Core Insights - Airgain, Inc. has launched a solar-powered Smart Network-Controlled Repeater named Lighthouse Solar to enhance 5G connectivity in underserved areas, aiming to bridge the digital divide and create new revenue opportunities [1][5] Product Overview - The Lighthouse Solar is a wireless signal booster that actively monitors and adjusts its transmission settings to optimize signal strength and quality, making it more effective than traditional signal boosters [2] - This solution is scalable, cost-efficient, and can expand telecommunications infrastructure in hard-to-reach areas, providing approximately 20% expansion in 5G coverage [3] Performance and Benefits - Recent trials indicate that Lighthouse Solar offers over 50% improvement in spectrum efficiency, maximizing network utilization and enhancing operator profitability [4] - The solution is easy to install and can be deployed in less than a day without reliance on power grids, significantly reducing capital and operating costs for telecom carriers [4] Market Impact - The introduction of Lighthouse Solar is expected to strengthen Airgain's market position and encourage carriers to undertake large-scale deployments, leading to incremental revenue generation for the company [6] - Airgain's stock has increased by 71.4% over the past year, outperforming the industry growth of 38% [6]

Company Overview - Airgain, Inc. is a micro-sized player in the wireless connectivity sector, specializing in antenna systems, both embedded and external, as well as integrated and IoT solutions for various industries [1]. Mission and Principles - The mission of Grassroots Trading emphasizes providing objective, unbiased, and balanced research, supported by solid data and devoid of emotional influences [1]. - The focus is on small- to mid-cap companies, offering compelling investment perspectives on often overlooked opportunities, while also identifying potential in large- and mega-cap companies [1].

Financial Data and Key Metrics Changes - In Q3 2024, Airgain reported sales of $16.1 million, a 6% increase sequentially and an 18% increase year-over-year, driven largely by strong performance in the consumer market [8][27] - Gross margin for Q3 was 42.8%, up 130 basis points sequentially and 380 basis points year-over-year, reflecting stronger margins in enterprise and automotive markets [29] - Adjusted EBITDA was $0.1 million, an improvement from negative $0.4 million in the prior quarter, while non-GAAP EPS came in at breakeven [32] Business Line Data and Key Metrics Changes - Consumer market sales reached $6.9 million, a sequential increase of $2 million, driven by demand for Wi-Fi 7 antennas [27][10] - Automotive market sales were $2.5 million, up $0.8 million sequentially, primarily due to higher sales of RECON13 antennas and initial shipments of AirgainConnect Fleet [12][28] - Enterprise sales decreased to $6.7 million, down $1.9 million from the previous quarter, primarily due to lower sales of custom IoT products impacted by excess inventory [15][28] Market Data and Key Metrics Changes - The consumer market showed exceptional growth, marking the best performance since Q3 2022, with significant demand for advanced connectivity solutions [10] - The automotive market is expected to see continued growth, driven by the strong momentum of AirgainConnect Fleet and positive customer feedback [14][12] - The enterprise market faced challenges with a larger-than-anticipated decline, but there are expectations for a modest recovery as inventory levels normalize [15][18] Company Strategy and Development Direction - Airgain is shifting from being solely a component supplier to a comprehensive provider of wireless system solutions, focusing on maximizing established business and expanding into integrated wireless solutions [19][20] - The company aims to capitalize on emerging growth opportunities in asset tracking and 5G connectivity solutions, with a projected serviceable addressable market of $1.1 billion in 2024, expanding to $5.5 billion by 2028 [25][20] - Investments in new product launches and an expanded sales force are expected to help navigate industry-wide inventory adjustments and drive growth [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market potential and broader industry recovery, despite challenges in certain product segments [35] - The company anticipates a modest quarter-over-quarter uptick in enterprise sales as inventory levels normalize, with strong momentum in key product lines [18][36] - Future growth is expected to be driven by the ongoing ramp-up of Wi-Fi 7 shipments and the expansion of the RECON13 antenna sales pipeline [20][36] Other Important Information - AirgainConnect Fleet achieved certification from major operators, including T-Mobile and AT&T, validating technology performance and ensuring network compatibility [9] - The company has received its first commercial order for the Lighthouse smart repeater from an international MNO, which is expected to accelerate customers' time to market [37] Q&A Session Summary Question: Details on ongoing customer trials for Lighthouse and AirgainConnect Fleet - Management indicated there are roughly 40 ongoing trials for AC-Fleet, with expectations for continued growth [41] - For Lighthouse, two trials are expected to complete in Q4, with one pending domestically [41] Question: Market size for the auto airplane mode tracker and trial requirements - Management noted the market is still niche but has potential applications across various sectors, with AI technology enhancing predictability [45][46] Question: 5G network infrastructure opportunity and initial order shipping timeline - Management confirmed initial revenue from Lighthouse is expected in Q4, with broader deployment anticipated in the first half of next year [48][52] Question: Growth expectations for 2025 and breakdown of existing businesses - Management stated it is early to provide guidance beyond Q4 but expects growth across all three markets, with automotive being a significant contributor [53][64] Question: Revenue conversion timeline for Lighthouse and NimbeLink - Initial revenue from Lighthouse is expected in Q4, while inventory challenges persist in the custom IoT products space [62][63]

Financial Performance - Sales for the three months ended September 30, 2024, increased by $2.4 million or 17.6% compared to the same period in the prior year, reaching $16.1 million [88]. - Gross profit for the three months ended September 30, 2024, increased by $1.5 million or 28.2%, with a gross profit margin of 41.7% compared to 38.2% in the prior year [91]. - Total operating expenses for the three months ended September 30, 2024, increased by $1.4 million or 19.3%, totaling $8.5 million [92]. - Research and development expenses for the three months ended September 30, 2024, increased by $0.6 million or 24.2%, amounting to $2.9 million [92]. - Cost of goods sold for the three months ended September 30, 2024, increased by $0.9 million or 11.0%, totaling $9.4 million [90]. - Net loss for the three months ended September 30, 2024, was $1.8 million, compared to a net loss of $1.9 million in the prior year [86]. - Sales for the nine months ended September 30, 2024, decreased by $0.5 million or 1.0%, totaling $45.5 million [88]. - Gross profit for the nine months ended September 30, 2024, increased by $0.6 million or 3.4%, with a gross profit margin of 40.5% compared to 38.8% in the prior year [91]. - Total operating expenses for the nine months ended September 30, 2024, increased by $0.6 million or 2.6%, totaling $25.4 million [92]. - Net loss before income taxes for the three months ended September 30, 2024, was $1.8 million, compared to a loss of $1.9 million in the prior year [86]. - Income tax expense for the three months ended September 30, 2024 decreased by $43,000, a 1075.0% change compared to the same period in the prior year [95]. - For the nine months ended September 30, 2024, income tax expense decreased by $0.2 million or 272.6% compared to the same period in the prior year [95]. - The company incurred a net loss of $6.7 million for the nine months ended September 30, 2024, contributing to net cash used in operating activities of $3.5 million [99]. - As of September 30, 2024, the company had cash and cash equivalents of $7.3 million [96]. - The company has an accumulated deficit of $83.5 million as of September 30, 2024 [97]. Market and Product Development - Airgain's enterprise market sales experienced a sequential decline due to demand softness and excess inventories, with expectations of inventory surplus extending into the first half of 2025 [75]. - The company expanded its product offerings with the second generation AirgainConnect® Fleet system solution, a low profile, roof-mounted, all-in-one 5G vehicle gateway [74]. - Airgain's subscription-based NLink cloud-based device enablement platform provides a recurring revenue component for asset tracking solutions [74]. - Airgain's embedded cellular modems and antennas are deployed across various sectors, including smart cities, logistics, and agriculture, minimizing the need for additional carrier certifications [74]. - The consumer market is growing, with Airgain shipping a tier-one MNO embedded antenna system and a tier-one MSO Wi-Fi 7 router antenna system [74]. - Macroeconomic conditions have created demand softness, particularly affecting the enterprise market, while recovery is noted in the consumer segment [75]. - The company anticipates an increase in research and development expenses as it continues to invest in new solutions and markets [82]. Operational and Financial Strategy - The company utilizes an outsource manufacturing model while maintaining oversight for quality, testing, and delivery timelines [73]. - Airgain's operating expenses are primarily driven by personnel costs, which include salaries, benefits, and stock-based compensation [81]. - The company recognizes revenue from product sales at the time of shipment, reflecting the transfer of control over promised goods [79]. - Net cash provided by financing activities was $3.1 million for the nine months ended September 30, 2024, primarily from the issuance of approximately 629,000 shares of common stock [100]. - The company plans to continue investing in long-term growth, including expanding engineering and sales teams to penetrate markets [97]. - As of September 30, 2024, $1.7 million remains available under the At-the-Market Issuance Sales Agreement for future sales of common stock [105]. - The company applied for Employee Retention Credit refunds totaling $2.5 million in August 2023, pending IRS review [101]. - The company concluded that no impairment charge to goodwill was required as of September 30, 2024, based on current and expected cash flows [107].

Sales Performance - Third-quarter 2024 sales reached $16.1 million, a 6.0% increase from the previous quarter and a 17.6% increase year-over-year[1] - Consumer market sales contributed $6.8 million, enterprise market sales contributed $6.7 million, and automotive market sales contributed $2.6 million in Q3 2024[2] - Total sales for the three months ended September 30, 2024, were $16,101,000, representing a 17.8% increase from $13,696,000 in the same period of 2023[15] - Fourth-quarter 2024 sales are expected to be in the range of $16.2 million to $18.2 million, with a midpoint of $17.2 million[5] Gross Margin - GAAP gross margin for Q3 2024 was 41.7%, up from 40.5% in Q2 2024 and 38.2% in Q3 2023[3] - Non-GAAP gross margin for Q3 2024 was 42.8%, compared to 41.5% in Q2 2024 and 39.1% in Q3 2023[3] - Gross profit for the three months ended September 30, 2024, was $6,714,000, up from $5,236,000 in the prior year, resulting in a gross margin of 41.7%[19][20] - Non-GAAP gross profit for the three months ended September 30, 2024, was $6,899,000, compared to $5,354,000 in the same period of 2023[19] Net Income and Loss - GAAP net loss for Q3 2024 was $1.8 million, or $(0.16) per share, an improvement from a net loss of $2.5 million in Q2 2024[4] - Non-GAAP net income for Q3 2024 was $6,000, or $0.00 per share, compared to a non-GAAP net loss of $0.6 million in Q2 2024[4] - The company reported a basic net loss per share of $0.16 for the three months ended September 30, 2024, compared to a loss of $0.18 in the same period of 2023[15] - Non-GAAP net loss attributable to common stockholders was $557 million for the three months ended September 30, 2024, compared to a loss of $668 million in the same period of 2023, reflecting a 16.6% improvement[23] - The company reported a total net loss of $6.725 billion for the nine months ended September 30, 2024, compared to a loss of $6.944 billion for the same period in 2023, indicating a decrease of about 3.2%[23] Operating Expenses - Non-GAAP operating expenses for Q4 2024 are expected to be approximately $7.2 million[5] - Total operating expenses for the three months ended September 30, 2024, were $8,528,000, compared to $7,146,000 in the same period of 2023, indicating an increase of 19.3%[15] - Research and development expenses increased to $2,855,000 for the three months ended September 30, 2024, compared to $2,298,000 in the same period of 2023, reflecting a 24.2% rise[15] - The company anticipates GAAP operating expenses of $8.8 billion for the three months ended December 31, 2024, with non-GAAP operating expenses projected at $7.2 billion[26] Future Projections - GAAP net loss per share for Q4 2024 is expected to be $(0.13) at the midpoint[5] - Non-GAAP net income is projected to be $200 million for the three months ended December 31, 2024, with a non-GAAP net income per share of $0.02[27] - The GAAP gross margin for the three months ended December 31, 2024, is projected to be 41.9%, with a non-GAAP gross margin expected to be 43.0%[26]

Group 1: Product Launch and Features - Airgain, Inc. has launched the AT-Flight asset tracker aimed at the healthcare and life sciences IoT sectors, addressing the need for real-time tracking of high-value, temperature-sensitive assets in cold chain logistics [1] - The AT-Flight integrates AI with ambient sensor technology, complying with U.S. FAA regulations, which enhances operational efficiency by automating flight event detection and switching to airplane mode [2] - The device boasts an extended battery life, reducing the need for frequent changes and operational disruptions, and includes flight-approved battery options suitable for air transportation [3] - It can operate in temperatures as low as -20°C, making it ideal for tracking sensitive medical goods like vaccines [4] Group 2: Market Strategy and Financial Outlook - The AT-Flight utilizes various location technologies, including GPS and real-time cellular triangulation, allowing businesses to customize tracking options, which aligns with Airgain's strategy to expand in high-value IoT markets [5] - The device has received critical industry certifications such as PTCRB, FCC, and DO-160, with ongoing efforts to secure further approvals from major U.S. and European airlines, which is expected to drive demand and revenue growth [6] - Airgain's stock has increased by 354.5% over the past year, significantly outperforming the industry growth of 83% [7]

Core Insights - Airgain, Inc. has received certifications for its AirgainConnect Fleet 5G Vehicle Gateway from major carriers such as AT&T and T-Mobile, enabling compliance and interoperability across North America [1] - The AirgainConnect Fleet features a compact design that integrates multiple technologies, providing optimized wireless performance and significant cost savings compared to traditional solutions [2] - Recent accreditations are expected to enhance Airgain's market position and drive revenue growth, positively impacting its stock performance [3][4] Company Overview - Airgain specializes in integrated wireless solutions, offering customizable antenna products that address connectivity needs across various markets, including automotive and consumer sectors [3] - The company has demonstrated strong stock performance, gaining 125% over the past year, significantly outperforming the industry growth of 13.3% [4] Competitive Position - Airgain holds a Zacks Rank of 2 (Buy), indicating positive market sentiment towards its stock [5] - Ubiquiti Inc., another player in the networking solutions space, currently holds a Zacks Rank of 1 (Strong Buy), showcasing a robust business model and effective management strategies [5]

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the utility of a "Recent Price Strength" screen to find stocks with strong fundamentals and upward momentum [1]. Group 1: Stock Performance - Airgain (AIRG) has shown a solid price increase of 35.1% over the past 12 weeks, indicating strong investor interest [2]. - The stock has also maintained a price increase of 2.9% over the last four weeks, suggesting that the upward trend is still intact [2]. - AIRG is currently trading at 94.3% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - AIRG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that investors may consider other stocks that pass the "Recent Price Strength" screen, in addition to AIRG, to identify potential winning stock picks [4]. - It also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help in finding stocks that have historically produced profitable results [4].

Group 1 - Airgain (AIRG) has returned 115.7% year-to-date, significantly outperforming the Computer and Technology sector's average return of 21.8% [2] - The Zacks Consensus Estimate for AIRG's full-year earnings has increased by 5.4%, indicating stronger analyst sentiment and an improving earnings outlook [2] - Airgain is ranked 2 (Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [1] Group 2 - Airgain is part of the Communication - Components industry, which has an average gain of 42.8% year-to-date, indicating that AIRG is performing well within its industry [3] - The Zacks Industry Rank places the Communication - Components industry at 8, while the Internet - Software industry, which includes AudioEye (AEYE), is ranked 92 [3] - AudioEye has achieved a year-to-date return of 346.7% and has a Zacks Rank of 1 (Strong Buy) with a 45% increase in its consensus EPS estimate over the past three months [2][3]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- ...