Airgain Inc (AIRG) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to Airgain's fourth Quarter and full-year 2023 earnings conference call. My name is Diego, and I will be your operator for today's call. Joining us today are air games, President and CEO, Jacob Suen, and CFO, Michael Elbaz.

下午好，歡迎參加 Airgain 2023 年第四季和全年財報電話會議。我叫迭戈，我將擔任您今天通話的接線生。今天加入我們的是air games 總裁兼執行長Jacob Suen 和財務長Michael Elbaz。

As a reminder, this call will be recorded and made available for replay via a link found in the Investor Relations section of Airgain's website at investors.airgain.com.

謹此提醒，本次電話會議將被錄音，並可透過 Airgain 網站investors.airgain.com 投資者關係部分的連結重播。

Following management's prepared remarks, the call will be open for questions from Air games covering analysts. I caution listeners that during this call, Airgain management will be making forward-looking statements about future events as well as Airgain's business strategy and future financial and operating performance. Actual results could differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the Company's business. These forward-looking statements are qualified by the cautionary statements contained in today's earnings release and Airgain's SEC filings.

在管理層發表準備好的演講後，電話會議將接受 Air games 分析師的提問。我提醒聽眾，在這次電話會議中，Airgain 管理層將對未來事件以及 Airgain 的業務策略以及未來的財務和營運績效做出前瞻性陳述。由於與公司業務相關的風險和不確定性，實際結果可能與這些前瞻性陳述中明示或暗示的結果有重大差異。這些前瞻性陳述符合今天的收益報告和 Airgain 向 SEC 提交的文件中所包含的警示性陳述。

This conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, March sixth, 2024. Airgain undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call.

本次電話會議包含時間敏感訊息，僅截至本次直播之日（2024 年 3 月 6 日）準確。Airgain 不承擔修改或更新任何前瞻性聲明以反映本次電話會議之後發生的事件或情況的義務。

In addition, this conference call will include a discussion of non-GAAP financial measures. Please see today's earnings release for further details, including a reconciliation of GAAP to non-GAAP results. Now I'd like to turn the call over to airgain CEO, Jacob Suen.

此外，本次電話會議也將討論非公認會計準則財務指標。請參閱今天的收益報告以了解更多詳細信息，包括 GAAP 與非 GAAP 業績的調整表。現在我想將電話轉給 Airgain 執行長 Jacob Suen。

Jacob?

雅各？

Thank you, operator. Welcome, everyone, and thank you for joining us this afternoon.

謝謝你，接線生。歡迎大家，感謝你們今天下午加入我們。

To begin today's discussion. I will give some company background, followed by a review of our performance for the quarter and year before handing the call over to our CFO, Michael Elbaz. He will review our financial results for the quarter and year in more detail, as well as provide our outlook for Q1 2024. After that, I'll share some closing remarks before opening the call for questions.

開始今天的討論。我將介紹一些公司背景，然後回顧我們本季和本年度的業績，然後將電話轉交給我們的財務長 Michael Elbaz。他將更詳細地審查我們本季和年度的財務業績，並提供我們對 2024 年第一季的展望。之後，我將在開始提問之前分享一些結束語。

All right. Let's begin for those of you who may be new to our story at Airgain. We simplified wireless connectivity across the value chain from embedded components to integrated systems. We have three core markets, enterprise, consumer and automotive. Our enterprise market is comprised of integrated system solutions with a mix of components.

好的。讓我們從那些可能對 Airgain 故事不熟悉的人開始。我們簡化了從嵌入式組件到整合系統的整個價值鏈的無線連接。我們有三個核心市場：企業、消費者和汽車。我們的企業市場由具有多種組件的整合系統解決方案組成。

Specifically, this market includes components such as our embedded cellular modems, custom products and antennas for access points and in the Internet of Things applications this market also includes system solutions such as our asset structures and our upcoming long-term fixed wireless access in Light House smart Siemens repeater products. Our consumer market is comprised mostly of our embedded antenna business, a traditional area of expertise for Airgain. Our consumer products include custom embedded antenna design for customer premises equipment or CP. devices, such as those that enable WiFi 6E will enable WiFi seven.

具體來說，這個市場包括我們的嵌入式蜂窩調製解調器、定制產品和接入點天線等組件，在物聯網應用中，這個市場還包括我們的資產結構和Light House 即將推出的長期固定無線接入等系統解決方案智慧西門子中繼器產品。我們的消費市場主要由我們的嵌入式天線業務組成，這是 Airgain 的傳統專業領域。我們的消費產品包括用於客戶端設備或 CP 的客製化嵌入式天線設計。設備，例如啟用 WiFi 6E 的設備將啟用 WiFi 7。

Lastly, our automotive market includes both our aftermarket antennas as well as our vehicle networking devices, highlighted by our recently announced AirgainConnect fleet device. We work with a global network of VAS system integrators, distributors and allows customers to help solve critical connectivity issues, improved wireless performance and effectively shorten time to market for their products.

最後，我們的汽車市場包括我們的售後天線以及我們的車輛網路設備，特別是我們最近發布的 AirgainConnect 車隊設備。我們與全球增值服務系統整合商、經銷商網路合作，協助客戶解決關鍵的連線問題、提高無線效能並有效縮短產品上市時間。

We believe the global connectivity opportunity is large and durable. Secular tailwinds, including increased connectivity, technology adoption and growing serviceable addressable markets across our product suite will continue to propel the industry and our company forward. And again, we have a consistent track record of developing and offering optimized wireless solutions to our channel partners and customers. They help them get connected quickly as new technologies emerge we are confident that we will continue to provide leading edge products two months.

我們相信全球互聯互通機會巨大且持久。長期的有利因素，包括我們產品系列中連接性的增強、技術的採用以及不斷增長的可服務的可尋址市場，將繼續推動行業和我們公司向前發展。同樣，我們在為通路合作夥伴和客戶開發和提供最佳化的無線解決方案方面擁有一貫的記錄。隨著新技術的出現，它們幫助他們快速建立聯繫，我們有信心在兩個月內繼續提供領先的產品。

Turning now to a review of our recent operational results in three core markets. As we look back on 2023, our team managed our business through several macroeconomic headwinds, including industry-wide demand softness and inventory overhang and corrections that caused order pushouts, especially in the second half of the year.

現在回顧我們最近在三個核心市場的營運表現。回顧 2023 年，我們的團隊在多個宏觀經濟逆風中管理了我們的業務，包括全行業需求疲軟和庫存過剩以及導致訂單推出的調整，尤其是在下半年。

We generated $10.1 million in sales in the fourth quarter, in line with the midpoint of our guidance range and closed 2023 with $56 million in full year sales. However, our the main indicators, including our backlog and channel point of sales data, shows us that our markets are starting to recover, although we are still face some of the persistent headwinds in the first half of the year. We believe that we are primed for a strong 2024 with gradual growth.

我們第四季的銷售額為 1,010 萬美元，與我們指導範圍的中點一致，2023 年全年銷售額為 5,600 萬美元。然而，我們的主要指標，包括我們的積壓訂單和通路銷售點數據，顯示我們的市場正在開始復甦，儘管我們仍然面臨上半年的一些持續阻力。我們相信，我們已為 2024 年的強勁成長做好了準備。

Moving to a closer look at our three core markets, 2023 was an important year of development in our enterprise business. Notably, we announced several new products, including our long-term fixed wireless access solution, which is set to begin shipping in the first half of this year.

細看三大核心市場，2023年是我們企業業務發展的重要一年。值得注意的是，我們宣布了幾款新產品，包括我們的長期固定無線存取解決方案，該解決方案將於今年上半年開始出貨。

Our Lighthouse smart repeater platform for which we expect first revenue shipments by early in this year, an expansion to our recon 13 5G antenna product line, specifically designed for IoT applications to include our rugged outdoor 5G antenna offerings, a bright spot as we began shipment in Q4 of 2023, again, a new custom product offering develop to a joint engineering collaboration with a strategic customer for its transition to a new and sophisticated platform for its end markets in addition, we secured a multimillion dollar asset tracking opportunity with a railcar leader and an asset tracking alliance with sensing and control.

我們的Lighthouse 智慧中繼器平台預計將在今年年初實現第一批收入發貨，這是我們的recon 13 5G 天線產品線的擴展，專為物聯網應用而設計，包括我們堅固耐用的室外5G 天線產品，這是我們開始發貨時的一個亮點2023 年第四季度，新的定制產品將再次發展為與戰略客戶的聯合工程合作，以過渡到面向終端市場的新型複雜平台。此外，我們與軌道車領導者獲得了數百萬美元的資產追蹤機會以及具有感測和控制功能的資產追蹤聯盟。

Still, we faced several challenges in the second half of 2023. Our decline was largely driven by persistent inventory overhang in the channel on our embedded modems, combined with declines within our custom products and enterprise access points.

儘管如此，我們在 2023 年下半年仍面臨一些挑戰。我們的下降主要是由於我們的嵌入式調變解調器管道中持續庫存過剩，加上我們的客製化產品和企業接入點的下降。

Yes, even as our challenges persisted through the end of the year, we believe we'll reach a trough in Q4 and that our enterprise market, it's set for a gradual recovery in the first half of 2024, we see end customer demand growth in our embedded modems as evidenced by growing point of sales at our distribution partners as many of the inventory challenges subside, along with new sales opportunities.

是的，即使我們的挑戰持續到今年年底，我們相信我們將在第四季度達到低谷，並且我們的企業市場將在 2024 年上半年逐步復甦，我們看到終端客戶需求在 2024 年增長。我們的嵌入式調變解調器的表現是，隨著許多庫存挑戰的消退以及新的銷售機會，我們的分銷合作夥伴的銷售點不斷增長。

Also, in addition to the renewed shipments of our custom products and continued shipment ramp with our IoT antennas, our asset tracker business continues to show growth potential with growing applications for pilot packaging and logistics trucking rolling in on a consistent basis, revenue still tends to be uneven for our asset trackers, but our pipeline includes several opportunities in railways, warehousing, equipment management and rental lab management and cold chain give us confidence that this is one of our existing product lines that presents a significant growth opportunity in the second half of 2024.

此外，除了我們的客製化產品的重新出貨和物聯網天線的持續出貨量增加外，我們的資產追蹤器業務繼續顯示出成長潛力，隨著試點包裝和物流卡車運輸的應用不斷增加，收入仍然傾向於對於我們的資產追蹤器來說，情況並不平衡，但我們的管道包括鐵路、倉儲、設備管理和租賃實驗室管理和冷鏈方面的多個機會，這讓我們相信，這是我們現有的產品線之一，將在下半年帶來重大的成長機會2024 年。

Finally, we expect our long-term fixed wireless solution to start shipping in the first half of the year in our consumer market, which again represents a vast audience utilizing wireless enabled devices. A couple of key factors impacted our Q4 performance. First, as we have mentioned previously, service providers are on the cusp of a transition from WiFi six and 6E to why Page 7, they are counting on WiFi seven to improve performance and user experience, and they are looking for ways to accelerate the WiFi seven adoption and transition in anticipation of this shift has caused widespread caution among our OEM customers as they work to avoid excessive inventory.

最後，我們預計我們的長期固定無線解決方案將於今年上半年在我們的消費市場開始出貨，這再次代表了使用無線設備的廣大受眾。有幾個關鍵因素影響了我們第四季的業績。首先，正如我們之前提到的，服務供應商正處於從 WiFi 6 和 6E 向第 7 頁過渡的風口浪尖，他們指望 WiFi 7 來提高性能和用戶體驗，並且他們正在尋找加速 WiFi 的方法七、這種轉變的預期採用和過渡引起了我們的OEM 客戶的普遍謹慎，因為他們努力避免庫存過多。

Still, while this has created near-term pressure on our consumer market growth. We are confident that this ship presents a compelling long-term opportunity for air again to deliver its cutting edge WiFi seven antenna technology as evidence by the fact that we secure WiFi seven design wins with two Tier one North American MSOs. Second, consumer demand continues to shift from wire to wireless providers for Internet service as consumers transition to FWA we recognized this trend last year and have focused our strategy on penetrating this growing market, which offers significant average selling price of ASP. growth since we now provide both the WiFi five as well as the cellular antenna design. Even as this ship applies some downward pressure on our existing Amisol revenue. It creates a greater opportunity for us in the long run as it opens up in new and exciting markets.

儘管如此，這仍然給我們的消費市場成長帶來了短期壓力。我們相信，這艘船再次為航空業提供了一個令人信服的長期機會，可以提供其尖端的 WiFi 7 天線技術，我們透過兩家北美一級 MSO 贏得了 WiFi 7 設計，這就是證據。其次，隨著消費者轉向FWA，消費者對網路服務的需求繼續從有線供應商轉向無線供應商。我們去年認識到了這一趨勢，並將我們的策略重點放在滲透這個不斷增長的市場上，該市場提供了顯著的平均售價。自從我們現在提供 WiFi 5 以及蜂窩天線設計以來，我們一直在不斷成長。儘管這艘船對我們現有的 Amisol 收入造成了一些下行壓力。從長遠來看，它為我們創造了更大的機會，因為它開闢了新的、令人興奮的市場。

As we announced last November, we have secured a design win with a Tier one mobile network operator or MNO for the antenna design in their indoor FWA router. We currently expect to begin shipments for this product in Q1. While we anticipate that these headwinds will continue in the first half, we remain committed to turning around our consumer market performance and are confident that the second half of 2024 is where we'll see this improvement.

正如我們去年 11 月宣布的那樣，我們已經贏得了一級行動網路營運商或 MNO 室內 FWA 路由器天線設計的設計。我們目前預計該產品將於第一季開始出貨。雖然我們預計這些不利因素將在上半年持續存在，但我們仍然致力於扭轉消費市場的表現，並相信 2024 年下半年我們將看到這種改善。

Lastly, our automotive market as a reminder, our automotive market includes aftermarket products that are deployed in a wide range of vehicles, mostly focused on public safety transportation in municipalities. Inventory corrections from the customers have dampened the growth in these markets, and we expect this trend to continue in the first half of 2024.

最後，我們的汽車市場提醒一下，我們的汽車市場包括部署在各種車輛上的售後產品，主要集中在城市的公共安全交通。客戶的庫存調整抑制了這些市場的成長，我們預計這一趨勢將在 2024 年上半年持續。

Still, we saw several major accomplishments in 2023. We launched our EZ Connect antenna platform to simplify external antenna ordering and installation, further develop our 5G product line of antennas in launched Ultramax 5G, high-performance windshields as we shift into 2024 we expect that several of these products will ramp up as inventory correction delays dissipate, especially in our 5G antenna product lines. We are seeing signs that our combined focus on new and differentiated products. Supply chain flexibility and global channel expansions continues to yield results, and we are optimistic that our efforts will turn this market into second half as well.

儘管如此，我們在 2023 年還是取得了幾項重大成就。我們推出了EZ Connect 天線平台，以簡化外部天線訂購和安裝，並在已推出的Ultramax 5G、高性能擋風玻璃中進一步開發我們的5G 產品線，隨著我們進入2024 年，我們預計其中一些產品將隨著庫存調整而增加延遲消失了，尤其是在我們的 5G 天線產品線中。我們看到有跡象表明我們共同關注新的和差異化的產品。供應鏈彈性和全球通路擴張持續取得成果，我們樂觀地認為我們的努力也將把這個市場帶入下半年。

In January we announced our next generations of vehicle gateway AirgainConnect fleet or AC fleet, which is set to begin shipping in the second half of this year. Overall, we faced significant downward pressure in 2023 across our end markets, especially in the second half of the year. Several of the factors that caused these headwinds are yet to fully clear and will likely persist through the first and second quarters of this year. Still, while we remain responsive to the macro in economic environments, however, the main indicators have provided positive signs that our business is starting to turn. We are cautiously optimistic that we have reached a trough and are confident that our investments in our business have position again for growth, especially in the back half of the year.

一月份，我們宣布了下一代車輛網關 AirgainConnect 車隊或 AC 車隊，預計今年下半年開始出貨。整體而言，2023 年我們的終端市場面臨巨大的下行壓力，尤其是下半年。造成這些不利因素的幾個因素尚未完全消除，並且可能會持續到今年第一季和第二季。儘管如此，儘管我們仍然對經濟環境中的宏觀形勢做出反應，但主要指標已經提供了積極的跡象，表明我們的業務正在開始好轉。我們對已經達到低谷持謹慎樂觀態度，並相信我們對業務的投資將再次實現成長，特別是在今年下半年。

As we have communicated in past quarters, we are transitioning from being exclusively a component manufacturer to a wireless system solutions provider. As such, our growth strategy is focused on two key elements. First, continued execution of our established business. Our embedded antennas are deployed in various consumer applications, including access points, wireless gateways, fixed wireless access devices, WiFi routers, and extenders and smart home devices.

正如我們在過去幾季所傳達的那樣，我們正在從純粹的組件製造商轉型為無線系統解決方案提供者。因此，我們的成長策略集中在兩個關鍵要素。首先，繼續執行我們既定的業務。我們的嵌入式天線部署在各種消費性應用中，包括存取點、無線網關、固定無線存取設備、WiFi 路由器以及擴展器和智慧家庭設備。

Just to name a few. We have developed strong relationships with our partners throughout the value chain, including chipset providers, carriers, original design manufacturers or ODMs, in OEM.s on the development side and MNOs in service sort of service providers on the customer side, over the last few years, we have invested in next generation WiFi seven design and testing capabilities. And we have now reached the cost of the expected widespread transition from WiFi to WiFi seven as we strategize for 2024, we intend to maximize our opportunities with our consumer markets already.

僅舉幾個。在過去的幾年裡，我們與整個價值鏈的合作夥伴建立了牢固的關係，包括晶片組提供商、運營商、原始設計製造商或 ODM、開發端的 OEM 以及客戶端服務提供商的 MNO。多年來，我們投資了下一代WiFi 7 的設計和測試能力。現在，我們已經達到了從 WiFi 到 WiFi 7 廣泛過渡的預期成本，因為我們制定了 2024 年策略，我們已經打算最大限度地利用我們的消費市場機會。

In addition to the design win, we secured with a Tier one MSO for our next generation WiFi seven products in November. Yesterday, we announced another design win with another Tier one MSOs Both are expected to start shipping in the second half of 2024. Furthermore, the new line of products will launch in 2023 for our IoT custom products, automotive markets in industry IoT antennas are expected to ramp up throughout 2024. With our customer agreements in funnel, we are confident that we will return to growth in our established business this year.

除了贏得設計之外，我們還在 11 月為下一代 WiFi 7 產品獲得了一級 MSO。昨天，我們宣布贏得另一款一級 MSO 的設計，兩者預計將於 2024 年下半年開始出貨。此外，我們的物聯網客製化產品的新產品線將於 2023 年推出，工業物聯網天線的汽車市場預計將在 2024 年持續成長。透過我們的客戶協議，我們有信心今年我們的既定業務將恢復成長。

Second, integrated wireless solutions expansion. While we continue to drive our existing components business forward, many of our forward-looking indicators for 20 24.2. Our wireless connectivity product lines are our solutions with the greatest upside. Specifically, our U.S. trucking and 5G connectivity products offer the largest strategic growth opportunities for our business on the asset tracking side, our asset truckers are deployed across transportation, supply chain, cold chain and other specialized applications as truckers win a recurring revenue opportunity as well with multiple subscription base components such as our NimbeLink cloud-based device enablement platform in our trucking inflammation dashboards.

其次，整合無線解決方案的擴展。在我們繼續推動現有零件業務向前發展的同時，我們的許多前瞻性指標為 20 24.2。我們的無線連接產品線是我們最具優勢的解決方案。具體來說，我們的美國卡車運輸和5G 連接產品為我們的資產追蹤方面的業務提供了最大的戰略成長機會，我們的資產卡車司機部署在運輸、供應鏈、冷鏈和其他專業應用程式中，卡車司機也贏得了經常性收入機會具有多個訂閱基礎組件，例如我們的貨運發炎儀表板中基於 NimbeLink 雲端的設備支援平台。

We estimate an $800 million serviceable addressable market in 2024 alone and believe that we are poised for success in the back half of the year. Our 5G connectivity products into our long-term FWA built to improve connectivity at the home or in the office, our Lighthouse smart repeater design to extend high-quality coverage for mobile network operators in our recently announced next-generation AC fleet 5G vehicle gateway created to offer a wide area similar in local area, WiFi connectivity across public safety, transportation in public and private vehicles. Four of these products are expected to ship this year. We recently completed our product certification for Lantern FWA and expect to ship to a funnel of customers in the next quarter.

我們估計，僅在 2024 年，可服務的可尋址市場就價值 8 億美元，並相信我們將在今年下半年取得成功。我們的5G 連接產品融入我們的長期FWA 中，旨在改善家庭或辦公室的連接，我們的Lighthouse 智慧中繼器設計旨在為行動網路營運商在我們最近宣布的下一代AC 車隊5G 車輛網關中擴展高品質覆蓋範圍提供類似於本地區域的廣泛區域、公共安全、公共和私人車輛交通的 WiFi 連接。其中四種產品預計今年出貨。我們最近完成了 Lantern FWA 的產品認證，並預計在下個季度向眾多客戶發貨。

For AC fleet, we have several customers both in the US and abroad. We have samples today and are confident that we can begin shipments in the second half. These three product lines represent over $700 million of potential projects serviceable addressable market in 2024 and $1.7 billion of potential additional SAM in 2025, effectively doubling our foundation or SAM of $1.8 billion for our existing product lines.

對於交流機隊，我們在美國和國外擁有多家客戶。我們今天有樣品，有信心可以在下半年開始出貨。這三個產品線代表了2024 年超過7 億美元的潛在項目可服務可尋址市場，以及2025 年潛在的額外SAM 17 億美元，這實際上使我們現有產品線的基礎或SAM 18 億美元翻了一番。

Our connectivity product lines are the culmination of several years of investments in shifting a gain from exclusively components to full systems. And we believe that we have significant upside in these areas with that, I will turn the call over to Michael to discuss our fourth quarter and full year 2023 financial results and 2024 Q1 outlook in greater detail Michael.

我們的連接產品線是多年投資的結晶，將收益從專有組件轉向完整系統。我們相信我們在這些領域有顯著的優勢，我將把電話轉給邁克爾，更詳細地討論我們的 2023 年第四季度和全年財務業績以及 2024 年第一季度的前景。

Thank you, Jacob. Before diving into the numbers, please note that my review of our financial results and guidance refers to non-GAAP figures. Information about the non-GAAP financial measures, including GAAP non-GAAP reconciliations can be found in our earnings release.

謝謝你，雅各。在深入研究這些數字之前，請注意，我對我們的財務表現和指導的審查是指非公認會計準則資料。有關非 GAAP 財務指標的信息，包括 GAAP 非 GAAP 調整表，請參閱我們的收益報告。

Now let's turn to our fourth quarter results. As Jacob mentioned, Q4 sales were $10.1 million, in line with the $10 million midpoint of our guidance range. Our fourth quarter sales declined 26% sequentially and 49% year over year, primarily due to excess inventory across both our channel and direct customers, coupled with demand softness in our consumer markets.

現在讓我們來看看第四季的業績。正如 Jacob 所提到的，第四季銷售額為 1010 萬美元，與我們指導範圍 1000 萬美元的中位數一致。我們第四季的銷售額環比下降 26%，年減 49%，這主要是由於我們的通路和直接客戶的庫存過剩，加上消費市場的需求疲軟。

Consumer sales were $3.2 million, reflecting a sequential decrease of $1.2 million due to continued demand softness with cable operators. Enterprise sales were $4.6 million, reflecting a sequential decrease of $2.2 million, driven by lower sales of custom products and access points. Sales of embedded modems were flat sequentially as some distributors continued to recover from inventory overhang. Automotive sales were $2.3 million, reflecting a sequential decrease of $0.2 million. Q4 gross margin was 30.3%, largely due to an inventory charge of $1 million we recorded in the quarter.

消費者銷售額為 320 萬美元，由於有線電視營運商的需求持續疲軟，季減了 120 萬美元。企業銷售額為 460 萬美元，環比下降 220 萬美元，原因是客製化產品和接入點銷售額下降。由於一些分銷商繼續從庫存過剩中恢復過來，嵌入式調變解調器的銷售額環比持平。汽車銷售額為 230 萬美元，比上一季減少 20 萬美元。第四季的毛利率為 30.3%，主要是由於我們在該季度記錄的 100 萬美元的庫存費用。

This charge related primarily to the end of life of our AirgainConnect PUE. product line year ago, we recorded a partial excess inventory reserve as a result of a lower demand forecast in Q4 2023. The SBUV. product line is fully reserved as we transition to the next generation of AirgainConnect vehicle networking product that we announced two months ago. Excluding the noncash inventory charge, our gross margin would have been approximately 40% in line with the midpoint of our guidance range.

這筆費用主要與我們的 AirgainConnect PUE 的使用壽命結束有關。一年前，由於 2023 年第四季的需求預測較低，我們記錄了部分超額庫存儲備。SBUV。隨著我們過渡到兩個月前發布的下一代 AirgainConnect 車聯網產品，產品線已完全保留。不包括非現金庫存費用，我們的毛利率約為 40%，與我們指導範圍的中點一致。

Q4 operating expenses totaled $6.5 million, $0.5 million higher sequentially, and $0.5 million higher than our guidance. The increase was driven by higher project development expenses. Sequentially, our G&A sales and marketing expenses decreased while our engineering expenses decreased as we focused on the development of our Lantern SWA and AirgainConnect fleet solution.

第四季營運費用總計 650 萬美元，比上一季增加 50 萬美元，比我們的指導水準高出 50 萬美元。這一增長是由於項目開發費用增加所致。隨後，由於我們專注於 Lantern SWA 和 AirgainConnect 機隊解決方案的開發，我們的 G&A 銷售和行銷費用有所下降，而我們的工程費用也有所下降。

As a result, our Q4 adjusted EBITDA was negative $3.3 million and non-GAAP EPS was negative $0.33. Our sales for 23 three totaled $56 million, $19.9 million or 26% lower year over year. Enterprise sales declined by $7.3 million, driven by excess channel inventory corrections, specifically in our embedded modem product line as well as by our maturing and declining access points product lines.

因此，我們在第四季度調整後 EBITDA 為負 330 萬美元，非 GAAP 每股收益為負 0.33 美元。我們 23 個三分球的銷售額總計 5,600 萬美元，年減 1,990 萬美元，即 26%。企業銷售額下降了 730 萬美元，這是由於通路庫存調整過多，特別是我們的嵌入式調變解調器產品線以及我們成熟和衰退的接入點產品線。

Consumer sales declined by $6.9 million due to soft demand from cable operators as well as excess inventory. Automotive sales decreased $5.7 million, driven by the lack of AirgainConnect HPUE. sales in 2023 and excess inventories that impacted our lead aftermarket customers. Full year 2023 gross margin was 37.9%, 30 basis point higher than our full year 2022 gross margin, 37.6%. Full year 2023 operating expenses totaled $26.4 million, 9% lower year over year, driven by reduced marketing and G&A expenses considering the sequential revenue declines, even as we prioritize our investments in our strategic initiatives. Full year 2023 adjusted EBITDA was negative $4.5 million compared to positive $0.1 million in 2022, driven by the impact of the material sales decline, which was partially offset by decreased operating expenses.

由於有線電視營運商需求疲軟以及庫存過剩，消費者銷售額下降了 690 萬美元。由於缺少 AirgainConnect HPUE，汽車銷售額減少了 570 萬美元。 2023 年的銷售和庫存過剩影響了我們的主要售後市場客戶。2023 年全年毛利率為 37.9%，較 2022 年全年毛利率 37.6% 高出 30 個基點。2023 年全年營運費用總計 2,640 萬美元，年減 9%，這是由於考慮到收入連續下降，行銷和一般管理費用減少，儘管我們優先考慮對策略計畫的投資。受材料銷售下降的影響，2023 年全年調整後 EBITDA 為負 450 萬美元，而 2022 年為正 10 萬美元，但營業費用減少部分抵銷了這一影響。

Our cash balance as of December 31, 2023 was $7.9 million, $2.1 million lower sequentially, driven by lower cash flows from operations on lower sales. Our accounts receivable balance was $7.4 million, $1.1 million higher sequentially due to a sales linearity issue in the fourth quarter. Net inventory was $2.4 million, $1.5 million more sequentially resulting from the excess and obsolete inventory reserve along with inventory consumption.

截至 2023 年 12 月 31 日，我們的現金餘額為 790 萬美元，比上一季減少 210 萬美元，因為銷售額下降導致營運現金流減少。由於第四季的銷售線性問題，我們的應收帳款餘額為 740 萬美元，比上一季增加 110 萬美元。淨庫存為 240 萬美元，比上一季增加 150 萬美元，原因是過剩和過時的庫存儲備以及庫存消耗。

Now moving to our outlook for the first quarter ending March 31, 2024, as a reminder, our again provides quarterly guidance for sales, non-GAAP gross margin and expenses, adjusted EBITDA and non-GAAP EPS. As we believe these metrics to be key indicators for the overall performance of our business. We project sales for the 2024 first quarter to be in the range of 13.25 to $14.75 million or $14 million at the midpoint of the range. We expect a sequential sales growth of approximately 40% at the midpoint of the guidance range driven by the enterprise market.

現在轉向我們對截至 2024 年 3 月 31 日的第一季度的展望，提醒一下，我們再次提供銷售、非 GAAP 毛利率和費用、調整後 EBITDA 和非 GAAP 每股收益的季度指導。因為我們相信這些指標是我們業務整體績效的關鍵指標。我們預計 2024 年第一季的銷售額將在 13.25 至 1475 萬美元之間，即該範圍的中點為 1400 萬美元。我們預計，在企業市場的推動下，銷售額將較上季成長約為 40%（處於指導範圍的中點）。

We expect growth in our embedded modems product line after a year of inventory overhang, along with growth in our custom products, asset trackers and IoT antenna product lines, we anticipate the enterprise market growth to be partially offset by a sequential decline in our automotive market due to continued inventory correction. While our consumer market sales will remain relatively flat sequentially, we expect non-GAAP gross margin for the 2024 first quarter to be in the range of 39.5% to 42.5% or 41% at the midpoint of the range. Despite the projected decrease in the consumer sales mix from 32% in Q4 2023 to approximately 20% in Q1 2024, we expect our gross margin to increase driven by differentiated new products and applications in our enterprise markets.

我們預計，經過一年的庫存積壓，我們的嵌入式調變解調器產品線將實現成長，同時我們的客製化產品、資產追蹤器和物聯網天線產品線也將實現成長，我們預計企業市場的成長將被汽車市場的連續下滑所部分抵消。由於庫存持續調整。雖然我們的消費市場銷售額將與上一季保持相對持平，但我們預計 2024 年第一季的非 GAAP 毛利率將在 39.5% 至 42.5% 之間，即該範圍的中位數 41%。儘管消費者銷售組合預計將從2023 年第四季的32% 下降至2024 年第一季的約20%，但我們預計，在企業市場的差異化新產品和應用的推動下，我們的毛利率將會增加。

We anticipate the enterprise consumer and Automotive gross margin to converge around the corporate gross margin, reducing the impact of market sales mix changes and opening a path to gross margin increases. In future quarters, we project our operating expenses to be approximately $6.4 million. We continue to invest in our engineering and sales teams as we focus on our strategic initiatives in fixed wireless access, vehicle networking and smart seat and repeaters markets. Non-gaap EPS is expected to be negative $0.06 at the midpoint of our guidance. Adjusted EBITDA is expected to be negative $0.5 million at the midpoint of our guidance.

我們預期企業消費者和汽車毛利率將與企業毛利率趨同，減少市場銷售結構變化的影響，並開啟毛利率成長之路。在未來幾個季度，我們預計營運費用約為 640 萬美元。我們繼續投資我們的工程和銷售團隊，專注於固定無線接入、車輛網路以及智慧座椅和中繼器市場的策略性舉措。以我們的指引中位數計算，非 GAAP 每股盈餘預計為負 0.06 美元。在我們指導的中點，調整後 EBITDA 預計為負 50 萬美元。

Now I would like to turn the call over to Jacob for his closing thoughts. Jacob?

現在我想把電話轉給雅各布，聽聽他的結束語。雅各？

Thanks, Michael. A few closing thoughts before we had Q&A. First, I am proud of our team's ability to navigate an uncertain market environment in 2023, even as we faced significant headwinds, we made real progress along many aspects of our business, including in new products, new partners and new geographies and markets for our sales teams. I am optimistic that our industry has started to turn a corner and I am confident that our efforts will pay off in the coming quarters.

謝謝，麥可。在我們進行問答之前，有一些結束語。首先，我為我們的團隊在2023 年應對不確定的市場環境的能力感到自豪，儘管我們面臨著巨大的阻力，但我們在業務的許多方面都取得了真正的進展，包括新產品、新合作夥伴以及新的地區和市場。銷售團隊。我對我們的行業已經開始扭轉局面感到樂觀，我相信我們的努力將在未來幾季得到回報。

Again, we've already made significant progress in 2024 with three new developments across our markets in the last couple of months. These include the unveiling of AirgainConnect fleet, the evolutions of our flagship vehicle connectivity line in our automotive business, the announcement of the first of its kind smart lane term FWA solution in our antenna business, partnership with Lenovo, think edge in our asset tracking business and a Tier one MSO WiFi seven design win. Still, we believe that the upside is greatest in the second half of the year, and we look forward to building on our early successes through the rest of 2024.

同樣，我們在 2024 年已經取得了重大進展，過去幾個月我們的市場取得了三項新進展。其中包括推出 AirgainConnect 車隊、我們汽車業務中旗艦車輛連接產品線的演變、我們天線業務中第一個智能車道術語 FWA 解決方案的發布、與聯想的合作、我們資產跟踪業務中的思考優勢並榮獲一級MSO WiFi 7 設計獎。儘管如此，我們相信今年下半年的上漲空間最大，我們期待在 2024 年剩餘時間裡繼續取得早期成功。

Third, we believe that our products off at the heart of our value proposition for our customers, especially with the many emerging trends within our industry, including transitions to WiFi seven, increased demand for asset tracking capabilities and long-standing pinpoints in the 5G coverage space. We are confident that the worldwide connectivity opportunity is vast and growing in many geographies around the globe. The present on the tap markets for our industry and our business actually just returned from the Mobile World Congress in Barcelona last month and the interest in positive feedback we received gives me even greater confidence in our efforts.

第三，我們相信我們的產品是我們為客戶提供價值主張的核心，特別是考慮到我們行業內的許多新興趨勢，包括向WiFi 7 的過渡、對資產跟踪功能的需求增加以及5G 覆蓋範圍中長期存在的問題空間。我們相信，全球互聯機會是巨大的，並且在全球許多地區都在成長。事實上，我們行業和業務的水龍頭市場上的展示實際上剛從上個月在巴塞隆納舉行的世界行動通訊大會上回來，我們收到的正面回饋讓我對我們的努力更有信心。

For example, our next generation smart Lantern FWA product expected to launch next year. It's a product that has generated strong interest from several major players in the operator space. We expect that this product slated to ship next year could significantly reduce the number of truck rolls and customers returns. The operators currently experiencing our AC fleet products has also garnered substantial interest with both domestic and international prospects due to its own one capability and its low-profile size that makes it easy to install and maintain with better performance and a competitive price.

例如，我們的下一代智慧燈籠FWA產品預計將於明年推出。該產品引起了運營商領域幾家主要參與者的強烈興趣。我們預計該產品定於明年出貨，可大幅減少上門服務和客戶退貨的數量。目前正在體驗我們的交流機隊產品的運營商也因其自身的單一功能和低調的尺寸而贏得了國內外前景的極大興趣，使其易於安裝和維護，並具有更好的性能和具有競爭力的價格。

Finally, reliable 5G coverage remains a key challenge for operators around the world and our Lighthouse smart repeater aims to solve 5G coverage gaps in an effective and timely manner. For example, we are in advanced discussions towards a strategic partnership within International. I mean, all four a. again to become their primary partner for our Lighthouse smart repeater with shipment expected in early 2025. Overall, we remain committed to helping our partners and customers get Canetic quickly. And again, we can enable connectivity across both components and complete systems, and we are confident in the prospects for our overarching strategy in the years to come. And with that, operator, please open the call for Q and A.

最後，可靠的 5G 覆蓋範圍仍然是全球營運商面臨的關鍵挑戰，我們的 Lighthouse 智慧直放站旨在有效、及時地解決 5G 覆蓋缺口。例如，我們正在就國際內部的戰略夥伴關係進行深入討論。我的意思是，所有四個。再次成為他們的 Lighthouse 智慧中繼器的主要合作夥伴，預計將於 2025 年初發貨。總的來說，我們仍然致力於幫助我們的合作夥伴和客戶快速獲得 Canetic。再說一遍，我們可以實現組件和完整系統之間的連接，並且我們對未來幾年整體戰略的前景充滿信心。那麼，接線員，請打開問答電話。

(Operator Instructions)

（操作員說明）

Scott Searle, Roth MKM.

斯科特·塞爾，羅斯·MKM。

Hey, good afternoon. Thanks for taking my questions. I appreciate the color, and it's nice to see the market bottoming and an improving outlook as we look into the March quarter.

嘿，下午好。感謝您回答我的問題。我很欣賞這種顏色，很高興在我們展望三月季度時看到市場觸底和前景改善。

Maybe Michael, to just dive in quickly on I wanted to revisit the gross margins as we go into the first quarter on given that consumer tends to be a nice gross margin driver, and that's not part of the 6.4 uptick. I was wondering if you could just clarify again. So we're expecting to see an improvement in NimbeLink margins, an enterprise margins in general. That's where we're going to see the biggest improvement in the March quarter.

也許邁克爾，快速討論一下我想在進入第一季時重新審視毛利率，因為消費者往往是一個很好的毛利率驅動因素，而這不是 6.4 上漲的一部分。我想知道你能否再澄清一下。因此，我們預期 NimbeLink 的利潤率（整體企業利潤率）會有所改善。這就是我們將在三月季度看到最大改善的地方。

Yes, hi, Scott. Thank you for the question. But yes, the enterprise margin is building up its result cause a number of improvements that we have done in 2023, one of which was this large project that we had mentioned a quarter ago. Our this is a new refresh platform for a strategic customer that's part of our customers' products, and that is definitely a higher value of premium products in scaling, along with also on the antenna level, the fact that we have some IoT applications and markets, this is a part of the recon 13 product that we announced a couple of quarters ago.

是的，嗨，斯科特。感謝你的提問。但是，是的，企業利潤率正在不斷提高，這是我們在 2023 年所做的一系列改進的結果，其中之一就是我們一個季度前提到的這個大型專案。這是我們為策略客戶提供的一個新的更新平台，它是我們客戶產品的一部分，在擴展方面絕對是優質產品的更高價值，而且在天線層面，我們擁有一些物聯網應用和市場，這是我們幾個季度前發布的Recon 13 產品的一部分。

And those are also addressing some really differentiated high-power applications. This is just to name a few, but this has been a definitely a process of continuous high gross margin improvements. We mentioned last quarter, Scott, that the automotive was going to give us some increase and it did actually if you exclude the overall inventory charge that we had in Q4. The margin increased sequentially from 39% in Q3 to about roughly 40% in Q4. And that was mostly because of the automotive. And that is really kind of reconciling my comments on the Israel convergence around the overall grocery and other gross margin. So that the dependency and we see it in Q1, hopefully that we have had on consumer mix is not as Kristian as it has been.

這些也解決了一些真正差異化的高功率應用。這只是舉幾個例子，但這絕對是一個毛利率不斷增加的過程。史考特，我們上個季度提到，汽車業務會為我們帶來一些成長，如果排除我們在第四季的整體庫存費用，實際上確實如此。利潤率從第三季的 39% 連續上升至第四季的約 40%。這主要是因為汽車。這確實與我對以色列整體雜貨和其他毛利率趨同的評論相一致。因此，我們在第一季看到了這種依賴性，希望我們對消費者組合的依賴不會像以前那樣像克里斯蒂安那樣。

Great. Very helpful. And congratulations on the WiFi seven wins. I just wanted to dive into that quickly that will start to ramp up with the first two MSO customers. It sounds like in the second half of this year. I was wondering if you could put on magnitude size around that dollar amount. So you know how big that will be and how we should think about the recovery in general, the consumer business, it peaked at north of $10 million, we're bottoming out now at around $3 million. How should we think about exiting 2024?

偉大的。很有幫助。恭喜您榮獲 WiFi 七項大獎。我只是想快速深入了解這將開始與前兩個 MSO 客戶合作。聽起來像是今年下半年的事。我想知道您是否可以在該美元金額附近確定大小。所以你知道這將有多大，以及我們應該如何看待消費者業務的整體復甦，它的峰值在 1000 萬美元以上，現在我們正在觸底，約為 300 萬美元。我們該如何考慮退出2024年？

Yes. So very good question. So the WiFi seven, we believe is going to be the the major improvement for the MSOs to get back into their competitive advantages. And we do believe it will be the second half of the year is what you are right now in Q4, I believe we closed the quarter at $3.2 million, and I mentioned that we will roughly be approximately flat in Q1. That is that we primarily because of the M&O design win that we had on the SWA. is starting to ship in Q1, and this is going to give us some nice room as well to have through the year.

是的。這是非常好的問題。因此，我們相信 WiFi 7 將成為 MSO 重新獲得競爭優勢的重大改進。我們確實相信今年下半年將是第四季的情況，我相信我們本季的營收為 320 萬美元，我提到第一季我們將大致持平。這主要是因為我們在 SWA 上贏得了 M&O 設計。將於第一季開始出貨，這也將為我們全年提供一些不錯的空間。

This actually the M&O ramp is actually offsetting the seasonality there usually see in Q1 that that's the reason for the flatness on the overall consumer revenue. As we build that into the third quarter and the fourth quarter or the second half of the year, we believe we can go back to the $6 million that we have seen in the first half of last year. But again, this is a bit preliminary at this point.

實際上，M&O 成長實際上抵消了第一季通常出現的季節性，這就是整體消費者收入持平的原因。當我們將其納入第三季、第四季或下半年時，我們相信我們可以回到去年上半年的 600 萬美元。但同樣，目前這還有點初步。

That's very helpful. And lastly, if I could just two other quick follow-ups. On the tracker side of the equation, it sounds like the addressable market is pretty sizable. I was wondering if you could characterize some of the potential design opportunities that are out there. I believe last year the rail color opportunity was in the ballpark of 10 million or so. I'm wondering if these other opportunities are seeing similar magnitude and as it relates to AirgainConnect to Jacob, I'm wondering if you could provide a little bit more color now.

這非常有幫助。最後，如果我能再快速跟進兩次就好了。在等式的追蹤器方面，聽起來潛在市場相當大。我想知道您是否可以描述一些潛在的設計機會。我相信去年鐵路顏色的機會大約是 1000 萬左右。我想知道這些其他機會是否也有類似的規模，並且由於它與 AirgainConnect 和 Jacob 相關，我想知道您現在是否可以提供更多的資訊。

We've had CES, you're just at Mobile World Congress a 5G solution that supports global bands. How should we think about that ramping up? I know commercially it starts shipping in the second quarter, but how quickly does that ramp both in North America and European markets as we look forward into the second half of this year in 2025.

我們舉辦過 CES，您剛剛在世界行動大會上看到了支援全球頻段的 5G 解決方案。我們該如何看待這種成長？我知道它在商業上會在第二季開始出貨，但是當我們展望 2025 年下半年時，北美和歐洲市場的出貨速度有多快。

Thanks.

謝謝。

Hey, Scott, you're going to hear from you. It's Jacob here. So on regarding a simply, we're already seeing in our best interest, both domestically and internationally, and we expect that to be shipping in the second early second half of the year. And our second quarter, although second quarter we're expecting a lot of our customers trial happening were really been shipping samples to the customers, both domestically internationally, and it is not limiting to only USA in Europe. We actually have customers that will be doing the trials in Latin America as well as Australia.

嘿，史考特，你會收到你的來信。這是雅各。因此，簡單來說，我們已經看到了我們在國內和國際上的最佳利益，我們預計將在今年下半年早些時候發貨。我們的第二季度，儘管我們預計第二季度我們的許多客戶都會進行試用，但實際上是在向國內國際客戶運送樣品，而且不僅限於美國和歐洲。實際上，我們的客戶將在拉丁美洲和澳洲進行試驗。

And so this is truly a globalized product in the what people so interested. It is the only one features capabilities in its one of its kind in addition, such easier to maintain such easier to install. And it's like I mentioned earlier in the script, it's up enough for better performance, actually at a lower cost. Overall, cost of ownership is actually lower. So that's why we have generating a lot of interest with this particular product. So as indicated, we expect to start to have a nice funnel building up in the coming months and then to be shipping early second.

因此，這確實是人們如此感興趣的全球化產品。它是唯一一款在同類產品中具有獨特功能的產品，更易於維護，更易於安裝。就像我之前在腳本中提到的那樣，它足以獲得更好的效能，實際上成本更低。總體而言，擁有成本實際上較低。這就是為什麼我們對這個特定產品產生了極大的興趣。因此，正如所指出的，我們預計將在未來幾個月內開始建立一個良好的管道，然後儘早發貨。

(Operator Instructions) Anthony Stoss, Craig-Hallum.

（操作說明）Anthony Stoss，Craig-Hallum。

Please state your question.

請說出你的問題。

Again, it's nice to see the pickup from the March quarter guide on either one of you guys. Can you talk about the enterprise business is really snapping back in the March quarter. Jacob, do you think it's going to grow sequentially every quarter this year? And then I have a couple of follow-ups?

再次，很高興看到三月季度指南對你們中的任何一個人的幫助。您能談談企業業務在三月季度的真正回升嗎？雅各布，你認為今年每季都會連續成長嗎？然後我有一些後續行動？

Hi, Tony, this is Michael. I actually think that you're right, it is starting up very nicely. It's basically a growth across all the product lines. And we have the embedded modem is really a welcome sign. I have to say on the overall Q1 quarter of many because this inventory correction that we've been anticipating is over on that specific product line and this was one of the product line that was mostly impacted by the excess inventory in FY 2022.

嗨，東尼，我是麥可。我實際上認為你是對的，它的啟動非常好。這基本上是所有產品線的成長。我們擁有嵌入式調變解調器確實是一個可喜的標誌。我不得不說的是整個第一季的情況，因為我們一直預計該特定產品線的庫存調整已經結束，而這是主要受到 2022 財年庫存過剩影響的產品線之一。

In addition, the asset tracker, even though it's a bit of a lumpy business on the hardware, the recurring revenues were relatively flat, but on the hardware level, that has to be a lumpy itself. But it is nice that the growing as well too custom product is what to the antenna specifically on those IoT applications. We do suspect that the overall enterprise market will be relatively flat, at least in the near future. This is going to be a basically of the ups and downs of some of those product lines, but it is good to see it coming back at this point.

此外，資產追蹤器雖然在硬體上有點不穩定，但經常性收入相對平穩，但在硬體層面，它本身也很不穩定。但令人高興的是，不斷成長的客製化產品正是專門針對那些物聯網應用的天線。我們確實懷疑整個企業市場將相對平穩，至少在不久的將來是如此。這基本上將是其中一些產品線的起伏，但很高興看到它在這一點上回歸。

All Yes, come into the game of Tony, we're Microsemi's we're expecting to be flat baseball over a nice improved number already from Q1 and from Q4 to Q1. So we expect to be maintained on that nice level that they were going to get in Q1 for Q2.

是的，進入托尼的遊戲，我們是美高森美的，我們期望在從第一季和從第四季度到第一季度已經有了不錯的改進數字的情況下保持平穩。因此，我們預計第二季將保持在第一季的良好水平。

Got it. Jacob, on the AirgainConnect, the 2.0, the new product last couple of months ago, do you have an existing kind of customer base that are waiting for this product since they were maybe testing the original products?

知道了。Jacob，關於幾個月前推出的 AirgainConnect 2.0 新產品，您是否有現有的客戶群正在等待產品，因為他們可能正在測試原始產品？

Yes. Actually, we have a number of customers that have been waiting. Now this product I would say is no longer a long allows customers like it was with the version one in reality, have a lot of interest from a number of system integrators now expecting this deal to be nothing huge, but it's really diversified across now domestically internationally.

是的。事實上，我們有很多顧客已經在等待了。現在，我想說的是，這個產品不再像現實中的第一版那樣讓客戶長期使用，許多系統整合商對此產生了很大的興趣，現在預計這筆交易沒什麼大不了的，但它現在在國內確實是多元化的國際。

Got it. And then last question for Michael --

知道了。然後是邁克爾的最後一個問題--

So yes, surgical Yes, I was trying to say we're going to be working with a number of system integrators and channel partners on the on the AC fleet product line.

所以，是的，外科手術是的，我想說的是，我們將在 AC 車隊產品線上與許多系統整合商和通路合作夥伴合作。

Got it. Last question for you, Michael, on the inventory write-down, do you expect any other product lines to have the same? Right, Doug, for do you think everything's pretty clean now?

知道了。邁克爾，關於庫存減記的最後一個問題，您是否期望其他產品線也有同樣的情況？是的，道格，你認為現在一切都很乾淨了嗎？

No. Everything is particularly now this was a really a the ACHBUV. has been a major product line for us of concern, and we did have a partial reserve last year exactly in Q4 that by 2022. And this at this point, the product line is fully reserved. And we are fully focused on transitioning to the new Kagan Connect next-generation AC fleet platform.

不。一切都特別是現在，這真的是一個 ACHBUV。一直是我們關注的主要產品線，去年第四季我們確實有部分儲備，到 2022 年。而此時，產品線已全部預留。我們完全專注於過渡到新的 Kagan Connect 下一代 AC 車隊平台。

Perfect. Very good, guys.

完美的。非常好，夥計們。

Thank you, Tony.

謝謝你，托尼。

Tim Savageaux, Northland Capital Markets.

Tim Savageaux，北國資本市場。

Hi, good afternoon and my congrats on the guide as well. Jacob, I wanted to follow up on your Mobile World Congress commentary and specifically on the opportunities for them kind of coverage extension infrastructure product. You mentioned that potential strategic partnership with an international MNO. I don't know if you talked about the size of that operator, but my question is no. As you look at those sorts of opportunities, can you can you tried to size them for us? And I imagine that something like a strategic partnership would be larger than normal? And then how does that relate to kind of the sum of the served addressable market commentary that you made?

你好，下午好，我也祝賀你的指南。雅各布，我想跟進您在世界移動大會上的評論，特別是關於覆蓋範圍擴展基礎設施產品的機會。您提到了與國際行動營運商的潛在策略合作夥伴關係。我不知道你是否談到了該運營商的規模，但我的問題是否定的。當您看到這些機會時，您能否嘗試為我們評估它們的大小？我想像戰略夥伴關係之類的東西會比平常更大？那麼這與您所做的可尋址市場評論的總和有何關係？

It just came to the touchy, but I hear from you? Yes, I was actually extremely excited about the feedback we got out to a number of customers meetings. And certainly in August, not only that we're really interested in the SmartLink trend that we announced during the show and then the next gen AirgainConnect AC fleet. But there was a lot of interest on the smart network repeater. One I'm hearing consistently, especially with the international community is that 5G coverage is an issue for them. I think that long customers told me that in Brazil, the government's mandating that they'd be able to cover 5G everywhere.

事情很棘手，但我收到你的消息了嗎？是的，我實際上對我們在多次客戶會議上得到的回饋感到非常興奮。當然，在 8 月份，我們不僅對展會期間宣布的 SmartLink 趨勢以及下一代 AirgainConnect AC 機隊真正感興趣。但人們對智慧型網路中繼器很感興趣。我一直聽到的一個說法是，尤其是國際社會，5G 覆蓋範圍對他們來說是一個問題。我認為長期客戶告訴我，在巴西，政府強制要求他們能夠在所有地方覆蓋 5G。

And to do that now, especially some of the limo MUL, even with in the metropolitan area, this coverage gaps with 5G today and even you could be doing it close to a base station. But between buildings, there's what they call the shadowing it back. You'll notice that even in our New York Metropolitan. So how do you address that to install a lot of base station. It's really cost prohibitive, right? And also sometimes is also challenging because you have to lay the pipe in our smart Lighthouse network VPs are really addressing that particular problem because with our smart mobility, Peter, you only have to do this connecting to a light pole that's already existing.

現在要做到這一點，特別是一些豪華轎車 MUL，即使在大都市地區，這種覆蓋範圍也與今天的 5G 存在差距，甚至您可以在靠近基地台的地方進行。但在建築物之間，存在著所謂的「陰影」。即使在我們的紐約大都會，您也會注意到這一點。那麼如何解決安裝大量基地台的問題呢？這實在是成本太高了，對吧？有時也具有挑戰性，因為您必須在我們的智慧燈塔網路中鋪設管道，副總裁確實正在解決這個特定問題，因為透過我們的智慧移動，彼得，您只需連接到已經存在的燈桿即可。

And with our smart feature with our carrier aggregation feature. This is the perfect product, ideal product for those particular areas. All the order, the tower company as well as we're talking to these customers is becoming obvious that we are having a product that is really addressing that need. And that's what we're actually going to have throughout Europe in Middle East, in Latin America, Asia and the US.

以及我們的智慧功能和載波聚合功能。這是完美的產品，是那些特定領域的理想產品。所有訂單、鐵塔公司以及我們正在與這些客戶交談的情況都變得越來越明顯，我們正在擁有一款真正能夠滿足這一需求的產品。這就是我們實際上將在整個歐洲、中東、拉丁美洲、亞洲和美國看到的情況。

So we're seeing a lot of interest in with this particular terminal I mentioned internationally in the EMEA area, and we already discussed about it very strategic partnerships. Lilly did a preliminary trial with them. It was extremely well received and they really wanted to have a much bigger trial. They are willing to enter a strategic partnership with us. And I hope to update you in the really near future as far as the size. Now we talk about it very sizable market where these are large opportunities. So I hope to update you more about exciting time here with our new product.

因此，我們看到國際上歐洲、中東和非洲地區對我提到的這個特定終端有很多興趣，我們已經討論了非常策略性的合作關係。禮來公司與他們進行了初步試驗。它非常受歡迎，他們真的希望進行更大的試驗。他們願意與我們建立策略夥伴關係。我希望在不久的將來向您更新尺寸。現在我們談論的是一個非常大的市場，其中蘊含著巨大的機會。因此，我希望透過我們的新產品向您介紹更多關於這裡令人興奮的時光的資訊。

Yes, great. And just to follow up on that, you mentioned I don't know if you're coming out of Mobile World Congress for the lung, a lot of trial commitments. Sounds like that's the case, but and you've mentioned a couple of trials in the past, but no, as you look at it now, any way to kind of size, the number of trials you have going on for the Lighthouse products?

對，很好。為了跟進這一點，您提到我不知道您是否會從世界移動大會上出來，因為有很多試驗承諾。聽起來確實是這樣，但是您過去提到過幾次試驗，但是，正如您現在所看到的那樣，您對 Lighthouse 產品進行的試驗的規模和次數有什麼辦法嗎？

Yes. I mean, look, this is in dealing with a mobile network. Operators usually takes time, right? Because the technology is this is an infrastructure play, so they are always very cautious about the deployment so that to go to several different trials. And that's why even though we announced the product last year. We know this was going to be a year a year and half a duration for the first certification for trials. And I'm pleased that so far on the number of trials we have found we receive some extremely positive feedback from the customers so that we are proceeding to the next stage and we hope to get POs by by the end of this year, and we are still on track for that and those will be sizable opportunities.

是的。我的意思是，看，這是在處理行動網路。操作員通常需要時間，對吧？因為技術是這是一個基礎設施的遊戲，所以他們總是對部署非常謹慎，以便去幾次不同的試驗。這就是為什麼我們去年就發布了該產品。我們知道第一次試驗認證將持續一年半的時間。我很高興到目前為止，就我們發現的試驗數量而言，我們收到了客戶的一些非常積極的反饋，因此我們正在進入下一階段，我們希望在今年年底之前獲得採購訂單，我們仍在朝著這個目標邁進，這將是相當大的機會。

Got it. And last question for me. I think in your initial comments, you talked about gradual growth for the year. So I'm guessing that refers to expectations for sequential growth throughout the year. But it sounds like you've had this big kickup in enterprise that you hope to kind of sustain at that level and maybe have consumer and some of the asset tracking businesses kind of drive sequential growth in the second half? Is that the right way to look at it?

知道了。還有我的最後一個問題。我認為在您最初的評論中，您談到了今年的逐步成長。所以我猜測這是指對全年環比成長的預期。但聽起來您在企業領域取得了巨大的進步，您希望能夠維持在這個水平，也許消費者和一些資產追蹤業務在下半年會推動連續成長？這是正確的看待方式嗎？

Hi, Tim, this is Michael. Yes, you're correct. So the consumer we do expect that to be things happening. One is why at seven one is not in our control is our costs. The service providers launch their own one asset and solutions that we expect that to happen in the back end of the year. The good news that we have two of the key design wins here, the M&O is another one that's going to be ramping up through the year as well, too, on the automotive market, the aftermarket itself.

嗨，提姆，我是麥可。是的，你是對的。因此，消費者確實希望這種情況發生。一是為什麼在七一我們無法控制的是我們的成本。服務提供者推出自己的單一資產和解決方案，我們預計這將在今年年底發生。好消息是，我們在這裡獲得了兩個關鍵的設計勝利，M&O 是另一個在今年也會在汽車市場和售後市場上不斷發展的設計。

And this is still being absorbed by the excess inventory overhang that we still continue having with lead customers. But per their feedback, there should be through that in the back end of the year in Q3, Q4 itself. And then we'll also have the AirgainConnect U.S. AC fleet coming up. It's starting to ship in the second half of the year.

這仍然被我們仍然與主要客戶保持的過剩庫存所吸收。但根據他們的回饋，應該會在今年年底的第三季、第四季完成。然後我們也將推出 AirgainConnect 美國空調機隊。下半年開始出貨。

And then on the enterprise business, yes, we do expect to have an overall maintenance of that product of that market with some pockets of opportunities. As we mentioned before, we definitely are very focused on the asset tracker because of its SAM and cents overall growth and also with our Lantern FWA product as well.

然後在企業業務方面，是的，我們確實希望對該市場的產品進行全面維護，並提供一些機會。正如我們之前提到的，我們絕對非常關注資產追蹤器，因為它的 SAM 和美分整體成長，以及我們的 Lantern FWA 產品。

Okay. Thanks very much.

好的。非常感謝。

Thank you, Tim.

謝謝你，提姆。

And at this time, this concludes our question and answer session. If your question was not taken, you may contact Airgain's Investor Relations team at AIRG. at Gateway dash GRP.com.

至此，我們的問答環節就結束了。如果您的問題未被採納，您可以聯絡 AIRG 的 Airgain 投資者關係團隊。在 Gateway dash GRP.com。

I'd now like to turn the call back over to Mr. Suen for his closing remarks.

我現在想把電話轉回給孫先生作總結發言。

Thank you for joining us on today's call. I especially want to thank our dedicated employees for their ongoing contributions and our investors for their continued support. We look forward to providing additional updates at our next opportunity, Operator?

感謝您參加今天的電話會議。我特別要感謝我們敬業的員工的持續貢獻和投資者的持續支持。我們期待下次有機會提供更多更新，操作員？

Thank you for joining us today for Aehr games Fourth Quarter and Full Year 2023 earnings call. You may now disconnect.

感謝您今天參加我們的 Aehr games 第四季和 2023 年全年財報電話會議。您現在可以斷開連線。