Airgain(US:AIRG)2021-11-10 02:59Financial Data and Key Metrics Changes - Q3 2021 revenue was $15.5 million, down from $17.3 million in Q2, with an estimated loss of over $3 million in revenue opportunities due to global supply shortages [12][14][16] - Non-GAAP gross margin for Q3 was 36.5%, below previous guidance, primarily due to product mix changes and increased costs associated with supply chain disruptions [13][14] - Non-GAAP net loss for Q3 was $1.1 million, while GAAP net loss was $3.1 million, with non-GAAP loss per share at $0.11 and GAAP loss per share at $0.30 [15][19] Business Line Data and Key Metrics Changes - Consumer revenue in Q3 was $4.6 million, down from $8.9 million in Q2, mainly due to supply shortages [12] - Enterprise revenue increased from $6.2 million in Q2 to $8.7 million in Q3, driven by growth in industrial IoT and traditional enterprise Wi-Fi products [12] - Automotive revenue remained flat at $2.2 million in Q3, with growth from AirgainConnect offset by declines in aftermarket fleet revenue due to supply shortages [12][13] Market Data and Key Metrics Changes - Strong demand was noted in the Enterprise and Automotive markets, particularly for integrated wireless systems and the AirgainConnect platform [6][9] - The company is experiencing a backlog of approximately $11 million for Q1 2022, indicating confidence in recovery and growth [20][42] Company Strategy and Development Direction - The company aims to transition from a component antenna supplier to a system solution provider, focusing on integrated wireless systems and industrial IoT [11][21] - The acquisition of NimbeLink is expected to enhance growth opportunities, with existing products performing well and new products in development [7][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for products despite supply chain challenges, anticipating growth in 2022 across all markets [6][19] - The global supply shortage is viewed as a transitory issue, with expectations for recovery in the first half of 2022 [14][20] Other Important Information - The company expects Q4 2021 revenue to decline sequentially, with guidance in the range of $13.5 million to $14.5 million [15][16] - Non-GAAP gross margin for Q4 is expected to be around 34%, reflecting continued product mix shifts and higher costs [17] Q&A Session Summary Question: Supply chain impact magnitude - Management confirmed that Q3 lost revenue opportunities were about $3 million, with Q4 expected to see around $5 million in lost opportunities due to supply chain issues [24][25] Question: Promotional activity response - Promotions have led to a significant increase in demand, with a 200% increase in the opportunity funnel noted [28][29] Question: Consumer revenue visibility - Management indicated that consumer revenue is expected to recover, but visibility remains limited due to ongoing supply chain issues [62][63] Question: NimbeLink growth outlook - Demand for NimbeLink products is strong, with expectations for significant growth in 2022, contingent on supply chain improvements [51][54] Question: AirgainConnect product traction - The promotional efforts for AirgainConnect have successfully attracted larger urban customers, with expectations for continued demand growth [57][60]