Airgain Inc (AIRG) 2024 Q2 法說會逐字稿

Good afternoon. Welcome to Airgain's second quarter 2024 earnings conference call. My name is Joe, and I will be your operator for today's call. Joining us today are Airgain's President and CEO, Jacob Suen; and CFO, Michael Elbaz.

午安.歡迎參加 Airgain 2024 年第二季財報電話會議。我叫喬，我將擔任您今天通話的接線生。今天加入我們的是 Airgain 總裁兼執行長 Jacob Suen；和財務長邁克爾·埃爾巴茲。

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. Following management's prepared remarks, the call will be open for questions from Airgain's covering analysts.

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。在管理階層發表準備好的演講後，電話會議將接受 Airgain 首席分析師的提問。

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 or forward-looking statements due to risks and uncertainties associated with the company's business.

我提醒聽眾，在這次電話會議中，Airgain 管理層將就未來事件以及 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或前瞻性陳述中明示或暗示的結果有重大差異。

These forward-looking statements are qualified by the cautionary statements contained in today's earnings release and Airgain's SEC filings. This conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, August 6, 2024.

這些前瞻性陳述符合今天的收益報告和 Airgain 向 SEC 提交的文件中包含的警示性陳述。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 8 月 6 日）準確。

Airgain undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date the date of this conference call. 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.

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。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。

Now I'd like to turn the call over to again, CEO. Jacob Suen. Jacob?

現在我想再次將電話轉給執行長。雅各孫.雅各？

Thank you, operator, welcome everyone and thank you for joining us this afternoon. To begin today's discussion. I will give some company background, followed by a review of our performance for the quarter before handing the call over to our CFO, Michael Elbaz. He will review our financial results for the quarter in more depth, as well as provide our outlook for the third quarter.

謝謝您，接線員，歡迎大家，謝謝您今天下午加入我們。開始今天的討論。我將介紹一些公司背景，然後回顧我們本季的業績，然後將電話轉交給我們的財務長 Michael Elbaz。他將更深入地審查我們本季的財務業績，並提供我們對第三季的展望。

After that I'll share some closing remarks before opening the call for questions. Before we dive into our quarterly results, I would like to take a moment to introduce Airgain to those who may be new to our story. At Airgain, we simplified wireless connectivity across the value chain from embedded components to integrated systems.

之後，我將在開始提問之前分享一些結束語。在我們深入了解季度業績之前，我想花點時間向那些可能不熟悉我們故事的人介紹 Airgain。在 Airgain，我們簡化了從嵌入式元件到整合系統的整個價值鏈的無線連接。

Our primary markets encompass the enterprise, consumer and automotive sectors within our indiplon market. Our products include embedded cellular modems as the truckers custom IoT products, 5G IoT antennas are new 5G fixed wireless access device and our 5G smart network control Celular's repeaters.

我們的主要市場包括 indiplon 市場中的企業、消費者和汽車領域。我們的產品包括嵌入式蜂窩調製解調器（作為卡車司機定制的物聯網產品）、5G 物聯網天線（新型 5G 固定無線接入設備）以及我們的 5G 智慧網路控制蜂窩中繼器。

Our consumer market is comprised mostly of our embedded antennas business, a traditional area of expertise for Airgain. Our consumer products include a custom embedded antenna design for Customer Premises Equipment devices such as those that enable WiFi 6E and WiFi five seven.

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。我們的消費性產品包括用於客戶端裝置的客製化嵌入式天線設計，例如支援 WiFi 6E 和 WiFi 5 7 的裝置。

Lastly, our automotive market encompasses both after-market antennas in vehicle networking devices, notably our AirgainConnect fleet solution, the global connectivity opportunity is substantial and enduring. We believe secular trends, including increased adoption of connectivity technologies and expanding addressable markets across our product range will drive industry and company growth.

最後，我們的汽車市場涵蓋車輛網路設備中的售後天線，特別是我們的 AirgainConnect 車隊解決方案，全球連線機會是巨大且持久的。我們相信，長期趨勢，包括更多採用連接技術和擴大我們產品系列的潛在市場，將推動行業和公司的成長。

Airgain has consistently evolve and deliver optimized wireless solutions, enabling our channel partners and customers to connect efficiently. As new technologies emerge, we are well positioned to continue providing cutting-edge products to meet evolving demand.

Airgain 不斷發展並提供優化的無線解決方案，使我們的通路合作夥伴和客戶能夠高效連接。隨著新技術的出現，我們有能力繼續提供尖端產品來滿足不斷變化的需求。

Turning now to a review of our recent operational results and three core markets. We generated $15.2 million in sales in the second quarter above the midpoint of our guidance range and a 7% increase over the prior quarter. This increase was largely driven by higher consumer market sales to our cable, broadband and mobile network operators.

現在回顧我們最近的營運表現和三個核心市場。第二季我們的銷售額達到 1,520 萬美元，高於指引範圍的中點，比上一季成長 7%。這一成長主要是由於我們的有線、寬頻和行動網路營運商的消費市場銷售額增加所致。

In second quarter we deliver the first shipments of our fixed wireless access and Internet solutions, along with the first shipments of WiFi-7 antennas to a Tier 1 MSO partner. We also secure multiple design wins for our embedded modems in our 5G, automotive and enterprise antennas. Still, we are paying close attention to the macro economic environment as industry-wide headwinds that we have faced in recent quarters continue to dissipate.

第二季度，我們向一級 MSO 合作夥伴交付了第一批固定無線存取和互聯網解決方案，以及第一批 WiFi-7 天線。我們還為 5G、汽車和企業天線中的嵌入式數據機贏得了許多設計勝利。儘管如此，我們仍密切關注宏觀經濟環境，因為近幾季我們面臨的全產業不利因素持續消散。

Our indicators suggest that previously broader demand softness has become more product and customer-specific as the industry recalibrates optimal inventory levels. Well, some key customers continue to adjust their inventories affecting order timing. Our broader product portfolio generally enjoys Clear Channels.

我們的指標表明，隨著行業重新調整最佳庫存水平，先前更廣泛的需求疲軟已變得更加針對產品和客戶。嗯，一些主要客戶繼續調整庫存，影響訂單時間。我們更廣泛的產品組合通常享有清晰的管道。

We anticipate that drop from trading inventory levels will impact our business. However, we are confident that our existing design wins and the launch of our strategic product initiatives will lead to overall revenue growth.

我們預計貿易庫存水準的下降將影響我們的業務。然而，我們相信，我們現有的設計獲勝以及策略性產品計劃的推出將帶來整體收入的成長。

Taking a closer look at our three markets, our enterprise market performance in second quarter remains stable compared to Q1, all bit with a different mix of key drivers following a robust Q1, driven by a substantial shipment to a strategic partner in our custom products, we anticipated an inventory adjustment in Q2 affecting order volumes. However, the expected softness in custom products was counterbalanced by sequential sales increases in our embedded modems, asset trackers and indalpine antennas along with the commencement of Lantern FWA product shipments, enabling us to maintain in device revenue compared to first quarter.

仔細觀察我們的三個市場，我們第二季度的企業市場表現與第一季相比保持穩定，在強勁的第一季度之後，所有關鍵驅動因素都出現了不同的組合，這是由我們的定制產品向戰略合作夥伴的大量出貨所推動的，我們預計第二季的庫存調整會影響訂單量。然而，客製化產品的預期疲軟被我們的嵌入式調變解調器、資產追蹤器和 indalpine 天線的連續銷售成長以及 Lantern FWA 產品出貨的開始所抵消，使我們能夠維持與第一季相比的設備收入。

We expanded our asset tracker portfolio with new railcar focus features with the design win we announced last year. The railcar segment provides us with a unique opportunity to leverage our asset trackers competitive advantages such as cellular connectivity in battery life and customize them to meet the technical and environmental requirements of the sector. We expect to leverage our railcar product portfolio to the broader transportation segment.

我們透過去年宣布的設計勝利，透過新的軌道車焦點功能擴展了我們的資產追蹤器產品組合。軌道車領域為我們提供了一個獨特的機會，可以利用我們的資產追蹤器的競爭優勢（例如電池壽命方面的蜂窩連接）並對其進行定制，以滿足該行業的技術和環境要求。我們希望將我們的軌道車產品組合應用於更廣泛的運輸領域。

In addition, our RECON13 sales pipeline of continue to grow for enterprise applications, specifically with counties and municipalities. RECON13 is a low-profile rugged outdoor antenna design to provide high performance LTE in 5G connectivity. Although the sales cycle for these antenna contracts is long. We are confident in the demand that we are seeing and believe that this is a growth opportunity for us through the rest of 2024.

此外，我們針對企業應用程式的 RECON13 銷售管道持續成長，特別是與縣和市的銷售管道。RECON13 是一款薄型堅固型室外天線設計，可在 5G 連接中提供高效能 LTE。雖然這些天線合約的銷售週期較長。我們對所看到的需求充滿信心，並相信這對我們來說是 2024 年剩餘時間的成長機會。

Looking ahead to Q3, we anticipate a slower quarter for design wins based on our product timeline and recognized that inventory with our strategic custom products customer will require time to normalize. Nevertheless, we believe our robust embedded modems, product portfolio, expanding IoT antennas and asset trackers, sales pipelines and the launch of the lane turn FWA solution strategically position us to offset the temporary softness in custom products.

展望第三季度，根據我們的產品時間表，我們預計設計獲勝的季度將放緩，並認識到我們的策略客製化產品客戶的庫存將需要時間才能正常化。儘管如此，我們相信我們強大的嵌入式調變解調器、產品組合、不斷擴大的物聯網天線和資產追蹤器、銷售管道以及車道轉彎FWA 解決方案的推出，使我們能夠策略性地抵消客製化產品暫時疲軟的影響。

Increasing demand we have seen across these product lines bolsters our confidence in their growth potential. So the remainder of 2024 and into 2025. Our consumer market saw notable progress in second quarter. Over recent quarters, we have highlighted the anticipated industry transition from WiFi-6 and 6E to WiFi-7 among MSOs driven by their desire to enhance performance in user experience.

我們看到這些產品線不斷增長的需求增強了我們對其成長潛力的信心。2024 年剩餘時間及 2025 年。第二季我們的消費市場取得了顯著進展。最近幾個季度，我們強調了 MSO 出於增強用戶體驗效能的願望而預期從 WiFi-6 和 6E 到 WiFi-7 的產業轉型。

Our team has been diligently working to meet this demand. This quarter marked a significant milestone as we deliver our first WiFi-7 router antenna system to a Tier 1 MSO, a long anticipated achievement. While WiFi seven adoption rates vary among MSOs with some moving swiftly and others targeting 2025 we believe that Airgain will play a significant role in driving this industry-wide shift in the coming quarters.

我們的團隊一直在努力滿足這項需求。本季標誌著一個重要的里程碑，我們向 1 級 MSO 交付了首個 WiFi-7 路由器天線系統，這是一項期待已久的成就。雖然不同 MSO 的 WiFi 7 採用率各不相同，有些移動速度很快，而另一些則瞄準 2025 年，但我們相信 Airgain 將在未來幾季推動整個行業的轉變中發揮重要作用。

Consumer demand continues to shift from wired to wireless Internet service providers with a growing preference for FWA. Recognizing this trend early, we strategically focus on penetrating this expanding market. A key milestone was our Tier 1 MNO design win for an indoor FWA router antenna announced last November. While shipments began in Q1, we significantly ramped up production during the second quarter. We expect this positive trend to gain momentum in Q3.

消費者的需求持續從有線網路服務供應商轉向無線網路服務供應商，並且越來越偏好 FWA。我們很早就認識到了這一趨勢，因此策略性地專注於滲透這個不斷擴大的市場。一個重要的里程碑是我們去年 11 月宣布的室內 FWA 路由器天線設計贏得了 Tier 1 MNO 設計。雖然第一季開始出貨，但我們在第二季大幅提高了產量。我們預計這種積極趨勢將在第三季獲得動力。

So projecting further sequential growth in our consumer markets. In addition, we recently secure a significant design win with one of Europe's leading telecommunications providers for our Vans embedded antennas. We expect first shipments to occur by the end of the year.

因此預計我們的消費市場將進一步連續成長。此外，我們最近還贏得了歐洲領先電信供應商之一的 Vans 嵌入式天線的重大設計勝利。我們預計首批出貨將在今年年底前完成。

Now let's focus on our automotive product, which currently serves public safety and transportation vehicles with our other advanced aftermarket products. While our growth in this sector has traditionally been driven by several key customers, the industry-wide excess inventory challenge that emerged late last year persisted through Q2. We project this inventory recalibration to continue through the end of the year, but we are actively implementing strategies to navigate these temporary market conditions.

現在讓我們專注於我們的汽車產品，目前與我們其他先進的售後市場產品一起服務於公共安全和運輸車輛。雖然我們在該領域的成長傳統上是由幾個關鍵客戶推動的，但去年年底出現的全行業庫存過剩挑戰在整個第二季度持續存在。我們預計這種庫存重新調整將持續到今年年底，但我們正在積極實施策略來應對這些暫時的市場狀況。

In second quarter, our highly configurable RECON13 5G antenna continue to gain significant market traction in automotive applications, helping to offset inventory challenges and maintain revenue stability compare to Q1, we anticipate that RECON13 projected growth will help mitigate ongoing inventory challenges in other areas of this product market in the coming quarters. One of our lead customers selected RECON13 for its transition from 4G to 5G in-car systems, further validating its capabilities and market potential.

第二季度，我們高度可配置的RECON13 5G 天線繼續在汽車應用中獲得巨大的市場吸引力，與第一季相比，有助於抵消庫存挑戰並保持收入穩定性，我們預計RECON13 預計增長將有幫助緩解汽車應用其他領域持續存在的庫存挑戰未來幾季的產品市場。我們的一位主要客戶選擇 RECON13 來實現從 4G 到 5G 車載系統的過渡，進一步驗證了其功能和市場潛力。

Additionally, our AirgainConnect fleet or AC fleet product is generating significant market interest, and we are in the final certification phase with trials currently in progress with multiple customer prospects. We anticipate this strong interest in ongoing trials to convert into material revenue streams beginning in Q3 and ramping up in Q4.

此外，我們的 AirgainConnect 機隊或 AC 機隊產品正在引起巨大的市場興趣，我們正處於最終認證階段，目前正在與多個潛在客戶進行試驗。我們預計人們對正在進行的試驗有濃厚的興趣，這些試驗將在第三季開始轉化為物質收入流，並在第四季度增加。

Overall, we are encouraged by the ongoing recovery across several of our product lines while we recognize the industry challenges persist and require ongoing vigilance regarding the macroeconomic environment, we anticipate continued progress. Our robust and diverse product portfolio positions us well for growth opportunities, reinforcing our confidence in a sustained rebound.

總體而言，我們對多個產品線的持續復甦感到鼓舞，同時我們認識到行業挑戰仍然存在，需要對宏觀經濟環境保持警惕，我們預計將繼續取得進展。我們強大且多樣化的產品組合為我們提供了良好的成長機會，增強了我們對持續反彈的信心。

As previously communicated, we are advancing our strategic transition from an exclusive component manufacturer to a comprehensive wireless system solutions provider. As such, our growth strategy is focused on two key elements. First, continued execution of our established business.

正如之前所傳達的，我們正在推動從獨家組件製造商到綜合無線系統解決方案提供商的策略轉型。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。

Airgain traditional expertise lies in component-based products deployed across consumer, automotive and enterprise applications, including embedded modems, custom products embedded antennas in aftermarket automotive products.

Airgain 的傳統專業知識在於部署在消費者、汽車和企業應用中的基於組件的產品，包括嵌入式數據機、售後汽車產品中的客製化產品嵌入式天線。

We have cultivated strong relationships with partners throughout the value chain and achieved several significant milestones in recent quarters. Furthermore, we anticipate lucrative opportunities in these product categories driven by upcoming shipment ramps for Tier 1 MSOs, WiFi-7 and M&O embedded antenna design wins, expansion of RECON13, antenna, automotive, new device sales pipelines and new IoT custom products. Given our expanding product portfolio and customer sales pipeline, we are optimistic about the growth potential of our established business.

我們與整個價值鏈的合作夥伴建立了牢固的關係，並在最近幾季實現了幾個重要的里程碑。此外，我們預計，由於一級MSO 即將出貨量的增加、WiFi-7 和M&O 嵌入式天線設計的勝利、RECON13、天線、汽車、新設備銷售管道和新物聯網客製化產品的擴展，這些產品類別將出現利潤豐厚的機會。鑑於我們不斷擴大的產品組合和客戶銷售管道，我們對現有業務的成長潛力感到樂觀。

Second, integrated wireless solutions expansion. While we continue to advance our existing components business. Our forward-looking indicators for 2024 and into 2025 highlight our wireless connectivity product lines as having the greatest upside potential. Specifically, our asset tracking and 5G connectivity solutions present the most significant strategic growth opportunities on the US trucking side, our truckers are deployed across transportation, supply chain and other specialized applications.

其次，整合無線解決方案的擴展。同時我們持續推進現有的零件業務。我們的 2024 年和 2025 年前瞻性指標強調我們的無線連接產品線具有最大的上升潛力。具體來說，我們的資產追蹤和 5G 連接解決方案為美國卡車運輸方面提供了最重要的策略性成長機會，我們的卡車司機部署在運輸、供應鏈和其他專業應用程式中。

This segment offers recurring revenue opportunities to multiple subscription base components, including our NimbeLink cloud-based device enablement platform and trucking information dashboards. In addition, we continue to make meaningful progress with a product portfolio design for the transportation sector.

此細分市場為多個訂閱基礎組件提供經常性收入機會，包括我們的 NimbeLink 基於雲端的設備支援平台和貨運資訊儀表板。此外，我們在交通運輸領域的產品組合設計方面繼續取得有意義的進展。

Our 5G connectivity products include long-term FWA designed to enhance connectivity in homes in offices, Bright House, smart repeater engineer to explain high quality coverage for mobile network operators and our next generation AC fleet 5G vehicle gateway evolve to provide wide area cellular and local WiFi connectivity for public safety, transportations and various vehicle fleet.

我們的5G 連接產品包括旨在增強辦公室、Bright House 家庭連接的長期FWA、為行動網路營運商解釋高品質覆蓋的智慧中繼器工程師，以及我們的下一代AC 車隊5G 車輛網關，旨在提供廣域蜂窩和本地服務用於公共安全、交通和各種車隊的 WiFi 連接。

We have garner significant interest across these solutions for Lighthouse, we are progressing steadily with the previously mentioned international strategic collaboration. Having conducted successful live network trials for in-building service and outdoor coverage solutions. We are working on committed trials with three international mobile network operators and one domestic power company through the end of this year.

我們對 Lighthouse 的這些解決方案產生了濃厚的興趣，我們正在穩步推進前面提到的國際戰略合作。成功進行了室內服務和室外覆蓋解決方案的現網試驗。我們正在與三家國際行動網路營運商和一家國內電力公司進行承諾試驗，直至今年底。

Regarding AC fleet, we are working on over 25 customer trials domestically and internationally in third quarter, and we anticipate initial shipments by the end of this quarter. Again, these three product lines represent over $7 million of potential projected serviceable addressable market in 2024 and $1.7 billion of potential additional SAM in 2025, effectively doubling our foundational SAM of $1.8 billion for our existing product lines.

關於 AC 機隊，我們正在第三季度在國內和國際上進行超過 25 個客戶試驗，我們預計在本季度末進行首次發貨。同樣，這三條產品線代表了2024 年預計超過700 萬美元的潛在可服務可尋址市場，以及2025 年潛在的額外SAM 17 億美元，實際上是我們現有產品線18 億美元的基礎SAM的兩倍。

Our connectivity products are the culmination of several years of investments in shifting a game from exclusively components to full systems. And we believe that we have significant upside in this area. We ship the Lantern FWA in second quarter and we continue to advance our smart SWA Technology announced earlier this year. Our focus is on transforming the 5G customer experience by optimizing connectivity and minimizing operator's truck rolls and customer returns.

我們的連接產品是多年來將遊戲從專用組件轉變為完整系統的投資的結晶。我們相信我們在這領域具有顯著的優勢。我們在第二季出貨 Lantern FWA，並繼續推動今年稍早宣布的智慧 SWA 技術。我們的重點是透過優化連接並最大限度地減少營運商上門服務和客戶退貨來改變 5G 客戶體驗。

With that, I'll turn the call over to Michael to discuss our second quarter 2024 financial results and third quarter 2024 outlook in greater detail. Michael?

接下來，我將把電話轉給 Michael，更詳細地討論我們 2024 年第二季的財務表現和 2024 年第三季的前景。麥可？

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 to non-GAAP reconciliation 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。有關非公認會計原則財務指標的信息，包括公認會計原則與非公認會計原則的調節，可以在我們的收益報告中找到。

Now, let’s turn to our second quarter results. As Jacob mentioned, Q2 sales were $15.2 million, above the $15 million midpoint of the guidance range. Our second quarter sales increased sequentially by $1 million, driven by strong contributions from our consumer market. While sales increased by 7% sequentially, they were lowered by 4% year-over-year, primarily because we are still addressing an excess inventory environment.

現在，讓我們來看看第二季的業績。正如 Jacob 所提到的，第二季銷售額為 1,520 萬美元，高於指引範圍 1,500 萬美元的中位數。在消費者市場的強勁貢獻推動下，我們第二季的銷售額較上季成長了 100 萬美元。雖然銷售額季增 7%，但年減 4%，主要是因為我們仍在解決庫存過剩的問題。

Enterprise sales were $8.6 million, reflecting a sequential decrease of $0.3 million or 3%. The slight decrease in sales was due to the large shipment of custom products in Q1, which was mostly offset by increases in our embedded modems, asset trackers, enterprise antennas, and first shipments of our Lantern FWA product.

企業銷售額為 860 萬美元，季減 30 萬美元，即 3%。銷售額略有下降是由於第一季客製化產品的大量出貨，這大部分被我們的嵌入式調變解調器、資產追蹤器、企業天線和 Lantern FWA 產品的首批出貨量的成長所抵銷。

Consumer sales reached $4.8 billion, representing a sequential increase of $1.3 million. This growth was primarily driven by a broad-based market recovery and the ramp-up of Tier 1 MNO shipments. Additionally, we completed our first shipments of Tier 1 MSO Wi-Fi-7 antennas. Automotive sales were $1.7 million, reflecting a sequential decrease of $0.1 million.

消費者銷售額達 48 億美元，比上一季增加 130 萬美元。這一增長主要是由廣泛的市場復甦和一級行動網路營運商出貨量的增加所推動的。此外，我們也完成了第一批 1 級 MSO Wi-Fi-7 天線的出貨。汽車銷售額為 170 萬美元，季減 10 萬美元。

Q2 gross margin was 41.5%, 130 basis points higher sequentially due to a higher enterprise margin and a favorable market sales mix. On a year-over-year basis, Q2 gross margin was 110 basis points higher as a result of continuous margin improvement in our automotive and enterprise markets. These improvements more than offset the unfavorable year-over-year market sales mix.

由於企業利潤率提高和有利的市場銷售組合，第二季毛利率為 41.5%，比上一季高 130 個基點。由於汽車和企業市場利潤率持續改善，第二季毛利率年增 110 個基點。這些改進足以抵消同比不利的市場銷售組合。

Q2 operating expenses totaled $6.9 million, relatively flat sequentially. On a year-over-year basis, Q2 expenses increased by $0.3 million. Our first half of 2024 expenses amounted to $13.4 million, reflecting a decrease of $0.4 million, or 3%, from our first half of 2023 expenses.

第二季營運支出總計 690 萬美元，與上一季持平。第二季費用較去年同期增加 30 萬美元。我們 2024 年上半年的支出為 1,340 萬美元，比 2023 年上半年支出減少了 40 萬美元，即 3%。

Despite the relatively flat year-over-year OpEx, our G&A and marketing communication expenses declined by approximately 25% year-over-year as we drove process and system efficiencies. Our engineering and sales expenses increased by approximately 20% year-over-year as we focused on the development and launch of our strategic product initiatives.

儘管營運支出比去年同期相對持平，但隨著我們提高流程和系統效率，我們的一般管理費用和行銷傳播費用比去年同期下降了約 25%。由於我們專注於策略性產品計劃的開發和推出，我們的工程和銷售費用年增約 20%。

Q2 adjusted EBITDA was negative $0.4 million and non-GAAP EPS was negative $0.05. Our cash balance as of June 30, 2024 was $8.4 million, $1.2 million higher sequentially, resulting from net cash proceeds of $2.5 million from the ATM offering, partially offset by negative free cash flows of $1.3 million. Our accounts receivable balance was $8.6 million, $1 million lower sequentially. Net inventory was $3.1 million, which was $0.5 million higher sequentially.

第二季調整後 EBITDA 為負 40 萬美元，非 GAAP 每股盈餘為負 0.05 美元。截至2024 年6 月30 日，我們的現金餘額為840 萬美元，比上一季增加120 萬美元，這是ATM 發行帶來的250 萬美元淨現金收益，部分被130 萬美元的負自由現金流所抵消。我們的應收帳款餘額為 860 萬美元，比上一季減少 100 萬美元。淨庫存為 310 萬美元，比上一季增加 50 萬美元。

Now, moving to our outlook for the third quarter ending September 30, 2024. As a reminder, we provide quarterly guidance for sales, non-GAAP gross margin and expenses, non-GAAP EPS and adjusted EBITDA as we believe this metrics to be key indicators for the overall performance of our business.

現在，我們展望截至 2024 年 9 月 30 日的第三季。提醒一下，我們提供銷售、非公認會計原則毛利率和費用、非公認會計原則每股收益和調整後 EBITDA 的季度指導，因為我們相信這些指標是我們業務整體業績的關鍵指標。

We project sales for the 2024 third quarter to be in the range of $15.25 million to $16.75 million, or $16 million at the midpoint of the range. We expect the sequential sales growth of approximately 5% at the midpoint of our guidance range, driven by continued growth in our consumer market and by the launch of our next generation AirgainConnect or AC fleet, by the end of the third quarter. We expect our enterprise sales to be down, primarily because of inventory normalization with a lead custom products customer.

我們預計 2024 年第三季的銷售額將在 1,525 萬美元至 1,675 萬美元之間，即該範圍的中點為 1,600 萬美元。我們預計，在消費市場持續成長以及下一代 AirgainConnect 或 AC 機隊推出的推動下，到第三季末，銷售額環比成長率將達到指導範圍的中位數約 5%。我們預計我們的企業銷售額將會下降，主要是因為主要客製化產品客戶的庫存正常化。

We expect non-GAAP gross margin for the third quarter to be in the range of 41% to 44%, or 42.5% at the midpoint of the range. We anticipate the sequential increase in gross margin to be driven by a favorable market sales mix and continuous margin improvements.

我們預計第三季非 GAAP 毛利率將在 41% 至 44% 之間，即該範圍的中點為 42.5%。我們預計毛利率的環比成長將受到有利的市場銷售組合和持續的利潤率改善的推動。

We project our operating expenses to be approximately $6.9 million, as we continue to focus on the AC Fleet product launch and Lighthouse customer trials. Non-GAAP EPS is expected to be negative $0.01 at the midpoint of the guidance. Adjusted EBITDA is expected to be breakeven at the midpoint of the guidance.

我們預計營運費用約為 690 萬美元，因為我們將繼續專注於 AC Fleet 產品發布和 Lighthouse 客戶試用。按照指引的中點，非 GAAP 每股盈餘預計為負 0.01 美元。調整後的 EBITDA 預計將在指導值的中點實現損益平衡。

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

現在，我想把電話轉回給雅各布，讓他聽聽他的結束語。雅各？

Thanks, Michael. A few closing thoughts before we take questions. First, I am immensely proud of our team’s unwavering commitment and tireless dedication to our strategic roadmap initiatives. We are currently developing several groundbreaking products under stringent timelines.

謝謝，麥可。在我們回答問題之前，有一些總結性的想法。首先，我為我們的團隊對我們的策略路線圖計劃堅定不移的承諾和不懈的奉獻感到非常自豪。我們目前正在嚴格的期限內開發幾種突破性的產品。

As of today, I can confidently report that we are not only executing on our promises, but also maintaining our scheduled milestones. This remarkable achievement is a testament to our team’s exceptional dedication and the expertise of our highly effective management team.

截至今天，我可以自信地報告，我們不僅履行了我們的承諾，而且還維持了我們預定的里程碑。這項非凡的成就證明了我們團隊的卓越奉獻精神和高效管理團隊的專業知識。

Second, our outlook on market potential and industry recovery remains optimistic. Despite ongoing challenges in certain product segments, we have achieved significant progress across multiple facets of our business, including product innovation, partnership expansion, and geographical diversification.

其次，我們對市場潛力和產業復甦的前景仍然樂觀。儘管某些產品領域持續面臨挑戰，但我們在業務的多個方面取得了重大進展，包括產品創新、合作夥伴關係擴展和地理多元化。

We are maintaining our investment in new product launches and bolstering our salesforce as part of an assertive growth strategy designed to counter the industry-wide inventory correction. We are confident that our resilience and skillful navigation of these challenges will yield substantial returns in the coming quarters.

我們將繼續保持對新產品發布的投資，並加強我們的銷售隊伍，作為旨在應對全行業庫存調整的積極成長策略的一部分。我們相信，我們應對這些挑戰的韌性和技巧將在未來幾季帶來可觀的回報。

Third, our products remain the cornerstone of our value proposition to customers in light of emerging industry trends, including the transition to Wi-Fi-7, growing demand for asset tracking capabilities, and persistent challenges in 5G coverage. We are confident that the global connectivity opportunity is not only vast, but expanding. Many regions worldwide represent untapped markets for both our industry and our business.

第三，鑑於新興的行業趨勢，包括向 Wi-Fi-7 的過渡、對資產追蹤功能不斷增長的需求以及 5G 覆蓋範圍的持續挑戰，我們的產品仍然是我們向客戶提供價值主張的基石。我們相信，全球互聯互通的機會不僅巨大，而且還在不斷擴大。全球許多地區代表了我們的行業和業務尚未開發的市場。

For instance, our next generation Smart FWA, AC Fleet, and Lighthouse Smart Repeater products are designed to address critical connectivity challenges and have garnered significant interest from major industry players. We believe these innovations distinguish us as a pivotal force in our sector. Q2 has seen us not only sustain our operational excellence, but also make substantial progress on our strategic initiatives.

例如，我們的下一代智慧 FWA、AC Fleet 和 Lighthouse 智慧中繼器產品旨在解決關鍵的連接挑戰，並引起了主要行業參與者的極大興趣。我們相信，這些創新使我們成為該行業的中堅力量。第二季我們不僅保持了卓越的運營，而且在策略舉措方面取得了實質進展。

Our team's performance reinforces our strong confidence in the effectiveness of our forward-looking strategy. We are really optimistic about Airgain’s growth trajectory and are well positioned to capture market share.

我們團隊的表現增強了我們對前瞻性策略有效性的堅定信心。我們對 Airgain 的成長軌跡非常樂觀，並且處於佔領市場份額的有利位置。

And with that, operator, please open the call for Q&A.

那麼，接線員，請打開問答電話。

(Operator Instructions) Anthony Stoss, Craig-Hallum.

（操作說明）Anthony Stoss，Craig-Hallum。

Good afternoon and nice execution both for the quarter and the guide.

下午好，本季和指南的執行都很好。

Thank you.

謝謝。

Thank you, Tony.

謝謝你，托尼。

The Jacob, I wanted to start with your comments about I believe you said as a European design win with for your antennas that should be shipping late this year. Can you maybe describe the opportunity and kind of the nature of this customer if there's other customers that you can attack quickly than I had a couple of follow-ups.

雅各布，我想從您的評論開始，我相信您說您的天線是歐洲設計的勝利，應該在今年晚些時候發貨。如果您可以比我的幾個後續客戶更快地攻擊其他客戶，您能否描述一下該客戶的機會和性質。

Yes, sure. Yes. So this is a design that we actually work with our partner in other OEM. out of Taiwan. For the last I was a year plus it's actually one of the major, I would say, carrier in the US space. And they know they that encompasses not only the German market, but other markets as well in Europe. And this is a it's a it's a gateway. We actually this is small of our traditional business where we actually do the design with the WiFi seven for these particular fiber gateway and the expectation is that going to be going to be begin shipping by the end of this year for the next two to three years. And the bottom will be in, I would say, anywhere about 1 million to 2 million devices per year.

是的，當然。是的。所以這是我們與其他 OEM 合作夥伴實際合作的設計。出台灣。過去我工作了一年，而且它實際上是美國太空中主要的航空母艦之一。他們知道他們不僅涵蓋德國市場，還涵蓋歐洲其他市場。這是一個網關。實際上，這只是我們傳統業務的一小部分，我們實際上為這些特定的光纖網關使用 WiFi 7 進行設計，預計將在今年年底前開始在未來兩到三年內發貨。我想說，底部將出現在每年大約 100 萬到 200 萬台設備的地方。

Got it. Thanks. And then another one for you, Jacob, before I move to Michael, your asset trackers have been really strong, which is nice to see. Do you think that there's inventory in the channel is kind of depleted and what do you see in terms of design traction and kind of growth rate, seems like that's been growing pretty pretty quickly again.

知道了。謝謝。然後，雅各布，在我轉向邁克爾之前，您的資產追蹤器非常強大，這很高興看到。您是否認為通路中的庫存已經耗盡，您在設計吸引力和成長率方面看到了什麼，似乎又在快速成長了。

Yes. Actually, asset tracker relating to our overall IoT business, it’s an area of focus. We actually are coming up with several new products focusing on the asset tracking customers. Specifically, we talked about the railcar customers we want, and we’re actually winning new designs with these particular customers.

是的。實際上，與我們整個物聯網業務相關的資產追蹤器是一個重點領域。實際上，我們正​​在推出幾款專注於資產追蹤客戶的新產品。具體來說，我們討論了我們想要的軌道車客戶，我們實際上正在贏得這些特定客戶的新設計。

And, we’re working on even longer-term contracts with these particular customers. In addition, we’re also engaging some opportunities in some of the flight applications, which I hope to be able to provide more color in the coming weeks.

而且，我們正在與這些特定客戶簽訂更長期的合約。此外，我們還在一些飛行應用程式中投入了一些機會，我希望能夠在未來幾週內提供更多的色彩。

Last but not least, we’re also working on some of the strategic logistics customers' partnerships. And we feel strongly about the asset tracking system being pivotal part of our future growth business.

最後但並非最不重要的一點是，我們也致力於與一些策略性物流客戶建立合作關係。我們強烈認為資產追蹤系統是我們未來成長業務的關鍵部分。

Got it. Perfect. Thanks for the color. And then, just two quick ones for Michael, then I’ll jump back in queue. I’d love to hear your thoughts on gross margins kind of longer-term if we’re now set to continue to move higher kind of each and every quarter.

知道了。完美的。謝謝你的顏色。然後，只要給邁克爾兩個快速的，然後我就會插回隊列。如果我們現在每個季度都繼續提高毛利率，我很想聽聽您對長期毛利率的看法。

And then, I know you’re only guiding for the September quarter, but I’d love to hear your thoughts kind of on seasonality for the December quarter, if you think December is subsequently flat down from September.

然後，我知道您只是對 9 月季度進行指導，但如果您認為 12 月隨後與 9 月相比持平，我很想听聽您對 12 月季度季節性的想法。

Thank you, Tony. So gross margin has been a continuous focus for us for the past and a half. We haven't seen the result of all the efforts up until now, which is actually coinciding with the dissipation of some of the excess inventory that the industry still faces.

謝謝你，托尼。因此，在過去半年裡，毛利率一直是我們關注的焦點。目前我們還沒有看到所有努力的結果，這實際上與行業仍然面臨的一些過剩庫存的消散相吻合。

But on overall, just to give you some color on that and just on some of those are broad changes taking place. We certainly over the past year have introduced some high-performance antenna products and also some asset tracker product and then our premium. And so therefore garnering better than average gross margin.

但總體而言，只是為了讓您對此有一些了解，其中一些正在發生廣泛的變化。當然，在過去的一年中，我們推出了一些高性能天線產品和一些資產追蹤器產品，然後是我們的溢價產品。因此，毛利率高於平均值。

We certainly want to continue with the product portfolio expansion on new products that are really focused on premium or high performance. We also have a continuous focus on product cost reductions and margin improvement, and we have done so over the past few quarters. And then finally, this leverage of the CM model that we have talked about is definitely very helpful now that the excess inventory in the channel has dissipated.

我們當然希望繼續擴展真正專注於高端或高性能的新產品的產品組合。我們也持續關注產品成本降低和利潤率提高，在過去幾個季度我們一直在這樣做。最後，我們所討論的 CM 模式的槓桿作用肯定非常有幫助，因為通路中的過剩庫存已經消失。

And then in addition to that, would be the launch of the product initiative, which we expect to be higher gross margin that overall so far has been able to offset some of the price pressure that we have seen because of the excess inventory of force right now. So overall, I would say we this is a key focus of ours for us, and we expect to see some margin improvements in future quarters.

除此之外，我們還將推出該產品計劃，我們預計該計劃的毛利率將更高，到目前為止，總體上已經能夠抵消我們因庫存過剩而帶來的部分價格壓力。總的來說，我想說這是我們的一個重點，我們預計未來幾季的利潤率會有所改善。

Just your thoughts about December seasonality or up down sequential flat and the additional funds

只是您對 12 月季節性或上下連續持平以及額外資金的看法

December, I believe that the AC fleet is going to be a key determinant in terms of the direction of our overall growth altogether. And so right now, we're just focused on the full execution and data and the customer trials that we are and they're taking right now.

12 月，我相信 AC 機隊將成為我們整體成長方向的關鍵決定因素。所以現在，我們只專注於完整的執行和數據以及我們和他們現在正在進行的客戶試驗。

Okay. Very good. Thanks, guys. Best of luck.

好的。非常好。謝謝，夥計們。祝你好運。

Thank you, Tony.

謝謝你，托尼。

(Operator Instructions) Tim Savageaux, Northland Capital Markets.

（操作員說明）Tim Savageaux，Northland Capital Markets。

Hey, good afternoon and congrats on the results and the outlook as well. I want to kind of continue with that thinking about heading into year end, some on the consumer side you talked about and Jacobo wasn't clear whether and the cable MSO design wins you expect to be positively impact in Q3 or whether they're really kicking in yet.

嘿，下午好，也祝賀結果和前景。我想繼續思考進入年底的情況，您談到的一些消費者方面的問題，Jacobo 並不清楚電纜 MSO 設計是否會贏得您期望在第三季度產生積極影響，或者它們是否真的還沒有開始。

And, of course, you mentioned a couple of others as well. So obviously, expect consumer to grow in Q3 looks like pretty decently, given the gross margin guide, I’ve seen that’s mix effective. It seems like there's whether it’s seasonality or ramping design wins, a decent reason to believe that consumer strength continues into Q4 that’s independent of AC Fleet. But I just want to kind of bounce that scenario off to you guys and see what you think.

當然，您也提到了其他幾個。顯然，考慮到毛利率指導，預計第三季消費者的成長看起來相當不錯，我已經看到這種組合是有效的。似乎無論是季節性還是設計的不斷提升，都有充分的理由相信消費者的強勁勢頭會持續到第四季度，而與 AC Fleet 無關。但我只是想把這個場景轉述給你們，看看你們怎麼想。

Hi, Tim. This is Michael. So the Q1 MSO design win that we announced and got the PO that we announced also last quarter, that we started shipment in Q2, and we’re seeing a strong ramp in Q3. And we’re hoping and we expect that that ramp will continue on into Q4 as well, too.

嗨，提姆。這是麥可.因此，我們宣布第一季 MSO 設計獲勝，並獲得了上季度宣布的採購訂單，我們在第二季度開始發貨，並且我們在第三季度看到了強勁的增長。我們希望並且預計這種成長也將持續到第四季度。

Other Tier 1 MSOs may be delayed on their Wi-Fi 7 deployments, so we may expect that to be taking place at the end of the year. But the other part that is fueling some of that growth on the consumer market is really the MNO Tier 1 design win that we announced last November.

其他 1 級 MSO 的 Wi-Fi 7 部署可能會延遲，因此我們預計這將在今年年底進行。但推動消費市場成長的另一部分實際上是我們去年 11 月宣布的 MNO Tier 1 設計勝利。

That one continues to also ramp in the shipment itself. So, right now, we certainly are optimistic about Q3 and optimistic that the trend hopefully will continue on into Q4 as well, too.

出貨量本身也在持續增加。因此，現在我們當然對第三季持樂觀態度，並樂觀地認為這一趨勢也將持續到第四季。

Great. And kind of following up on that, you've talked about some inventory on the custom product side in enterprise, and I don't know if there's a timeframe and also some offsetting drivers across the rest of the rest of the product line. Is there a timeframe that you expect that to clear, would you expect that to persist again through the end of the year to kind of keep a lid on on enterprise growth from until next year? Would you expect that to --

偉大的。對此進行跟進，您談到了企業中定制產品方面的一些庫存，我不知道是否存在時間框架以及產品線其餘部分的一些抵消驅動因素。您是否希望這種情況能夠在一個時間框架內消除，您是否希望這種情況能夠再次持續到今年年底，從而在明年之前抑制企業的成長？你會期望這樣嗎--

Yeah, that one is yeah, sorry, go ahead, Tim, go ahead.

是的，那個是的，抱歉，繼續，提姆，繼續。

No, I was just going to say would you expect that to persist for a few quarters are clear and a year earlier?

不，我只是想說，您是否認為這種情況會持續幾個季度並且比一年前更明顯？

Yes, I think this is a great question because this of the broad, the broad demand softness that we've seen last year has become much more product as customer-specific and this is one of those.

是的，我認為這是一個很好的問題，因為我們去年看到的廣泛的需求疲軟已經變得更加針對特定客戶的產品，而這就是其中之一。

This is something that we have learned in the beginning of the year, and we are monitoring very closely with our strategic customer on their excess inventory levels and we don't have a timeframe as of yet as to when it will be clearing. But this is certainly something that we are watching very carefully.

這是我們在今年年初了解到的情況，我們正在與我們的策略客戶密切監控他們的過剩庫存水平，但目前我們還沒有關於何時清理的時間表。但這肯定是我們正在非常仔細觀察的事情。

But the overall excess inventory, as I mentioned before, is becoming much more customer specific, and we expect that to be clearing over time. And there is no reason to believe that that will be overall a persistent headwind for us. So this is more of a timing at this point.

但正如我之前提到的，整體過剩庫存正變得更加針對客戶，我們預計隨著時間的推移，這種情況將會被清除。沒有理由相信這對我們來說將是一個持續的阻力。所以現在這更像是一個時機。

Okay. Great. And then maybe last question for me. A little higher level sort of like the way you frame the kind of 5G connectivity or coverage sort of portfolio across Lantern, Light House and AC fleet. I mean, as you look at the opportunities heading into '25 at this point on, are you ready to talk in any way about what kind of, I guess, incremental revenue contribution if you looked at that portfolio that you're targeting or would be happy with or disappointed by. Yes, as you look into '25 or any sense of the size of the pipeline?

好的。偉大的。也許是我的最後一個問題。更高一點的水平有點像你建造 Lantern、Light House 和 AC 車隊的 5G 連接或覆蓋範圍組合的方式。我的意思是，當你審視進入 25 年的機會時，你是否準備好以任何方式談論什麼樣的增量收入貢獻，我猜，如果你考慮了你的目標或將要實現的投資組合感到高興或失望。是的，當你調查 '25 或對管道的規模有任何感覺時？

Yeah, great questions, Tim. I’ll talk about the business and I’ll let Michael take the harder questions about revenue projection, because we typically don’t guide. But certainly from a business perspective, we are very optimistic about the major initiatives. As I indicated earlier, we have been executing according to schedule.

是的，很好的問題，提姆。我將討論業務，並讓邁克爾回答有關收入預測的更棘手的問題，因為我們通常不提供指導。但當然從商業角度來看，我們對這些重大舉措非常樂觀。正如我之前指出的，我們一直在按計劃執行。

The Lantern FWA was successfully launched in second quarter and AC Fleet, which is a phenomenal product, highly differentiated, all-in-one gateway. It’s due to go out by the end of September. We actually have trials ongoing and the initial feedback has been phenomenal.

Lantern FWA 於第二季成功推出，AC Fleet 是一款現象級產品、高度差異化的一體式閘道。該產品將於 9 月底上市。事實上，我們正​​在進行試驗，最初的回饋非常好。

Some of the feedback we got is very easy to install and this is one of the major differentiation. And the performance, this is so much better than otherwise. So all-in-all, we’re already getting a lot of feedback and we anticipate to have 25-plus customers up and running on the trial in the next week or so. So things are moving along quite well and we do see the AirgainConnect, or AC Fleet, being the main driver as we enter into Q4 in 2025 in particular. This is the one we’re focusing on both direct and indirect. Indirect are going through the vast channels targeting mostly public safety customers; and the direct are the private and public fleets and we are really engaging in both avenues.

我們得到的一些回饋非常容易安裝，這是主要的區別之一。而且性能，這比其他的要好得多。總而言之，我們已經收到了大量回饋，預計將有超過 25 名客戶在下週左右開始試用。因此，事情進展順利，我們確實看到 AirgainConnect（或 AC Fleet）成為主要驅動力，尤其是在我們進入 2025 年第四季時。這是我們直接和間接關注的問題。間接透過主要針對公共安全客戶的廣泛管道；直接的是私人和公共車隊，我們實際上在這兩個方面都參與其中。

And then, the Lighthouse also really pleased the trial we have done. I mentioned to you last quarter about a live networking trial with Lighthouse. It was done completed in second quarter. It also went very well. The in-building service testing, we’re able to achieve almost 25 times the performance over the existing on the down-line, and about 8 times to 10 times the performance improvement over the up-line.

然後，燈塔也非常滿意我們所做的試驗。上個季度我向您提到了 Lighthouse 的即時網路試驗。該項目已於第二季完成。進展也非常順利。透過室內服務測試，我們能夠實現比現有下行線效能提高近 25 倍的效能，比上線效能提高約 8 倍到 10 倍的效能。

We’re also testing an outdoor device where the base station, we were able to achieve before, we're able to improve another 30% to 50% range. So we're able to extend the range of the sale edge by another 30% to 50%. So, I think that it was really successful. The customers were very pleased to see those results, and we’ll see with them on the next engagement topic, which is commercialization. So all-in-all, we are optimistic about where we’re heading into 2025 and even 2024 Q4.

我們也正在測試室外設備，我們之前能夠實現的基地台範圍又能夠提高 30% 到 50%。因此，我們能夠將銷售優勢範圍再擴大 30% 到 50%。所以，我認為這確實是成功的。客戶非常高興看到這些結果，我們將與他們一起討論下一個參與主題，即商業化。總而言之，我們對 2025 年甚至 2024 年第四季的前景感到樂觀。

And I'll let Michael answer about some of the potential revenue projections.

我將讓麥可回答一些潛在的收入預測。

Sure. So Tim, the overall I would say we are very optimistic about the traction that we are in right now and not only from a product execution standpoint, but also the customer trial. There is definitely a long sales cycle, especially when we are looking for AC fleet in terms of but strategic partnership with direct customer that will take some time especially because of the overall budget windows that some of those larger customers have.

當然。所以提姆，總的來說，我想說我們對我們現在所處的吸引力非常樂觀，不僅從產品執行的角度來看，而且從客戶試用的角度來看。銷售週期肯定很長，特別是當我們正在尋找與直接客戶建立策略合作夥伴關係的空調機隊時，這將需要一些時間，特別是因為一些較大客戶擁有的整體預算窗口。

Likewise in Lighthouse, we're talking about infrastructure type of a product that is definitely getting into a long sales cycle, but we are very encouraged by all the trials taking place at this point. As Jacob just mentioned, we do believe at this point that the AC fleet will be the primary driver from all those product initiatives, but simply because Lighthouse will take some more time from a sales cycle.

同樣，在 Lighthouse 中，我們正在談論的產品的基礎設施類型肯定會進入較長的銷售週期，但我們對此時進行的所有試驗感到非常鼓舞。正如 Jacob 剛才提到的，我們目前確實相信 AC 機隊將成為所有這些產品計劃的主要驅動力，但這只是因為 Lighthouse 需要更多的銷售週期時間。

And Lantern is more of a very premium niche type of a market designed for premium enterprise and residential customers that require extended coverage and performance. However, in terms of next year and the thought process for next year is that if we are looking to be relatively flat to single-digit growth on our existing business to get to the higher growth that we all are vying for, the launch of those products is going to be very key for us. And so, at this point, I would say we’re optimistic.

Lantern 更像是一個非常優質的利基市場類型，專為需要擴展覆蓋範圍和性能的優質企業和住宅客戶而設計。然而，就明年而言，明年的思考過程是，如果我們希望現有業務保持相對平穩至個位數的成長，以實現我們所有人都在爭奪的更高成長，那麼推出這些產品對我們來說非常關鍵。因此，在這一點上，我想說我們很樂觀。

Thanks very much.

非常感謝。

Thank you Tim.

謝謝蒂姆。

Yes, thank you. At this time, this will conclude our question and answer session. If your question was not taken, you may contact Airgain's Investor Relations team at AIRG@gateway-grp.com. I'd now like to turn the call back over to Mr. Suen, for his closing remarks.

是的，謝謝。到此，我們的問答環節就結束了。如果您的問題未被採納，您可以透過 AIRG@gateway-grp.com 聯繫 Airgain 的投資者關係團隊。我現在想把電話轉回給孫先生，請他作總結發言。

We sincerely appreciate your participation in today’s call. I would like to extend special recognition to our exceptional employees for their tireless efforts and invaluable contributions. Equally, we are grateful to our investors for their steadfast support and trust in our vision. We eagerly anticipate sharing further updates with you at our next opportunity. Operator, we can now conclude the call.

我們衷心感謝您參加今天的電話會議。我要特別感謝我們傑出的員工不懈的努力和寶貴貢獻。同樣，我們感謝投資者對我們願景的堅定支持和信任。我們熱切期待下次有機會與您分享更多最新消息。接線員，我們現在可以結束通話了。

Thank you for joining us today for Airgain's second quarter 2024 earnings call. You may now disconnect.

感謝您今天參加我們的 Airgain 2024 年第二季財報電話會議。您現在可以斷開連線。