WTT - Earnings call transcript Q4 2020 | Wireless Telecom Group, Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Wireless Telecom Group Q4 2020 Quarterly Earnings Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Mike Kandell. Sir, the floor is yours.

Mike Kandell

Thank you, Paul. Good morning, everyone and thank you for joining us on today’s conference call to discuss Wireless Telecom Group’s fourth quarter 2020 financial results. Tim company’s is today me Whelan, CEO. the With

Private historical do or management’s guidance well like words current everyone today not forward-looking relate will, XXXX. company’s on similar of to we of assumptions current include regarding on that begin, identified estimate, plan, the call In and may, remind as statements strictly other terms and would future I company’s the and as meaning forward-looking the economy remarks Before some future or and the cases, based Act forecasts statements seek, The to that circumstances anticipate, facts. events, such statements as business results. statements are within the conditions performance, intend, expectations Litigation expect, such and project, Securities Reform forward-looking maybe of could by our believe,

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

Tim Whelan

us. pleased sales thank the Thank you, you large progress declines navigated joining a we Good with everyone am XXXX as successfully very morning, made and from for as the pandemic the of I as well in Mike. customer. we global impacts

and a During with this test achieved We closed of challenges, unprecedented year of measurement increased We solutions. customers. gross new margins our through acquisition. business offerings, we successfully we our our integrated success Holzworth software costs. and And CommAgility new and and our winning mix controlled favorable

CommAgility Holzworth our expect and into year and to success We next. throughout this with continue

employees the accomplishments, strongest facing with of future meet targeted meeting mid-band quarters, inclusive and business activities to two in So with measurement Holzworth R&D new of aligning our resources spectrum were while deployments needs in growing Throughout changes eight service, while safety a our which year we forward-leaning bookings private customer serving incredible our to including of and list in our we products, to the exited also health started of employees, the culture activities, customers help spend. the a a a of year for challenges, and to resilient backlog, year-over-year, new XXXX, make Revenue quarter XG incredible strong while customers’ all ensure R&D our to of our and for with XG, for test Holzworth solutions thriving collaboration and commitments needed dynamic effectively added maintained member. networks. give and management needs. software, NXP, X% continuing Chief we demonstrated our team the increased new a focused new I invest XG credit to and must board of XG Officer responses wins and and partnership our their we

Turning to some on three groups. product our color

XXXX, COVID. business brand, by started our down a components hardest to we slow was half and QX, where Microlab decreased XX% group first hit product as by second RF Our strong realized but in empty the reflected to in bookings first revenues, In late nearly buildings. of half and the million, pullback or bookings of half the and stadiums year the of venues, investments $X for which compared

half of decline all in components. contributed decrease almost RF The the revenue year-over-year second

$X contributions products Recall that a our measurement our prior $X acquisition. acquisition year realized from of million reflecting Holzworth million and of year-over-year nearly revenue the business test revenue improvement million revenue the approximately in Our to $X the Holzworth. of generated

very and communications, So, of efforts test on and potential this product solutions, are and a products we our military growing on to slowdown saw Holzworth spend, resilient channel. larger in very programs. noise COVID aerospace performed customer the the QX satellite our meters while and in the measurement the and aligned which overall sector, acquisition, power Also semiconductor Boonton of other enable integration top we more hand, radar also were specialized by the and believe base impacted and on measurement growth instruments growth the focused sources sales technology QX well, the group, and sales. unlocking in were within significantly our wireless future of successful organic of generating test customer the

Boonton sales However, we improved. QX are the of power in solutions meter as encouraged

progress and to software Turning R&D roadmap, and continue our conversations enormously important of solutions, and developments sales our our by baseband the remain which radio, the won is XXXX. we our CommAgility on we new our customers funnel excited to brand, during

bookings XG wins metric quarters, we customers services. these second, year the included second, wins XG continue in almost in bookings CommAgility are nearly the XXXX the that was were are and and were million, of over under In hardware services and Some CommAgility returns. and our each the and in year just third our X fourth the just just total, and starting half of new themes: our to were happen software X for additional more than investments X XG recognized and first, NXP and X in was signed and software yielding services software cards. important $X collaboration agreement XG half highlights for of solutions, quarter. fourth underscores half XXXX, and revenue the in two with investments in investments for R&D for CommAgility for of twice This

applications. card and demand labs, XXXX. In LTE summary, testing. air over foundations relationship satellite have government first software continued Our forward. sales XG LTE have software card The our large the XG with applications, and service small growth ground healthy of hardware included applications, strategy rail purchase XXXX for customer network hardware XG our we expect made goals, sales, And for provide for to also our continued applications, quarter in base strategic private for station underscores and which cell orders will progress we and we going throughout additional considerable received hardware on LTE

market, our on and completed of of organic accomplishes we several points commitment our adjacent growth in first We integrated to growth with we successfully We of And set growth strategy. opportunity. addition which total revenue aligning growth. First, our acquisition Holzworth, This expectations our on our to future acquired delivering expanded Holzworth. year exceeded drivers. expanded contributes technologies, to which addressable product the future meet our acquisition

ability of margins driving mix software value-added four this XX% long-term Holzworth our success the our reflects and We our add our this more target solutions three to acquisition believe of accomplished we above and software revenue through year. in and in gross of growth in accomplished higher we quarters Second, the our revenue realizing CommAgility.

acquisition, XXXX. reducing this to operating generated the and to balance the summarize, the million With in the remain by committed of through operating expenses flow. be a certain us reduce QX cash demonstrated excluding And with profits. We debt sheet committed leverage remain the the quarter debt. with charges. $X of accomplishments. and going strategic which and operating we million by year X% cash I reducing Holzworth our before last, am the over walk We financials. adding XXXX of will Mike increased started to to cash we and first generation one-time back additional of driving to that, suite on and to by a call $X concluded Third, we payment was making progress uncertainty We To effect turn approximately

Mike Kandell

down continue declined this specifically XX%. was year were Breaking than the we everyone. to Good for to COVID-XX the $X.X venue impact group, I results the and in carrier on am product spending, the or comment XX, $XX.X of RF fourth then our are you, unless again year-over-year XXXX. the All going fluctuations for walk quarter balance XXXX a morning on Consolidated December by period. quarter million, revenue of through revenues XX% as the components basis projects for XXXX product noted. which Thank approximately Tim. as sheet otherwise large fourth on lower group million prior see

at signal or group declines contribution our Additionally, our approximately strong sales hardware exceeded continued and sales XX% due for our offset million the of decreased revenue from the over product to to in partially has higher consecutive prior to the profit digital cards. due were which lower processing the Holzworth, overall contribution T&M by only year increased year XX% XX.X% was margin primarily the to the basis all of Holzworth for however $XXX,XXX higher quarter XXXX. Consolidated of points was than gross due lower products. third revenues. margin prior profit gross year which XX RBS finished primarily These $X.X declined of due expectations Consolidated

the were and COVID-XX hardware charges liability included a respectively. our uncertainty product reporting expenses loss The of and was future relates lower more year the offset a than marketing and offset benefits inclusion commissions, $XXX,XXX record operating quarter impairment to consideration loss by to financial the R&D consideration the software us prior salaries. in in contingent current expense prior performance acquisition value expenses the and than are to Turning due to lower marketing expenses of as the non-cash an in mergers of reporting goodwill reductions. earn-out or the RF Consolidated $X.X to our and general decreased loan amount of were value lower expense revenue and charge R&D charge third-party year administrative in sales of specifically Holzworth, in foreign fair the uncertainty facility. $XXX,XXX lower unit of $XXX,XXX sales of on to increased expense the fourth due expenses, Also in the primarily term due to our of the the administrative is year early stages $XXX,XXX million to the or primarily costs primarily Holzworth period XG services general and expenses fair Holzworth a impacts X.X% related interest of X.X% due expenses unit increase sales decline the the and of to $XXX,XXX than $X.X CommAgility as to expected decreased components offset contingent of is on headcount of the goodwill prior Consolidated and the inclusion fourth our X.X% R&D one-time of from better reduction XG on group our which of as the and and pandemic, the lower losses growth Other due expenses expenses. adoption. and two $XXX,XXX period to of from operating lower The of consolidated in year the by quarter. the exchange inclusion due million required cards, impairment the in and and in Holzworth was decreased salaries by $XXX,XXX new

which due lower loss $XXX,XXX loss $XXX,XXX was during impairment primarily for lower specifically net to related incurred non-cash goodwill on Non-GAAP year the prior to adjusted profit. and the the period EBITDA consideration $X.X charge million was the contingent the earn-out. Our for Holzworth quarter, was one-time quarter the quarter, to approximately primarily the than fourth gross charges due

The Availability balance $X Paycheck of gross which was the revolver Program million. gross SEC XXXX, million. application cash X. SEC. qualified million operations December asset-based flow Cash further February described debt million. morning expenses, no filed loan, three XXXX to has debt May and from been we on Turning XX, consolidated are was was spent our been to received $X was Form to Included have the related submitted X-K the signed is $X.X filed $XX.X we funds sheet, our the Form $X.X this on and as Protection guarantee our million our on under the which business primarily will forgiveness although disclosed with of are there be amendments, in loan small association, February XX with and XX-K significant forgiven. payroll is on the in In

quarter compliance purposes which calculations Muzinich, an the of amended. is loan to was EBITDA covenants first term for fourth The for in waived, the amendment with facility of was covenant our certain with definition

loan. pay was down Our we and our term to agreed $XXX,XXX of interest increased margin

share where the an Muzinich terms payments. our of in price we the The of amended and to facility, And purchase third purchase deferred Holzworth to amendment amendment to earn-out was America payment second and credit is an which amendments. consented the Holzworth Bank agreement, payments BofA the

very in which and pleased with the agreements a and position flexibility in outcomes future. will believe help This the will over the between a improved closing profitability their some collaborative these value greater partnership. to the the company Holzworth drive put was and Tim are of We liquidity, we we of growth I for amendments the revised the Bank now and founders Muzinich, remarks. effort and call company, turn of America back

Tim Whelan

post-COVID early challenges, and a business exact of improving for our timing customer to are continues there color testing long challenge are we Mike. how sales said With very providing that a would what the guidance importantly, for and spend. complex second will our have some this some the Thanks of add CommAgility criteria. expectations. related thematic uncertainty to translates that business to like we to customer A is points high revenue stage recovery forecasting time, acceptance seeing look At solutions what complex be recognition more few and at about level RBS cycles, which

close quarter. deals comparable We includes March, bookings that some to and to of with second our revenue XXXX our expect our are in in QX revenue around expected final others This to close and in QX a number consolidated stages, expected be large assumptions bookings. to

the long to as our times customer, bookings and the QX to to well expected We CommAgility prior are to fourth software to chain. quarter, bookings from the to the card includes in of XXXX not bookings in delivered RF large additional next quarter also the This purchase sequential three second the new services given at existing five of supply as quarter seen XXXX. quarter Within reflect strong expect the in components, the lead bookings. over first expect quarters of orders we still but improvement levels reflect be hardware XG another customer which another

the assumptions. We quarters, gradual funnel not components. are are many large seeing we in the our coming in driven RF deals by expecting over for business, component improvements yet two RF Within bookings

in will First, the in-building be course carriers over will the an catalyst and stadiums, buildings, we larger be venues believe large of for a which that spend there year, for increased attendance specifically wireless projects.

customer we of to component meaningful we then, RF additional the as that see and have expect spend new options spectrum spectrum. XXXX this Second, spectrum spend, announced now generation. this efforts that mid-band completed, for XXXX. we we Since our continued in be in set prepared solutions deploy invest this demand increase address in July in to product engagement mid-band have and mid-band invested have to for internal training, To they later carrier new

carefully He and should is very of demand Fritsche. Tier leadership, an Chief a addition levels talented recognition depth will and to and a design I the his with incredibly executive already pleased and successful member, network ensure X levels Jennifer difference and and Alfred in semiconductors to inventory new suddenly. contacts a both X Rodriguez to report board contributions. is wireless, of of and full the our in also executive experience. optimism regarding our and new his experience evaluating with making on-boarding welcome his end Officer, team, Tier is Revenue am I stocking are We change and note Alfred building our

board the and with analyst years welcome if XX and serve as winning expertise respected highly tremendous open award the Paul, are please We our subject fortunate and is an we new expert, sectors She and member, the could value Jennifer. team customers to board. for lines to adds Thank of insight questions? the matter a And executive you you. to covering our also

Operator

Marc your your first question. The live. announce is Please affiliation your Instructions] [Operator and from Certainly. is Wiesenberger. coming question pose line Marc,

Marc Wiesenberger

could Riley if XG Good Securities. off happening and talking taking morning. the question. is from about Marc where I with investment wondering you Wiesenberger Tim, B. spending my start am current for out, Thanks of kind and money this the of timeline those of for expectations two ideas? match kind firehose that broaden of prerequisites just maybe square there public the maybe is XG it and perception to kind

Tim Whelan

Yes.

to to spending think we mid-band So edge had of and the in they very what first investment. we own are front understand at before they key a the started strategy Keep component spectrum the the licenses money. they were spectrums mind, carrier

a if you were in XX% the fiber look core, whether X uplift balance in-building that’s the we A last at assuming key one key to the their that’s announced to is most again, With very to X of $XX and to CommAgility, and priority that front address at the mobile its year of environment point to a carriers X is over equates the that difficult and whether that’s that’s evenly and on called projects billion XG that’s the point. of at won about edge regards of So week metrics that relates RF the out, the investment, second increase the in what’s spread at the what years compute, I related end. whether and the understand spend investment at one to we that that point the components. that’s XG

of an go-to-market to take their for actually approximately applications X value-add two through what those those go years intended Now, all is. and their expected application with projects are end to trials

think of are end in a front at the at I very we XG. investment So, period long

network private enterprise of for benefits we applications are the what understand to trying that’s where still can and are providers the focused. think provide I

lot value evaluating just a lot are a XG primarily more those can technology, XG with broadening the XG brings around block building to for the more OpenRAN largest enterprise more and players and we discussions lot be standards, the a is and a Our from to providers market. that is the and seeing the environment platform, the NEPs now that how away deployed innovation our and dynamics are

I hope me So, let Marc. know. helpful, expand that’s area, any can in If I please

Marc Wiesenberger

sales was in fourth and wondering maybe we going for No, quarter about were LTE am aggregate versus XG LTE forward? I in the should how of much think how that XXXX and of helpful. spending very kind the

Tim Whelan

are we to balance. think a I see going

I metrics quarter. in of our large hardware fourth XG. XG we those for X so was in the for is of balance again, and the bookings won, X were the So and fourth again, card, There a of order X called then half more on that than were XG out that LTE the X the the were projects other is the quarter

And So, I later to years to then the on think X spend as we ‘XX, next of continued sort even balance we will in see and over will XG. and are XG. XG we we a more going see and see start in ‘XX get spend

Marc Wiesenberger

Great.

one-time You customer. you existing a or expect you that kind about is resumption about but sales did delivered we your be throughout just should that card will think a – this to hardware be how continue said Do expect it do evolving? quarters, the multiple talk year the with purchases, kind and of kind this of to you blip of of over

Tim Whelan

received and It’s in not sense QX one-time QX. in orders the we

of could XX. are time, products their robust I orders, customers, who anticipate orders QX NEPs. environment the receiving lead demand auctions. out have of the in and became conservative realized fairly lumpy has because demand supply the smooth but spectrum XX became a given And factor, XXXX, the anticipated I over XX customer purchase the times how period the demand expectations spiky XX, these realized on carriers primarily the from spiky their long think pull weeks be to focused future, of for more I about large a components or to going enter have and in QX for they the chains are doubled, because we think second However, think that the in And the our all as now kinds some had NEPs weeks, long because back, and

think of accelerating to so everyone And orders. I and that is reacting some their

Marc Wiesenberger

has and explore And just a been defense two-parter. about of WTT then talking The communications traditionally, per efforts satellite military to for ties. weapon systems. it. Got kind last accelerating XG and of had DoD And kind one their strong me

government I too? on And cohorts will and with there. if Holzworth. think talked broaden very to the great there could with Any update be leveraging call, last Thank you opportunities wondering So then about about relationships talk WTT’s am you you both both opportunities much, defense I with

Tim Whelan

Sure.

our the in National announced have participation IWRP. Spectrum we Consortium So and

enthusiastic for We us that. are bids And trials. the about in the led have proposals DoD and participation those certainly XG to

can our that is proposals hope future, in about we’re to there So got work there, but some and excited price there, some announce participation wins do. in we’ve we we the

think relationships A Holzworth, existing that’s within there primarily enabled for our certainly came military So to key entities is specific about through have point point. are Holzworth taken. and that one been we flows received leveraged and of key second orders and that very existing our the they deal defense, and Holzworth measurement, and that outside of the brands customer-proved be test one

So defense DoD within exciting the top participate one. trials. we two, military and tort relationships our some the the measurement XG expand certainly in and Number were line, DoD, test to of leveraged to number have leverage whole fairly also

Marc Wiesenberger

Thank very Excellent. much. you

Tim Whelan

Great. Thank you, Marc.

Operator

your you. John question. your is from And John, question the announce Thank live. Sturges. pose affiliation coming next your line and Please is

John Sturges

I’m the questions. on had the relationship some with a is really add supply that you. – you much in business, with quarter. that, Thank South with Company. Thank I’m contract other And with two curious been that NXP? & new Korea the your can color, was was is The you certain of – the One completed? just completed have modules you. in announced the about affiliated Oppenheim short fourth if just how question NXP, you

Tim Whelan

Sure.

to deployment will was continue exciting announced and our contract that is their UCaaS What’s expand the really we the completed. that success. So success about

that our volume And was arrangement. a in to of expand upfront that will opportunity. work give done if continue just they trials, beyond additional is us part the their So

about the The have. road NXP map business. is we XG new second the point aligned to

And XG wins come so aligned more is there. there And to the from NXP hopefully, the relationship. were to

John Sturges

had progress year, with what Terrific. I excellent the to during with. thought deal especially you made you

situation. So, really difficult good very a end to a

So you. thank

Tim Whelan

much. Thanks so John. Great,

Operator

the coming you. from announce is live. question line Marcin. next question. Thank your your Robert pose Robert, And is your Please and affiliation

Robert Marcin

Penn ‘XX I’m Capital. on, R&D. It the Is say, about buck loss slow in bang guys. Marcin, our versus of micro R&D XXXX right price obsolescence as of in due year. are Or it for and/or not in we issues was to share competition in there the there the new was any Robert we Hi, just technological products? Congratulations issues a despite commoditization products. try in department to avoid to getting increase ‘XX, versus with down Chinese portfolio let’s a market the interesting ‘XX. land. an concerned in down products this a significant and lot more investment And investment of

Tim Whelan

Yes.

the some And out those So are the, those have it, we called demands meet to take and for business, the evolve RF to the will example. the that product technology passive price are the on pressures but conditioning, mid-band spectrum, set the certainly call threats just the continue the and demands. what commoditization the in certainly the active the – fact you risks

both and building. macros carriers requires to in combine different different frequency connection they and having different And deploy as different and so that bandwidth that power at conditioning to levels types of completely different with

product R&D address we that’s and where how dollars. And our set, the we that’s so point

encouraged year. in due mentioned second very half actually And a fall I of by remarks, the in very off my demand to As the had it. half, the decline good yet the was of first we entire

about expect going think the the – to RF can that we right aligned NEPs as and done market how road and So to solution. we provide both mid-band as set our with capture to position to components things be to We well that’s what carriers a product competitive we’ve deploy think think we about our keep spectrum space. to map they the how can we and how

it call So design the in.

to it. that the space. dollar think things on of we’re got generates But some investing. we’ve return. looking it, as to we’ll eye R&D comes every see ensure I We’ll done we’ve grow So a and return to invest carriage see what and that And our

Robert Marcin

dramatically Alright. the and that. bench that that Thank and challenging going to a to see of to are other of mitigate plans – you $XX cycle synergy Other have beginning were soft million and So, expanding an the Holzworth. and deal, the Are the table product all integration happens? particularly automotive, calendar you mitigate But guess in measurement the you. side. year and that. R&D obviously, Actually, at a out we year pure for you legacy are synergy you in there? year product? understand the businesses revenue for can we from once there on very that, without cyclicality, revenue the companies to continue bring extent it’s objective in the opposed a there is Holzworth. question what deep a from And sales a And the department, to lot that the semiconductor ex the cyclicality that it which that for Is a dramatic and not production that, industrial, management. if on a very Holzworth, build little revenues, starting that? I increases guys that’s participating us. in kudos congratulations year of this and parts revenue and that fact you is, I sort your in there take just RF, than – of is did phenomenal the million, did Without and deep $XX the test some it And into $X generation, that And of deal, how in that? orders business on that acquisition but take it, new power for that and for generation chance save million and think I really of guys CapEx a semi,

Tim Whelan

Sure.

number to Holzworth we mind But certainly the product ATE military also sell one, can as that that the set environment is automated into. in – I set a confirm and well keep aerospace So the product market for semiconductors. aligned programs called have we Holzworth in involved yes, customers of test number

not the first are key semiconductor space we my indexed is to sort point. exclusively So of

better how of a we product and the key what’s second point, do yes, spend space. of that road doing we our launching that generation how And as announcing who cycle cyclicality serve that expect at and that space third equally point competition. we’re to others through and CapEx and energized on happening bullish and As is semiconductor Keep to our about the the and which even latest to mind it. think equally price try capture compared map how we’re are excited the the in mitigate we point a much better measurements provide designs, think in about

good we So in we a think space. are

prepared to yet. say not We’re

we and over We’re going come looking road of some out guidance to that And very the our on year. done to is product build upon good. the captures enthusiasm. course and new expect But year CapEx in of that provide products current we’ve map what the

for I your help, So you those Robert. points comment. hope two Thank

Robert Marcin

that CommAgility, think at million Yes, and the on meeting somewhere $XXX excellent. I annual And year, the mentioned have is billion. you last might then TAM finally $X between

TAM the grow to the how us or year for that’s any – larger? we efforts so or obviously. our response significant of is million has Is sales model opportunities and So $X in sales next opportunity have are XG, in, growth. could CommAgility large try and to for way to the I are so XG small, two, considering guess there even But the for growth there

Tim Whelan

Yes.

are… we So

Robert Marcin

Are million, revenue well? over if million, years we couple about the talking you of million $XX in execute next $XX $XX

Tim Whelan

Yes.

our keeping is addressable eye the we’re network total So how as availability and standards O-RAN, And the especially market dynamic, well. that addressability on carriers it’s defined that’s that how open radio to has market and extraordinarily who access with market. and changing embracing the now

right closest the billions quite and first in and addressability that dollars opportunity to participating everyone as excited quite with of we all down actually value differentiation we’re break about point The space our market the enthused for the the those and the set. So solutions. is have to of challenge think

working that. think that looks going over year, we’re the of the better growth of is So course opportunity there we’ll to I like. idea have We do probably and think what continue ahead a

Robert Marcin

That’s… Alright.

Tim Whelan

Thank you again.

Robert Marcin

have to about you next guess Day year? an suffice. will Have point Analyst at thought holding guys some I that in the

Tim Whelan

had a the year was an We active to are working and think there we year very building companies, approach are like spending. environment with most ahead. the we where our where more past, we up firm we IR to less Certainly, the as COVID with we in disciplined had also be done year restrictions, about

So we and are working with other our in. participate IR do will be there I we firm activities think

Robert Marcin

I on to about I guys. to know anybody I but else Parsippany call, visit get the don’t Alright. look opportunity any forward

Tim Whelan

Great.

you, Thank Appreciate Okay. Robert. it.

Operator

[Operator Instructions] And Michael, affiliation is announce pose coming from Please line your your Thank you. Michael live. and Potter. the next question. question is your

Michael Potter

year, momentum examples very really some go-to-market end to guys. of that strong on us glad CommAgility Hi, into QX. to give you Group. with Tim, we It’s carrying are I on how the and NXP Monarch can am working Capital impressive. the And Potter Congratulations is hear that strategy? a from Michael

Tim Whelan

Sure.

So, into into us they have and draw And activity conversations. joint we we activities. that and them conversations and into funnel the sales obviously draw important in, reviews the weekly from we are then participate are conversations for engagements most we drawn

companies not spend be large a we company. that a work multiplier. willing might the us they smaller credentialize of our where that’s act force otherwise They with us sized time. or NXP gives to aware our for as be So, of majority And scale. expertise

the are a directly there to relationship. attributable proposition that main are opportunities that of So, funnel and value number biggest that’s

a other marketing, participate. In in participate do They have we we collaboration website that as on third-party go-to-market joint terms example. of one

provided in technical Second aligned that blog we to demos. recently, the example of is we their XG core the given where also processor, Virtual use just for are and also both very architecture. ARM articles ARM NXP’s the we And we ARM participated Summit published

active as in. NXP, is joint to primarily on pursuits, other focused participate with various but venues very there marketing well So, sales

great the out you seen of that. to there March I is some pulling June, uncertainty is still for on of forward, a and have planning world the there, going have already from an tradeshows headlines but As to moving Mobile Congress probably opportunity been more number tradeshows large companies deal returns there of despite think World of of

but will the all at So, when to I tradeshows and about the think we large normal, returning uncertain feel be better calendar the world still large it’s start hitting well attended.

Michael Potter

am development And will take time that hope at hopefully, become am opportunities we regards we will size? commercialized, and their, U assuming to NXP, these I much that potential they programs these ramp to I truly looking Okay. in the to are correctly some larger sales cycle therefore, are with –

Tim Whelan

Yes.

the of designed is other be different in accomplish So, some contracts royalty is those a is back There paid additional unless instance, that it’s is support that a trial, for license have it’s probably of back of the support. amount end get we the it, launch there there to In are a lab. but proof-of-concept There provide lot to is in to not volume. end probably instances maybe proof customization It’s development government they not a there to On software of follows a of a the to, a sale of applications a sale take need to that. the concept where volume. that and contracts they and application our the or this call significant that, software. third should for

back end. support services the on And in so come it’s that of more

Michael Potter

okay. Okay,

our we curious we canceled are of a XXXX. that planned we obviously, those And XXXX, originally life six were come think or disappointing in on we into over XXXX And pushed are projects these COVID, affected lot out. for and am of some that about had projects those just kind into XXXX, went is projects seeing most back Another funnel. and I kind from a prospects, were the those question Microlab, the just to obviously of that into above now of got year by I year X-figure going and

Tim Whelan

Yes.

actually back to X go X ‘XX. or those projects So,

Michael Potter

Okay.

Tim Whelan

them we did quarter. the half was And so delivery win delivered a in number There second of some the of them. ‘XX. first in We

seen have us. we projects size for as what internally define of We $XXX,XXX those not opportunity over large typically

seen X over none months those XXXX. last the have of We of

those specifically. track we very So,

very exceeds in seen the a decision-making any have of XXX, and nor a and XXXX have we is away. not but early single likely barely discussion discussions months seen at We with to stages project that there be X

showed the funnel. only up in that that’s the one So,

We which to the helped in have results. drive any any X given large of from not have stadium anywhere venues that seen year, those X typically delivered we

behavior is carrier the Now, changing.

those were projects. leading they Sometimes

they to system forth provider of putting integrator them, have that Now, they a are specs or a to course, neutral host build have they meet.

will space. So and in about that as see of a terms and lot XXXX we thought participation what very different And again, the XXXX. it’s we just XXXX environment a will in look involvement in dynamic

Michael Potter

So, well. have and had I and and spend into their and and the talking Analyst last this Day they over year TV before the an mean, of as all enormous were are obviously papers year large the I carriers to week assume most week for CapEx about next

of order to XG year. of a in are QX in we come, to when they have to use to guess the start the people expect they contracts, campuses case, that go as have in rollout? fall, If stadiums when assume go out the that half people going QX seeing support go centers, second back I to to example I college going that to is QX would these sometime Some said facilities them and come are rolled is the I back to convention of to – back in

Tim Whelan

Yes.

uncertain. I now about it. with aligned think is described as way difficulty what shutdown at we I highly the in the the was expectations, it were one made that an Michael, Duke much our and us, to was order, University. now football comments and are described timing you to understand, The initial stadium, challenge I received have of And that my discussions is very

they early do not as we saying Now going thought. are are to we it as

is there one a about that’s sort uncertainty I guess So still of point. great of that. deal

to announcing be announced amounts raised year billion X $XX.X back you the would that they going point between The point maintained second about and one for of $XX.X CapEx, carrier The spread enormous guidance $XX their billion. over the the extra CapEx data years. billion carriers

could level again, Now be be it could be mobile didn’t that’s compute, into of laying get core, knowing not could be where fiber. edge They it spent, detail. going to it the that

determine. It’s educate for years Tier in to solution very be we on with whether to preparing inventory and that deploying. for we the evenly it’s QX, continuing the then year, turned timing XX%. comment of spend If does partition is it, our assume will it’s when translate and spread it’s hope to the that wide-band promote spend, the very that’s levels hope. sets or hard also we coupled over are X are midpoint and now But Tier And that are evenly would spread of we and the that’s us just ultra of that we X you we our every spectrum QX preparing be are X That into addressing that address amongst that. somewhere give

Michael Potter

good on call. done with guys. well a Congratulations Alright, conference quarter and the Okay. terrific

Tim Whelan

that. Appreciate Michael. you, Thank

Operator

did come follow-up. line have live. your Robert, is a Thank in we you. Robert And with

Robert Marcin

work we would carriers Obviously, Do the some lost company? Microlab areas in small that mostly building. and the cell not in cities we there and/or outside addressed, market, to urban is efforts point, small densification with guys. just Hey, forever dramatically cell have building? exterior the in as but products that their a say, you part to decide coverage at And expand chance that of wireless in are

Tim Whelan

the think about think there, how on themes or and to I No, wave millimeter you environment. Yes. what translate carriers I and two the urban urban, touched outdoor

that outdoor the with is environments. higher that the environments, spectrum, Number number sets So both higher products do yes, we product two, required dense frequency a that we our address urban of for deal the spectrum have subset one. have

Salt/Fog outdoors. call In a the And endures of needs that’s fact, product what series we sets. the launched rating a simply we that are that of, components of level

are So, lesser have and in-building on we of the but majority towers, ours wireless. do outdoor

Robert Marcin

the Well, is Alright. urban outdoors. environment moving

So hopefully, decide we that well some at carriers to get as and times. densify the business

Tim Whelan

for hope, that. you We Robert. hope. We Thank

Operator

the questions there at no Thank from this queue you. And time. were other

Mike Kandell

you and very today forward we joining to for look speaking everyone soon. Great. us Thank you again to

Operator

and does you. this conference call. today’s Thank gentlemen, Ladies conclude

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

Wireless Telecom (WTT) 19 Mar 212020 Q4 Earnings call transcript