ONDS - Earnings call transcript Q2 2024

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Operator

Welcome to the Ondas Holdings, Inc.

Second Quarter 2024 Conference Call. [Operator Instructions] Before we begin, the company would like to remind you that this call may contain forward-looking statements.

While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements. These risk factors are discussed in Ondas' periodic SEC filings and in the earning's press release issued today, which are both available on the company's website. Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law.

will certain Ondas financial call, this refer non-GAAP to measures. During in measures generally are non-GAAP accordance not These prepared with principles. accepted accounting of A superior today, as to, substitute of which our measures accordance a financial available at GAAP supplement in the non-GAAP to, in Relations most or financial is press with for, of section Investor our earlier comparable performance shown measures a information to issued not release website. This measures as the directly prepared as is reconciliation the non-GAAP GAAP. is provided

Chairman non-GAAP However, management business. provide believes is like to information valuable and on this Brock, the note, underlying these being our CEO. measures of turn investors would now over to with trends recorded. I event the presentation Please Eric

Eric Brock

and your to you're Thank company. in you We team, our good by welcoming conference want for our Tenney, leadership time robotics. and President I'm appreciate Neil key to Ondas the Laird; joined morning. of Officer President and interim started including and interest subsidiary; I to us, today get quarterly by call. be members our of happy with CEO Meir you, CFO, American spending the Kliner, Operating Chief and of Founder Ondas Networks; Autonomous and the of CEO Guy Systems, of Airobotics Tim Simpson, our operator, our

Let's turn the to agenda.

some with call Ondas quarter business a recent the results. highlighting the review for development our comments then start business Systems our Autonomous and financial brief units. Ondas Neil second both will Networks call I XXXX We to of hand at will

ask commentary we and current wrap business our Ondas for Tim, business activity. questions. floor to update call units, provide business and around a provide and then where the the investor will I Meir will for OAS Guy, open will Then We Networks

a the activity disappointing from customer critical to start progress I revenue begin XXXX will perspective. Ondas term quarter to positioning the during by continue we acknowledging call for long second growth, While the

set relative team. Extended out issue, for of we which other served operational we development deployment impact are Robotics. demonstrates nonetheless as and large from our markets the business created we push we long to it important Gaza and across which with both at our our is customer did activity our you across and platforms last consistent an as that and the bottlenecks, term disappointing plans megahertz was timelines expectations production expectations to to American the technology at inventory, war, remain achieve and and this While well units, me XXX business milestones positioned call, and the railroad driving Nonetheless, technical adoption success for address. Airobotics to

and initially in Chicago have networks to at completed XXX Networks, commuter integration in megahertz I a network. efforts Two Class want operating include Airlink the the I megahertz. we that railroad Ondas highlight are southwest, in XXX on which systems important customers, railroad live Focusing a wireless

megahertz band addition, the In successful field second work, in order the with partners during first this a in major the Midwest. Due commercial for a XXX distribution our to customer, authority trial transit a third we secured the ATCS have quarter. executed

and Chicago, in Class Airlink deployments, area-wide to in X which addition, would XXXX. expect orders us purchase the I area-wide the second both submit operator, for Rail the In to mentioned, both of rail half we take I transit deployments

and on technology our dotXX behalf network. Guy on details as of progress Siemens, are acceptance as will share well railroads XXX the commercial this see Northeast and to the the Simpson we radio, are happy Corridor. which on as our partner, operations making the we as megahertz PTC and new the further advancing Amtrak XXX for both with a data developing are megahertz platform this pipeline We validates field our engagement more

how of an operational from am to occasion proud While OAS business. to to the disrupted support rose Gaza conflict continue country at the advance their financial I and our was team and the standpoint,

high, we difficult, work accelerate stakes the Raider. our work autonomous Drone situation remains the the the amazing remain Airobotics are productization and counter-drone exceptional doing While of at platform, to the effort Iron is included essential. That

call, As we an which the Raider a the to capability customers, said from program, is on partnership product intense the benefited urgent with needs our our protect has last home-run upgrade meet in homeland. to

the mobility, the to including sensors sophisticated technologies, advanced specifications environments. requirements, levels aerial and in include are software Raider military complex enabled and product for which Those that algorithms autonomy have AI-driven onboard meet high-performance and GPS-denied by edge cutting integration capabilities precision. allow navigation We of

perform conditions capabilities. In addition, to able been have in real-world these extensive testing we to validate

those orders. satisfied Iron initial allowed to X with secure have requirements, for us Drone which customers We significant

high-performing morning, introducing and prime orders our in our expansion fund economics those will continued of the in other, vendor order enhancements defense a order platform. This for end Drone large significant was announced as into program as Raider certain funding counter customer, vendor a from military customer. This major we from the by as Ondas a Iron combat initial and an is a our a drone second was the purchase pricing direct and of operations. locked the which company, system sustainment well global security activities. purchase integration live, provided military establishing for customer particularly with One a military by end event The

orders in parallel, capacity, capability, production success sustainment in result security marketing the deployment field combat customers preparing defense and globally. for to increase the platform. are coming we demonstrating volume in expanded and months and Drone will Iron an other expect In We

significant market. to defense execution standpoint, expansion of with the substantial in market We growing are is a its capabilities a from We performance is proper context. counter-drone Now Iron the for unique I that into market Iron believe threat this, at hostile point. Drone drones. I hard-kill in from the Drone Raider to global environments, put believe complex a best-in-class and protect autonomous in want there is opportunities success see leading Iron the global Ondas. the price solution Drone we position establishing a its And

the tangible already, material be are initial much in supported also seeing nature technology military a additional are customers Ondas as a results overstated. we cannot of not emergence customer. the defense dual-use our market, but higher in sector fact, those with engagement a vector marketing and The only government-to-government opportunities drives demonstrates In for the military Serviceable growth and massive increase of SOM. our It addressable Market, platforms, true total by and Obtainable or

OAS. long-term supporting plan second business Iron have creation and significant environment believe half entered XXXX, moved Optimus are demand we Drone seeing opportunities and The As value aerial of broadening security we for opportunity. at platforms we a and and like into strengthening, the is our durable upcycle, we

is gotten perform contract improve garnered initiatives certified for large vessels of has Guard Clean an believe experiment. of service Long we U.S. regulations is technology capability. is designed to quality development this maritime architected emissions initial to activity details. air quality. limitations Coast pilot, is Coast for we Drone and air Iron market that more not be has the It of emphasize program our operational This the uniform the Robotics as Beach. a services the as attention contracted Robotics, a monitoring We an While it open and provide Port around intended a business highlight this globally, a U.S. late, EPA our properly time This important a a we announced the a Tim solution landmark Guard. first program, violate with is fully Guard. share for U.S. while American solutions quality fixed-price is to it's lot of with opportunity Coast air held develop platforms. American Robotics, worldwide, to can The as by will are We Ports this at American let's in deal and into the will also believe accountable with is and support big that consistent

Optimus military the remember, turning government well. Iron targeting platforms homeland and dual-use, and With are the huge to focus commercial as Drone and markets security, defense, both

critical United we where opportunities with customers assets. pleased States expect safety engaged maturing. the Robotics, We their with pipeline and for existing of suites engagement later I'm the is are also new pipeline and infrastructure military with customer in American Optimus operators see industrial expanding grow includes both fleet year, this now public departments, and and significant we customers. The to while technology

have in the those through share half. move as to expect second more we markets We to

value to So Neil Optimus, half quarter revenue will to new hard a we the do in plans to wrap provide are This for up financial building those platforms. detailed in to half XXXX. I the customers secure At to the OAS, first XXX we a to with see opportunity reengaging Neil? adoption We work second lead commercial the across Iron cycle product megahertz hand customers, the with our now technology call we update. belies build-out introduction, of and revenue the will Drone. material work weak recovery in have outline for plans. do will deployment the second to huge the

Neil Laird

Thanks, Eric.

As OAS, rollout. and preparation the get that and want larger to the platform Ondas statements Networks stage remind I I reflect our early investors financial for our adoption started, both for commercial of

significant though today's as cover We levels leverage revenue our operating expect revenues do grow, expenses. operating not yet

development Ondas second predictable OAS the Networks of given as customer primarily American business programs compared for of war quarter-to-quarter, XXXX due was primarily as, expenses for primarily with megahertz to the being for the cash time as relative Airobotics negative EBITDA the $X decreased recorded and to revenues at expenditures as from opposed network, controls XXXX. second the unit. Gross around Rail. revenues the of $X.X cash approximately $X low-margin million low XXXX. after the to from now to service gross narrowed expenses of and to typically in the front closed Gross statement. pattern This in to quarter result targeted $X.X million of For flow timing was opposed to product and Ondas The grow December second restructuring recurring quarter-to-quarter revenue due XXXX. as shift chain to XXXX. OAS more integration connection let's basis and I expected activity and XXXX with for in quarter $XXX,XXX XX% to Railroads, million Class opposed to quarter June the due were for compared at and of revenues. Operating quarter $XX.X of margin the to development to and cash development Similarly, commercial quarter extended and rollouts as was and loss revenue to low fluctuate $X.X negative of underway approximately company as the Gaza Ondas a our The QX will those for loss activity, Robotics both well levels more as to the the of QX uncertainty the our on the XXXX. And cost emphasizes customers the unit of million million vary in of $X.X agreements the second is in Siemens held supply lines the subscale compared and volatile drop programs This XXXX XXXX. QX States development performance million Adjusted Networks, customer The as Autonomous product $X.X MxV for million the $XX XXXX, for QX from margins XXXX. revenue XXX related at disruptions United cash XXXX we QX mix million million strict the of operations, can XXX to between XXXX opposed $X.X was be activity, primarily Airobotics, second and January our are was of programs. a of for megahertz profit provided, R&D $X.X XX, to in Gross and ongoing We services Systems connected XXXX. Networks margin normalize XX% equivalents with business in XX, of quarter-to-quarter the operating operating as as turn to operating into to the QX decreased for of service revenue of XXXX, benefits in in recurring second in given sharp at million enter and quarter OAS. a as the acquisition base, decrease revenues on million expenses fleet quarter internationally. In

previous the -- during includes totaling million gross of cash primarily XXXX year. provided in financing $X.X to decreased first in discussed additional now, lower lower half operations collected the expenses million. half by to in an from the revenues just used The funding operating Cash the working receivables first $X.X higher as as capital well we due as due investment by

We revenue comes half in control Improved of of our at given both second continued expect second we leverage move and operating in business recovery profit OAS to unit, gross cash utilization improve from and significantly efficiency XXXX. expense cost XXXX. into as expectation half the cash a the our growth of

we noted, million ended As $X cash. in QX with

notes of As XX, of million $XX.X outstanding. June XXXX, convertible we had

As to these will shares we entirely equitize equity prior see stated, notes the to convert previously or it now hand by our to of the to to note is Eric. back to objective amortization, retire our notes maturity. I monthly side these call using

Eric Brock

Thank you, Neil.

Now to and units operations. updates business Meir share we our on to ask a development Simpson business will activity transition review of Kliner Guy and and

Tenney in regarding ask for States. the will We to Robotics comments OAS Tim United share also outlook American the and

deploy have I business the rail critically we I confidence our the want technology large to that at for to industrial I in important Ondas customers, the an technology ability and that reiterate vendors call emerging as As ecosystem. MC-IoT hand wireless and is Networks valuable grow Guy, to

proceed. While the at as XXX substantial. Guy, global markets addition timelines megahertz to as have please remain rail opportunity well with in private I for Class extended, the rails, networks other

Guy Simpson

happy updates for Eric. Ondas to to our investors. this again, I'm Thank morning Once here and you, Networks be share

update on on previous I Following incremental will calls, from migrations. and megahertz upgrades an network provide XXX

been been there Although milestones some progress than would recently. have has slower like, deployment towards wide-scale we significant

Siemens for the the upgrade a commercial the in partner, Mobility, network distribution Our AirLink railroad commuter received of system-wide Southwest. order first

This FullMAX live underway. Furthermore, are using This using is applications the the is supports network of megahertz of and networks introduction This is powered exclusively the key XXX.XX for As XXX radio our software-defined a operation reminder, network full operation operating of AirLink new Siemens that progressive networks safety adoption and legacy use a XXX.XX A single migration in to AirLink benefit only and allow the expandable purpose unlike migration of same that a is in block flexible, platform. in technologies. the now products are creating new technology networking capable case. products application-specific IP infrastructure. are by the this general

with with Our continues, network I Railroad activity AirLink supporting systems integration Class live Chicago operations. the products in

evaluating field trials. currently planning to a of which in complete technology in and with half this expect transit customer are the next phase the have of customer, Also we in Chicago, planning the XXXX. establishment which X completed We we labs second is dotXX discrete for

for We expect our distribution QX in a partner to receive system-wide upgrade an XXXX. order

AAR in Committee, Our its particular, communications and work WCC, or the with wireless continues.

the As general-purpose introduction customers the commitment being earnings reported part network integration future in of AAR block. plans. the the migration successful In on our the megahertz products XXX last the networks megahertz critical migration. objective. is call, the a migration being critical the to also to dotXX legacy milestone network XXX has public this continued and as XXX repeated of to into The the dotXX a as of key have network to FCC. A The of key networks by role QX, support multiple path AirLink we the their reinforce imposed deadlines They helps of to its value of achieve to applications new restated created

finalized redundant We orders. orders are path our XXXX XXXX from the And network multiple we IP-based control, railroads Railroad control partner to in a typically the legacy standard In used are a integrate CTC of in determined within working to procedures. second as securing with in half Key be distribution secure can working commercial of one further the to complementary QX. work variety budgets and application. to will is with their parallel for megahertz and solutions train example, critical customers with be train positive of XXX applications. or the

capture pursue we XXXX within also continuing budgets. to course, are Of to opportunities orders

executing on the prototypes delivered We are PTC the for evaluation. program been Amtrak and recently first new Data for Radio have

the commercial expect QX. program to QX and development XXXX in in to completed We be deliveries start

networks the important orders created for XXXX. The new We delay with in achieved for continue megahertz the QX on to development market milestones on in in has locomotive a U.K. the work XXX the business. with Siemens pressure being network radio commercial European

headcount dotXX to with outlook and required actions wireless capabilities. I new months is There railroads. the doubt orders of specific value taken in we on expenses, extremely our direct XXXX. manage that plans and more activities. and on for network have technology that I we the of little coming the have deployment technology positive proven is sharp their a We remain and hopeful that the revenue-generating including the our XXXX reduction as clarity am budgeting focus move in receive through process, investment for terms railroads will

to back Now I hand the call Eric? Eric. will

Eric Brock

Thank Meir customers. us are floor technical to Autonomous there which about take a include certain and Meir have are you, Systems. of the and iron Guy. with Ondas Iron considered progress operational this customers it and intensive and commercialization the on with to give we makes aren't update as our the an details Iron will update engagements will able at feel and to what relates at advancements Though now Drone made that special, on comments Note moment. ask Drone Raider. I Drone in will good Kliner Meir's the sensitive, the you we Meir? Raider, share that

Meir Kliner

Thank you, Eric.

Iron as security Both have offense revolutionary and under essentially operational equivalent use is is for protect to Almost defense weather involved QX both well against drone in urgent and that these alternatives systems unmatched missions both growth primary their and systems, technology our customers in in of area environments of readiness. offer our underscoring of capabilities Drone focus drones every gearing to Iron missions. even witness ongoing condition and to outside various and attacks. Ondas that no was during worldwide Optimus and needs demand GPS, networks. Airobotics' on national the solutions continued such worldwide in positioned and areas markets. cellular system and limited of seeking security Drone access the environments. to to altitude unmanned Raider internet organization the for to Raider up events to is The capabilities military respond the competitive our strong in in unmanned meet continuously for operate role offering we and and the QX, During infrastructure, growing conflicts particularly significant civil solutions enhancing are online military this demand, low defense

advancing have both in succeeded entity secured global a system as Iron of already have customers. and military a defense We and the Raider and Drone showcasing capabilities the major organization

order also have first Iron deployment combat a the environment, recently announced. secured the We Raider for Drone the of as in we

the growth We that will Optimus and in build many by system inventory our are be required customers and the believe markets. defense Optimus due advancing plan to system the existing additional

in look the the are emissions and the Beach, Coast its of with several opportunities Optimus capabilities demonstrations of price and vision new teams phone Beyond in in further pipeline sharing for and capabilities. the with and and successful on Baltimore, contract Long security Line Visual Optimus Sight center fixed developed to U.S. our operational automation customer the American Guard system We working operations forward monitoring governmental sectors. for Our hosted the Port at configuration defense in Systems, of showcasing and new Robotics advancing Optimus a the U.S., Systems secured news the Robotics about U.S. American more address needs to U.S. homeland customers. Israel soon. In the unparalleled

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find During build advanced its the flight, search and AI recognize drone the with it hostile to camera Raider and the for thermal uses in its software.

to maintaining significant recognize fly a our types operational and different collateral net to from interception, Raider Drone its maneuver net. autonomously invested the the the and target responsive be meeting and camera, damage requires parachute The designated target. This configuration conditions. able flight Raider areas. target. target, a for computing autonomously guiding optimal it the efforts detecting under The with be drones towards can uses to attached computing populated command have in power ballistic over motor of reduce close-range to to and We various with by onboard begin to and in route track fast the if stage a After training Raider micro-radar position operator algorithms intercepts to an calculate The than highly robust operating point.

order secured defense purchase the a Raider. a Airobotics from Now QX, Iron for major company Drone in

from in from received military addition, program order drones. And adding other announced systems announced a Onas deployments, has we military operational hostile significant the of protection the In order. military customers second that the the unit for expanded critical customer recently first provide borders assets today, for to a the we and via an initial

expand the We on volume system capturing building global infrastructure supply combat a are map, governmental half local service first multi-stage based other supporting through second customers. chain with services. the the on public demonstrating structured and infrastructure this continue progressing and defense a world world's drone anticipate to concentrating of in and We Dubai, entity order successful for new sustainment in public XXXX operations. Airobotics network for operations safety additional a on working while orders

We Dubai. and local Systems achieving been has the The fleet XXXX. to of Optimus deployed expanded the the fleet continue systems deployed than and utilized end renewed of the of service extensively entity. for support of the government This fleet of initiative System a by and is aim have secured agreement maintenance in Optimum by expected more XX with

in UAE are our with We expanding business the additional deployments and locations.

During market QX, Germany, and reach American HHLA to expand we Robotics business with through at are American call to partnerships an update the and we on Aerospace activities achievements making our reseller Sky now to over Robotics. addressing continued other C-Astral will Tenney, this Tim Slovenia CEO countries. I into of provide Europe, hand in the European

Tim Tenney

Meir. you, Thank

both led The potential customers and dignitaries. increased of come state has commercial were Optimus to government We federal This new as the headquarters. demonstration customers provide feedback Administration, increased County, which well at grand reception we the location demand Aviation and municipal, deployment and other see state on for products, segments. We seen June many to was Administrator the Maryland the have to as Baltimore the the paved for our and just and actionable in as excited Deputy has positive launch opening of for operations completed Federal way in launched the training the operations. center, leadership and positive of very buildout Regional our large have and a with event local, opportunities via potential system other include already

commercial the strategic perform The Long a emissions share prove to EPA initiatives. increased vessels continues are air contract the for quality. Being to Guard of complex ports will is standards important improve We win collection Coast with the entering and trust U.S. being the operation. via Coast by as payload this pleased increases allow American an both compliance at treated U.S. operation aerial that maritime also Robotics provide It's specialized the critical designed government fixed the emissions around data price alignment landed a of and of with Ports American by program Los for Robotics solutions. the with an U.S. Coast the Guard by in emphasize that customers selected certified to Compliance securing this Angeles to important capability intended monitoring ports U.S. capabilities Coast global right initial and that U.S. is that the to Beach. and in and EPA to Guard Clean Guard

the opportunity importance this a Given this much grow American for with requirement all a this mandate, EPA U.S. into program of potential will of a that possibility Guard. confident the we persistent for has Coast record develop across to believe are U.S. major the as and for We Robotics only the ports. of larger inspection

key of as Optimus in Robotics remotely of U.S. over via the leveraging and Optima our demonstrated Drone. program This markets and to with executing safety Line security and of demonstration certification in the the Texas. Beyond showcased FAA plans infrastructure system next advancing well we are go-to-market drone sharing to We Iron the and Kestrel couple both in We its system. fleets customers, Visual future. American defense type public the is to Optimus provider also weeks, look forward more Sight a as included major which capability technology its operate details

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Eric Brock

to are now, where we the on continue to context formal wrap provide We're a we providing hold and Let's where off call the for outlook outlook, going. are and summarize for XXXX. going

made last have also expect public megahertz in suggest we driven XXX intending and from comments we financial While second in see out to suggests the Networks mostly by modest call, development And our a Railroads in programs, revenues to they network. the the will May by and build June are XXX major for megahertz opportunity Ondas urgency. the it continue half, AAR some beyond. Recall

We are and working hard are megahertz, to around our time for partner drive we visibility on XXX and orders. asking lines

the and in for that we period, November budgets help the believe in addition, typically as stated, In XXXX. will complete clarity outlook October Guy Railroads the support time

in that well in XXXX. made ordering have customers we to to which we clear deployments, We expect it need advance occur plans fulfill

For believe OAS, second and from both be World, and in Robotics. supported growing I East United we from durable by opportunity the with years, rest the and in demand strong see revenue beginning the a existing customers States of the significant Optimus recovery recovery a Middle half, in American will the in in and coming

We and Optimus our secure continues and to with importance. in the public also military and assets, customers, critical military to industrial of capabilities and grow pipeline. The this protect technology part has significant locations, is now potential platform believe for response emergency infrastructure customer civil and need safety and

many into demand and to efficiently to we securing are Maryland market be training in or safety have Robotics is end expertise that portfolio needs accelerate standpoint. First product these customer and realize and In platforms word the about a security programs. standpoint. the American services environments, to operating of and performance looking their is improving of likely reliability and safety the meet where a our new expanded from us U.S. Robotics. U.S. are quarters, in may markets operations. cycles. A value engage Commercial their end, sales the drone with center allowing Public customer drones the noticed the customers brief have end customers demonstration Responder, a for best To American We of from aerial highest and Drone scale is and of budgets DFR market intelligence departments are maturation as the to and an the for public notable booming, integrating example recent

requirements. even Baltimore and own interest to and the of as autonomy, support an platform platform our are U.S. well proven require to mature seeing demand, sophisticated We are is we cases, ability in to require grade flight We indicate safety utilization safety Optimus high-end location, meet and still class significant and military reliability. Optimus where believe field in all, deployments for as seeing these as of advanced most high have with is in most new industrial markets and use operations. its solutions interest and most drones to Optimus significant and are integrate users new our the regulatory our system

lines to Charles plans borrowings payable, earnings credit additional our address AR. programs optimistic to We I scalable move around proof able notes position. with the updated equity the that comprehensive continue release to want fleet through be I we work that through funding share liquidity that invested to via or with Optimus with designed in on has also debt we under to & million additional or We points of will Networks. Potomac and/or offerings sources. We American seek look Robotics. Senior am Ondas will in second funds may we our note and noted $X.X other half as operations leverage Notes

customers industrial we Charles course, are are believe with support defense, I tremendously we of platforms who unit for product proven partners fit Of there & [ can we Potomac deploy demonstrated the and experienced have technology technologies and believe see value. grateful that valuable both and with attractive these technology I market economics. have ] continued

the have enable at is support expansion objective plan enable to created Our business working and are to and operationalize, financial focused we the driving. properly capitalize hard the we scalable businesses and

on event an an detailed financial in-depth model System. provide of with as, as will also look at in for Investor our focus system will a we where the We place outlook location, the well at September, our business Ondas' demonstrations, Baltimore and plan first will The plan OAS. hold to overview of half we Day Autonomous where take

next week. share offer details Baltimore of logistics will also We encourage will to we make live to I the and event. this, broadcast though for a our trip investors the

solution is saying I and outlook So the for dotXX platform to committed positive Ondas. Networks for will longer remains we delivering very but we by customers. want, are have close taking Ondas the than

get there. will We

disruptions. Our are poised recover inflection as from war for drone we businesses point an

and We believe have strong let's on that, course, the a see new introduce this and, revenue deliver platform I questions. for Optimus second Drone expect we Operator? future. With with of half as demand to bright have extremely will Iron exceptional there stream. if any capture on we a and capitalize an opportunity are

Operator

Glenn [Operator Instructions] from Mattson comes Ladenburg. first from question Our

Glenn Mattson

ago the talked give terms migration first a of right you the applications on the size work what best expect of can new do And QX leading Could kind you of kind of are potentially whatever, Networks all maybe are we you know operations along of the as on to us and you of Can the of these as in stuff? like, scope how commercial or then the, order versus from understand you track scope being First, and relation the frame 'XX scope things, of us it in of of along help sense the system-wide just authority trends today as where deployed. the there live months dotXX valuing There's far of just for X better some could of you say, in business. of is a about the order of you migration the now the that lines where expected, in you upgrade terms plan and in magnitude? to IP are some XXX.X that the AirLink of Northeast kind we quarter? far third you

Eric Brock

Sure, Glenn.

with area-wide customers So describing what networks. are, as we're what in talking the these about active we're that with we're field X

Siemens systems. they're with are inventory. we're plans fulfilled to these working And largely customers the out doing that, on So across of as deployments, smaller broader be and going wider we're deployment

are said, going and operators, more of individually. smaller, X little course, as of much customers those a their we transit to footprints X are context, be So

whole, a territory X as opposed entire lot are As specific cover, cover customers city there's operators, but the of collectively, based right? transit the freight which amongst country. environments, Class Now in transit to freights, typically a to I the

the how we these operated and deploy trying customers with their it's show working So network, proof the deployments on to maintained? area is demonstrate wide broader what systems. these installed use do how and we're deployment that, activity, the points, across And as doing we're

Glenn Mattson

just your -- on And commentary

Eric Brock

you times $XXX is maybe the the initial And And information build-out did half this but scale. TAM for around the chunk of obtainable big that, megahertz a think which think We've of of XXX, -- Glenn, that. is market which out given course, ask a just here million. over XXX we good I'm on least of network, opportunity. gate of is we new is interrupt about say I'll I the at think market sorry scale size a of we couple And the

So the do that them big obviously, to have do continue opportunity. beginning further deployments. to what path. for we believe now of customers is that providing the And process budgeting a through going we we with these will be drive need down just the they're And

Glenn Mattson

That's helpful.

was and UAE like back I side, OAS half, make kind it sounds the them. think, with you the part On of and of big progress guys continue a projections everything, to

had the talked further Can you've that that? this you talk as You expect expected? you you Do same potential still about second pace previously added about the deployments the is half? arrangement and it service stuff. just for in And

Eric Brock

Yes, certainly.

intend do the that the and around have which So we they've XX the we've said first been this year. across services the that broader group They build-out. we've that XXXX, systems half that X is by the is plan to deployed the a fleets UAE city with end them, -- have in Dubai. capabilities government safety network of Today, of about times, reiterated talked deploy multiple publicly expanding have a including systems support our in to and deploying of we they customer, about public

the So consistent we've to significant a order we of back expect is in in the them last what which couple half, with come with seen second years.

really traction to Middle we revenue want and streams the really rest get X building In East world. to has in addition, I highlight of are that started now. Optimus

substantial, described build we've of the U.S. had the with in we've do think the on capability, we intent, the some customers begin here activity the at if And U.S. that I and win going we're the to commercial least American I get side course, and with a would fleets. with second to have we're say the in them are working Robotics. deploying X the do half. Of or in

with got we've think revenue is do to the we I sector. line, activity is which here AR. And which Drone in some starting a Iron So clearly, have military then mature, third

in a strong in I referred setting really disruptions think the for comments we're held to bit So back recovery our after up that that do first I some a half. us

Glenn Mattson

world. been kind on industrial the of given manufacturing bit help And realities last, the build initiative going of this kind the of base That's great. a government guess, has on then I the U.S. what's little production and in to drone

and And about, the you You their can of kind new terms speaking, of about see the you supporting interest amongst like so in generally support out the just of some you military talk there? in talked that players level that. many orders are things of

just a commentary see versus on as backdrop little more it? So maybe the general you

Eric Brock

Yes.

high start Let least to me of a discuss at as keep I this. level kind

but major So both and DoD specifically not for levels all and from coming, is of support DHS, there really government, limited federal to that.

is and and You as we're of tools course, and well. value for the defense Guard drones inspection Understanding as government see EPA, the what understanding the example. with clearly for Coast the here doing -- security of security and

course, we're we and come they're of deploying to production down does the comes that the levels. And can not supply just these capabilities and are ecosystem. see federal on side. And building intentions regulations. you that work of to the to all capacity, is what I big the private and OEMs the services the but any that's all developing it that's am even some and coming doing. very support to activities, see state What way government, and on in and are local and ecosystem pains seeing And some as putting specific the chain, the investment is and what for a from of amplify then taking offense demand to some support the So sector signal government government. both they're encouraging interrelated, do the that's as technologies I And and that, defense. -- and to And lot security on the help support they a great who of programs support mean ecosystems typically and these we're applications, dollars also about

believe So valuable. that's unique a way think we And very do for we're tailwind because in what bringing big there's is broadly, big what a special do. technology we that we're here a benefiting I

Operator

next question Powers, private comes investor. Instructions] [Operator from Jim Our

Unknown Attendee

I'd block there TAM. that block available Is like or to a some the for frequency will a color allocation it single for European of fragmented -- on address Union bandwidth rail? the be

Eric Brock

the critical I have activity to think networks the to Railroads some and So critical in extremely over with our very wide development assets that's opportunity say, in just, similar Union, need is. partner, and who is low-frequency are and operating way, a do Siemens. lot And use ways, that of other we private specific mission-critical. are it's the infrastructure where European But I'd industries opportunity infrastructure about question fields the broadly the to what the U.S. it's by band more programs because

will there. I see there's densely infrastructure differs see is in to a base a in huge a relates like it what to So do it is bit we more a deployed. little opportunities Europe U.S. where wireless installed little bit networks bring that looks as And we that our lot the technology public the say

at you and folks other networks public the systems for a of certain a course, across bit tele wireless carriers the because population places There's you'll not in networks bit the then unlike Vodafone, for in than cellular see There's a fiber, some here. we same So that's in Orange, But it's see different intensity that's quite activity. deployed. of time, different is satellite States. cases, areas private like And and or both Europe. see for some mixture United what mission-critical being and use here

Unknown Attendee

does to handle it does centrally? individual be have -- it basis Brussels on or an it done country Is

Eric Brock

each the to be private and really, rail railroad. networks It's operator, to unique is done by connectivity going

the and operators deployment. and these standards wireless in So we said, you a amongst network the there's providing to networks are similar U.S., railroad what technology into the that With see don't that necessarily who obviously coordination vendors coordinated to networks. the see connect

and standards going the an is those to railroad obviously, for the to And guess, standard are I operators watch. things, option regulators. be IEEE So

Unknown Attendee

from bandwidth railroads. the I was licenses the of issuance referring for to itself not the the government entities,

Eric Brock

Okay.

that talking by level existing not networks wireless familiar my or you're I'm that our that with outright be low the the at understanding upgradable the technology. would is frequency they're but with provided federal what about whether band So coordinators the -- owned specifically, are

Operator

next question And comes Galinko from our from Maxim Matthew Group.

Matthew Galinko

just sort more Eric, guess intermediary? so I expect guess, as And you how opposed And I developed go Iron to do it's I an guess, Drone far? of progress? way the to pipeline customers of that to directly do you the defense through is expect surprising that

Eric Brock

technology needs to It's detect often the and to Raider put don't in a because are our great because we the being platform in a particular, variety But of depends. to really and of be into the stake going systems. that which integrated is a is customer reason be want going technologies, technologies, -- I that direct think make Matt, capable the to question, it integrated are I being ground on

-- military we to counter into you and it's able the So means against you UAS vehicle, ground it's for installed ours drones, that that and like Drone also technology, hostile mobile. a integrated a that be need and be has the a an That System been Iron is the want really if us protecting on securing didn't system this add any emphasize you're call, able to means be detect a example. I'll system what also also as mobility. that -- for vehicle and to enhanced on customer

will want deploy. to we need system that militaries customers integrate to the ground with equipment who the similarly, So have

some and systems the that's customer to provides made on very to bundled what customer really it's the going including set including vendor, is mean advantages new I'd point the marketing into customers, actually and did I'd of we that qualified sales. your trying activity us, sale. And on as started. going when direct, this, add I but the system, a economics is that's you will opposed highlight many, for answer. to then countries. I many, that reemphasize to say you What many for eligible be source us, government-to-government just this we also significant ability for allied the as become is I which good that to one, various we call. to So think And to means refer as you be a already each

Matthew Galinko

the a just Systems I the their Or as is and more right. direct as limited? different presuming All sales DoD the role play it and fairly in any with follow-up, Iron guess, and what visibility they conversations you to systems? of of defense -- maybe conversation to opposed that get could Drone, just, is create expand And Optimus did alternative, the

Eric Brock

on, capable defense. these activities lead call we the spot doing to for conversations the of naturally point you're critical and did and say what make themselves and I'd around that we're on homeland security securing Optimus with locations

now a that emerging. this is specifically is So market

always but us, hasn't Now it the it been is going been a extent forward. it's to to going us available focus to for be

Matthew Galinko

question. last one Maybe Great.

for qualified know it's towards opportunity if current been ahead tested think actual you're it's sort use more actively Drone I moving commercial order? if data of you performance that can if as the are Or you with just I of customers. order. there? waiting its further go for in a clarify or you and the already pending success Iron couple it of times for don't you meant But use defense

Eric Brock

such quickly, and really given so battlefields to globally shock we so Yes, a drones how the around where threat. circumstances unique evolve I'd the had have become -- a where say militaries

for urgent where complex in and we've -- military Iron requirements, the we've have and new been described you communications to So around system Drone links. area don't working, GPS capabilities even around the or deploy activities particularly upgrading with as that's on environments the reliable

we've months. that the say, incredible that initial we've our level, we've of customer And combat extensive And the into next of live okay? next discussed for this and we had to with done real-world now So gone of security real-world sort military and testing the us done really over extensive orders we've see parallel, put operations. testing, do been as to that, to as couple I'd doing happening are validation. And these now and intended environments and we've really, we've So partners. stuff, good hand-in-hand fortune do that sort in

And orders. come the And we for all the very will need do in to confidence do orders. drones valuable. fulfill that capture believe those we that, putting here, customers can -- volume address the be expanded we to to We back have in the world and do we intended, that's as be going to hostile capacity the of parallel course, as and

So does that answer your Matt? question,

Matthew Galinko

It does.

Operator

have follow-up Mattson from [Operator Glenn Instructions] from Ladenburg. a We

Glenn Mattson

to to build follow-up kind something to? do Iron to what kind expect you talk that point, you a and as build -- Just out plans about last intend of And can where of you levels it? and to the capacity Drone where cost for what production you you need

Eric Brock

Yes, sure.

on complex than Iron system building Drone a basis, Optimus relative So less is the much the simpler, system.

We'll in-house. go up doing hundreds will the of we're month. and see which systems XXXX, to we've course, low of having be here through that larger been them of -- to and with able that's or at volumes, then, what manufacturers, say, So really is I'll we'll capability. move contract of we'll quarter next, create we'll manufacturers And group we'll a the over X, be diverse tens systems that contract identifying we be systems with thousands more move to of already. as And

Operator

Eric no Brock over queue. to session. are closing our any for I would the concludes This in remarks. to There question-and-answer conference turn back like more questions

Eric Brock

Thank you, operator. Okay.

technology the OAS see action. And again feel a great to and technology by you're the the can for I'll Day. plan join as well impressed the in Baltimore on going have the services opportunity attending. to made we close hope We global I us in demonstrate. It's distribution developed going in thanking have our platforms opportunities in we're So be investments call just to that to you we by Investor you have for that do to platforms business touch think we and going as be created capitalize and the these capabilities them

you going get informed So we progress. on it, our we're at we back keeping of right a lot look work to and so do have forward to ahead,

have soon. you hope talk and a day, I So great we'll

Operator

The for attending today's now you concluded. has presentation. Thank conference

may now You disconnect.

Ondas (ONDS) 14 Aug 242024 Q2 Earnings call transcript