WTT - Earnings call transcript Q3 2020 | Wireless Telecom Group, Inc.

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Operator

Good morning, ladies and gentlemen. And welcome to the Wireless Telecom Group Q3 Earnings Call. At this time, all participants have been placed on a listen-only mode and the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mike Kandell. Sir, the floor is yours.

Michael Kandell

results. good today’s and Wireless conference third XXXX and joining you Telecom Kate, quarter on us call financial you, morning, thank everyone, for Group’s Thank to discuss company’s XXXX. of With could statements CEO of Revenue me Reform include Before I on forward-looking remind begin, the within Litigation like we Tim Act our the today Whelan, call Officer and Rodriguez, that Private our are Securities Alfred Chief to everyone meaning would the the remarks today These identified to they or be statements not current do that can fact the by relate historical strictly facts. statements on forecasts the and economy The are company’s assumptions performance, other and and current of regarding future forward-looking business the and based management’s events, conditions expectations circumstances future company’s results. and

of Tim earlier or of forth business. X-K today information pleasure non-GAAP those With statements we management a guarantees differ it’s views in reconciliation to results materially these set are certain how with point with otherwise. and the to Forward-looking materially to that Important could that actual We Detailed those forth the statements the risks to measures forward-looking our set out uncertainties Whelan. the cause my Form GAAP in future number a provide include that actual affect results. filed to of reconciliations to risk from could factors factors not involve furnished the performance investors, information and non-GAAP company's to we meaningful now want turn press reports assumptions, information over and the presenting will relating reflect are its or filed revise GAAP issued to forward-looking release our and or non-GAAP XX-Q measures call table on changes on reflect unanticipated does Also, SEC. that Form to that, in provides today the XXXX with Form XX-K measures update annual the in company's The undertake in information, which any occurrence addition quarterly company believe additional any not obligation measures. adjusted the in of events to SEC. report XXXX

Timothy Whelan

Good Mike. joining for you you, morning, and us. Thank everyone, thank

The first navigated globally the of this nine difficult share I seen challenges report and certainly to XXXX company its am pleased of through months have has period.

values serving sales, with global through as priority, incredible work these have engineering in am operations of our commitment emerge focused while ahead. and of have gives at rigorous core and Our the and all we safety face I execution and delivery this, teams our quarters the Throughout and proud confidence our levels of customers. health our protocols me to employees’ top all same safety we challenges. on challenges on team’s whatever this energy, time executing creativity exercised great as and

important Another military mission important. of and challenges observation solutions, we enterprise, for do communications delivering specialized mission-critical more development, essential what these been next-generation which of our is enable and government is the and deployment current that has from and of never applications. technology nature The wireless testing

contribute how of employees the are proud to for mission have incredibly thankful our We our we dedication. made adjustments so are their needed to workplace and

over and to gross include, The non-GAAP EBITDA, our improvement and adjusted margin point XXX% leading We our and and results due offsetting same revenues, performance. Turning to was basis Partially groups with last components to cancellations of period measurement and product saw XXX inventory demand increased increased for COVID-XX. beyond RBS in expectations. RF year. and our improvement a software QX services the to distributor delays project compared the adjustments the lower improvements to T&M test profit headlines and revenues,

stadiums, investments deployment attendance acquired large for higher RF expected some continue of startup C-BAND activate for are XG We us. delayed venues is facilities as address include That to we anticipated spectrum as checks spectrum indicated CBRS to reopen. some our where and next bandwidth to spectrum, venues said, at have out optimism behind our These is to entertainment pandemic important malls, this are period components channel increase until projects expected in for initiatives. build investments and point to expected and trend auctions roadmaps which expect network deployments this to for see ultra-wideband carriers their in-building for increased to and year, continue which and the are have demand product densification

and sales satellite new declines a gross a key increases Our our profit am and increases software of portfolio, important and much as of RF margins software I services has deal contributed and momentum increasing we and revenue our XX% of revenue. importantly to XX% XG offset in $X These quarter solutions, application. also test our measurement annual a well to margins percent margins higher as for also gross to services components. an our higher milestone for is software in objective is million the in above from for revenue a increased strategic signed the product gross goal continued our RBS EBITDA as report a third and and pleased increases approximately

approximately we $XXX,XXX. addition, signed software in In another contract for October

to-date approximately customers and following: and and $X contract services of one to totaling software Our we new one in XG our QX and for $X.X success QX contracts This have year-to-date $X totals approximately signed solutions approximately four million, for XG RBS million, October services includes contract in totaling in two contract software million. the driving includes $XXX,XXX. our

solutions approximately four $XXX,XXX signed, and deals two of signed the government specialized a works. labs XG are one the solutions a in revenue Of research the include focused platform. two the services cell and includes deals And And are recognized LTE XG solutions. $XXX,XXX application, have We application satellite NXP rail and QX and approximately an XG software QX. application, in small of on

about software services contracts the before excited the release, are realized with $XX over, year other bookings we is based on we as QX in year last as customer consistent approximately and the sign year’s as new highlighted order to number Additionally, expect we discussions of and for part early press flow, well we for quarter. bookings in additional With late-stage negotiations. of regard our next current the to million,

was higher consistent at bookings margin, at and September include the backlog in June $X.X with The T&M backlog quarter XX compares million backlog $X.X XX and of ago current our million RBS million, quarter. Our XX higher the $X.X of a percentage September to solutions. and for our year

to success began make progress continue just our believe results. year we goals the we since in we and So, financial starting are our with see our reflected strategic to

level and COVID-XX the focus remain going network to Revenue we Officer, Rodriguez say am in communications. near-term that, macro I uncertainties remain the of a few our over XG While Alfred investment words. new Chief on confident themes to due to including turn With densification, satellite the long-term to growth crisis, strategic our call

Alfred Rodriguez

what roles billion for first you, set focused morning marketing to where my Wireless and I’d Group. attracted I at important XX discussing to wired me industry communications Thank nearly $X of Telecom roles, Telecom on Xilinx executive and to included years Xilinx XXXX, like Wireless Xilinx. joined wireless sales Good everyone. Tim. telecommunications August is My business. the the I with start Group direction and multiple in after other WTT. verticals

There specific long-term and goals had a plan with strategy company demonstrated a success. vision, was very very and the of this specific a was of business. which view milestones First, a a

successful through company the as very and roadmap is well transformed, through making the inorganically people, are being organically R&D as Second, both acquisitions. in they investments with product

legacy three Third, into and I was joining I’d this team an itself participate executive in most clear level my in role wireless in and some Group executive I serving multiple, has has my Wireless way even was world. as chip the blue to they’ve participate over am participation this empowerment satellite largest, one. been – positioned part XG with company, of demanding exciting day its incredibly transformation. on next And company role with into drive team the views to company communications, themes long-term new to a earlier with success. fourth of our months talented a the anything who XG and this investments. go was them I CRO And investments Clearly, of Telecom as was growth to transformational more a than like first months three and of above if reinforced of which the excited punches in enterprises in its change to most the long

and our growth with Board Tim, my assessing hundred forward upon to with the the I have and market go I and sales team continue management During understanding people rest strategy, directly working our and strength realization. for of look working days, the the build to foundation been customers. to to the first

to across a is the funnel applications. I team’s to to of technology peak this bear is it new and are, advance been teamwork is advantage I’ve I of really spirit directly the potential and responsiveness, wins and this They increased multiple Some The orientation, the some of first growth level agile to an leadership performance culture how me QX as growing product in additional how to is company am well-known dedication relationships, skill, of COVID-XX. been in cross-sell bring with ready to excited in building company’s strong to add of am days, values the to appear ahead. exciting service, the The of most bring employee evident specifically solutions There within and contribute customer growth opportunities of challenges dedication just incredible and future in dedication further to I’ve navigate and executive XG own talent grow October important my innovation of hundred of and the RBS. roadmaps opportunity uncertain safety we the QX, observations and to the relationships and health is market. is my and what a to blocks customer opportunity customer the What through contribute start the core have even are and impressed energy by impressed to leverage the holds. entrepreneurial discussions, for specialized this. to deep, company. evident customer

So, and call I’ll to shoulder-to-shoulder the mission growth, eager to to executive drive to leadership with growth over and and in team with the hard hand, Mike that, to contribute turn I lean numbers. discuss the the drive am top-line incentivized value. shareholder now to the work at continue

Michael Kandell

Good again, Alfred. you, everyone. morning, Thank

profit of on revenues, customer. As lack processing cards our of product well RFC as to our to feel Tim pandemic largest former of continue COVID-XX the in signal ongoing group, as services the Holzworth. the hardware mentioned, The acquisition, we of newest This digital profile margin impacts increased specifically Holzworth the product sales in and group of licenses our however offset contribution the gross product quarter. high in to RBS and and the was by line software contributed margin higher sales top-line software

product we year. Revenue year to Revenue RBS pandemic. we due COVID-XX $X in which improved, LTE to of of our recovery this this the remain expenses, to acquired with partially in product ongoing product RFC product with X the period. are due in by on primarily revenues decreased period in T&M regard signs quarter. our from T&M by prior quarter the to of T&M Consolidated increased hardware profit $XX.X offset period. ago to starting which contributed digital was the the groups lack down by contribution services quarter was COVID-XX groups. Revenue product were period, pandemic these to year Holzworth in in due higher which decreased compared margin $XXX,XXX as the signal carriers and the This from group million, on year Breaking the revenue line, were sales third the group prior $X.X million other lower flat non-GAAP see with spending of the of Additionally, sales due to adjusted gross software year year million contribution uncertainty our product licenses for cards. the in to group was increased disciplined group. the XXXX from the as from the to processing our caused operating to both by flat of the ago prior $XXX,XXX EBITDA period, Holzworth of Consolidated February

basis XXX to points in Our sales due high the prior margin activities savings Holzworth the year, in to and software impact current the other year and products, profit increased on consolidated costs. to along with margin overhead cost XX.X% from of XX% fixed gross

of due primarily expenses $XXX,XXX line. savings implemented the additional were operating cost an well quarter expenses XXXX which were our QX, undertook increased $X tax breaks the T&M our follows: the down an offset expenses, to expenses expenses operating $XXX,XXX Holzworth of million, primarily used the R&D to Turning were as a prior recorded increase spend and offset as The $XXX,XXX loan year the was $XXX,XXX Federal expenses the which XXXX, inclusion expense reductions. third acquisition. offset marketing sales $XXX,XXX finance third-party a expenses the high These expenses approximately of $XXX,XXX year for full loan higher Consolidated period. expense year sales Holzworth in level, expenses Holzworth flat of both state losses is include offset the expected we be inclusion and and is benefit by PPP increased to the at quarter Holzworth discretionary beginning on in marketing year. this initiatives increase $XXX,XXX approximately to were purposes lower due as consolidated our prior due as $XXX,XXX, included decreases reductions. due the term expenses exchange of in of compared tax the of ago in Consolidated R&D increased General by expense new quarter, to flat period. as Overall, reduction from as of year of merger cash that of by expenses, in the interest expense a and due not expenses fiscal Holzworth however reductions from during and company reductions expenses the expenses and $XXX,XXX deducted period year loan approximately cannot which commissions. product operating were by prior that acquisition and is added of to general approximately our and The spend expense facility period R&D $XXX,XXX, to and $XXX,XXX XXXX third-party prior Other $XXX,XXX, U.S. forgiven. the tax inclusion the and as Holzworth of to for other decreased payer with tax expense operating to administrative travel and headcount, with expense income quarter of administrative to were a due of we be period qualified our foreign NOLs. $XXX,XXX were At company

exchange was prior tax expense. EBITDA for net year Our to the by operating increased interest higher period, $XXX,XXX higher by $XXX,XXX losses, and prior higher the improved gross loss GAAP offset quarter expense our period operating from adjusted loss however year the as due expenses. higher profit foreign lower offset over Non-GAAP improved only partially non-GAAP

sheet, was debt balance and the as loan cash will asset-based week Program September loan, million related of the to Protection expired. May Paycheck availability million. was the of of Turning cover quarter. PPP in loan this $X period the The Included which received XX the we has Accordingly, company to gross our on for X. debt forgiveness was is $XX.X revolver million $X.X million, consolidated gross in $X.X XX, our under apply

As loan PPP I’ll defined to been some call PPP on program. over of spent as mid-July, turn for under all the remarks. the back have the proceeds qualified expenses now closing of Tim the

Timothy Whelan

Thank Mike. you,

we’ve with But in strategic We have of year proud of are despite customer provide for ahead. we the the timing and decisions, made the cloud the outlook creates the of market. uncertainty goals the very which of challenges numerous COVID-XX quarters the challenges that deal guidance. continues a nine creates to great are we first pleased projects and the on to in purchasing brighter said, with accomplished months progress

base. aggressively managed have cost We our

added have Chief Revenue incredible talent new a Officer. We with

$X.X for software signed service customers deals have We totaling million. and four new

increased Solutions. sales and integrated acquired, of successfully have Holzworth We

several and the are channels major And extended next future growth ability NFC to the quarters. trends markets. to have our we growth over roadmaps we’ve capabilities products excited through drive address We to eight acceptance about selling consortiums. and new direction IWRP in the our XG and and product launched and other strategic our advanced our highly to Net, the

employees and questions. energized, Thank could is lines drive and the excited the if Our motivated be empowered engaged success. to you. to Kate, open for please team And and leadership continue you

Operator

from first And your question [Operator affiliation is and today pose Wiesenberger. our announce Please Instructions] question. then coming Marc your

Marc Wiesenberger

my morning. This seeing Marc about Boonton and talk And we Securities. you from Could B. around taking the relative end-markets expect of to perform in the Riley there questions. Wiesenberger Holzworth? levels is Holzworth are forward? dynamics is Good Thanks to you for Noisecom any why reason those shouldn’t going these

Timothy Whelan

this us Thank Appreciate Yes. you, morning. you Marc. joining

legacy brands to Noisecom So which instrumentation. Holzworth top, and more R&D, geared the the are brands towards Boonton bench prior lab are within

smart sources other are noise into We solutions. the in excited designed that being are embedded very about

it Boonton maintenance year test the are the just automated bucket. computing. that. a are think more that those products So seeing for quantum an with we environments. programs, defense, investments quite than related of pleased Holzworth, than to more we is the Within investment towards last and into spend space there slower are little was bucket They falls aligned semiconductor,

those dollars COVID-XX a I been investment that any believe so, of fall impacted into has more by bucket And less pullback.

we believe of and few next and forward all that Holzworth the yes, themselves increases feel about So, our years. still going brands the improvements will quarters sustain we over and good

Marc Wiesenberger

just as profile to my activity the good about maybe That’s and we quarter? of how to Thank you. the Great. next final margin level saw relative should quarter think in question, what And we this hear. just,

Timothy Whelan

– little completion both timing – because Yes. few now contracts the some with those weeks. a of the push to it’s brought and of quarter of on, could at being we end working those that Marc, the the very contracts, the be software challenging that’s are could

quarter. the So, that the will impact have on big a of outcome pretty

of that look right like. any to difficult what certainty quarter kind will say now it’s So, with

conversations are in. We we are about the enthusiastic

contract, seven services in the a the perform we with certainty the sign But either software confidence have the of license ability a software, work timing the just win. quarter. have or on of left to less in here six, weeks top deliver about We

Marc Wiesenberger

Understood. Thank you.

Timothy Whelan

you, Thank Marc.

Operator

you. Thank

next Our question. announce John your Please question Roy. today pose coming is your affiliation and from then

John Roy

EBITDA Yes. that about to at think you to This guys your before had look XX% have question c. a ends? more that’s really going COVID a is Is something is I really of is margin. enter. COVID achievable Or

Timothy Whelan

long-term us. a That’s target Yes. for

about a to And that. so, to of we of in get work terms that few think years

that’s something annually So, XX% I would the EBITDA yes, that’s of sustainability say, is post-COVID. margins

John Roy

kind back just question Great. And your that years? margin quarter, are to software kind to on the, continue rather content asked over next with gross are the a expectations of up before, than margin couple you’ve of ramp of of the next gross should obviously kind more

Timothy Whelan

margins, of think improved are and set, the margin. two happier solution contribution the also also I measurement carries which there the a software the the within to set, and greater RBS services product both contributors but test

be So, those those improve growth drivers two two, two the the increases the sets solutions there, primary going yes, will forward. and those to gross margins in

John Roy

so Great. Thank you much.

Timothy Whelan

John. you, Thank Great.

Operator

Thank you.

Our coming Please next today your question. pose question Morrison. your affiliation is and announce from then Robert

Robert Morrison

peaked couple has well million at it doing revenue of been considerably rehashed a all with the seems and much it Could down comment and chunk Penn Morrison, did guys, pretty it you hindsight ago. this acquisition, Holzworth of Capital. we it quarter decent it to big on Congratulations is million, is, a less on $XX like year pretty than was be and revenue in know over. other $XX a Robert of a deal. amount CommAgility although which the turned years solid out

revenue sense budgeting business. could So forward next we us address need the deal, a at RBS at year, XXXX? how no, into division It’s But as was could don’t on give for a But business you calendar looking lumpy that for us and you the deal situation. least to you that that. look for for maybe give budgeting in are a big big yes sense

Timothy Whelan

Yes. Thank you, Robert. Yes.

XXXX at the the the hardware think end the those that revenue So, of the as called about composition we throughout significant and and of out, year. it’s really cards you of customer for it decline

in cards the are If the near where low you services at the look hardware and XXX%. margin revenue software profile, the is XXs,

trade-off, that about think in to we software so, looking services. half of And as and cover are we the about

$X $X the margin that, to million that recovers fully getting So had. we or profile almost million

are contingencies data there a one that’s I So quarters, the point. no or software delivered a extent think of is regard to With other with is license that services, and sale of that lumpy could create to larger license. some of of these the of include deals we’re to specialization services the going on some lumpiness, but on delivery customization that top working

periods be actually of we we and And revenue path recognition so, that that as could time. that. predictable whereby as have pattern serve recognized deliver will of over a quarters and And more vehicle a multiple

about So, enthused we are actually that. quite

margin So, our it. up goal going make hardware and cards make go sure to those is forward to fully from we lost the that beyond

are of being thinking conclude planning going so are that’s and and off earnest in already the through That’s for And how December. we in the XXXX about stage kicked XXXX. we end we’ll now

Robert Morrison

us any compare you generating the NXP leads? us? it How try of generating proud prospect yet. some broad, give you But are versus revenue way qualitative of helping and CommAgility opportunity you there Is you Could is the backing it’s comments deep haven’t funnel? the we with on are times? scale seen lot Because a multiple the we to for NXP would And of it’s people saying leads it. to

Timothy Whelan

Yes.

five since the the the made XXXX late in state. think we’ve is magnitude to couple of four – has I increased comments to past our the a current funnel that times

color So that’s commentary. one

about the about four in one year. commentary We technology. contracts timing, one partnership in was and for is October. of two were was RXX on QX, we in other only of were really announced I’d make, release last – one QX, The And those of this The year. with XG Robert, released in signed four, was of NXP two you think and software if momentum, you think January the just, October NXP

investment believe growth XG. greater LTE in So, is customized where a LTE well as both are we and stage there we within do entering for specialized investment as applications,

in our starting six four to of affiliation the NXP contracts And six come months, About see are have think about about we that so, funnel, of to the just we and are months, one-third opportunities one-third those we brought really brought opportunities us two fruition. collaboration, NXPs. the that to that those been funnel signing through last as and

in So about those and channels in opportunities came one-third category. the through and they XG our of non-NXP own remain

we XG XG think So, the are and investment what funnel opportunity. excited the and seeing non-NXP both that next that as has for NXP last six we the months will about are months quite both just and bring. enthusiastic we six And

Robert Morrison

ability question your assume, Thank as the CommAgility’s expand of down you. this help company? Do prospects? very two well does global one chase And Europe NXP large Okay. I expand doing does geographical then, on and legacy. final area. Do from since they you to NXP globally the those us geography in have But opportunities are regions? are a America we breadth beyond they North

Timothy Whelan

parts our absolutely, of opportunity world. is in North we probably the other discussions global. have No, happening by America We funnel very But Europe. Yes. strongest see set of followed out

much much, yes. global So, very very opportunities,

Robert Morrison

you. Thank

Timothy Whelan

Thank you, Robert.

Operator

you. Thank

your Please and next Our question is Michael Potter. coming then today from announce affiliation question. your pose

Michael Potter

quarter Potter another forward. Hi. Group. good Monarch Michael It’s and a Good step Capital Congratulations on guys. morning, from

Timothy Whelan

Mike. Very good. you, Thank

Michael Potter

they that are you I CommAgility, are contracts the guess, in of can about just some on some that callers. on that excited pipeline? been side the degree some ones to-date to industrial and detail been signed, have a have Tim, signed you follow-ups I more the the On the your versus, contracts four give bit military us of that currently to-date use have little are a couple IoT, the pipeline, basically RBS questions and prior to

Timothy Whelan

Sure.

application again, one is it It four fourth lab mentioned, as that we’ve includes includes lab a lab, rail an satellite signed government So, academic the includes focused LTE deals – specialized a a cell. on we application, the include research. well, government a small and it

we’ve are the range are across an trial There solution in same And XG we and opportunity about investment a of with – military way is late all that characterization stages of is small same, have that law we that an small an us others array network. the government There the front the ones the are to that we how deals across host from specialized happy industrial private cells enforcement in application. as enterprise So opportunity. signed through The then think and XG for all signed. we’ve seeing cells potential again of not a applications. more of deals the

Michael Potter

some And, some sense can us you these of size the of opportunities? give of

Timothy Whelan

we’ve signed. what to similar Very

QX see is that on we one deal was seven deals in was what A signed. one The was was that in October in figures. $XXX,XXX, one You’ll There QX, $XXX,XXX size. $XXX,XXX. deal two

So, an about will think the think the we $XXX,XXX are going the of see the everything we array of range we spot $X.X sweet be million. as – future to between I although have

that that’s sweet probably the signing. of deals spot the think I range be of we’ll

Operator

follow-up Morrison. [Operator have a question you. from Thank in We Instructions] queue do Robert

Your line is live.

Robert Morrison

any whether said out? seems the high very a The not transaction. an and Thank I assume revenue to into granularity quarter included deals imagine, is million you. be Could going a you which we a you is synergy it playing almost runrate ratio in might basis on and quarter, than kind it’s potential ever the this give large $X.X us some would on Holzworth be how that on one-off sustainable, a of higher recurring, lot ARR

Timothy Whelan

Yes. Sure.

out. first point, is is, consolidation, the financial on integration, There Robert. rolled So, we fully organization people, has been the IT, that what’s sales structure, channel, we complete, training integrated are across

unified a force. We have sales

reps contributed the product that some growth revenue to of have embraced Our and and synergy. have

are with we really the integration. largely So, complete

terms … the In of

Robert Morrison

synergy so. Revenue detail,

Timothy Whelan

Right.

$X.X deal, $X doing a synergy, year-to-date. February million about revenue are million, business close of nine and annually it a we approximately of less just the million, company we this the was So, terms seeing first than $X was to months have in in $X.X of million or ownership

instruments. feel of some are that deals lumpy some of there. we there base have global are good a Yes, installed those So, deals about from names in that. But

book of feel vendor. from bookings, And our There as business some within flow will have the from which come we qualified have to we order have channels to deals these helped and large from customers that and our so, already the we repeat – an come revenue get ability a win. are specific

And to would a have Holzworth Parsippany in here team. large taken approved in already an for vendor the a barrier win that so, defense as orders to contractors been we have

element opportunities without I on is to up more the and completion of other the think certainly them would their that certification. than ordinarily the have ISO-XXXXcertification profile allowed that’s stepped RFP they bid

So, to expand product. names getting feel feel customer have these single of We lab names feel to strategies allows are go about say. their good likes Alfred base a that us we customer some after global a the buying and and that land into good. the We

test can If that the that be around those one in around the win other every have all environments after a all environment company and may of you should you automated world U.S. going Texas,

in improves of locations. success other chance So, a win location a opportunity getting at and single your in

Robert Morrison

any because Do measurement legacy our And contacts to environment we test relationships a customer measurement and that and do? focus production globally bring it’s test use their and for the business have chance different we on environment, and products into businesses? they totally

Timothy Whelan

get is, Robert, once the you once a you – answer customer account. But get into yes, Yes. the into

to the you So, manufacturers semiconductor have some largest defense grow or think absolutely if of you the contract that ability about largest both ways. some of the

to over and them the all within to that names opportunity common for relationships is our would customers they certainly different hope do I relationships across long-term set have of leverage time. we even brands. leverage existing think larger customers But our relationships and

Robert Morrison

Okay. Thank you.

Timothy Whelan

good. Very

Operator

coming do Michael We have Potter. you. follow-up Thank from a

live. is line Your

Michael Potter

the in which you The sorry, just contract, of said RBS October, $XXX,XXX, signed the was we think you question got I middle Tim. for in $XXX,XXX? it was before – I another Hey, cut-off.

Timothy Whelan

Correct.

Michael Potter

application? the was What Okay.

Timothy Whelan

research. That was academic government a lab focused for on

Michael Potter

Okay.

this also And are at a had dones? then, are are I point Or one that contracts are, that of these development we and Okay. contracts? they kind was, signing these of the lot question

Timothy Whelan

of hope to revenue. I sell of four Two, the software contracts them, would the others. our them the two our that a really is although I signed though then mean, characterized one and delivery and done, that’s would that, sold what’s license be our say we and was recognition not done We the approach. could as can license addition the of of the in delivery of we’ve we that license

continue licenses license, five they them their sell that bought work protocol – as licenses additional or different can only they they advance work. rep we chain as a if to So, also

that recognition, we license one hope revenue expand. us purposes that and that done is more for opportunity to So would recognition maybe there while for

services with I we the the in goes recognition completion, delivery, the more of the into all complex quarters The contracts, a will and payment of most more one the delivery signed – four and revenue the other associated delivery be that’s acceptance, recognized longer in deals three of methodology. the and think to criteria I is say milestones on of two well quarters we’ve And the cycles revenue are thumb would involved cycle. those that we so, have contract, But larger the late-stages I where the and depending delivery over as delivery rule as typically, of ones them. of the believe the four that, is signed, the from three

Michael Potter

Okay. Terrific. Thank you.

Timothy Whelan

Thank you, Okay. Michael.

Operator

We at have time. further questions queue this no in

Timothy Whelan

face you in confidence all for day. you good Thank everyone continued continued Have great speaking you health Great. Kate, again. look your direction. wish we thank We in with forward a and our you.

Operator

This conclude call. gentlemen. conference does and ladies today's you, Thank

phone you your participation. disconnect day. lines may this your at time Thank a wonderful You have and for

Wireless Telecom (WTT) 13 Nov 202020 Q3 Earnings call transcript