ONDS - Earnings call transcript Q1 2022

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Operator

Welcome to the Ondas Holdings Inc., First Quarter, 2022 Conference call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions].

Before we begin, the Company would like to remind you that this call may contain forward-looking statements.

implied are and current actual uncertainties differ from statements subject they results forward-looking statements. materially risks forward-looking to that those these Ondas’ judgment, best are to While these by could cause These risk sec in the are earnings the company's which Ondas, website. release today, available filings, issued and press both are factors discussed periodic on required Ondas events or future statements to undertakes no reflect obligation to except revise by as or update any forward-looking law. circumstances, Please note event this recorded. being is to like Eric now turn to CEO. presentation over Chairman would Brock, I the and Please go ahead.

Eric Brock

Good to a call. CFO, CEO we year-to-date, Mozer. President Today in Robotics It's for our joined pleasure our and plan morning. the to to discuss Networks, and our American I'm today our welcome financial conference Derek rest Reese President first strategic be the Kantor, Ondas of XXXX. outlook quarter you Reisfield, review Stewart and progress the to happy performance to of and by

Eric Brock

momentum call rail their I at work respective want leveraging will the adoption the to both start technology Robotics remains growth. Ondas, customers and on to that focused platforms by substantial we Ondas drive At remains Networks American result believe large which with with Networks, market strong Ondas and deployment, the business in highlighting networks.

announced as additional previously customers the launch you have over expanded year. initial XXX with And the and these We of will orders expect megahertz network. for orders learn, we course the

on This additional with focused Ondas X to includes Scout America. American the the in network, System Robotics, and our Siemens A; XXX plan. customers ConocoPhillips, and as Networks on executing installations. freight on Chevron, XXX partner wireless actively execute such megahertz our others, beyond reports Asia, and in rail FullMAX Class business strategy stockpile our markets. we remain we initial into Recall At both very and is marketing franchise As transit Europe are networks platform North partner

System and profitably. as early critical has you work game mining, the automated, technology architected and to win. large, for such continues with run and introducing of been rail need investing new is businesses mission-critical that our Robotics doing to on is describe, customers more critical their they're who blue-chip bottom of Ondas Scout for FAA invest is in ongoing sophisticated agenda to along changing, efficiently, shift oil solutions with the next-generation way outlining companies the work market us safely, solutions When the are customers introduction, define behalf drone-driven our field data let's gas, in economy. our to call. of it markets, regulatory to will we data with the AR This right how today's our As positioning positive. customers path. towards and the industrial in terms sectors is With And work in American and line with the that We're on delivered

floor outlook with focusing the execute with for then will Reese of System. plan ask the American Then we're at for the provide Robotics And the course, the share Networks our on we business will an a similar results. financial Derek will before provide open as I our priorities and business QX railroads Robotics. to key on Q&A. I the in First, American Networks go-to-market work and Siemens. highlight Ondas summarize making I to Stewart update Ondas then both update activity, will then progress we strategy Scout the

our are we to executing Let's now bring how speed and on priorities. up key you

developed the rails, XXX XXX delivered. ATCS Megahertz from were launch network. firstly jointly launch deep volume for These been with continue with with to We in now have orders initial orders have both the railroads Siemens. deployments, have starting two for in for engagement Siemens preparation products The we the

customer. addition, railway with the have for with launch been to that for closely from fieldwork interlocking use securing a we that began railroads, signaling application. significant want an from that in case order protocols is preparation third differ ATCS third In a order X Class I the and working highlight this

are only Class are rails. to customer increases their the ultimately the This cases Venus established, that flexibility, We Quite platform all to with additional - expect deployment and IEEE it's expect initially greater and the capacity further FullMAX data Ondas's this mission-critical railroads, positive our as our significant focus X is it as particularly this networks. on federated platforms compliant drive of networking. this we is validates and establishment platform. still fact wider Lab Rail beyond is XXX.XX railroads value use our expand FullMAX.XX to away deployed single-purpose clearly, systems FullMAX.XX the the evolution megahertz XXX IoT legacy that The MC of other technologies to very at evidence the network allows customers words, of rail utilization to application. FullMAX multi-purpose of the networks the from across new legacy we core railroad positioned the already In of ATCS to enabled the is seeing

or the Megahertz the relationship Rail, ATCS Siemens XXX jointly products. During Rail. continues Recall In of MSC initial to expand Rail quarter, we was network Lab that parallel and Association division developed is formerly our the American the TTCI, in known beyond delivered constructed of AAR. MSC a with Railroads flourish as and

Siemens for Our more to joint well expect the in head Asia H-O-T class progressing we development XXX in train of product is or a Megahertz Siemens programs customer announce and and ones, network program with for XXXX. with

manufacturers working is volume at we one rails the the from now many class technology reported like industrial Ondas our for contract by expect that orders this have of companies. Lastly, work supply Siemens, we qualified and and those chain and diligently secured want navigate I highlight has been as team vendors, and we issues to prepare to component operations important

turn Robotics. Let's now American to

and stockpile, of mentioned customers on Chevron at - has customer we're more doing activity ScottsMiracle including been Gro Scout work customer field I our with this to transition will this in in is important order our becomes orders. we we AAR in work the onboard pipeline The System. details from and ConocoPhillips date the customers to As remains positive these that. to blue-chip the to shall share outset, evidence week's just fleet Scott's latest of robust the announcement

We expect additional customer franchise announcements the coming in months.

further to was significant AAR addition pipeline in of a and to covering Ardenna had continues that rails markets. Robotics by further that with expected I for highlight customers rail a this Scout introduce leadership recent demonstrate one rail FAA announcement believe evidenced other of additional the our American existing and BV provider American was and our to Our supported infrastructure loss also provided analytics. global System provides leading in We inspection with the like sites. class and would lever regulators, customer Robotics approvals Ardenna,

further the Our several that we to course which I year. highly of approvals has our Scout work engagement are additional cases oil with customers, our note over in for our scalable valued positive, very markets. the also with and the expect gas site and identified use System, FAA remains want particularly customers franchise by

UAV advancements. as cases use Some of well require these expanded as analytics payload, integration, data in-sensor will

to satisfy our with certain you places work begun key this immediate for progress to regarding for is DEREK to for on can initiatives beyond. has information continue more data growth now he to share details In effort what will make demand services. with DEREK. efforts the start we expect set we sharing in of development to plan have accelerate soon. hand successfully and these we to and look believe product We the you. in up short, this so forward development financial It our year. XXXX ONDAS I call We performance

Derek Reisfield

Great. Thank you, Eric.

note our American financial statements reflect and we've included XXXX, we reporting the American in XXXX. for in today share morning. Robotics numbers filed note first the results I quarter that the press financial our on the are of XXXX acquisition August closed performance of don't Form-XX-Q as As Robotics this of the X, the Also that please release

three with as expenses commercial Moving we preparation $XX realized the in roll revenues depreciation P&L, the starting related amortization depreciation American XXXX. for operating March included ended related ended of expenses the The months the due The our and The first and three expenses XXXX, March Revenues XXXX. lower three for not $XX.X Robotics, March of ended acquired and for American in an with a included March business quarter to we non-cash outs for three and Robotics in and the approximately in Siemens March that August XX, compared the results, increase development months XXXX, which that XXXX. were primarily compared stock-based development to expect three of Note months $XXX,XXX XX, the ended revenue ended please XXXX, to with whose the XXX,XXX the compared three to as million compared the in increase months for Aero ended approximately company of million compensation our loss profit compared note in intangible as XX, operating the ended increase March related with months primarily with expenses compared three million expenses $X.X current revenue. in first-quarter $X.X for period loss the was result larger XXXX the for is operating with as host operating year. was March the the the XX, prior in with with our to the The and result acquisition. $X.X American approximately activity associated increased product majority amortization, approximately and three decline XX, for increased to in a was million expenses, million activity associated months months ended to XX, for assets, amortization costs million Operating primarily acquisition months as Robotics the three March expenses equal XX, approximately XXXX. were first ended loss decline the and three months the for as operating in XX, to $XXX,XXX ended with future. months XX, the as XXXX. XXXX, March operating expenses XXXX. XX, XXXX, The X.X of XXXX, $X.X Gross reflects the in of million operating app March for

Systems. XXXX, approximately to the strong during cash as compared a $X.X of $XX.X used March turn which $X.X headquarters sheet related activity. in and American in million of operating We Robotics. Robotics out related million $X.X investing operations, million for for cash utilized to used XX, the the Networks Ondas and of American and and maintains included XXXX. with to XX, spending investing our We one-time related let's Ondas as expenses as capital approximately to addition to of primarily building Holdings, welcome Scout quarter, in million build-out balance Now expenditures associated reflecting customers million activities serving cash December primarily of to new in equivalents cash $XX.X cash with

not As will these discuss, June quarters. do this capital we ongoing we in of into anticipate expect level see to expenditures offices in moving the coming and

invest in the support, will are to to pipeline We in call. well-positioned development later share and continue Eric details and those customer

turn the Now, I'll over to call back Eric.

Eric Brock

Derek. you, Thank

I Ondas Robotics. Networks, and Reese detailed a ask and share in activity to starting Now, QX Stewart then on more American will with early and QX, Stewart. update business first

Stewart Kantor

Great. Thank Eric. you,

begin Let's America. XXX in Megahertz network the discussing North by status

one for now - from Derek in application for This the developed rails megahertz received we launch Siemens received jointly mentioned XXXX. class with launch the one multiple have order ATCS from XXX of orders class includes QX first we As for and orders delivered the Siemens. previously, two was Launch network.

was second and that a we're that for have launch received one, call order. today's now in January on we second pleased delivered Class order XXXX announce to The

XXX - multi-application, activity non the networks had order. call advance one We as customer band. IP-based the This as new in now Class a from also that significant to informed single-purpose, a transitioning We're the is away critical that plan last making in progress it megahertz the Networks. a multi-purpose, with for ADCs megahertz you rails reinforces are they begun Class launch XXX excellent in third in one fieldwork this and application application single

now the have MXZ delivered rail. use and of is the And from and activity coexistence Siemens Lab technical been Megahertz for on cases critical and the interoperability call constructed supported this reinforced that begun standard Siemens the of for Association multi-rail implement secured jointly Ondas the and also today's body and pleased Railroads. The to All MC-IoT develop has by Rail to to Lab announce we're Ondas the XXX frequencies. in and American rail, MXZ industry.

of Now programs to joint with moving status the Siemens. the development

identified is program to obtained meet stages This Canadian in X with and As America. joint the in retested announce new launched to ATCS that most actively certification. the our in by been of to Siemens and you successfully Siemens. know, transit being marketed the first we're ATCS has Canada. sold radios North we're freight obtaining Siemens development demand customers pleased rails certification Class was for now program And we Recently, final that of from and

they We other application, in the making multiple also support of volume both the manufacturers, America. Asia you North to including development in as in Siemens have on identify centered to FullMAX to other these new we important joint we the have global radio on and technology for informed rail. that call, you development new radio continue come a We that targeting updated process We're to we U.S. locomotives. keep programs excellent programs opportunities with Head in outlined we in selected ports. these multiple and in know of now qualified European new It's Also in Train contract these with last around for programs, and the initiatives progress Asia production that Siemens, fruition. are intend both to

of support to and members production terms bring growing on our we In continue team organization, to manufacture.

Marketing. strategic, to during the And Airlink with Siemens rails also who railroads new Nichter, that transit serves to X key of will committees whereas opportunities Kansas goals. RSSI And industry Product major are industry deployment Kevin X engaging in we'd new onboard Class with veteran both line FullMAX directly Kevin transit, open today, be several accelerate to will working prior markets. be Siemens the very customers Class will serve and highlight with rail team. upcoming VP jointly and our week entire the XXth, on implementation attending will the the has freight of experience now. relationships pleased help rail have pleased City We're in we'll lastly, announce, we May him Kevin like across advisory We industry and and be as on the has a deep hire, showing major highlighted. of product the

to call, the deployment been Each AAR, control of for which follow AAR's among As centralized the key represents coexistence Megahertz we're Class been network rails. the the again we interoperability rollout need and This led Megahertz under by which has control Ondas previous deployments, network. X The roll-out believe both plans for the and that by of for large-scale and design for technology ensure all Furthermore, the Siemens in roll-out and engineering XXX.XX plans. last peaceful Greenfield Xs. Rail and through and maintenance. technology integral our complete smaller XX to the tend approach is XXX the work will shared the is The rail and controls activities its operation. on rail training the to critical roll own Class the orders come sharing given with wide-scale individual in all more XXX Lab This substantial we to the has customers out in direction choice and be steps ongoing larger, and IEEE ongoing, support are orders, coordinate that Siemens each Siemens and many support. along larger plan. typically hands size, acceptance from to These months heavy with schedules to Ondas, operation testing backup with lifting orders There almost customers, providing delivery later. precise support launch rails network six The followed way entirely installation ranges need are the with of railroad. connection

at the our lab for MC-IoT We scaled Networks that believe that X with and success. partnership the to deliver Class launch to Siemens will Xs, on is work obtain goal primary Class our orders Our s. deliver and multiple

initial and Our had with begin deployment. begun customers launch orders Ondas volume regarding the to discussions wider Siemens their Megahertz initial XXX

back me the to Siemens expect he edge the addition that greater currently detail. orders equipment so With go Eric, under activity, hand In we for into let for to this development. Megahertz HOT XXX can remotes place to

Eric Brock

other innings the are our digital providers a ultimately rail, hand cycle cycle the are Stewart, to operations. automation. just I which early wireless the Reese, not across Reese next-generation technology Siemens, of you, to the in leads want for in now field intelligence we on to but with broader by the the I be critical update investment will before investment into that railroad working networks. more markets, and infrastructure progress. will believe I Reese. And host detailed had presentation investors drive a to more private of MC-IoT other Thank American Robotics we enabled quite in their Ondas mission-critical customers call And rail clearly, that to remind

Reese Mozer

Thank American United we Robotics is scaling well States. to on of an across deployments the en exciting of operations route period growth, in you, fleet are way Eric. as to our

we've markets. Additionally, long-term leadership our important several ensure steps taken to in

Some of which I can share today.

world. the know, operations the strides Robotics as the the and alone, approval. ConocoPhillips, make lawn customers stands differentiators mover all FAA, Yesterday in plans as investing systems. customer full increase. hundreds, drone systems, customer, largest of operate as been you we Both As have We're long-term we see thousands, engagements still companies the of first FAA one - to eventually our of manufacturer with year our the we In announced manufacturing and capacity. pipeline. and the in these as results of new platform. ScottsMiracle Chevron, markets, additional a we majority that drone It's of both been only morning, position automated remains deploy of approved predicted, a a a in customers the are company. But fully garden to currently in backlog this It's Gro, to Stockpile in industry. leadership engaged Reports, support by and and our target of noting historic American as for Robotics which of worth our with the insuring inbound taking American continue of building in our unique position, And since our well within advantage relationships

Deployed the some us us leader the will can and a into to systems. software with for believe blueprint in of process performed period, the in this support on franchise like that FAA. noting Carolina, are share the worth our existing field. pack. honored safety-critical hardware Once integration currently these of Finally, to an be demonstrate operator position closely we proper as performed We and to operate gas working I'd systems we like these which continue XXX attract companies those safety separate similar robotic important as opportunity include We're processes before in Louisiana, developer duplicate technology, of Robotics initial to particularly we new American Fortune another the this see analysis, regard. of in from And must our complete, safety this vetting the South yet world's also engagements ideal systems are in the very Examples by prove by base. with cyber that through Again, are do There's and other in Ohio, customers reliability to so. the puts join testing, go to our placing Dakota, to an believe this, North places to we to the and like audits, ideal updates team. oil a position assets, in Robotics system large-scale. these where minds and the an customer safety on engagements to customers. American position with brightest -security both jobs, of company’s among become adopting infrastructure, analysis

sales in result, beyond. As significantly a cycles XXXX and we reduced anticipate

year, states. we spread seven and and operating portfolio of customer total influence result leadership over accelerating. milestones System the month, by in sites a of bringing regulatory, matter, XX receipt across to a the approved industry past announced eight additional FAA As Last sites the automated the to Scout the fully the our are to technology,

do stuck. is on snowball this believe industry to our forever, portfolio head-start a remains valuable we singular into a leadership. we predicted, of though sustained And rest waiver last the anticipate not position whereas to As is growing, enough the do the market positioned

regulatory Additionally, milestone very recent a this important proves point.

commercial takes I've waiver exemption us shared to you we've the and with pursue it build before and that beyond. scalable the best current Our will package for said permit best. the to targets are XXXX and

minds over affairs added regulatory at I I'm have proud to end, want think To the that past all Land, and Advisor In positions that team the safety. we join teams. years safety it's aviation quarter, Senior as also best growth XX the of expert true -- leader the our very Tracy organization. levels of best of leadership

former drone the of Aviation, Robotics, out we and people to [Indiscernible] manufacturing are GE others. Xth. software, on We in XX estimate West, roughly air headquarters and laid we CEO to drone and commercial-grown I'd operations for June to target, plan up, in business topic development. have previously. map. up to Labs, applications. Senior The Shiba also product on baseline we morning, other order this dynamics, be MIT scalable systems In XX% in Lincoln on now FAA [Indiscernible] on executing True final into approval, as added on XX-plus iRobot, and Boston target Gretchen systems XXXX. aircraft, of Advisor veteran with Summing track move President the our and of is for industry, new the our we're added is with all Textron, XX-year Google, growing. from what discuss We're Amazon road Robotics, The delivery team ramp-up the of autonomy growth all Hiring is scheduled like roles, this

this of this mostly billion solutions technology, for our structure and have use base $XX drone-in-a-box near reminder, extractor more an puts or of for Robotics and as closely for a asset sites estimate untapped, the to a as We partnerships that long-term truly annual, and end, leadership goals working a with we in As have products. is of number massive. both data, opportunities. globally or million this been To TAM AI of $XXX number automated initial this more. position with over uniquely The opportunities enabled and of result data the customer American the a represents valuable

today, Some I know, and of will announce some year. others these, later announced can be you this already

are aware rail generation, acquisition a AI, assets industry, our for our our Ardenna, image and of in in leader leader physics-based already analytics investment model for scenarios. of Dynam AI You AI-powered The the the of in

For new data-labeling who scientists, Factory, partnered with a AI, announcements, expanding We're providing with us is dedicated we dedicated models. for our have American engineers. providing Cloud Robotics now with training a AI team with physicists, partnership Dynam and software also data team of AI

For We this been this at available new and later and year, announcements year. the levels we've technology working software offerings new to closely corporate centered our structure become payload customers AI operations products as these both expected offerings. roadmap, to announce a plan they integrations with around

peek additional only with potentially revenue-generation, you financial markets within a use Eric and will now believe these of environments, coming is Well, these future particular, truly we different number customers cases further in details organizations will and stickiness your attention and For back fleet gas capabilities not opportunities with The but believe on our industrial use departments, of diversification models. opportunity our in hand we more speed leak to integration. customers, we our focus current prioritize the I the of thank market, to remarks. of for Again, the closing would forward customer those throughout I months. In will look with opportunities, massive. accelerate and value, worked adoption of the some And cases. investments present detection. also will each gas into target current cement Rick. the to our these the all these markets, have some the oil beyond I for customer you on oil sharing announcements, call of and in based and

some our for Now, summarize business XXXX. of key objectives let's try to

highlight Ondas continue this I expect from our and this component of we're at Networks that five bookings, We million in of will year at bookings our least least target plans significant Ondas to bonus goal is maintaining orders railroads, at will $XX and a Networks. generate

Siemens platform development to sales, from to new program secure least product joint at In one product plan addition XXXX. we in

American orders include at securing the least customers, from key the of targets end For by XX the Systems for at and Robotics, Scout year. least XX

also customers with And solution fleet our comes valuable, addition, yet targeting deployments at one are down to customers reorder lastly, with are AR, least the partnering of to year. complex. by develop end In we that partnering, customer for success for the

expect We with least in at to secure a partnership one formal XXXX. customer

let's and cash of business the and outlook, in technical balance ongoing turn healthy, Now, and development. our remains supportive sheet solutions investment which

million about to We revenue as be and OpEx with X orders capital for QX cash working expect $X.X inventory growth. to in expected build modest requirements we

technology and Ondas incremental the some that Robotics Ondas about intends to put in to to when Company. customer private short, We In ecosystem. IoT equity a to on value. We've this MC public in certain may offense could shareholder American for in Networks and to opportunities pursue create Ardenna invest million our in we too, cash stay - This, $X.X to ATM do acquisition. the our we can create within As the dislocations we at-the-market we flexibility discussed and recently opportunities and public on of seen demand. offering offset and We Ondas. markets will with have where used and helped accelerate and in cement some feel leadership extend the our investment last or to purpose investments March. call, we sheet The believe of raised and place balance opportunities ATM positions, is respond provide additional April,

to Robotics, remarks. wrap Business American summarize both development Let's is orders our the and prepared Networks Ondas customer call and year. purchase track take on with and the momentum a build throughout minute to we with expect

rails plan we beginning a launch have orders to outlined, the year are the Megahertz over in deployments the launch have Class volume network. As place of course And to transition we to XXXX. X the XXX into

across As remains Siemens a in building products, X with new Show this Rail week. the attention year. turnout we and RSSI for in expect a broadening sales bit in of mentioned, new partnership a strong to customer next quite capacity Stewart networks, rails the The Ondas demand good in support additional at ramp Class international in markets. during the segments internally preparing and by Siemens from inventory is transit expected in

to we its Robotics and and automated value We of the to number will markets, and data Robotics demonstrating the partnership and this key particularly customers. its the do expect of in in its expand continue in for fleet customers scale technology, hand-in-hand rail, transition and continue value expanding to AAR continue customers mining American customers these target solutions franchise in data analytics capabilities, in extend leadership invest and the payload oil orders. as Scout to our to its will driving gas, will work do And industry by the we to operations field. installations with American in

This questions, where business business the all the in changes we're comments well pandemic headlines regarding how geopolitical new conflicts people few call open the we a Before seen Clearly, complex for environment, policy. economy volatility and and that and increase and show seemed a of want in to maybe characterized and host operating I to XXXX. in work We've is also the by supply market future. today a chain operated. that course, and disruption, inflation war, related public one we've an to seen live make impacts business and how increasingly of is in other

new business to Ondas, what impact all unique other economic on to in this for want in do could that and this our or means we I impacts in have for financial customers how environment. how don't markets While on run shareholders value important factors I shed growth, and the take light this build plan a business

First, in are absolutely that markets hobbled infrastructure structurally indication critical we this see the we no environment. serve

trends as supply and in ahead. Robotics. fact, and the And the change, will production infrastructure size that the we that that in is globalization terrific of will likely American of course, investment In world, for Networks economy services be in accelerate believe the adjust labor years re-balanced across chains Ondas

ever, efficiently, next Secondly, than to profitably. generation and customers critical and need, our businesses more we infrastructure more operate our data safely, also believe their platforms partners

an of will these innings cycle, - early We markets. and define MC solutions investment are IoT in the we the architect

continue excited we in ecosystem. to businesses. in said, work momentum the strengthened this our the do With that We XXXX, I'm about will and have

positioned has I'd shareholders for. you firmly team believe and we are quarters open worked grateful well our work, Q&A. the to Our this supported deliver we difficult the to hard We call have ahead. in to Operator, to are extremely which like

Operator

[Operator will will roster. session. Please pause Timothy question from ahead. this At Instructions] go first will Oppenheimer. come We momentarily begin to And Horan time, our the now assemble our of question-and-answer we

Timothy Horan

Eric, shipping start had TAM market look the [Indiscernible] build-out of at maybe can needed between all you Thanks, what the And maybe -- guys, on on maybe on it detail into for the guess then that go meet related think the really XXX now top value-added your is maybe breaking And do all do that, to our another and down into boiling service what's requirements? when thanks them Megahertz spectrum FCC down the on it. -- then information requirements for FCC you and equipment to product call. you to is of some more, on the for what -- total.

Eric Brock

that upgrades. Thanks, Tim. Over network outlined was second We've TAM the of that the a $XXX What XXX third Megahertz part think at the to the related we ATCS will grow. for of should and be the question? million,

Timothy Horan

million. and the get to Like they of when running. up that really $XXX me have network Tell did Yeah.

shipping? so that and When click And to meet did you really requirement. have start

Eric Brock

kick then And next two some the the are of next years, second these in. By rest half of to over the do. deadlines year, starting

great answer now, to question railroads those to engaged are wanted of talking networks. the as conversations. deployments little a that where see need orders, been, of can organizations, process. mentioned, the today, we're the where The as plan have together process. inside bit where departments the of operate has be. folks course, deployment working I win to that are going and as that the to the to to more to allow It's we're to more more more is maybe for purchasing, broadly and brought say rest acquire, And of be we've to visibility it we and us step into massive to [Indiscernible] back, first the well. there's is need come the to be that launch implement and Stewart they part these And are look at So to improving, and getting kind start able is, to started we all rails, who the that do

that happening discussions which we is course, and volume now, So orders, [Indiscernible]. works around of now expect, said, as Stewart very in we're those

they're guarded. get going think Great. to we So

Stewart Kantor

thing, just the case and [Indiscernible] really that broadening are jump which I good rail applications -- to developing with Tim use they're the in we're is reinforcing Maybe quickly, network. that a mention could

started has through XXX we've and the I of host So mentioned Eric are There's application network. there's, whole tested that ATCS. applications interlocking a some the with it Megahertz being for of think these. gone

I think together all for excellent making network. progress we're in the this So macro bringing

Timothy Horan

Great.

do know of in Is when year, know exactly, to yes, equipment, guess it this you I them have third have I Any this size in meet inventory next do really to you ship do and color first year? you I to the will don't So do a get orders be would think but when have they I mean, quarter you orders deadline? the that start quarter -- you for shipping equipment equipment size -- equipment on the helpful. buying or you or start inventory? can the think you guess have fourth-quarter,

Eric Brock

QX, purchases in QX be second for and be Well, will the to will bigger deliveries a we're we with of that even now [Indiscernible]. begin expect conversations be in in bunch we some to those volume in were half, of [Indiscernible] going the

Timothy Horan

Great.

Eric Brock

times. building lead began well We components We've inventory manufacturing and that And contract terms ordering underway. process seen for of that, is longer [Indiscernible] partners. in

we're just [Indiscernible] haven't deliver. you and this the yet, believe able I do will start seen going but to into inventory So yes, QX build quarter to to to be

Timothy Horan

Great.

So really timing Thanks. talk on cash of to can business or model then this besides the into sources I you market? markets, enough point, some the some your have more? you revenues. the about the now, And to meet have you the know of at secondly, cash don't markets of public do for tap or cash? other credit front, you raise do Can

Eric Brock

Yes.

I not on orders a are is cash OpEx. a improving. rail course, going in of where generate is to offset can the We And feel those at the not orders about we're This the margins And small sheet. good there. profit. it's So small visibility become gross again, on and balance network, market the meaningful. now the We'll increasingly

access the at our platforms that and modest. I is developing We're So to cash opportunity believe cash good price, about a in. the stock this at TAM, year, we're investor -- relative lot expand added, the dramatically very technology to feel will where in we're but capital to the also a use banks, further. And not our business even the base our predict I institutional box. market of going to I'm I getting expand investment and

success, As it we have be there. will

capital capitalized to I credit did we I you opportunity some ongoing So plan. is strong. not access that's and rail our answer there, our to want of their do the we're but if to well specifically, export on activity, believe believe very

Timothy Horan

Thank you.

Operator

Mike of go from Next Please question Latimore comes ahead. NCM.

Mike Latimore

is I guess first Thanks on the rails. a lot. question

second delivered. event? think going be So you a that order, Is mentioned to was revenue I quarter second that

Eric Brock

and time volume purchases first-quarter more size that as is road the likely after and railroads on the orders railroad launch Siemens, next No, experienced to in between shrink. a the Siemens the purchases. process the railroads, we And internal revenue launch add, with work in that The the on event. to the starts that are get modest specific will whole and to I volume was rail here, larger

these time. more launch quickly So we'll around be able over turn to processes these,

Mike Latimore

second half on Is a then on quarter, of that's the still second the quarter year? third And size. kind larger that events or

Eric Brock

say it the that to that use It's active is are trying in for quarter. to do second with get positive. need with in been stake new in the the that; to ground hard has they this in to-date for put a a will This application if a customer. very the customer we work we we're say is Where case field

Mike Latimore

in Ardenna and with service. logical step the The of What is go-to-market here terms next super-interesting that?

Eric Brock

customers. significant Actually, REESE expand to So Ardenna but potential just this, a with America Class here Xs, pipeline of I'll big really globally. in not but ask North has on been the

historically, something So believe able Scout trying timelines scale. We're a how gather there's getting these many will we sort and see are. those of customers to of they've help we with the where that being of to lot the data to customers of now, been that's interest. challenged Like in And can, their System. at course, know in and

to there slotted customer we're which their grow. add going But getting is So timelines you is exploring into pipeline, now. would we're significant Reese, what anything?

Reese Mozer

with a the CFX, is The well to Yeah. the with The standalone space. as integrate sell Ardenna biggest the both prior two as as to acquisition, Ardenna rails and big plan the with it of customers Scout System. product that obviously are two worked BNSF in

through know getting business development we're plans yes, to a and of year. for team, our We're So this map we working opportunity deployment there. some see those to out lot customers

Mike Latimore

want would to imagine. customers that that logical be would It buy I'd with package, solution Scout,

Reese Mozer

you kind data, for past System it's that high-frequency, the for which with high-quality John is, high-resolution, the that's issue been Yes, -- in of the analytics Scout need absolutely. provides. Ultimately what source is

try valuable start software to the but to see So To folks as that's out with well. more choice, out that ultimately fine packages want we independently.

Mike Latimore

for And then Robotics. about, talked accounts American you XX think I customer year-end by

a number for mentioned one how this in you mentioned you think order repeat fleet. -- define When units? at when you of of would you I terms point fleet --

Reese Mozer

number are of And once both pilots to sides units’ out two improve at I point, across Yes. XX a it's step more. is a we with guys. this scale interested, for Good aspects, of question. they that assets. these plan and XXX to like say We customers, especially being then function least visibilities this the one would whatever with really see these a at towards those as business all

we're world. pad of that dealing is not in country image back end all goal the the obviously the to and just pads if well wells pads one thousands as other well with So image to the regions region exists across that in for in example, the

safety robot pretty some is through. and that next that There's some they type big ramifications We're have of step decision, and go a steps and to But make hat's here. on talking sure we before So thing make everybody there. nature. natural it's a function about safe, threshold, interacting there's reliable, that things and customers wants oil of equipment, anticipate gas to pass just to once really this these

Mike Latimore

a Thanks lot.

Reese Mozer

Mike. Thanks

Operator

ahead. The Mansbach next Carter question go comes of Group. Please Forte Capital from

Eric Brock

Morning.

Carter Mansbach

that's it raise Good gentlemen. Eric, sides situation or more concern. about the you morning, very clear Do the not? because you both business. Congratulations make I think accomplishments the cash on to on think exactly the of what to need cash you all think need you

Eric Brock

Okay.

don't sheet and to expect -- not I'm did We reiterate, talk cash. So opportunities new current to the the does don't and expand believe. the is that I that's comfortable the on help And we purpose better us those is ATM, have plan the business fund require our the -- to balance plan. with do very business, day. of that's rail that's to us to flexibility to what course, so, give internally, And orders we and getting the we every come visibility of -- have

So I balance where feel the sheet. on about good we're very at

Carter Mansbach

equity market, buy things cash? and you're do as that you any you company clear, in to be another if go looking the additional need planned, to believe not So not private

Eric Brock

On the do plan cash. we additional need not current

Carter Mansbach

Thanks, I Perfect. appreciate guys. it.

Operator

next Capital. Stephens Our Please comes question from Ross of [Indiscernible] ahead. go

Unidentified Analyst

is now, Question call. of XXXX, my $XX you and be that of the for product taking on on much Hello. much XXXX million for Thank would how revenue. target how the bookings books

Eric Brock

think you of come it that's into of dependent translate we into the give the a year. the the plans will I this bit quite can't orders But for on will of number what customer. is do that it revenue timing deployment because and

backlog, we but calls, backlog and call, yet, prior numbers beginning described we've are visibility on that the those terms have of we're in not have talking the conversations substantial In about. and as built we

Unidentified Analyst

Okay. you. Thank

Eric Brock

you. Thank

Operator

back for remarks. closing any I Eric This to concludes our to the over conference Brock question-and-answer session. turn like would

Eric Brock

in for forward all coming again I Operator. and on today. Ondas our to note to at support. the planning during I hope Robotics would to earn investor as you, have incredibly We're networks Thank And I you to are express attend months, we continue we're grateful, also for thank know against We that quarter. look that working your And we want support. updates there. on entire conferences behalf chatting American close us, of joining to you us progress to ensuring the the on. call, also soon, multiple for gratitude thank at we that's want day joining to see the what team I every but you and and

key So to momentum to hope sharing so work, we'll initiatives time It's get soon. and forward look with and course year we updates began back over our on I talk the you have terrific year. of the a to the day, great

Operator

concluded. you has Thank conference now now for attending and may The you presentation, disconnect. today's

Ondas (ONDS) 11 May 222022 Q1 Earnings call transcript