build on in 2022.
Syed: To two 7 million net loss in 2023.
Syed: And two a $1.2 million in 2024.
Syed: Representing a decrease in our net loss of more than 54% comparison between 2003.
Syed: Our cash and cash equivalent as of the end of <unk>.
Syed: December last year was approximately $2 3 million dollar we believe that our cash flow together with proceeds from.
Syed: Our customers and using our line of credit will be sufficient for us for both our growth and operation in the coming quarters.
Syed: For the coming 12 months.
Syed: Thank you.
Speaker Change: Okay. Thank you Neil and just to summarize what has been discussed we have discussed our leadership in the defense and homeland security market and we have discussed the expanding market opportunity and our core business strategy.
Speaker Change: Our position as a supplier of video and edge computing solutions and the financial Hyatt highlights are described by Neil.
Speaker Change: And are we are now open to any questions.
Speaker Change: Boom that ended.
Speaker Change: That's.
Speaker Change: Second place.
Speaker Change: Yeah.
Speaker Change: Okay, and I'm going to answer that question and which is related to.
Speaker Change: The two.
Speaker Change: Our agreement with Oh was the Indian.
Speaker Change: The distributor are the the question is that there is a limit limited information available about <unk>.
Speaker Change: <unk>, <unk> technology, which probably contribute to the drop in Mali stock yesterday.
Speaker Change: And all I can tell you that we have are signing signed an agreement with the distributor which is dealing a lot with the defense market. We believe we believe that the dish eh.
Speaker Change: <unk> will open and.
Speaker Change: We'll open us as some some opportunities in the market.
Speaker Change: And the and Ah we have just started and I don't see any any relation between a disagreement and the share price.
Speaker Change: We have another question.
Speaker Change: Regard decreasing in revenues between the second half.
Speaker Change: In 2023 compared to the first half.
Speaker Change: 22024.
Speaker Change: At this stage, we are still a project company.
Speaker Change: We have a set of different orders from our customers.
Speaker Change: Our revenues are up and linear through the year, we once you want it to be linear.
Speaker Change: At this stage is not linear and for this reason.
Speaker Change: Hum.
Speaker Change: Tobey is sometimes a decrease in revenues between different backgrounds.
Speaker Change:
Speaker Change: This is the outer collision regard.
Speaker Change: Future expectations on another question about our forecast this is not public information that we can share this check on this page.
Speaker Change: Okay.
Speaker Change: Okay since I don't see any more questions.
Speaker Change: And then I would like to thank you all for participating our webinar.
Speaker Change: And then we will be happy to update you more in the future.
Speaker Change: Thank you.
Speaker Change: Thank you very much.