
Financial Data and Key Metrics Changes - Q1 2023 sales were $16.4 million, a 6% year-over-year decline primarily due to demand softness in the consumer market [4][11] - Q1 gross margin was 39.1%, an increase of 860 basis points sequentially due to operational efficiencies and higher Enterprise gross margins [12] - Q1 adjusted EBITDA was negative $0.7 million, and non-GAAP EPS was negative at $0.08 [12][13] - Cash balance as of March 31 was $9.8 million, down $2 million sequentially [14] Business Line Data and Key Metrics Changes - Enterprise sales were $8.4 million, reflecting a sequential decrease of $1.6 million [12] - Automotive sales totaled $2.9 million, a sequential decrease of $0.6 million [12] - Consumer sales were $5.1 million, reflecting a sequential decrease of $1.3 million [12] Market Data and Key Metrics Changes - The Enterprise market represented just over 50% of total sales for the quarter, showing resilience against volatile market conditions [5] - The consumer market faced near-term challenges due to macroeconomic conditions and product transitions from Wi-Fi 6 to Wi-Fi 7 [9] Company Strategy and Development Direction - The company is optimistic about new product introductions and design wins leading to sequential sales increases in the second half of 2023 [4] - Focus on expanding market share within distribution channels, particularly in the automotive sector [7][8] - The service addressable market (SAM) has more than doubled from $7.6 billion to $16.5 billion due to new product initiatives [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges short-term challenges but remains optimistic about long-term growth prospects across major markets [21] - The company expects stability in the Enterprise market and growth in automotive and consumer sectors as supply chain issues resolve [31][32] Other Important Information - The company completed a workforce reduction at the end of the quarter, resulting in a decrease in quarterly expenses [13] - New product lines are being developed to address challenges in 5G technologies and improve customer experience [16][17] Q&A Session Summary Question: Update on the timeline for new product introduction and NimbeLink - Management is still working on the next-generation AirgainConnect and hopes to provide updates soon [26][27] - Supply chain issues for NimbeLink have eased significantly, improving the overall situation [28][29] Question: Timing for fixed wireless access solution and growth expectations - Management is optimistic about the second half of the year, expecting improvements in consumer, Enterprise, and automotive sectors [31][32][33] Question: Details on the Lighthouse product and sales expectations - The Lighthouse product is in live field trials, with expectations for deployment next year [35][36] Question: Targeting mix between consumer, auto, and Enterprise - The Enterprise market has been growing steadily, providing resilience against economic conditions, while consumer remains a higher-margin market [38]