AIRG - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Welcome to Airgain's First Quarter 2019 Earnings Conference Call. My name is Christine, and I'll be your coordinator for today's call.

Joining us on today's call are Airgain's CEO, Jim Sims; CFO, Anil Doradla; and President, Jacob Suen. I would now like to turn the call over to Mr. providing management cautions during be statements the will by made today's who the regarding necessary forward-looking Doradla call.

Anil Doradla

events and from non-GAAP non-GAAP of website non-GAAP intended a including see reconciliation net non-GAAP Any comparable only obligation GAAP and under is call Form Thank contains Please any measures, you, Litigation is Airgain financial income, for forward-looking this and is May no Reform the today XXXX. performance that caution from Private Airgain's be that making May or qualified measures. time-sensitive second This results. revise of reflect of date call, should risks including note and information which statements importance everyone. strategy on the detract Company's quarter the conference financial by, call including release, Harbor's accurate release future today's statements filed by differ earnings for covered Please to XXXX. discussion GAAP the conference discussion today performance, X, future XXXX. during that the contained certain forward-looking are This of filings, Act. statements of and forward-looking after adjusted information and which SEC X, discussed Securities good and to Actual EPS this those these the business further be of Form to the of operating cautionary not statements this could considered Safe live afternoon, results Airgain statements date call a EBITDA. include Airgain's the listeners will is provisions undertakes of broadcast, including or and due I earning on will the about implied with its These may materially non-GAAP posted uncertainties in associated update to measures stated in events XX-K to conjunction as XX-Q, or business. details, be and forward-looking circumstances with, Airgain's conference management call.

remind at I Finally, for would website available Investors the this of replay Company's link be section that in recorded everyone made www.airgain.com. like the call available via to and a will

remarks, from will publishing sell-side management's open up for the Following call we prepared Airgain's questions analysts.

Now that, over turn like I our Jim would with Sims. to to the CEO, Jim? call

James Sims

with across high-bandwidth product demand increasing mix. the enterprise pricing complex sequential quarter, around company-wide on past the we strong seasonally our along results guidance our gross in by our design and and Thank pleased $XX.X of quarter healthy witnessed website. automotive thank up and $XX.XX to in quarter us you March designs for quarter in joining the with first and issued After include you, margin, last we the the in ended antenna especially million. the first first historically and the on Key improvement several Investor that efforts the manufacturing the in highlights XXXX are largely range is we a ever million today. section driven these put over wins results our in I'm XXXX, closed, quarters within basis everyone, XX, favorable improvements announcing to year-over-year of Welcome, Like wins the the our available efficiency million, results for Anil. a Relations front press underpinning market for place release with XX% quarters, support the $XX several sales markets a consumer, applications. which of weak

into our We our XG emphasis of great across the are on operation and on the plays front as customers XG on with strength of antenna believe MIMO markets. well focus also as core activity frequency witnessing engage multiple we several We years. the and updates next look past Airgain areas to our the industry look to are and to on the forward coverage we indoor We're wins. built forward quarters, transition design over over excited the several has sharing experience XG extensive each

We in diluted expectation share per also than in respectively, both $X.XX place that front over of Consistent of margin quarter $X.XX, expected ahead a expense $X.XX achieved for base that the past our our customer and we gross on was witnessed a on basis. programs. prior first The impact GAAP with basis ramp up we our before across non-GAAP earnings $X.XX well outlook XXXX our of the to with front. customers seasonally of and $X.XX taking first operating provided GAAP non-GAAP several largely longer and the February, quarter on to strength efforts we put the and – by quarters, some

the one customers, to resulting start with our larger ramp nature of others towards like partially quarter second to ramp is of the XXXX the include believe share and handful quarter, in customers factors XXXX. and half wins that design ramping and is up customer-specific a trends. the a competition, consumer some in down resulting the second customers loss issues Furthermore, programs to but the sequential timing in highlighting into half as basis. are while worth of automotive that of I'd this across carried and as key enterprise It note a pause being nothing highlight in to it's the We notable issues the market. a these rather had on variety the to over expected of to the macro the well of reasons first For short-term expect second that important in second outlook short and in these of expected term quarter, benefit end onwards. are do market

front, momentum gateway strong in the On continue maintain fiber consumer market. we to

won at two designs Tier X During the we quarter, OEMs. global

on of a in service These design quarter one We expect with to wins were in up Asia. largest commence revenues highlighted last the timeframe. new wins win the built providers XXXX

X enterprise provider enterprise design routers. American front, These In of the focused service global solutions won at applications. designs Tier the industrial IoT wins design networking IoT a two XXX.XXac, provider on at outdoor the on of focused to X applications. On are market, a we a we largely with one won North Tier

One key design win lot on monitoring. of parking applications this the is of centered

Finally, to win be as on Anil? at to like the who front, will financial over the won any highlights In but I'll quarter. company provider. Financial of call us take Chief happy design the a Anil a do, telematic moment, exclusive Officer, walk their automotive through I'd questions the a we I antenna Doradla, you before have, turn to

Anil Doradla

I quarter color XXXX. preliminary Thank Jim, afternoon. first will you, provide and good around provide financial XXXX some second for quarter the and highlights key the

like quarter, switched to quarterly more provide and us guidance from to community last the As believe this front. will to quarterly as to providing fluctuations keep and our business. our our predict remind investors lead clarity I we focused ability said, recall is may to execution business short we you on that subject times may and investment That will the also accurately short-term in result more this

automotive the service million. of quarter lesser $XX.X to first on XX% Now a X% $XX and Sales by largely extent. in highlights. our declined provider a guidance grew within basis quarter basis coming $XX.XX was million million of our the The to first on our strength range sequential XXXX combined and year-over-year with to business driven was a

or period gross XX% or and XX% same $X.X in The $X.X profit or fourth $X.X XX% year-ago. million in First the strong quarter of million was a the quarter of sales sales contract sequential million was new streamlining last from with our benefits and driven our improvement manufacturers. existing relationships largely by operations, restructuring efforts with of the quarters XXX bps our the over around versus derived several combined

marked efficiency combined us XXXX our trend As efforts with quarter's to the with fourth we gross bottom first favorable around comments in believe XXXX. positive call, gross front, the operational trend in highlighted our margin in believe of quarter be margin the improvements, leads product We an margin is last upward consistent front on our our XXXX. on mix quarter previous we our and

on loss GAAP a basis, million net same net X.X income $X.X a on period based margin front, quarter $X.X a the or basis. These a of continued of based year-ago. are than we outlook $X.XX which and in shares our same as of combined control. showing program, income flat the Our the again, to a million per on buyback income loss share net $X.X year-ago. results diluted our by in $X.XX On strong Once gross terms a of better period GAAP share focus driven largely $X.X reminder, or per August shares non-revenue generating of $X.XX expires $X.XX share a were share with compared or of million diluted in currently diluted million during active the XXXX. The million loss on or diluted $X.XX our non-GAAP $X.XX per GAAP to expense totaled basis on compared a to per expected a was prior XX in results share better $X.XX non-GAAP our was on than to million

During for shares program XX,XXX we $X.X at million. $XXX,XXX. have of XXX,XXX Since implemented, the purchased buyback the was share shares a quarter, repurchased roughly total we

$XX.X repurchase will which we down and be our $XX shares And forward, quarter. opportunistic short-term Going under million, continue totaled from to of million program. finally, our cash, was investments in equivalents last this cash

outlook Now quarter the I second for to would provide preliminary like XXXX.

The decline of sequential we quarter expect $XX.X well in pauses $XX.X combination issues $XX.X X% million. For near-term macro a of to of issues. the as XXXX, million to second and is decline the we midpoint largely customer X% by range by the sequentially driven sales to programs year-over-year. customer-specific with as be expect At certain related driven million,

second rather to and loss of customers near-term issues. comments in between loss to earnings not we reiterate these second a will call diluted related over we but summary. earnings expect be non-GAAP on completes quarter to turn We is I to I market financial a expect to diluted timing $X.XX and per range the Jim. of half of per share earnings $X.XX loss of that This would a expect their XXXX. to now shipments to the to a ramp related my share and $X.XX; competition, share pause On a the be of loss in $X.XX. resume Jim? like basis, positive of basis, this GAAP Jim's

James Sims

Thank you, Anil, for today. and the everyone being to call on thanks

for couple a want closing Before your we the to share questions, I call of open thoughts.

and the these first the the is enterprise to while the on under XG, and believe R&D, sales will and are the and front marketing operations, of was year automotive capturing opportunities XXXX enterprise two beyond the market. around of addition group efficient the realize confident areas, there secular the across Kevin focus strategic focus I'm To in consumer, in the streamlined XXXX and significant front. growth have Airgain is and of R&D us, significant second Thill, we front, reorganizing tailwinds. opportunities across company While multiyear the goals We getting on

XG the we On engaging applications. customers diligently been and front, have several

started a our front. we'll efforts is and difficult focused pay the with Airgain investors Our pure off several over Over our traction front. next on leader we aspiration a design solving will to have believe investment become and on time, to and quarters, you play providing be challenges, XG on the in coverage capacity advanced antenna, as RF view win a XG

around enterprise of second Our focus front. the area is

several for products, rollout call with As past your have market. centered believe the that, provide right enterprise many more the and and And enterprise market Operator, you of service-provider-centric quarters, instructions. to We we're consumer the please over centered market antenna the may complex the expect the gain know, we adopting solutions more wins. been questions. ready around and open success is to design over several the appropriate Airgain's next years around

Operator

Thank you.

publishing will Riley. question We now Please first B. our from Now Airgain’s questions [Operator analysts. sell-side comes take Craig from Ellis proceed. from Instructions]

Craig Ellis

has the question congratulations better the continue expect to the in be Jim, quarter, the taking Thanks pattern the the program expect your that quarter third that in company sense in growth wanted what start differently, in the just in following with for progress second understanding up started delays and margin I in be the the on Said first are those the third would those you would by gross that on guys. and quarter? and overall Or to a largely business would quarter. that back to that quarter? track nature? Is you multi quarter seen

James Sims

you Thanks, all me Can right? Craig. hear

Craig Ellis

Thank Yes. you.

James Sims

quarter. off the quarter be of yes. beginning full several a really the we Okay, second and would that kicked great, the first the had during programs There rollout of were first thought end the that in

of will kicked One we be June. them, fortunately think around enough, off

programs, do of moving get and nothing moving on to with that some will two to quarter. little by both what's other to kick it on. going and going we're of across was the We third with those do off a on We're originally Both during of to have production – didn't to macro expect impact out going positive So quarter. the clients all be during it China June, those were just first more deal There's the world to would probably in that. other us. quarter rollout the environment thought had three, third other impact out. Those One with the around with the potential two rolling facilities pretty that the today. we on third the quarter, confident the later China

Craig Ellis

that follow-up either a engages momentum year is win design customers? it of us the the the to the impact new the design quarter it products And where better commentary. fourth for the you question in team on quarter versus prior saw in possible Okay. the first as the sense a with to and of some then wins activity seeing Is quantify you in give or were

James Sims

One, the products really nine they time in to new fourth consumer out going in separate of announced two last year. we Look, the old and the and situation, that competitive going enterprise go design on winning in business are quarter the there win. on Well, we're that's the within we with every areas. wins what's second, a Plus Antenna the the

that those sure, across the going wins win announced we're next really next quarter. to not of fourth automotive, year into most we that the We're winning had XXXX. and up year. However, really the Tier the going well business off now is us Remember, to that make They're consumer until quarter. several sets the well we're more We ourselves X we That one developing. all are about positioning across in kick for first quarter. big gateway positioned last bet this and

words, we Plus turn out, those of in win one quarter quicker. hand, get business, we the we start Antenna like quarter. the Axon, to the sooner in rolling seeing when if that see we could In On impact other third subletting more an the the other products second those because with announced and we could both

Craig Ellis

to one you, And you. I'll Anil, helpful. That's not then so for pass ignore

James Sims

ignored. never is Anil

Anil Doradla

All right.

Craig Ellis

and to helped quite for pricing. factors give priorities Three strong gross drive the sequential it a was mix large? you margin, And were because Can what of the cost, relative sense us improvement further for the gross sustainable? comment positive the company that is would mean margin? improvement Or comments was XXXX, gross that for on that simply did the company prospects margin XX% you expect thought

Anil Doradla

Great question, Craig.

your question parts. two So I'll into break

impact. factors. just characterize to been positive efficiency The first that three a would part, a into time The as ways: is And some improvement know, about you you way this of event. putting you I has place is, knew improvements talked as would we for it the pointed in several one out, take we in some these highlighted multi-quarter couple and culminate

all So came that them. we of and together, showed

have you in Second XXXX, into contracts of important as is was remember, – part, some older set expiring. you which the

older we finally, more started that of conditions And rolling and the bit little aggressive past, FX approach and of but I efficient about took And part the a these it some that terms, operationally our terms newer things. part off. in then more movements. were in that contracts was some renegotiation of of haven't contract had we the So towards talked fiscally

together, they all things put those And so you when all impacted.

think Now let your way. next on is? where me coming this question it back to it I put

keep what XX% gross like do range. As margin the to profile we somewhere in XX% we highlighted, would is our to

on this the know, quarter, end. you came high As we

at of terms improvement mix, efficiency us, XX the parts. it both there's in well stuff. and plays that many on both over out how bode Craig, of the That said, terms to business a the moving quarter-to-quarter, If look in all months, you for XX next trends so perhaps

in kind I So QX said my comments will of that I reiterate bottom. was opening the what

how our I up, we based out we're quarterly XXXX. about off it where down do be little feel see new a kick contract But Now plays do a little how go on we'll good manufacturers. a to going in on basis, we

Craig Ellis

hop guys, Thank back queue. clear and you. very in the helpful. Thanks and I’ll That’s

Anil Doradla

Craig. Thanks,

Operator

comes question next Karl from Cowen. of the Your from line Ackerman

open. line Your is

Karl Ackerman

and wanted customers earlier you across more quarter? of design demand But that the home fact gateway wins you antennas one the indicate connected up to do would efforts. We broadly I and to customer, have beyond perhaps speak chain could question. understand back is both landscape router realignment an the go June to home some experiencing of that just larger OEMs supply for that your in pick your

James Sims

to mentioned? Yes, might do sense. – the Karl what that address Jacob, let me you wins design want make

Jacob Suen

here. Hi, to. It's happy Karl. be Jacob I'd Yes.

to the of think with are all carriers. about designs. on the service generation we continuing the but in only service provider working talked also as one provider, owning position So particular major that still you not are And leading The we're on our front, I well. others that on we maintaining next particular, the designs, on

Karl Ackerman

Okay.

for that's in a line highlighted the wireless those of revenue How thought of do in you outlook we Understanding your XG to XXXX? new about products? think of XG, Perhaps Now think new access. some think but those is be year-to-date than bit that what little opportunities about have I the and context you less how trajectory may antennas revenue growth the you helpful. introduced fixed a opportunities do previously, outlook going

James Sims

any and we're XG and the wavelength. XG, just But of one very Kevin will out, bit, XG the Kevin, Yes, multiple designs don't X want in below a areas gigahertz year. bidding clients, any see might that, bidding successful. the the question, two what expect around we're and into winning been talk around little a us give good, about our that going year. Those I'm rolling What until strategy in and sometime we is probably we're around to gigahertz to volume in real below. a is and are X XG gigahertz for have XG, millimeter you the below good Karl. process I sort millimeter will doing start see now fourth of both next today XG? next to update XG, on the X and millimeter. in new quarter we've the There little and

Kevin Thill

our our process all We're are sub-X those which the thanks, XG of all Yes, gateways, in of in developing a of integrating CBRS band for Jim. and antennas, into routers.

We are fleet into developing antennas. our and those of also a process in antennas them all implementing of

prognosis a So for when needed, think of us go able I we're good produce products. technologies is being are where, being ahead position those in position in those to a and

millimeter need On XG working have antennas wave the as to front, and ahead go figure with going we they're what and to and on those as carriers, going to trying subscriber side ahead internally developing been actively far out needs. the meet

going I the be I demands. to wave that very So company, network as have to that confident position a think start able to and we're to products roll meet out system be in that providers feel on millimeter their when we'll XG

James Sims

thing took Kevin in management to organization. what – all of the mention. nine we're months right now made Kevin, you ago. He's one improvement might want just XX significant or that

that centers crucial might with want happen because touch the start as to what's interacting world in clients going to for around our just these You across we XG. design on that's

Kevin Thill

I to five managers identified over doing recently centers to last months Sure, identify And design our go We our and those will went promoted hired ago, we is and Director ahead key actually for Director we've Yes, onboard came He our on center. We come Diego for and we also up went and what China Dr. world. ahead, that. ahead ahead have facility. in for Engineering went think, lead a two the facilities. of the Jim. around been internally Wang design a San Scottsdale He I'll and trying months talk onboard, July. few Engineering of operation.

key ahead place we when XXX products. And go think understand Currently, that we've the in now, personnel it's scale demand. structure these can to actually exponentially where have exploding have right demand got important and that meet think we we demand up our for and can that and going increasing I the – are now place wireless that see and go to a development ahead demands the in with is that next we that I year. over the over projects we I are designing

we're positioned growth think well for that. I'm So about so happy I

James Sims

Kevin. Thanks,

Karl Ackerman

color. Thank the appreciate gentlemen. I you,

James Sims

Karl. Thanks,

Operator

Richard Your from question line comes the Northland. Gus from of Please next proceed.

Auguste Richard

Thanks the question. for taking

customers of about idling In QX? out the terms from into clearly the production of transition try to that it and standard it impact Is the China. going as your delay, of of relocating upcoming product transition part X their think Wi-Fi in is any people there as they and one

James Sims

look, for the that second and on to with taking And No, week with put by right Gus, just None because you wanted China, about transition And the look, in tariffs all not But because of at that it's �� a get the cover them all up we're along up week, will of change and quarter. temporary that transition quarter. place have were reasons technical we're the of the we be these going all. plan to second design – issues – all us for is to what's Look, always and the we for quarter. we see keep of a wins, able but always on all. every designs. not our every in new we we do quarter. outlined in with were revenue upfront don't bringing our up going It's winning on that a a we Often able difficulties or what's too And that This server that to delay – have SKUs projections. some Several unusual our together had strategically, we've it planned plant bringing way, or at to plans, that. month were a have we month, the clients. every movement in industry-wide we by China.

year after. a expenses think, We've and profitable. our can prepared that line, still job be be to of have miraculous done, for the next in we year keeping I We

get we'll the as the look, So company look we for quarter, forward. good very think second but through I things go

Auguste Richard

terms And you're XG you Can winning of Got give designs more designs, little XG? coming just color client? infrastructure from Are your or just mixed? they in Okay. characterize, bit you a in can where more it. they are on then

James Sims

and to have both going Kevin Jacob that. answer I'm

Kevin Thill

I think right LIA, the also going now those with the side on the are seeing and right also gateway we're wins and side. that arena CBRS XG CBRS the the that have fleet is side and stuff. the for sub-X fleet router from on activities implemented seeing we now tremendous our on coming are into And we antennas opportunity

on think resolve that standpoint. I the we So for signal trying can have, our complex where and I wave from is If to going going outside XG this issue we're into for go future and bright us there really opportunities all there. a operators the of win focus. building. And going comfortable design are technical company to the we focusing then the the be mean, to a millimeter the the to for which definitely that's with forward. I think from are ahead standpoint activity, us the are problem, be going design and is get their key That's going

Jacob Suen

multiple in several apply that's key wave, immediate seeing already to gigahertz a in The Yes, carriers opportunities. millimeter I and opportunities. solution as think Asia to to add going are sub-X to markets, major including working And the with are the long-term we're North we America as automotive. that it's that, well

cetera You going come, up. do heard and terms being that see about but et to the years we two BXX, that's

Auguste Richard

you're class And your does engagement playing Exactly. Got Or less? then moving Are that wondering, see or more effort? you for more with that require engagement there me. – and how out working was those do sounds qualifications enterprise terms I in just towards And and it. of one routers. last customer timing customer shifting like It difficult? the

James Sims

real Yes, question, that's a good Gus.

it's enterprise first more months is the complex in one antennas to Our long come in. that and X And [recognition] it of clients enclosed period. space. in ago more of that a the win up structure design big X-month XX has our probably we ways with a We've months the

Now major we're a client. third new we've and winning a won second,

as to have So up is we forward that. with design – interact go center set now, our we

experience few the area. now first major that that had the have wins on in We based we

we're bit So you want base we're confident. doing touch little don't on you what enterprise on, of – now? but the what the on just the Kevin, working in how a comfortable we're are, pretty routers tell clients might just to space

Kevin Thill

and new feel I think that going comfortable. it's to us that new designs I and really our I allow expertise to go area leveraging in mean, and introducing we're ahead win business.

a from So confidence very team. standpoint, I'm confident our in

Anil Doradla

Gus, is this Anil. So

Just adding that. on to

that is small Airgain in have a the definition only So arena enterprise, we like corporate the enterprise and stadium but falls or for not so forth under the enterprise.

enterprise another aspect aspect around world, But also. strategy when the normal one of providers, some that's there there's the deployment service that this the even in of – look our suspects the through of yes, at you So enterprise, goes it.

finding having into world it's enterprise through of world, some going in kind provider point So element there's from an we're view, these enterprises. brands that the well-known also where service access we're directly the to is what of X that we're Tier but of the –

Auguste Richard

It makes sense. Got complete so it. Thanks much.

Anil Doradla

Thanks, Gus.

Operator

Your Vecchi comes the next Alessandra question from Blair. from William of line

open. Your is line

Alessandra Vecchi

Hi, question. my guys. Thanks taking for

Anil Doradla

Alex. Hi,

Alessandra Vecchi

Just on the side. OpEx

how thinking hold rest these Or and next does Is the there, something on going but have maybe we a year? through flat that levels? year the of about to at be into should it tremendous sort tick job of up? continue guys done forward it You

Anil Doradla

Right.

enterprise, of the you a ramps we're XG around will on that little see I a the of it's of bit point But expense in a doing movement Alex, function making, a of So not some QX, of lot that see significant and onwards, see we're multiple operating you we're things, going to investments The front. that with the efforts ramp. think right? what some would from

in So around create that that's we next But expenses. the growth focused we we're very will right? to out, we're it how two. very there do opportunities is But and something we're do, a will If Jim strategic, because our or as again, need year pointed looking. significant

that's So rest through looking year. the I'm how at of the

James Sims

that could to I add just Maybe something is.

Alessandra Vecchi

Yes.

James Sims

line to our went we operating in through expenses going get where to Look, with our painful restructuring be. revenues are

However, hiring at into in in our people of investing started new marketing. the significantly we've our time, same really and R&D the

in all but we So that expenses low, we make grow to that operating invest development, our has the sure we're our going the the revenues expect. and to goal along and the to been get keep expect point to profitability we and we shareholders marketing think

Alessandra Vecchi

That’s for me. helpful. very it That’s Understand.

I think questions. everybody other got my

Anil Doradla

Thanks Alex.

James Sims

thanks Hey, Alex.

Operator

comes question the line proceed. B. from next Ellis Please Riley. of Craig Your from

Craig Ellis

Yes, wanted follow-up thanks start more I to the for with level question. a higher question. Jim, of taking

So as think we And product you plus And and the forward of look that related the and and can be? there's further is what organization customer needed understand development what, think on the I development we how through to of you look think that XXXX, a through that, to At team's, be the further development the us do And regard would curve? help it relative in a would helps new one for any, it rest if milestones or as it's organization on capability? to where Where appointments XXXX call are productivity on going to the of that like XXXX? engagement happen? you we real lot I Kevin understand and got you've us operationally. today. you where Jacob But

James Sims

that's great question. yes, Well,

me start into in we that been Jacob marketing. the his role with had expanded but position, in Look, Let put Kevin. organization.

Kathy He onboard. was, of we our his All role look, on area. we for expanded in and Anil a first operations. HR sudden, My got goal – came brought

But We who all development, had can business. organizational I under with centers all place to got have the expand can to make – has in that the XXXX, had, mean, we and in first their company class. sure world to we think I being now, where five The both darn now concern take team go the started them an by we and I and Kevin had are five an that but managed of done this structure it directors with absolutely take the we built not has class. that So I at team us that the least issue XXXX. issue,

have we the business got And going take could complex that each innovating, going we're for the going innovative is do new sure been is problems only the design next, we can what's not doing to how and all current to Kevin to has more we SKUs, clients. on what solve darn a So and on. we over. significant area, do and be but That in what bid be our something to technology make

into I team engineering think really the shape. So we've pushed great

front, our sales us first I the last front difficult had salespeople force have On we the moved really was enterprise sales through they all automotive. that the into consumer, class. the us and been years, kept the into and the moved mean times the marketing it they several

has weakness Our there in been marketing.

strategy has been senior sure we have reporting So our two Jacob. very to make darn into people

weeks. the this onboard do of now think all I came our We've that onboard, successful, that Director take could these of in do product where He's if brought and I been focused put of Marketing. order three help recall company we two years us overall. myself what And verticals to wanted to strategic and first help Jacob product win in these is and on cycles you and onboard. to sub-segments in around to have said one there be you just that next or those now. and up the years each sub-segments what Kevin bring plans life have Product One last three And to earlier, area area now. our He's I

on marketing So been his organization. focusing development. broadening focused Anil on we're and now has really

We for so with that. comfortable on that person more – into are of one I'm bringing the finance in senior process

place. Board, the get the focus my management to level of in next across was So

cost, made improve this So everybody we quarter after, get margins, has replacement. to were be strategically a us just and where months enormous in the tactical only can verticals. And but work second, well be the last the Company. not take of into we're able positioned going new reduce six the and the And that. Not next have two quarter they progress to do around

have us think I an well. that'll now we structure organizational serve

Craig Ellis

like organically momentum next over to think the months using road versus very how in you that of the And you about that structure been as if That's business. growth? for such inorganic Antenna for like something Are business to XX add do when the another ahead ready seems XX you ready helpful. be that? Plus it's And a the that? nice move would growing the months, have, not, and very light firm

James Sims

maybe we What non-organic. one, and do answer business, organically; our in it One, going can a then to at look great what two And question. what I'm directions:

side, the the we On at looked consumer. organic

the around market. First, consumer

market. a that have play big We in

are and to as there more than in we bring affect We will the Kevin opportunity and in I about going around we on XG Jacob solve data significant I that right how That we growth think tell you XXXX and anybody. and move – an And are win could extraordinary we our working we're give over can problem. move now that continue solve And I But people to us how XXXX. mean you problem has that XXXX, his home. the around will we the team because market. team into been home And that. we're – we know his XG. that to all think

have you piece or new growing market not on in major so Look, on markets a start bidding markets now The the automotive. what's it automotive one then enterprise dominate in and entered that's we in like it and second going have the you because to matures really we're was, our year-ago, to projects, when two markets. new those of weren't even and comfortable wins, we I'm we had

believe to strength down Look, the primary and had we were months and we really all had market them can we currently nine we're ready growth their The tuck-ins? around integrated we're an – the organization, until last turned work was the But have And for doing antenna discussions. and reason is acquisition. non-organic not non-organic. plan other of our ready this we now say, I've I are on do take? should you clients anything there in is the more area a what a over a to and fail. we'll market, going on strategic level, just look, getting acquisition go I complex tell our we'll play don't We then what if merger, do to effectively. growth, some to or plan with we absorb these and solve and or be ready problems when for be maybe an an help weren't where we focused we're antenna to management them forward. to up-scaling or merger the four more the have and the under to acquisition I can will as but strategic go doing backup the take acquisition, guys, girls, I do solution to on we

Craig Ellis

sense, Makes the help. Thanks Jim. for

James Sims

Craig. Thanks,

Anil Doradla

Thanks, Craig.

Operator

this time, this concludes our At session. question-and-answer

Airgain's not over turn Sims at was If now I your to may call to for you question would like contact investors@airgain.com. closing taken, Relation Mr. remarks. his Investor back the

James Sims

transition quarter. this Company we're for really we thank the next Conference call at take be second TMT the you, at the active tell I'd New XX; and And of Annual today half got Conference XX us First, say you support. I I thank, second to And to FBR the to to on we continued got Chicago. do on on quarter for and us of team on City Annual as the I on B. We'll pretty but on position know and quarter. their industry over position to call. Hills focused management this where the for William for reminder, is Blair May like Riley year. all in to this going in company here next joining Conference on will all Beverly that this and I of be XX Growth investors year XX; partners of talking the York talking Cowen difficult, employees, that's want right in and and forward you at specially XX events us the at various seriously our look I May end next Annual the to want a second to all of the

hear our So understand if we're doing, about us Thanks. what you there. story want and to join more

Operator

call. conference today's concludes This

now may disconnect. You

Airgain (AIRG) 11 May 192019 Q1 Earnings call transcript