AIRG - Earnings call transcript Q3 2019

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Operator

Good afternoon. Welcome to Airgain's Third Quarter 2019 Earnings Conference Call. My name is Julianne and I will be your coordinator for today's call.

Joining us for today's call are Airgain's CEO, Jacob Suen; SVP of Engineering, Kevin Thill; and CFO, Anil Doradla.

I would now like to turn the call over to Mr. the during regarding today's provide made forward-looking will management by call. who necessary the cautions statements Doradla,

Anil Doradla

cautionary including Thank and XXXX. will you, under or future forward-looking statements Actual and release Reform call earnings information strategy associated statements provisions be XXXX. discussed risks Airgain those good business considered the events Act. qualified which afternoon, operating results everyone. could the of filings, fourth statements SEC future These Form quarter differ performance X, and be the XX-Q, with that uncertainties and today and should statements materially filed due Please contained its I call management caution implied from for Airgain's stated conjunction is during Securities will the in with and about November business. are in forward-looking Airgain's covered Private the by performance, listeners company's today, Harbor including be the on these Safe financial Litigation note and this to by certain forward-looking making

comparable non-GAAP Please not see the for Any release, measures. to financial time-sensitive any that reflect or measures, call undertakes measures discussion of contains earnings conference further EBITDA. this X, of a call including circumstances non-GAAP include importance obligation diluted non-GAAP from today's including the the intended conference non-GAAP Airgain may of or live GAAP reconciliation broadcast adjusted information net of income, is is a to of conference is results. of detract November and XXXX. as accurate no revise Airgain's details, GAAP posted date of non-GAAP to the forward-looking This discussion statements date which update only this to on website after EPS events call. This

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

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

call Now, over with that, the Airgain of CEO turn Suen. the Jacob to I would like to Jacob?

Jacob Suen

and ended Anil. market Thank press quarter a our points everyone, the in closed, for XX, third available a goals by which joining than the on range manufacturing results front, higher XXXX, Welcome, year-over-year XX%, release, within and us of I efficient with you, and results our very our the pricing After along basis basis September you quarter results year-over-year announcing thank we guidance long-term Investor the product down include today. issued on our of driven is a a million, was with the am mix. company-wide stated XXX sequential improvement X% website. quarter improvements Relations margin of section to basis for third $XX.X on to XX% pleased a gross sales third favorable and $XX margin strong the on Highlights in with million million. of that performance in our $XX front XXXX largely

in benefit continued witnessed the front new second the revenue the market the Additionally, launches momentum of automotive from we product to strong half XXXX. as on

As and across complex demand the underpinning consumer our applications. designs across known and ever-increasing to we continue bandwidth products. that brand innovation to and higher for the secure Plus industry enter this its we we out first-to-market remain these design our last Antenna quarters, as and we XXXX, on XXXX market the wins wins several is antenna into new are close to for leverage support enterprise bullish Similar markets automotive

front, global on are the Additionally, at XG witnessing increased R&D centers. customers' five we engagement our

that engagements provider Airgain leading strongly to for antenna to believe expect from new and next benefit designs. solution complex be the Over we continue several will quarters, these a

$X.XX of non-GAAP GAAP basis and reported of a to higher $X.XX of loss non-GAAP also on on basis. high of our flat quarter prior $X.XX of $X.XX and the XXXX GAAP the of of respectively We to expectations third on a earnings loss and on diluted $X.XX share end end per loss

The largely many favorable driven higher a by continued in driven of factors place strength these expense past strength gross we fronts the of the front. on the along that by efforts include mix operational efficiencies product several over put combinations margins, quarters. the discipline by was both continuous with that and ways, In on was achieved

like to third across key and also initiatives Now wins I design the programs quarter in notable automotive enterprise markets. highlight the would consumer, some and

global started front, Tier a a one shipping gateway the to supplier. On ODM we home consumer

North witnessed increased majority activity the with telcos and with Additionally, American customers' XXX.XXax we one engagement MSOs developments. of Tier ac

XXXX of selection many launch in ODM end be expect of OEM year. process with completed these products by and to this the the to We

environments. designs engaged are enterprise On we displays. have centered points, an as approved enterprise currently six around the on in the MXMAX the end-to-end these access with of world's and shipping we leading In a focused of large small Most front, to supplier been market projects across digital selected largest used supplier to enterprise vendors. of applications, are one enterprise-grade our started enterprise antennas

more systems. automotive one the validates the our transit being was We of sales products it believe to marked with for quarter Airgain. front, attracted expect a order to into of lead players the the largest public metropolitan strength to this potentially country's On large and transit relationship

our customer radio This antenna On the their support safety products applications. video for a MULTIMAX applications. fleet public whom system we existing Tier in-car an provider to already front, is to one we shipped

XX And evolutions shifts to front. with to in the business CEO taking over also As the strategic you the quarter use but from this is insights on been the of this have know, time this share the like had all company overall full over industry. also for I I my some in opportunity years. to first Jim have Airgain, not I during would opportunity August antenna only witness and since the as

antennas and taking becoming the solutions complex by performance decade, stage performance. crucial During marginally in element have center I being from to last solutions, a the to industry contributing evolving witnessed simple

in at space. Airgain these leader We being been have as forefront that antenna us resulted viewed changes the the a have at of in evolving

we are shape via in our opportunities. different in M&A includes laurels, capabilities XG network not front within next our building and have happy on a years. we will to traditional over strategic both Since that enhanced our taking as opportunities but key review to enterprise well as landscape. to do leadership While continue the shortlisted markets performed position, markets will three position, be the company market, enhance wireless believe our to of This that on rest CEO strive the to evolving I as I five the over imperatives August, the within capabilities and augmenting target intend

some ongoing macro mitigate our have issues of business Furthermore, we positioned have impacted issues in XXXX. that ourselves the customer-specific to

customers On impact chain. the ongoing macro the continue issues front, our and the supply to global trade

partners XXXX are from as our our China-based increasingly profitability. greater historically both of in and in positioning for personnel enter the and their investments large and our focus suppliers sustainable not share company base alternatives some diversifying growth risks. we seeking markets explore In right gains includes making is U.S.-based we the We as have summary, capabilities, they that This witnessing to mitigate in. XXXX, exit diversification business to achieving customer been long-term and continue

us space the taking opportunities passive to a be front, more On provider elements. solution being the of in active both one-stop antenna proactive passive from evaluating a and approach enable leader M&A will a in platform to we

well several are to next environment to positioned the be we capture share for the to that Over will designs years, robust believe with market and products. continue we main complex our antenna continue

take happy financial like our highlights through but I to will for be to the In I do, to walk a CFO, before any the call quarter. the I'll moment, who questions, Doradla, turn over us Anil Anil? would

Anil Doradla

Jacob, provide investment the fourth the quarter front. I financial to good quarters, will this more more provide and XXXX. quarter and on you, guidance will execution the provide previous we to highlights community around key we focused quarterly keep some will Thank Similar clarity to and preliminary believe provide afternoon. XXXX continue third as us for color

quarterly again once subject that remind to to business accurately this lead is like ability predict short-term investors short business. and our times I said, in our fluctuation our That and may result would to affect

Now year-over-year automotive coming $XX.X basis, to our million of million. Similar $XX and highlights. to within an to quarter we $XX business. third a declined basis sequential XX% on quarter, on in last Sales X% XXXX our continue to guidance strength million the range of witness

second Third operational and quarter versus favorable year XX% period quarter or quarters, we mix ago. continue efficiencies the XX% million to business. of couple last XX% product from the with to gross automotive $X.X of or profit sales from same was $X.X of benefit the in of in our sales $X.X a Similar combined sales million million,

would to these we that investors outlook remind to model our TheStreet recommend like gross at to XX% to would I and margin of long-term again, Once continue maintain XX% levels.

loss of same GAAP ago. income or million a based of million, Our to a share in on million diluted of GAAP a net $X.X totaled income period million diluted loss compared XX.X share $X.XX $X.X on $X.XX net based shares X.X per or shares per the a year

$X.X XX basis, On period shares our to or million year in on based million million same compared a $X.XX or per per a share based diluted ago. XX.X $X.XX non-GAAP share income diluted shares million on net was the $X.XX

our of $X.XX on and of a our prior the are control. a $X.XX results on than with largely on basis. better better These end loss driven on of front continued was gross a non-GAAP combined by our on focus basis prior outlook loss of continued to are strength expense $X.XX results high than outlook of a margin to GAAP flat The expected the

share again, our for quarter in our Board we by in million August expiring as amount the was $X of active XXXX XXXX. in which were of of a program, approved Once September an reminder terms during buyback

purchased for During approximately XX,XXX million. the shares quarter, $X.X we

have of shares buyback total were million. we purchased in Since XXXX, the $X.X a for share programs implemented XXX,XXX

opportunistic we will continue shares forward, program. our this be to under of repurchase in Going

cash quarter. cash, which equivalents And slightly totaled was last investments million $XX.X and from finally, our $XX.X down short-term million,

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

the quarter of $XX to sequentially decline $XX.XX million, million the and we For year-over-year. the At midpoint $XX.X be fourth increase to XXXX, expect X% sales in expect of we million. to range XX%

to Jacob to normalized macro customer in growth. resulted their specific and As to quarter continues expected be fourth in than recovery longer that outlook factors opening in of taking levels customers tied highlighted his the have remarks,

we basis, $X.XX share loss to per we On non-GAAP of earnings of basis, to GAAP on in per of range loss the share expect and to $X.XX. a quarter earnings $X.XX, diluted be a fourth be a between diluted $X.XX to expect a earnings

completes This now Jacob. call summary. the to turn Jacob? my will over financial I

Jacob Suen

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

in XXXX, of I the greater questions, to on took of a Before share operational fiscal Jim has your CEO focus. wanted and company significant Airgain for over Since call I the discipline emphasis open thoughts. couple efficiencies made the as with progress closing shareholder

in be provider many I transform needs believe a addresses over I position, stronger a one-stop ways, work company Airgain customers. assume for vision is My solution while In antenna done. for global being enterprise that leadership the a to consumer-centric being company is company and from there's much to the to a that automotive

This on active entails the backdrop on Airgain. of front. the our such extend and will portfolio companies for the connectivity automotive both believe with favorable that existing provide beyond next-generation with front technological solutions antennas the XG, is shifts technological as We and right providing disruptions as passive enterprise timing greater content,

design have opportunities. couple benefited our experience been will exciting as from as Over global strength, of deployment core very Airgain across years believe and years, new Tier the We technological for has the antenna next technology significantly around X be leverage complex disruptions customers. we its

share this on several with the you quarters, our Over happy front. progress I to will next be

With questions. that, open call ready instructions. we are for appropriate the provide your please the to Operator,

Operator

Thank you.

Craig publishing Riley. Instructions] B. take We Your will from question Ellis comes from now analyst. questions sell-side Airgain's first from [Operator

line open. is Your

Carlin Lynch

on is thanks Nice want start This job with quarter, for I in question. and for Craig. you. the to my Anil, taking Carlin

As we think -- you well. as goes actually for Jacob this

bigger the Is Or program could see connected year, been be push-outs to has growth into the and kind what's it the calendar a for XXXX? been for the bigger like up expect driver? to it the little but growth really next have you bit it what about split think some auto looks Or of obviously of driver we calendar percentage a going be pretty to in and disappointing, be going XXX.XX would to transition? robust home growth? exceptional like, be What's growth shaping going XXXX. that As seems

Anil Doradla

got our you Hey, business, day Carlin right, composition when on make at thanks. know couple got look you three automotive. is pass and and comments, the of when so the the business our to majority Jacob. all just you I'll a our buckets the end enterprise of look the the it as at of consumer, Look, at you've to vast speak, by But you of got driven consumer-centric. you've the

other business and they're But next growth. but the so smaller, three our years. will nature to the are within buckets, couple Obviously, do of of are over skewing automotives higher two the the continue

So, composition our to XXXX, of will as revenue consumer because we biggest. into the continue of be look the just base,

to automotive And And enterprise, so that start of IoT be driven they compare that. when XXXX the is or enterprise, XXXX you the of sure reason even will will movements Jacob, which I'm combination and business it but by can something influencing XXXX, our with and for the consumer, you that. a or really MXM add actually

Jacob Suen

Anil with concur I mean I has stated. Yes. what

is in take for we that do that feel we with that We of are advantage seeing, other U.S. developing. new really technology I innovation the and we're FirstNet think thing the the the some of can initiative new example, strongly that

think for I well-positioned So as the we're well. that market automotive

Carlin Lynch

us model Got margins That's where had we -- you XX% -- in we that will it that What gross structural growth business? row to I the see But to And continue margin us is this in more XX% customer range to and gets over ramp? really we've in do gross confidently the second just that it. do. of helpful. the continued you diversification Is which threshold? quarter that seen it plus. mentioned a now know in that to want business need a to reset profile? XX% Anil Is XX% automotive XG What get higher

Anil Doradla

I absolutely right something doing it's a right? struggle great mean that's Carlin question. I That's every with we're you're too, better. day

So, own you mix. answered you the in I question, mean which -- a is your product way

angle favorable are us, innovations. new we got we grappling is but mix to an too investment shift in But a is investment products, what angle new internally have fundamentally we with which an

Jacob talked around that enterprise of in number the his on takes doing we're opening effort. and things and XG comments some

when company, prototype impact small you gross has a margin. As that on our

this sticking up get a we time XX%. over of bigger, So, lot at of with we XX% bit going COGS you that we're I to points a working well line, some be I both OpEx comfortable feel -- as as more impacts your the think that through some these that right. to mentioned on to But get the more line -- as scale we're the little are as clarity. innovations stage But past kind

Carlin Lynch

come any is on we initiatives there had that clarify when he like to just just inning there COGS bring some working maybe said And really to initiatives is those is initiatives the -- -- I any further of is those? are was it mix? kind now structurally? -- Is that seventh in going are Or know wrapped? down there like that Are he self-help on. mentioned Jim the completely Or line some had aboard, on you

Anil Doradla

that So, kind an Jim, angle and do right? angle had what R&D to of kind and including it. we of to there it, in All it, sales into angle it, terms to an play was of we've the said these a operations to work

as terms Whether with you seventh both of add. in well we've we innings, also some it at working But of a our call tough and well done. characterize. number be it. have gaining to sixth to automation these as There's We're work on CMs these -- CMs still or definitely progressed will the more

the about basically years, where I be thing the the mean fair ago way next our And But gross to over shift I that's that think say. to from mover think come two we've months margins. yes, to will a material we started say XX I long a

Carlin Lynch

I'll then just more queue. And I one it. in can and Got ask if then back hop the

Or expect supplier? M&A to create Thanks. be with now? color current the bigger it company antenna mentioned well-rounded a and would right now technology adding obviously end technology? it passive is there priority had to the getting more soon. into a for markets point You great. that's we active where would going Is the diversifying What's something new Any

Jacob Suen

question. that take great a that's Yes, question. I'll

tuck-ins to from if a or market for a newer innovation existing are to front technology it's on think into -- any think not only market, help look that also really we customers us look -- there's into We And -- then market. the of I the into that's mixture from going going we're new the the continuing do We'll both. options. either but penetrating front. we'll all I

Anil Doradla

Yes.

building Jacob So, what that said. Carlin upon

will next five what getting enterprise the If of in at at nutshell automotive And XG. and really the he opening kind strategic you the that look to the he talked certain Jacob's was a three comments about over years. influence was imperatives

Jacob with we're really we've focused teams the have has right? done M&A really discussed a lot on And a of is lot capabilities, and initiative. what work We customers. of great

a like marquee struggle that. we so industry don't is name Our have name with the to across

the What ways finding relationships -- on Jacob tougher is in our we to and we high great great with our return It's diversify Tier we are have development. that those customers. our need portfolio. investment out focused these could solved X where problems is some And in areas niche get do accelerate on where product

Carlin Lynch

guys. it. Got thanks

Anil Doradla

Thank you.

Jacob Suen

Thank you.

Operator

next Karl Cowen. question from from Your Ackerman comes

open. Your line is

Karl Ackerman

for afternoon my [Technical may. I good gentlemen. questions. taking Two if Difficulty] Hey Thanks

Anil Doradla

Karl you've got Okay. to up. speak

yes, -- I think you. we Karl? your can now line is hear

Karl Ackerman

should X in Difficulty] it to cannibalizes expect [Technical X be be Wi-Fi do X neutral Wi-Fi XXXX? we to device and more Wi-Fi applications additive? today you Or as expect

Anil Doradla

neutral relative first missed from while is your up. that heard additive to to Karl X is breaking or was Wi-Fi you you we X, heard I it? is question What Wi-Fi were we So, what was part be unless the going

Karl Ackerman

In XXXX. Correct.

Anil Doradla

Kevin?

Kevin Thill

add the part multiple to requirements. to are working go it's are right currently go ahead be going additive. that now frequency and And bands to designs coming down. going be that mean and going They're of those meet new we're as eventually those ahead requirements to going I Yes. on

Karl Ackerman

Got that it, on to be then that follow-up today I X? mean wins expect we Difficulty]? the And you And to Wi-Fi with helpful. I many how as do revenue [Technical guess have design a associated that do

Anil Doradla

Okay.

Kevin Thill

that requirement the stuff. Since to those coming for are and in working the preparing yet, mean going place opportunities in be I pipeline not is we are

And requirement no Wi-Fi for itself. in so X there right now the hardware is

up coming those be provide to What months we've will the designs when to been over diligently requirements. providers doing the requirements meet is start hardware that six last with those able

Anil Doradla

to multitude fair that that fruition. it's just there some to talked But It's Karl things Kevin come say trying just to designs are of we're that a of about. just will finalize that the

Karl Ackerman

Thank you gentlemen.

Operator

Gus from Your next from Northland. Richard question comes

Your line is open.

Gus Richard

for my Thanks questions. Yes. taking

on Just to focus X the opportunity. Wi-Fi

Looking X, for one be what's than X-by-X is next mix triband another? X-by-X? you into And -- the you do year between Wi-Fi better on going to

Jacob Suen

Yes. Gus, it's Jacob here.

still So, my lot because questions try unknown. answer I'll is of your to best them a

as are the It's the extension. we good work to an what So, an with Xs, building it's that news today. addition Tier is they

foothold So regard. -- in and have a that strong we

closely they're next-gen very their in working So stuff.

Kevin not also of them lot band, of with -- The working it's wanted is hardware the but band I So a in lot And only think them on a try just there return. value the are not was we but the that already to challenge mentioning we as router. is ready. still

talk It's And decision? opens great the from the have Wi-Fi So it'd all they And opens that to then opportunities. or moving up X Wi-Fi for up us triband of those be it going to are news we're to them. for us because whether it's and to about be the more when for new we going them XXac going of there capability triband, look we're us are it great do opportunities. XXax really it'd to those. kind make support If new whether because router all Wi-Fi, X about we for support

Gus Richard

to bit add got standard? another color active And a you it. when active that you wondering exactly you you little what is just Wi-Fi? you of mentioned And if as color mean? to XG? add a antennas. can Okay, just more it looking as of then could Is you're Is And it was little at sort I say

Kevin Thill

There's in we're is of this Gus, now. Hi, Kevin. where areas a couple working right

where because that's our that's look the in opportunities more want that’s just ahead provide it's at than come and and us, that exciting antenna go for that and expand where to of opportunities the you If got enterprise a really arena. we some an one in so fact business we market passive area we've

innovative have creative And the one itself. for will automotive think side. us We're be changer a designs the is working that I opportunity other pretty in to an on really game some

think the out. ahead over we'll but get I be Jacob and -- those able front, said, possibly couple I CES. can't the as XG next also be next go roll we things So, to specifics of into and quarters displaying year at we'll have on And

of actually beamforming Some that XG another in that's --and wave millimeter area working so technology we're pursuing. our and

the just than more passive that's antenna. So

Anil Doradla

is finance shot this Gus give So a at a guy trying technology. to

Kevin So when active how at team, and I talk we passive or it's see, now. But right R&D thing versus we're it which semiconductor like look I let's his the about building chips components active not see key which goes.

think So we're is looking the at it in phases. I way

have capability, we're the partnering with these third-party up We and IP the providers. design

we're internally. it's like not So developing everything

risk point IP guys take how then of plays approach view innovation create kind to is going it it risk-reward there the on reward of phased first-phase approach the and a go the we're with see we'll from these and So from in partner out.

Anil Doradla

customers looking to you away Got in the helpful. talk U.S. mentioned moving away Could bit then seeing about Chinese in forward? vendors. Are are you some it. little China that? from Very a pull you comments opening more diversify And

Jacob Suen

Yeah.

So these way. great are by question the

really I well U.S. looking what's that the tariff Companies we think is that known. options. for that's are really this the happening in is with -- situation

have about you're for are I of they going shift just like for hey, in to true outside also the factories example. even CMs reversal what to concerned The closer shift an can right? with We're are based the you options going is we only of Chinese to Chinese our a If kind look for China the partners --- as supplier mitigate also is risk. customers, look

also So that, options. because they're other for of looking

antenna, it'll it'd be whether So be chipset.

we particular So that's made statement. where up

Gus Richard

big how as it. Got the quarter? current a of those revenue customers percentage are And in are

Anil Doradla

So that's even statement talked of multitude Gus we're because a And because about you all on. See when which know a factors, to not it's breaking things don't have go through publicized. couple a we Jacob the it qualitative that. well of guys there's call of

Now driven the of multiple factors. is behavior a customer particular by

this acted It it So in is right? for that our not us say fair It's is it's they is results, is to upon was whole us seeing localized that across particular reason, because reflected is yes to of across as the ecosystem. something very this see. -- it's difficult to to And it, not it say. we're limited and

growing So could some things the and It's continue end minimizing company risk trying specific Jacob But pointed of localize we've we out these tried again whether the to factors mitigation. the of about internally risk to is day as identify all all it. really. at it about

Anil Doradla

Gus. Thanks

Operator

Blair. from Vecchi Your next Alessandra question comes from William

Your line is open.

Alessandra Vecchi

congratulations. Jacob, and congratulations especially guys Hi, environment. first quarter delivering in really tough full on a your

Jacob Suen

Thank you.

Alessandra Vecchi

what within specifically aftermarket I in was targeted on or bit second back a design last and types fleet XX automotive wins. to are new you more some said and a elaborate if of the comments half. strength believe bit of you products quarter some you in and your shipping to of just I could at? on wanted the quarter eight I wondering, little with what automotive had the products little the that regards guys they're circle to those

that then as well? on could just bit for you similarly a bit if for the that's I you large clarify on if And assume could just buses? order expand largest one Or if commented little the you transit of maybe a systems

Anil Doradla

Sure little Alex. I'll will aspects. take a color and technical provide a the then on Kevin Hey, stab more bit maybe

the sales ends goes design shows to they road up is something, it happening our out, customers, they do what RFIs RFPs. their force do the takes their testing. on do their you it They evaluation, So

bit to air go delay. we business. it time a second a with XXXX. call our certain what pocket there's you if the said an We back automotive little half So had in of And of

can't into revenues. bit were look on we're saw they focused said happened odd pocket. said a also dozen we what somewhere of little And next-generation into takes an months you what before products. go X -- remember if So was because is air that I or was we -- a XX basically back exactly And These it X translate it that there. what

of competition have one some of first having of being we to addition innovative very with aspects when and typically to feature. and we're business Now a the automotive to key we compare attractive that performance, our market in market very found refers us that's is good our a

And So on finally new are a life-cycle getting have into now. products revenue all those do stage multi-year that. right multi-quarter, they

cities are guys at believe real-world movement applications it's win. country. is guys much like look On your that vehicular these certain It large and part a validation is, other technology, doing second the within marquee using well. a question and municipalities of the bigger sometimes it's very that applications when We a top in test a that's area the the something well, XX other metropolitan typically

very with excited we're So that.

you products. those be of tend to know products some high-margin high-ASP all As

XXXX, So into to as gets back it us. and we will shift it our go mix help

Kevin So who talk discovered the a nature I'll let bit because product, little products. those way he's about all of the by the the one

Kevin Thill

which have they And even we that customers done in if them of to into stuff combine translate go innovative pretty able give what multiple it happened think And requirements was when bands to in you. out that's go the maybe and were one antenna, two and I performance. ahead some design say want routers and we housing. say is ahead to there, antennas. innovative the that same Yeah, creative simplification going you and one started to the who what specific about have Thank installation back XXXX, allows

over antennas we end to the tested hey, housing, And show it this a user year. put performance, in go. that, and the nine them maybe And good when need just so really we can is they've route one get

on the could antennas vehicle good to take We of really that and configuration antennas the maybe one and antenna we five to on a have another four two nine don't need one, and use performance. get on have

And so that's what's happened.

those product that procurement phase worked but seeing back we've the benefits those the XXXX, on designs then. back designs early of now the we're in phase, some seeing going of testing And now through into well you're

the them stuff. It's to new ahead using be then going really see and for major use you ahead business. and industry, other ideas, to working should and that, same other marketplace up advantage your to a go first an it go we're start these of and and those for big that's to lead go time That's to for come hoping us ahead like with like it and realize this have takes product the should they which the any you stem. ideas we're roll new opportunity what cities, and future technology that carrier the And to

So that's exciting a revenue from standpoint.

Alessandra Vecchi

a us reminded to your little actually being and how or sort Can really on ago guys antenna that, Similarly, ability constrained just the That's me – sort you increase that helpful. commented supply being I now? demand. on few initiatives to on stands that little a meet of update believe you your supply just constrained a about bit quarters had of

Anil Doradla

Yep.

with we that moved used some We've us actually are that. capacity we've Alex who so with that two done we've augmented our got actually shift, we've double helping to the on. one is, what of shift, CMs, So on also have we've worked front international to a and it

if our kind a also that metropolitan this increased quarter addressed, the at be nature been automotive large transit something statements, capacity. that large particular supply we've And constraint and of on constraint. sometimes So of you is volatile, order pretty and could because one from look authority last we get a positive But immediately the you our this actually opening and we've short-term creates a quarter. the

just leave we've many issues. I'll addressed So at that that those of and it say

Alessandra Vecchi

Perfect. That's it for me.

Anil Doradla

Alex. All right,

Kevin Thill

you. Thank

Alessandra Vecchi

Thank you.

Operator

Karl next Ackerman [Operator comes Instructions] from Your Cowen. question from

is line Your open.

Karl Ackerman

Hey.

dropping about off. Sorry

the speak and one router understand that of not connected-home Just experiencing may. that another landscape the But realignment of you is follow-up, you your gateway either broadly customer just I efforts. of supply-chain if cable have customers across some just We could some the in to as wins antennas then, but design more home MSOs OEMs should about not could line as your wins XXXX you of talk picks top key And opportunity? Thank indicate about well we you. but some ramp just next about think think your your December, that for that back up as year would we demand design ramp? just larger

Jacob Suen

Pretty Yes. questions, good Karl.

is are customers. be earlier high internationally but But that So product. we discussed to the newer out from lot from MSO products. some relating landscapes highlight shipping it or have the not there one we're design the coming to will – product telcos some a up major I'll telco ac and OTT. wins a next just shipping It's expecting of certainly, Certainly, domestically, top-tier only of as we already you of looks or expecting growth like not lot the of transition volume, the this going year perspective. from And through the and we're going huge to one MSOs know ax and either

going really internationally. both three we think us – the are telcos much MSOs in in to already domestically we pretty top all that's and I help

in should U.S. So well here see should the you that okay? Europe that you as see in

Anil Doradla

lose we did Karl, you? Okay.

Operator

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

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

Jacob Suen

updating us and call. Operator? We our thank to on I today's for investors partners next Thank especially joining for on want employees, call. you support. look forward continued their our you to

Operator

your you for call. Thank Thank you. This concludes today's participation.

disconnect. now may You

Airgain (AIRG) 10 Nov 192019 Q3 Earnings call transcript