Airgain(US:AIRG)2025-05-07 22:02Financial Data and Key Metrics Changes - Q1 sales were $12 million, aligning with the midpoint of guidance [13] - Gross margin improved to 44.3%, marking the fifth consecutive quarterly increase [14] - Operating expenses totaled $6.6 million, remaining flat year-over-year [15] - Non-GAAP EPS was negative $0.11, with adjusted EBITDA at negative $1.2 million [16] Business Line Data and Key Metrics Changes - Consumer sales reached $6.4 million, down $100,000 sequentially [14] - Automotive sales were $1.3 million, down $2 million sequentially [14] - Enterprise sales totaled $4.3 million, down $1 million sequentially, marking a low point for the year [14] Market Data and Key Metrics Changes - The addressable market expanded from $1.1 billion in 2024 to $2.6 billion in 2025 due to the shift to higher-margin solutions [5] - The company is closely monitoring broadband and enterprise markets for demand disruptions [4] Company Strategy and Development Direction - The company is transitioning from low ASP component supplier to high-value wireless solutions provider [5] - Focus on scaling Lighthouse and AirgainConnect platforms and deepening presence in key global markets [3] - Strategic partnership with Ormatia to support deployments in the Middle East [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the enterprise market's recovery and expects sequential revenue growth in Q2 [17] - The company is prepared to adapt to the fluid tariff environment without significant impact on product costs [4] - Management is focused on executing strategy while targeting positive adjusted EBITDA in Q3 [18] Other Important Information - The company plans to file an updated S3 shelf registration to maintain financial flexibility [19] - The leadership team is experienced and focused on driving operational performance and long-term value creation [12] Q&A Session Summary Question: AirgainConnect customer traction and design wins - Management is optimistic about design wins in the coming months, with a focus on Tier one customers contributing in the second half of the year [26] Question: IoT business rebound expectations - Management noted key customers have resumed shipments, indicating a positive trend in the IoT business [27] Question: Lighthouse pilots and commercialization - The company is on track for trials in multiple regions, including the Middle East and Latin America, with expectations for ramp-up in Q3 [37] Question: Tariff implications and competitive strategy - Management indicated no significant changes in customer buying patterns due to tariffs, leveraging a fabless model to mitigate impacts [42][46] Question: Consumer market growth and WiFi developments - Management expects moderate growth in the consumer segment following a strong Q1, with additional MSOs launching WiFi 7 [49] Question: Lighthouse revenue expectations - Management anticipates low seven-figure contributions from the partnership with Ormatia for the remainder of the year [55]