Airgain Inc (AIRG) 2022 Q1 法說會逐字稿

Good afternoon. Welcome to Airgain's First Quarter 2022 Earnings Conference Call. My name is Karen, and I will be your coordinator for today's call. Joining us for today's call are Airgain's CEO, Jacob Suen; Senior Vice President of Product and Marketing, Morad Sbahi; and Vice President of Operations, Victor Blair.

午安.歡迎參加 Airgain 2022 年第一季財報電話會議。我叫凱倫，我將擔任今天電話會議的協調員。參加今天電話會議的還有 Airgain 執行長 Jacob Suen；產品與行銷資深副總裁 Morad Sbahi；和營運副總裁維克多·布萊爾。

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 www.airgain.com.

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

Following management's prepared remarks, the call will be opened up for questions from Airgain's publishing sell-side analysts.

在管理階層發表準備好的演講後，電話會議將開始接受 Airgain 出版的賣方分析師的提問。

I caution listeners that during this call, Airgain management will be making forward-looking statements about future events and 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. This conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, May 10, 2022. Airgain undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call.

我提醒聽眾，在這次電話會議中，Airgain 管理層將就未來事件、Airgain 的業務策略以及未來的財務和營運績效做出前瞻性聲明。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。本次電話會議所包含的時間敏感資訊僅截至本次直播之日（2022 年 5 月 10 日）準確。Airgain 不承擔修改或更新任何前瞻性陳述以反映本次會議日期之後的事件或情況的義務稱呼。

In addition, this conference call may include a discussion of non-GAAP financial measures. Please see today's earnings release for further details, including a reconciliation of the GAAP to non-GAAP results.

此外，本次電話會議可能包括對非公認會計準則財務指標的討論。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 our CEO, Jacob Suen. Jacob?

現在我想將電話轉給我們的執行長 Jacob Suen。雅各？

Thank you, operator. Welcome, everyone, and thank you for joining us on the call today. I'll start with some commentary about our Q1 highlights and financial results. Then our Senior Vice President of Product and Marketing, Morad Sbahi will provide an update on our product and marketing initiatives. Afterwards, our Vice President of Operations, Victor Blair will provide an update on our key operational initiatives.

謝謝你，接線生。歡迎大家，感謝您今天加入我們的電話會議。我將首先對我們第一季的亮點和財務業績進行一些評論。然後我們的產品和行銷高級副總裁 Morad Sbahi 將提供有關我們產品和行銷計劃的最新資訊。隨後，我們的營運副總裁 Victor Blair 將介紹我們關鍵營運計畫的最新情況。

Airgain's mission to connect the world to optimized integrated wireless solutions is building momentum, demonstrated by the 24% sequential top line growth we delivered in Q1. This robust growth was a result of successful initiatives in penetrating the connectivity market by providing high-quality products and solutions to the enterprise, automotive and consumer markets.

Airgain 將世界與優化的整合無線解決方案連接起來的使命正在積聚動力，第一季營收季增 24% 就證明了這一點。這種強勁的成長是透過向企業、汽車和消費者市場提供高品質產品和解決方案來滲透連接市場的成功舉措的結果。

For those newer to our company, the consumer market encompasses a large growing consumers using wireless-enabled devices, including wireless gateways, smart home devices and more, while utilizing technologies like Wi-Fi, LTE, 5G and LPWAN. The enterprise market is characterized by providing solutions for reliable wireless connectivity in dense environments such as buildings, stadiums and transportation terminals. And in the automotive market, our products are deployed in a wide range of vehicles to support a variety of wireless connectivity solutions in the fleet and automotive aftermarket segments. Historically, the consumer market was the foundational pillar to our model.

對於我們公司的新員工來說，消費市場包含大量不斷成長的使用無線設備的消費者，包括無線網關、智慧家庭設備等，同時利用 Wi-Fi、LTE、5G 和 LPWAN 等技術。企業市場的特點是為建築物、體育場館和交通樞紐等密集環境提供可靠的無線連接解決方案。在汽車市場，我們的產品廣泛部署在各種車輛中，以支援車隊和汽車售後市場領域的各種無線連接解決方案。從歷史上看，消費者市場是我們模型的基礎支柱。

Today, we see the largest and fastest growing opportunities in the automotive and enterprise markets. Demand for greater wireless connectivity across fleets is increasing, causing end users, software and hardware partners, carriers and integrators to turn to Airgain's solutions. Additionally, the expanding IoT use cases across various industries, including asset tracking, logistics, packaging and supply chain management is creating significant demand for our NimbeLink IoT solutions. Along that line, the partnership we formed with Cloudleaf a SaaS-based digital supply chain platform in January exemplified against our gentle integration of existing solutions. NimbeLink asset truckers now assist Cloudleaf's comprehensive supply chain SaaS platform by providing location and conditional monitoring of critical components in Cloudleaf's customers supply mechanisms.

今天，我們在汽車和企業市場看到了最大且成長最快的機會。車隊之間對增強無線連線的需求不斷增加，導致最終用戶、軟體和硬體合作夥伴、營運商和整合商轉向 Airgain 的解決方案。此外，資產追蹤、物流、包裝和供應鏈管理等各行業的物聯網用例不斷擴大，對我們的 NimbeLink 物聯網解決方案產生了巨大的需求。沿著這條線，我們在一月份與基於 SaaS 的數位供應鏈平台 Cloudleaf 建立的合作夥伴關係證明了我們對現有解決方案的溫和整合。 NimbeLink 資產卡車司機現在透過對 Cloudleaf 客戶供應機制中的關鍵組件提供位置和條件監控來協助 Cloudleaf 的綜合供應鏈 SaaS 平台。

Our many partnerships over the previous quarters saw the successful ecosystem we're building to meet the needs of our growing -- growth-oriented markets. Our recently announced collaboration with Mobix Labs highlights how Airgain's expertise in 5G millimeter wave and C-band applications can provide lasting future-proof 5G technology to meet market demand and bolster our end vertical markets. In addition, several of our major wins show the growth in market demand for the products we are building. This includes a recent win with a major U.S.-based water utility company that selected AirgainConnect AC-HPUE to improve the connectivity of its fleet. The deployment of AirgainConnect will enable optimum connectivity for their fleet even in the most remote environments. And the first 3,000 units will be fully deployed by the end of 2022. This customer win is significant not only because of its volume, but the fact that we're seeing sizable new market opportunities for AirgainConnect beyond the first responder market. To meet the growing demand for advanced connectivity, Airgain launched the Multimax 5G, a high-performance antenna platform created for 5G connectivity in fleet, industrial IoT and public safety applications. With the introduction of so many new 5G vehicle orders in the market, it was critical for us to provide flexibility to our customers to get the most out of the growing 5G suite of products we offer.

我們在前幾個季度的許多合作夥伴見證了我們正在建立的成功的生態系統，以滿足不斷增長的成長型市場的需求。我們最近宣布與 Mobix Labs 合作，凸顯了 Airgain 在 5G 毫米波和 C 頻段應用方面的專業知識如何能夠提供持久、面向未來的 5G 技術，以滿足市場需求並支援我們的終端垂直市場。此外，我們的幾項重大勝利表明市場對我們正在開發的產品的需求不斷增長。這包括最近與美國一家大型水務公司的合作，該公司選擇 AirgainConnect AC-HPUE 來改善其車隊的連接性。即使在最偏遠的環境中，AirgainConnect 的部署也將為他們的車隊提供最佳的連線。首批 3,000 台設備將於 2022 年底全面部署。此次贏得客戶意義重大，不僅因為其數量，而且因為我們在急救人員市場之外看到了 AirgainConnect 的大量新市場機會。為了滿足對先進連接不斷增長的需求，Airgain 推出了 Multimax 5G，這是一個高性能天線平台，專為車隊、工業物聯網和公共安全應用中的 5G 連接而設計。隨著市場上推出如此多的新 5G 汽車訂單，我們必須為客戶提供靈活性，以充分利用我們提供的不斷增長的 5G 產品套件。

The growing partnerships and customer wins not only reflect the increasing demand for Airgain's innovative technology, but also our world-class global team, who is committed to realizing our company's vision in scaling our business. Our search for our next CFO is progressing and be led by [the] National Executive search firm. We are being patient to find the right CFO to build on our solid foundation and take us to the next level of growth and profitability.

不斷增長的合作夥伴關係和贏得的客戶不僅反映了對 Airgain 創新技術日益增長的需求，而且反映了我們世界一流的全球團隊，他們致力於實現公司擴展業務的願景。我們正在尋找下一任財務官，並由全國高階主管獵人頭公司領導。我們正在耐心尋找合適的財務官，以建立我們堅實的基礎，並帶領我們進入新的成長和獲利水平。

On that note, I'll discuss our financial results for the first quarter ended March 31, 2022. Revenue increased 24% sequentially to $17.5 million, up from $14.1 million in Q4 of 2021. Beginning with our consumer revenue, Q1 finished at $6.1 million, up from $2.5 million in Q4 of 2021. The growth in consumer revenue was due to continued easing of global supply shortages. Enterprise revenue increased from $8.1 million in quarter 4, 2021 to $8.6 million in Q1 of 2022. The growth in enterprise revenue was mainly due to higher revenue generated from the enterprise Wi-Fi access point products. Automotive sales declined from $3.5 million in Q4 of 2021 to $2.8 million in Q1 of 2022, primarily due to lower sales from AirgainConnect products as we worked on product enhancements that resulted in fewer shipments during the quarter. These enhancements have now been completed. Overall, the market demand for AirgainConnect AC-HPUE continues to improve and the backlog for the product has grown substantially since the beginning of the year. This positive momentum is expected to continue through 2022 and beyond.

就此而言，我將討論我們截至2022 年3 月31 日的第一季的財務表現。營收比2021 年第四季的1,410 萬美元成長24%，達到1,750 萬美元。從我們的消費者收入開始，第一季的營收為610 萬美元，高於 2021 年第四季的 250 萬美元。消費者收入的成長歸因於全球供應短缺的持續緩解。企業營收從 2021 年第四季的 810 萬美元增加到 2022 年第一季的 860 萬美元。企業營收的成長主要是由於企業 Wi-Fi 接入點產品產生的收入增加。汽車銷售額從2021 年第四季的350 萬美元下降至2022 年第一季的280 萬美元，主要是由於AirgainConnect 產品的銷售額下降，因為我們致力於產品增強，導致本季出貨量減少。這些增強功能現已完成。整體而言，AirgainConnect AC-HPUE的市場需求持續改善，該產品的積壓訂單自年初以來大幅成長。這種積極勢頭預計將持續到 2022 年及以後。

Our non-GAAP gross margin was strong at 41.4%, while exceeding our previous guidance range for Q1. The substantial improvement in gross margin was primarily due to the favorable sales mix in the quarter, including increased sales of consumer products, which yield a higher gross margin and lower materials and other production-related costs. Non-GAAP operating expense of $7.7 million was slightly above our guidance range, mainly due to higher-than-anticipated professional fees. Non-GAAP net loss in Q1 was $431,000 and our non-GAAP loss per share was $0.04. Both represent substantial improvements from the prior quarter.

我們的非 GAAP 毛利率強勁，達到 41.4%，同時超出了我們之前第一季的指導範圍。毛利率的大幅改善主要是由於本季有利的銷售組合，包括消費品銷售的增加，從而產生更高的毛利率以及更低的材料和其他生產相關成本。非 GAAP 營運費用為 770 萬美元，略高於我們的指導範圍，主要是由於專業費用高於預期。第一季非 GAAP 淨虧損為 431,000 美元，非 GAAP 每股虧損為 0.04 美元。兩者均較上一季有顯著改善。

Adjusted EBITDA was negative $263,000 in Q1, an improvement from our guidance range and an improvement from negative $2.1 million in Q4 of 2021. Finally, our balance sheet remains strong with cash, cash equivalents and restricted cash at quarter end of $18.8 million. NimbeLink exceeded the earn-up financial performance metrics for 2021, and we paid $8 million in earn-out plus $570,000 in holdback. Post earn-out payment, we will have approximately $9 million in cash and $4 million in credit facility.

第一季調整後EBITDA 為負263,000 美元，較我們的指導範圍有所改善，也較2021 年第四季的負210 萬美元有所改善。最後，我們的資產負債表依然強勁，截至季度末現金、現金等價物及限制性現金為1,880 萬美元。 NimbeLink 超越了 2021 年的獲利財務績效指標，我們支付了 800 萬美元的利潤加上 57 萬美元的保留金。獲利付款後，我們將擁有約 900 萬美元的現金和 400 萬美元的信貸額度。

Now I would like to provide a preliminary outlook for the second quarter ending June 30, 2022. In Q2, we expect sales to be in the range of 18.5 and $20 million or $19.25 million at the midpoint of the range. Our billings and backlog are currently tracking over our projected target for revenues in Q2. On that line, as we look ahead, deeper into 2022, we believe the growth from enterprise and automotive markets will outpace that of the consumer segment moving forward. The consumer market will remain a healthy business for Airgain, but will represent an increasingly smaller percent of the total revenue because of broader growth in the other 2 markets.

現在我想對截至 2022 年 6 月 30 日的第二季度進行初步展望。在第二季度，我們預計銷售額將在 18.5 至 2000 萬美元之間，即該範圍的中點為 1925 萬美元。我們的帳單和積壓訂單目前正在追蹤我們預計的第二季收入目標。在這一點上，當我們展望 2022 年時，我們相信企業和汽車市場的成長將超過消費市場的成長。對於 Airgain 來說，消費市場仍將是一個健康的業務，但由於其他兩個市場的更廣泛增長，其在總收入中所佔的比例將越來越小。

We expect non-GAAP gross margin for the second quarter to be in the range of 38.5% to 42.5%. We expect Q2 non-GAAP operating expense will be about $7.7 million, plus or minus $200,000. Non-GAAP net income per share for Q2 is expected to be $0.01 at the midpoint. Adjusted EBITDA is expected to be $260,000 at the midpoint.

我們預計第二季非 GAAP 毛利率將在 38.5% 至 42.5% 之間。我們預計第二季非 GAAP 營運費用約為 770 萬美元，上下浮動 20 萬美元。第二季非 GAAP 每股淨利預計為 0.01 美元中點。調整後 EBITDA 預計中位數為 260,000 美元。

Now I would like to turn the call over to Morad, who will walk us through our sales and marketing initiatives for 2022. Morad?

現在我想將電話轉給 Morad，他將引導我們完成 2022 年的銷售和行銷計劃。Morad？

Thanks, Jacob. Our sales and marketing teams created an efficient and comprehensive and flexible framework to further penetrate our core growth markets. We internally call the framework, the 3 Es, which are evolution, ecosystem and expansion. The evolution pillar represents our current list of products as well as new versions of those products and subsequently the wins associated with those offerings. The win that Jacob referenced with the major utility company to deploy AirgainConnect products at a large scale, represents a solid example of how our products evolve and improve based on customer feedback and data from the field.

謝謝，雅各。我們的銷售和行銷團隊創建了一個高效、全面且靈活的框架，以進一步滲透我們的核心成長市場。我們內部將該框架稱為 3E，即進化、生態系統和擴展。演變支柱代表了我們目前的產品清單以及這些產品的新版本以及隨後與這些產品相關的勝利。 Jacob 提到的與大型公用事業公司大規模部署 AirgainConnect 產品的勝利，是我們的產品如何根據客戶反饋和現場數據發展和改進的一個堅實例子。

The next E is ecosystem, which focuses on the partnerships we're forming with leading software developers, component and device manufacturers, channel partners and carriers. Generally, there are 2 types of partners, namely partners that we sell to and partners that we sell with. And the sell to partners are those we sell our products and solutions directly to. A good example of this is Axon, the leader in connected public safety technologies. Airgain designs and builds a range of small form factor and high-performance antennas for use in Axon solutions, which are primarily used in first responder vehicles. Another example is our work with Cloudleaf, a SaaS-based digital supply chain platform. Cloudleaf platform leverages supply chain, edge, IoT and contextual data to provide one of the world's leading end-to-end supply chain digital twin solutions to manage risk and volatility in product flows. Cloudleaf is partnering with Airgain to utilize our asset trackers to monitor not only location, but environmental conditions such as temperature, humidity, motion and more to increase the quantity and the quality of data inputs on their operations platform.

下一個 E 是生態系統，重點關注我們與領先的軟體開發商、組件和設備製造商、通路合作夥伴和營運商建立的合作夥伴關係。一般來說，有兩種類型的合作夥伴，即我們銷售的合作夥伴和我們銷售的合作夥伴。銷售給合作夥伴是我們直接向其銷售產品和解決方案的合作夥伴。 Axon 就是一個很好的例子，它是互聯公共安全技術的領導者。 Airgain 設計並製造了一系列小尺寸和高性能天線，用於 Axon 解決方案，這些解決方案主要用於急救車輛。另一個例子是我們與 Cloudleaf 的合作，這是一個基於 SaaS 的數位供應鏈平台。 Cloudleaf 平台利用供應鏈、邊緣、物聯網和上下文數據，提供世界領先的端到端供應鏈數位孿生解決方案之一，以管理產品流中的風險和波動性。 Cloudleaf 與 Airgain 合作，利用我們的資產追蹤器不僅可以監控位置，還可以監控溫度、濕度、運動等環境條件，以提高其營運平台上資料輸入的數量和品質。

Our [sell-with] partnerships represent joint selling opportunities where Airgain goes to market with the partner. Prime example of this is Airgain's antenna solution set for Cradlepoint routers and gateways, Cradlepoint has an extensive portfolio of enterprise class wireless routers and adapters and their solutions span branch connectivity, IoT and mobile in-vehicle networks. Airgain provides the high-performance antennas it recommends for Cradlepoint. Simply put, we are able to couple our products with existing systems which leads not only to joint sales opportunities, but also lead sharing agreements. We frequently receive requests for these arrangements for our asset trackers, aftermarket antennas and with our AirgainConnect products. In addition, there is a growing opportunity for these types of partnerships with our embedded products.

我們的[銷售]合作夥伴關係代表了 Airgain 與合作夥伴一起進入市場的聯合銷售機會。最好的例子是 Airgain 為 Cradlepoint 路由器和網關設定的天線解決方案，Cradlepoint 擁有廣泛的企業級無線路由器和適配器產品組合，其解決方案涵蓋分支連接、物聯網和行動車載網路。 Airgain 提供其推薦給 Cradlepoint 的高性能天線。簡而言之，我們能夠將我們的產品與現有系統結合起來，這不僅帶來聯合銷售機會，還帶來潛在客戶共享協議。我們經常收到對我們的資產追蹤器、售後天線和 AirgainConnect 產品進行此類安排的請求。此外，與我們的嵌入式產品建立此類合作夥伴關係的機會越來越多。

The final E of our framework is expansion, representing our development of future technology. The Mobix Labs collaboration is a great example. The collaboration is intended to provide new growth opportunities for both companies as the combined solution would serve multiple industries such as consumer electronics, infrastructure, automotive and IoT, combining Airgain's expertise in 5G systems and Mobix Lab's expertise in system on chip design, the collaboration will focus on development of products designed to significantly reduce the cost of ownership and provide solutions in 5G coverage gaps among carriers that fall within the high-band millimeter wave and C-band operating frequencies. With the third E expansion, we are establishing Airgain technology leadership in the space of advanced developments and leading-edge connectivity. Looking ahead, that's exactly where Airgain is positioned as the company becomes synonymous with the concept of wireless technology leadership.

我們框架的最後一個E是擴展，代表我們未來技術的發展。 Mobix Labs 的合作就是一個很好的例子。此次合作旨在為兩家公司提供新的成長機會，因為合併後的解決方案將服務於消費性電子、基礎設施、汽車和物聯網等多個行業，結合了Airgain 在5G 系統方面的專業知識和Mobix Lab 在系統單晶片設計方面的專業知識，此次合作將專注於開發旨在顯著降低擁有成本的產品，並為屬於高頻段毫米波和C頻段工作頻率的運營商之間的5G覆蓋差距提供解決方案。透過第三次 E 擴展，我們正在建立 Airgain 在先進開發和領先連接領域的技術領先地位。展望未來，這正是 Airgain 的定位，因為該公司已成為無線技術領先概念的代名詞。

In recognition of our advancements, over the quarter, we were honored to receive the Andrew Seybold Award for technology innovation by the Public Safety Broadband Technology Association. This illustrated our dedication to producing and providing technology for customers that has a lasting and multifaceted use case value.

為了表彰我們在本季的進步，我們很榮幸獲得公共安全寬頻技術協會頒發的安德魯塞博爾德技術創新獎。這表明我們致力於為客戶生產和提供具有持久和多方面用例價值的技術。

Looking ahead, our product suite is aligned with the expanding demand from our markets and customers. In addition, we are focused on leveraging Airgain's proven expertise in radio frequency to help build world-class hardware coupled with software solutions that often run across multiple product lines. To deliver on our strategies, we've added 4 positions in marketing in just the past 45 days. The [Buster] sales and marketing teams will continue to work to engage the customers on all the incredible advancements on our products and engineering teams have accomplished.

展望未來，我們的產品套件將滿足市場和客戶不斷增長的需求。此外，我們專注於利用 Airgain 在射頻領域成熟的專業知識來幫助建立世界一流的硬體以及通常跨多個產品線運行的軟體解決方案。為了實現我們的策略，我們在過去 45 天內增加了 4 個行銷職位。 [Buster] 銷售和行銷團隊將繼續努力讓客戶了解我們的產品和工程團隊所取得的所有令人難以置信的進步。

Now I'd like to turn the call over to Victor to give an operational update. Vic?

現在我想將電話轉給 Victor，以提供最新的營運情況。維克？

Thanks, Morad. As Jacob alluded to, Airgain's operations team has fully implemented strategies to maintain and grow the gross margins across the breadth of the Airgain product offering. The company's gross margin performance in Q1 is solid evidence that the execution of the various programs we have put in place are delivering the expected outcomes. Macroeconomic headwinds still affect the world economy as we see manufacturing shutdowns in various provinces of China. Despite this, we were able to both mitigate and overcome this issue with our implemented manufacturing redundancy strategy with the express goal to reduce the risk factors of the supply constraints. With the closing of our manufacturing plant in Arizona and the addition of 2 manufacturers, we now have 8 independent contract manufacturers, 2 in Vietnam, 2 in China and 4 in North America. The consumer embedded components and modules are manufactured in Vietnam and China, meanwhile, the integrated and Antennas Plus products are manufactured in Vietnam and North America. I am pleased to announce that Airgain is now 100% fabless. Taking this step has given Airgain greater scalability while mitigating risks surrounding manufacturing halts in countries and municipalities where governments and markets are subject to different fluctuating macroeconomic forces.

謝謝，莫拉德。正如 Jacob 所提到的，Airgain 的營運團隊已全面實施策略，以維持和提高 Airgain 產品系列的毛利率。該公司第一季的毛利率表現有力地證明了我們實施的各種計劃的執行正在實現預期結果。宏觀經濟逆風仍然影響著世界經濟，因為我們看到中國多個省份的製造業停工。儘管如此，我們還是能夠透過實施製造冗餘策略來緩解和克服這個問題，其明確目標是減少供應限制的風險因素。隨著我們在亞利桑那州的製造工廠的關閉以及 2 家製造商的增加，我們現在擁有 8 家獨立合約製造商，其中 2 家在越南，2 家在中國，4 家在北美。消費性嵌入式元件和模組在越南和中國製造，同時整合和Antennas Plus產品在越南和北美製造。我很高興地宣布，Airgain 現在已經 100% 無晶圓廠。採取這一步驟使 Airgain 具有更大的可擴展性，同時減輕了政府和市場受到不同宏觀經濟力量波動影響的國家和城市的生產停頓風險。

Additionally, to mitigate the effects of widespread supply shortages, we've selectively built and purchased inventory in advance. That along with flexible product designs to align with material availability have properly positioned Airgain to efficiently and productively manufacture and ship products on foreseeable time lines to greater match demand.

此外，為了減輕普遍供應短缺的影響，我們有選擇地提前建立和購買庫存。再加上與材料可用性保持一致的靈活產品設計，使 Airgain 能夠在可預見的時間內高效、高效地製造和運輸產品，以更好地滿足需求。

Now I'll hand it back over to Jacob to close out our remarks. Jacob?

現在我將把它交還給雅各來結束我們的演講。雅各？

Thanks, Vic. The theme for this year is execution. Our global team is laser-focused on executing our strategic road map which is designed to scale Airgain to the next level of growth and profitability. As you can see from our Q1 numbers, our strategy is working. We have discussed the big wins that demonstrated the demand for our current products. We have touched on the many partnerships and paths we will take for future collaborations. We also share our vision for advanced development that will carry us into the future. Moreover, our focus on driving profitable growth, optimizing our cost structure and realizing organizational efficiencies give us confidence in our ability to generate cash going forward. We are being mindful of risks associated with various macroeconomic factors, we expect sequential growth throughout 2022. Our outlook for growth is supported by the strong tailwinds in our end markets and our confidence in our team's ability to capitalize on the demand for Airgain's advanced wireless technologies.

謝謝，維克。今年的主題是執行力。我們的全球團隊專注於執行我們的策略路線圖，旨在將 Airgain 的成長和獲利能力提升到新的水平。從我們第一季的數據可以看出，我們的策略正在發揮作用。我們已經討論了證明對我們當前產品的需求的重大勝利。我們已經談到了未來合作的許多夥伴關係和路徑。我們也分享我們對先進發展的願景，這將帶領我們走向未來。此外，我們專注於推動獲利成長、優化成本結構和實現組織效率，這讓我們對未來產生現金的能力充滿信心。我們正在關注與各種宏觀經濟因素相關的風險，我們預計 2022 年將實現連續成長。我們的成長前景受到終端市場的強勁推動力以及我們對團隊利用 Airgain 先進無線技術需求的能力的信心的支持。

And with that, we are ready to open the call for your questions. Operator, please provide the appropriate instructions.

至此，我們準備好開始詢問您的問題了。操作員，請提供適當的說明。

The floor is now open for questions. (Operator Instructions) We'll take our first question today from Scott Searle with ROTH Capital.

現在可以提問。 （操作員說明）今天我們將回答來自 ROTH Capital 的 Scott Searle 的第一個問題。

Jacob, congratulations nice job on a difficult operating environment, particularly on the Wi-Fi supply chain.

Jacob，恭喜您在困難的營運環境中，特別是在 Wi-Fi 供應鏈上取得了出色的表現。

Thank you, Scott.

謝謝你，斯科特。

Maybe to start on Wi-Fi. I'm wondering if you could talk a little bit about the supply chain. Give us an update in terms of your visibility, what you're seeing the backlog on that front because it sounds like your backlog has been building. And in the past, you run that business, at least on the consumer Wi-Fi front, a $8 million to $10 million a quarter. Is that something that's achievable and you have visibility to over the next couple of quarters? Or is it going to take a little bit longer on that front?

也許從 Wi-Fi 開始。我想知道您是否可以談談供應鏈。請向我們提供有關您的可見性的最新信息，以及您在這方面看到的積壓情況，因為聽起來您的積壓情況一直在增加。在過去，你經營這項業務，至少在消費者 Wi-Fi 方面，每季的收入為 800 萬至 1,000 萬美元。這是可以實現的並且您在接下來的幾個季度中可以看到的事情嗎？或者在這方面需要更長的時間嗎？

Yes. So certainly, as you can see in Q1, a nice recovery in the consumer side. So as we indicated, we went from $2.5 million in Q4 to $4.1 million in -- or $6.1 million in Q1. We do expect that trend to continue. How quickly can we get back to the normality? We don't have the interest yet. As you can tell, I mean the pandemic is still impacting China, as an example, right? You're still seeing unexpected shutdown by the Chinese government on certain cities periodically and that's creating the kind of uncertainty, we will not be able to tell you. But we do feel strongly that it's trading up well and we expect the recovery to happening over time.

是的。因此，正如您在第一季看到的那樣，消費者方面肯定會出現良好的復甦。正如我們所指出的，我們從第四季的 250 萬美元增加到第一季的 410 萬美元，即 610 萬美元。我們確實預計這種趨勢將持續下去。我們多久才能恢復正常？我們還沒有興趣。如你所知，我的意思是，例如，疫情仍在影響中國，對吧？你仍然會看到中國政府定期對某些城市進行意外關閉，這造成了某種不確定性，我們無法告訴你。但我們確實強烈地感覺到它的交易狀況良好，我們預計隨著時間的推移會出現復甦。

Okay. Maybe real quickly to just hit on NimbeLink. I'm not sure if you kind of broke it down in the quarter, but if you could give us some guideposts in terms of how much it was up sequentially. Did you leave revenue on the table as it relates to NimbeLink kind of similar supply chain issues on the cellular front? And what the outlook is for the remainder of this year, that's certainly been a supply constrained in the area, but it looks like things are starting to improve on that front.

好的。也許很快就能找到 NimbeLink。我不確定您是否對本季度的情況進行了細分，但您是否可以給我們一些關於連續上漲多少的指導。您是否將收入放在桌面上，因為它與 NimbeLink 類似的蜂窩領域供應鏈問題有關？今年剩餘時間的前景是，該地區的供應肯定受到限制，但看起來這方面的情況正在開始改善。

Yes. I mean we don't give the specifics, although I think the indication that we already gave is the fact that we pay the earnout, and they actually exceeded the number that we have agreed to for the earnout. So we're very pleased with the performance, and we also feel strongly about this year. We really got very strong backlog support. And you're absolutely right, the hindrance is about how do we overcome some of these supply shortages. Although our team, engineering and operations have done a tremendous work to mitigate that, such as doing some redesigning to accommodate multiple chipset instead of being single source. And we're doing the redundancy that Vic alluded to that we're creating redundancy among the different CMs we now have. So we feel strongly about the outlook for the IoT products, although as you indicated, I think that we have -- we could have done even better if not for some of these supply constraints. And this is going to continue, I would think, throughout the year. But we feel strongly that with the team on hand, we're going to be able to overcome that.

是的。我的意思是我們沒有給出具體細節，儘管我認為我們已經給出的跡像是我們支付了報酬，而且他們實際上超出了我們同意的報酬數量。所以我們對這次的表現非常滿意，對今年的感覺也很強烈。我們確實得到了非常強大的積壓支持。你說得完全正確，障礙在於我們如何克服其中一些供應短缺。儘管我們的團隊、工程和營運團隊已經做了大量工作來緩解這種情況，例如進行一些重新設計以適應多個晶片組而不是單一來源。我們正在做 Vic 提到的冗餘，我們正在現有的不同 CM 之間創建冗餘。因此，我們對物聯網產品的前景抱有強烈的看法，儘管正如您所指出的，我認為如果沒有這些供應限制，我們可以做得更好。我認為這種情況將持續一整年。但我們堅信，只要有團隊在手，我們就能夠克服這個問題。

And lastly, if I could, you talked a little bit more about some of the opportunities in millimeter wave. You referenced Mobix today in that relationship. But also on your website, you started to talk about other opportunities, not just with 5G and things like C-band and the mid-band, but 60 gigahertz and 802.11ad. I was wondering now that you're becoming a little bit more public in these moves out of stealth operations, when do these opportunities start to contribute? And do they become meaningful in 2023? Thanks and congrats again.

最後，如果可以的話，您更多地談論了毫米波的一些機會。您今天在這種關係中提到了 Mobix。而且在您的網站上，您開始談論其他機會，不僅涉及 5G 以及 C 頻段和中頻段等內容，還涉及 60 GHz 和 802.11ad。我現在想知道，你們在這些秘密行動中變得更加公開，這些機會什麼時候開始發揮作用？到 2023 年它們會變得有意義嗎？再次感謝並恭喜。

Maybe I'll start and then I'll turn it over to Morad. Certainly, we are very excited about the partnership with Mobix Labs, right? They are one of the well-recognized player when it comes to 5G. And we are partnering with them, not -- it's for really not only on the millimeter wave, but for the C-band. It's for me and for the company, this is our reinforcement about our commitment to 5G. And I'm going to have Morad speak to the opportunities that it could project.

也許我會開始，然後把它交給莫拉德。當然，我們對與 Mobix Labs 的合作感到非常興奮，對吧？他們是5G領域公認的參與者之一。我們正在與他們合作，不僅是為了毫米波，而且是為了 C 波段。對我和公司來說，這是我們對 5G 承諾的強化。我將請莫拉德談論它可能帶來的機會。

Scott, hope you're doing well. So just to give you a little bit more color on our partnership with Mobix Labs, which is something that we're really excited about. What that partnership does for us, and if you see like the evolution where the consumer -- or our consumer business is heading, you can see that there are 2 things that are happening. The technology road map is moving forward and I'm talking here about LTE to 5G, millimeter wave. And then also the fact that Airgain is becoming more of a systems company where we are selling systems.

史考特，希望你一切都好。讓您進一步了解我們與 Mobix Labs 的合作關係，這是我們非常興奮的事情。這種夥伴關係為我們帶來了什麼，如果你看到消費者或我們的消費者業務正在走向的演變，你會發現有兩件事正在發生。技術路線圖正在向前發展，我在這裡談論的是LTE到5G、毫米波。事實上，Airgain 正在變得更像是一家系統公司，我們銷售系統。

What that does for us is that it gives us access to be able to continue to provide that relevance to our customers, those that want to buy just the components from us or those that want to buy systems from us. One can expect Airgain being a CPE company to be relevant in the -- making sure that the signal strength coming into the consumer home is one that is optimized and one that allows you to carry the maximum data rate. And so in terms of how that's going to play out, obviously, everybody knows that millimeter wave got a little bit ahead of itself, let's say, 2, 3 years ago. And now there's a lot of focus in C-band. And so our strategy is to continue to drive the road map, perhaps more so closely in C-Band. And then soon after that, we will have that opportunity to transition to millimeter wave when it starts together steam. And obviously, as you know, with millimeter-wave, we've got the volumes and the relevance that Airgain has that should materialize in a significant market for us.

這對我們的作用是，它使我們能夠繼續向我們的客戶提供這種相關性，那些只想從我們這裡購買組件的客戶或那些想要從我們這裡購買系統的客戶。人們可以預期 Airgain 作為 CPE 公司，將在以下方面發揮重要作用：確保進入消費者家庭的訊號強度是經過優化的，並且允許您傳輸最大數據速率。因此，就如何發展而言，顯然，每個人都知道毫米波有點超前了，比如說，兩三年前。現在 C 頻段備受關注。因此，我們的策略是繼續推動路線圖的發展，也許在 C 頻段更是如此。不久之後，當毫米波一起啟動時，我們將有機會過渡到毫米波。顯然，正如您所知，透過毫米波，我們已經獲得了 Airgain 所擁有的銷售和相關性，這應該在我們的重要市場中實現。

Yes. And Scott, to finishing up your questions is that we do not expect revenue from this partnership in 2022, although we expect some of the product, we will be able to demonstrate hopefully come early 2023.

是的。 Scott，為了回答你的問題，我們預計 2022 年不會從這種合作關係中獲得收入，儘管我們預計一些產品將能夠在 2023 年初展示。

We'll take our next question from Alex Vecchi with William Blair.

我們將回答亞歷克斯·維奇和威廉·布萊爾提出的下一個問題。

This is Sabrina on for Alex. Last quarter, you mentioned bringing gross margin back to the 40% range this year and achieved 41.4% this quarter. Can you talk about or provide any additional detail here maybe by like end market growth and how to think about that going forward for the remainder of this year?

這是亞歷克斯的薩布麗娜。上季度，您提到今年毛利率將回到40%的水平，本季達到41.4%。您能否在這裡談論或提供任何其他細節，例如終端市場成長以及如何考慮今年剩餘時間的情況？

Okay. Good to hear from you, Sabrina. I'll start, and then I may turn it over to Vic to talk more about his teams, some of his team's work to be able to achieve the gross margin. Certainly, we are also pleasantly surprised to see that -- we thought we're going to be able to come close to fully -- pleasantly surprised that we have actually able to exceed that at 41.4% for Q1. And really, it's a number of things. Certainly, the favorable sales mix. As you know, our consumer business always have a higher gross margin, and we were able to achieve a higher expected revenue stream from the consumer business in Q1, that helps. But it's also a number of other things. It's the way we're managing our logistics, the redundancy, and even how do we work around the tariffs, all of that really help contributing to the overall gross margin improvement. And I'm going to turn it over to Vic to elaborate further.

好的。很高興收到你的來信，薩布麗娜。我先開始，然後我可能會把它交給 Vic，更多地談論他的團隊，以及他的團隊為實現毛利率所做的一些工作。當然，我們也驚訝地看到——我們認為我們將能夠接近完全——令人驚訝的是我們實際上能夠在第一季超過 41.4%。事實上，這涉及很多方面。當然，有利的銷售組合。如您所知，我們的消費者業務始終具有較高的毛利率，並且我們能夠在第一季從消費者業務中實現更高的預期收入流，這很有幫助。但還有其他一些事情。這是我們管理物流、裁員的方式，甚至我們如何解決關稅問題，所有這些都確實有助於整體毛利率的提高。我將把它交給維克進一步詳細說明。

Thanks for the question, Sabrina. Really, Jacob did hit on some of the highlights of it. In the reconfiguration of fabless, we've had a really decrease in our cost of logistics. We've been able to eliminate the tariffs, and we've really gone through a lot of redesign on cost initiatives to make sure that we have the appropriate configurations of parts on the printed circuit board, which also eliminated some of the component restraints that helped us to avoid any of the PPVs, purchase price variances that were occurring in the markets. So that really gave us a very sustainable model for Q2, and we expect it to continue.

謝謝你的提問，薩布麗娜。確實，雅各布確實發現了其中的一些亮點。在無晶圓廠的重新配置中，我們的物流成本確實降低了。我們已經能夠消除關稅，並且我們確實對成本計劃進行了大量重新設計，以確保我們在印刷電路板上擁有適當的零件配置，這也消除了一些組件限制幫助我們避免了市場上出現的任何PPV（購買價格差異）。因此，這確實為我們第二季度提供了一個非常可持續的模型，我們預計它會繼續下去。

That's really helpful. And then just another question. I saw the announcement of the auditor change for this year. Can you provide any insight into the motivation there? Any commentary about the change?

這真的很有幫助。然後還有一個問題。我看到今年審計師變更的公告。您能提供一些關於那裡動機的見解嗎？對這項變化有什麼評論嗎？

Well, yes, I mean we really appreciate KPMG has been helping us throughout the years. But as you know, they start having some resource constraint because what's out there and also as a result of that, they also expressed the need to raise more fees. And really, that's -- you saw one of the issues we identified in Q1 was the excess of professional fees. And we -- and this is one of the efforts we're making to go ahead and make the change to a very lucrative company, Grant Thornton that will help us moving forward.

嗯，是的，我的意思是，我們非常感謝畢馬威多年來一直為我們提供的幫助。但如您所知，他們開始受到一些資源限制，因為現有的情況，因此，他們也表示需要提高更多費用。事實上，您看到我們在第一季發現的問題之一是專業費用過高。我們——這是我們為繼續前進並改變致同會計師事務所所做的努力之一，這將幫助我們前進。

For our next question, we'll turn to Anthony Stoss with Craig-Hallum.

對於我們的下一個問題，我們將轉向安東尼·斯托斯和克雷格·哈勒姆。

Nice execution and really strong guide, Jacob. A couple of questions. I just wanted to hone in on a statement in the press release talking about on the AirgainConnect side that it was down sequentially as you work on product enhancements. I'm curious what that is. And then also, I'd love to hear more in addition to the water utility AirgainConnect win, kind of thoughts on additional launches perhaps in the second half of the year? And then I had follow-ups after that.

雅各布，出色的執行力和非常強大的指導。有幾個問題。我只是想強調新聞稿中關於 AirgainConnect 方面的聲明，即隨著您致力於產品增強，它會依次下降。我很好奇那是什麼。另外，除了自來水公司 AirgainConnect 獲勝之外，我還想聽到更多關於下半年可能會推出更多產品的想法？之後我進行了後續行動。

Okay. Great questions, Tony. I'm going to start, and I'm going to turn it over to Vic to talk a little bit more about the enhancements and certainly to more like to talk about the product side and regarding the utility opportunity.

好的。很好的問題，托尼。我要開始了，我將把它交給 Vic，讓他更多地談論增強功能，當然更喜歡談論產品方面和實用機會。

So certainly, just overall, I just want to share with you that we are seeing a strong demand for AirgainConnect. And because of the trials we have gone to and also the much greater footprint now we have, certainly, we're recognizing some of the enhancements we will need to perform and Vic will elaborate further. But that's all behind us. We actually were able to make some enhancement. We're actually going to provide an enhancement kit to customers who would have a need. And overall, the AirgainConnect demand is increasing, and I would -- I can add even a little bit more color that the backlog, we are doubling the backlog since the beginning of the year. So with that being said, I'm going to turn it over to Vic to talk a little bit about some of the enhancement specifics and then more on what utility opportunity.

當然，總的來說，我只是想與您分享，我們看到對 AirgainConnect 的強勁需求。由於我們已經進行過試驗，而且我們現在擁有更大的足跡，當然，我們正在認識到我們需要執行的一些增強功能，Vic 將進一步詳細說明。但這一切都已經過去了。我們實際上能夠做出一些改進。實際上，我們將向有需要的客戶提供增強套件。總體而言，AirgainConnect 的需求正在增加，我可以為積壓的訂單添加更多的色彩，自今年年初以來，我們的積壓訂單增加了一倍。話雖如此，我會把它交給 Vic 來討論一些增強細節，然後再多討論什麼實用機會。

Thanks for the question, Anthony. Really, the whole purpose of our reset was due to the fact that we wanted to maximize the customer experience on AGC, and we wanted to be absolutely certain that we could increase the performance to the level of expectations that was required with the product. I mean specifically, we took a look at the performance of the interaction between the Ethernet injector and the modem, and we're able to really reset that into a configuration that just maximizes the output of our AC-HPUE.

謝謝你的提問，安東尼。事實上，我們重置的全部目的是因為我們希望最大限度地提高 AGC 的客戶體驗，並且我們希望絕對確定我們可以將性能提高到產品所需的期望水平。我的意思是，具體而言，我們研究了乙太網路注入器和調變解調器之間互動的效能，並且我們能夠真正將其重設為僅最大化 AC-HPUE 輸出的配置。

Yes. So Anthony, yes, and just to give some color. So Jacob talked about how the pipeline has doubled for AirgainConnect. What I can tell you that's actually more interesting than the fact that the pipeline has doubled, it's the color of that pipeline. And if you look at that opportunity that we've announced with this major utility company, that's one of many opportunities of similar size and color that we are starting to see in the pipeline. And this is very exciting because now that means that AirgainConnect is in that upswing momentum where it's going to give us those type of size opportunities that we like the ones that are in urban that are large in size that have the visibility, that have the stickiness that have the size to make this a very successful product line for us.

是的。所以安東尼，是的，只是為了給一些顏色。因此，Jacob 談到了 AirgainConnect 的管道如何翻倍。我可以告訴你的是，這實際上比管道加倍這一事實更有趣，那就是管道的顏色。如果你看看我們與這家大型公用事業公司宣布的機會，你會發現這是我們開始在管道中看到的許多類似規模和顏色的機會之一。這是非常令人興奮的，因為現在這意味著 AirgainConnect 正處於上升勢頭，它將為我們提供我們喜歡的那些規模機會，這些機會位於城市，規模大，具有可見性，具有粘性其尺寸足以使其成為我們非常成功的產品線。

I'm curious. That's intriguing. Have you signed additional deals, you just can't announce them yet? Or do you expect those launches sometime this year?

我很好奇。這很有趣。您是否簽署了其他協議，只是還不能宣布？或者您預計這些產品會在今年某個時候推出？

I can't talk about what's in there in terms of deals. Obviously, if we have them and we secure deals, we would be sure to do the maximum to make sure that we have a press release behind that. But all I can tell you right now is that the health of the pipeline is looking very good and the engagements that we have today are very promising.

我無法談論其中的交易內容。顯然，如果我們擁有它們並且我們達成了交易，我們一定會盡最大努力確保我們在背後有新聞稿。但我現在能告訴你的是，管道的健康狀況看起來非常好，我們今天的合作非常有希望。

Got it. And then last question for me on growth rates going forward. I know you guys talked about enterprise and auto expected to grow the fastest. Would you say that the IoT business is growing ultimately the fastest? Or is it WiFi? Or kind of if you could break out kind of your thoughts on growth rates, that would be helpful.

知道了。最後一個問題是關於未來成長率的。我知道你們談到了預計成長最快的企業和汽車。您是否認為物聯網業務最終成長最快？還是WiFi？或者如果你能談談你對成長率的看法，那會很有幫助。

Yes. Well, Tony, I think that, as I indicated in the earnings script, the consumer side, we do feel like it's steady. So that's the one that's not going to be growing as rapidly as the other 2 markets. And when it comes to the enterprise, which is a big part of is the IoT and then the automotive, I would say it's a 2-horse race. I think that we got tremendous opportunities in both. And if you look into the IoT side, I think that it's -- some of it's more about how quickly can we build them, right? The market demand is there. That's also similar to what we're seeing with the automotive market as well. With automotive market besides AirgainConnect, we also have started seeing a really good traction on the traditional Antenna Plus aftermarket products as well. And we expect that this is also to grow substantially throughout the year. So I would not be able to tell you which ones should grow faster, although I really feel good about both.

是的。好吧，托尼，我認為，正如我在收益腳本中指出的那樣，在消費者方面，我們確實感覺它很穩定。因此，這個市場的成長速度不會像其他兩個市場那麼快。當談到企業時，它是物聯網的重要組成部分，然後是汽車，我想說這是一場兩匹馬的競賽。我認為我們在這兩方面都獲得了巨大的機會。如果你研究物聯網方面，我認為其中一些更多的是我們能夠以多快的速度建立它們，對吧？市場需求就在那裡。這也與我們在汽車市場看到的情況類似。除了 AirgainConnect 以外的汽車市場，我們也開始看到傳統 Antenna Plus 售後市場產品也具有良好的吸引力。我們預計這一數字也將全年大幅成長。所以我無法告訴你哪一個應該生長得更快，儘管我對兩者都感覺很好。

We'll take our next question from Craig Ellis with B. Riley Securities.

我們將回答 B. Riley Securities 的 Craig Ellis 提出的下一個問題。

Yes. Congratulations on the progress, team. I wanted to start clarifying some comments around consumer. So clearly, consumer has rebounded off severely restrained levels. The question is this, Jacob, as you look at the business returning to "normal" is normal the $10-ish million a quarter levels that we would have seen at times in the past? Or just given the current environment, would it be something lower than that, maybe 7% to 9% or for whatever reason, do you actually see it going into the low double digits or even better than that?

是的。祝賀團隊的進步。我想開始澄清一些關於消費者的評論。很明顯，消費者已經從嚴格限制的水平反彈。問題是這樣的，雅各布，當你看到業務恢復到「正常」狀態時，我們過去有時會看到每季度約 1000 萬美元的水平是正常的嗎？或者考慮到當前的環境，它會低於這個數字，也許是 7% 到 9%，或者出於某種原因，你真的認為它會進入低兩位數甚至更好嗎？

Craig, yes, look, it's -- we do feel like, is there a potential to get back to normal? The answer is absolutely yes. Where exactly what that number would be? I think that previously, we fluctuate -- it's seasonal, right, between anywhere from -- I would say $8 million to $11 million or even the $8 million to $12 million. And I say we can get back to that range, but it's going to take some time to get there.

克雷格，是的，你看，我們確實覺得，是否有可能恢復正常？答案是肯定的。這個數字到底是多少呢？我認為以前，我們會波動——這是季節性的，對吧，在任何地方——我會說800萬美元到1100萬美元，甚至800萬美元到1200萬美元。我說我們可以回到這個範圍，但需要一些時間才能到達那裡。

As I indicated earlier, the headwinds on the overall supply shortage is still there. And with the consumer market, we are a lot more dependent on others. And I want to reiterate, we don't have an issue with our product when it comes to the consumer on shortages. We have the product we can build, right? The issue is with our partners or the product or our antennas going into a gateway, a set-top box that are missing the other key components, and that's what's holding up. And because of that, there's a lot more uncertainties there that we cannot predict. So I think that it's going to take some time given what the macro environment currently.

正如我之前指出的，整體供應短缺的不利因素仍然存在。對於消費市場，我們更依賴他人。我想重申，當涉及消費者的短缺時，我們的產品沒有問題。我們有可以製造的產品，對吧？問題在於我們的合作夥伴或產品或我們的天線進入網關、機上盒，缺少其他關鍵組件，這就是問題所在。正因為如此，還有更多我們無法預測的不確定性。所以我認為考慮到目前的宏觀環境，這將需要一些時間。

Yes, that's understandable. There's just so many components on a set-top box system board. The next question and issue I wanted to dig into was AirgainConnect. So just great to see the water utility win, very substantial. The question is this, if we estimate that that's worth about $3 million, given AirgainConnect ASPs, how much of that is included in the second quarter guide? And how should we think about the rev rec on the balance through calendar '22?

是的，這是可以理解的。機上盒系統板上的組件非常多。我想深入研究的下一個問題是 AirgainConnect。很高興看到自來水公司獲勝，意義重大。問題是，如果我們估計 AirgainConnect ASP 的價值約為 300 萬美元，那麼第二季指南中包含了多少？我們應該如何考慮日曆 '22 期間天平上的轉速記錄？

Yes. Great questions, Craig. So certainly, we're also pleased to see that particular design win. And as I indicated, even with these particular customers, I want to mention this is only the first order from them. They actually have -- it's a nationwide utility company across many different states, and this was only the first order and they have a lot more vehicles that could use AirgainConnect in the foreseeable future.

是的。很好的問題，克雷格。當然，我們也很高興看到該特定設計獲勝。正如我所指出的，即使對於這些特定的客戶，我想說這只是他們的第一個訂單。他們實際上擁有——這是一家橫跨許多不同州的全國性公用事業公司，這只是第一個訂單，在可預見的未來，他們有更多的車輛可以使用 AirgainConnect。

With that being said, the other key point I want to reiterate is that this was actually not part of our SAM, the Subscriber Addressable Market that we've been telling the market, which is the first responders, which is actually $500 million plus same for us. So this is in addition to that.

話雖如此，我想重申的另一個關鍵點是，這實際上不是我們的SAM 的一部分，即我們一直告訴市場的訂戶可尋址市場，即第一響應者，實際上是5 億美元加上相同的金額為了我們。所以這是除此之外的。

Now how is this year going to play out? Certainly, not all of these are going to be shipping second quarter. It's going to be shipping throughout the year for this utility purchase order that we mentioned. We do have other opportunities, other wins that we really got that should produce the revenue stream for the rest of the year. And I do see that we're getting -- looking to the opportunity funnel, if I look into the customers' trial, we're seeing every one of them is increasing. And also the promotions that AT&T continue to put forth, it's also making all of us feel confident about the future for AirgainConnect. I think that last year, we're hoping to be able to see that last year, but I really feel like it really took a year to 1.5 year to ramp up and right now we're at the cusp of that growth going forward.

那麼今年的情況會如何呢？當然，並非所有這些都會在第二季發貨。我們提到的這個公用事業採購訂單將全年出貨。我們確實有其他機會，我們真正獲得的其他勝利應該會為今年剩餘時間帶來收入來源。我確實看到我們正在尋找機會漏斗，如果我調查客戶的試用，我們會看到他們中的每一個都在增加。還有AT&T不斷推出的促銷活動，也讓我們大家對AirgainConnect的未來充滿信心。我認為去年我們希望能夠在去年看到這一點，但我真的覺得確實需要一年到 1.5 年的時間才能實現成長，而現在我們正處於未來成長的風口浪尖。

So are you saying you would expect that AirgainConnect revenues to grow sequentially through the year? Jacob, was that the message that you were conveying there?

那麼您是說您預計 AirgainConnect 的營收將全年持續成長嗎？雅各布，這就是你要傳達的訊息嗎？

Yes.

是的。

Got it. Okay. And then moving on to NimbeLink, and I wanted to ask a revenue and a gross margin question because they're related. So as we saw the business perform exceptionally well last year, we also saw that it was one that had an adverse gross margin mix impact. So the question is this, I wasn't clear if NimbeLink actually rose or declined in the first quarter. So can you clarify that? And then given that it was previously very significantly below corporate gross margin average, are there things that have been done operationally to get that margin back to corporate average? Or do we still have ways to go before that business would be at low to mid-40s gross margin?

知道了。好的。然後轉向 NimbeLink，我想問收入和毛利率問題，因為它們是相關的。因此，當我們看到該業務去年表現異常出色時，我們也看到它對毛利率組合產生了不利影響。所以問題是，我不清楚 NimbeLink 在第一季實際上是上升還是下降。那你能澄清一下嗎？鑑於先前的毛利率遠低於企業平均水平，是否採取了一些操作措施來使毛利率恢復到企業平均水平？或者說，在該業務的毛利率降至 40 多歲左右之前，我們還有路要走嗎？

Okay. Yes. Great questions again, Craig. So let me try to make sure I answer both of them correctly. So the first question is in regard to the demand for the IoT product. Am I correct?

好的。是的。又是一個很好的問題，克雷格。因此，讓我嘗試確保我正確回答了這兩個問題。所以第一個問題是關於物聯網產品的需求。我對麼？

Yes.

是的。

Yes. So we -- I think the revenue for Q1 versus Q4, I think that was steady to slightly increase. And some of them is because we actually got more demand and some of them is going ship because of some of the shutdown, unexpected shutdown in Asia, right? Now we do -- I mean -- but as I indicated, we actually have backlog even throughout the rest of the year, and they're looking really strong. It's more about can we build and make sure you can meet the demand. Some of the last-minute chipset shortage issue creating some issue for us. And we're going to continue to see that. But as I indicated, as Vic alluded to earlier, is that we are now creating different designs. So that way you can mitigate the risk. So we feel good about the growth of the IoT products.

是的。所以我們——我認為第一季的收入與第四季度相比，我認為這是穩定的，略有增加。其中一些是因為我們實際上得到了更多的需求，其中一些因為亞洲的一些停工、意外停工而發貨，對嗎？現在我們確實這樣做了——我的意思是——但正如我所指出的，我們實際上甚至在今年剩餘時間裡都有積壓訂單，而且看起來非常強勁。更重要的是我們能否建置並確保您能夠滿足需求。最後一刻的晶片組短缺問題給我們帶來了一些問題。我們將繼續看到這一點。但正如我所指出的，正如維克之前提到的，我們現在正在創造不同的設計。這樣您就可以降低風險。因此，我們對物聯網產品的成長感到滿意。

The second question you asked is about the gross margin. So I think that when we acquired NimbeLink, we already know that, that was an issue. But quarter-after-quarter, we continue to execute. And this is where I really want to complement our operation team. They really stepped up in looking into different avenues. So definitely, if you think about our average, if you look into the average we disclose, I would say we have increased from what they have previously substantially. I won't be able to give you the specifics, but I do think that we have a path to be above the 40s. And they were not the one that actually -- with IoT, they are different product lines, some are actually looking really good. And certain ones, that's not as good, but we are working our ways to address that. But overall, that IoT is pretty good.

你問的第二個問題是關於毛利率的。所以我認為當我們收購 NimbeLink 時，我們已經知道這是一個問題。但我們每季都會繼續執行。這就是我真正想要補充我們的營運團隊的地方。他們確實加緊尋找不同的方法。因此，如果你考慮我們的平均水平，如果你研究我們披露的平均水平，我肯定會說我們比之前的水平有了大幅增長。我無法向您提供具體細節，但我確實認為我們有一條通往 40 歲以上的道路。事實上，它們並不是物聯網的產品線，它們是不同的產品線，有些實際上看起來非常好。對於某些問題，情況不太好，但我們正在努力解決這個問題。但總體而言，物聯網非常好。

(Operator Instructions) We'll take our next question from Tim Savageaux with Northland Capital Markets.

（操作員說明）我們將回答 Northland Capital Markets 的 Tim Savageaux 提出的下一個問題。

Congrats on a good report and outlook. I wanted to come back on kind of the drivers of your guidance for pretty solid sequential growth here. Early on, it seemed like your commentary was to the effect you expect some continued recovery in consumer to maybe account for -- I don't know, as much as half of that, but any color there, as well as the initial ramp of AirgainConnect shipments into the utility space. If I look at those 2 factors, would that account for the majority of the growth you're looking at to the midrange? Or are there any other factors to consider?

恭喜您獲得了良好的報告和展望。我想回顧一下你們指導下相當穩健的連續成長的驅動因素。早些時候，你的評論似乎是這樣的，你預計消費者的持續復甦可能會解釋這一點——我不知道，最多有一半，但那裡的任何顏色，以及最初的增長AirgainConnect 將貨物運送到公用設施空間。如果我考慮這兩個因素，這會佔您所看到的中檔成長的大部分嗎？或者有其他因素需要考慮嗎？

Yes, Tim. So I would say, actually, there are a number of other growth. The IoT is definitely a strong growth engine we would be counting on as well as the aftermarket. We do see -- because we did a refresh on a lot of our product on the 5G side. And overall, we do expect that growth to be happening as well.

是的，提姆。所以我想說，實際上還有許多其他的成長。物聯網絕對是我們以及售後市場所依賴的強大成長引擎。我們確實看到了——因為我們在 5G 方面對許多產品進行了更新。總的來說，我們確實預期這種成長也會發生。

So you're right about the consumer. I think it's going to be steady. It's going to be -- it's going to take its course. We do feel bit good about you're going to see the improvement quarter after quarter until we get back to normality, that could maybe another 3 quarters, another 2 courses, we're going to see. We don't know that yet.

所以你對消費者的看法是對的。我認為它會穩定下來。一切都會順其自然。我們確實感到有點高興，你會看到一個又一個季度的改善，直到我們恢復正常，這可能還需要 3 個季度，另外 2 個課程，我們將會看到。我們還不知道這一點。

As far as AirgainConnect, certainly, we do see a bright future for that product. I think that it's a couple -- it took us 2 or 3 quarters. More than what we were hoping for, but it's now here for us to really take advantage of. And as I indicated, I think that the IoT and the aftermarket are 2 of the key growth driver for us in the foreseeable future.

當然，就 AirgainConnect 而言，我們確實看到了該產品的光明前景。我認為這是一對夫婦——我們花了兩三個季度的時間。超出了我們的期望，但現在我們可以真正利用它。正如我所指出的，我認為物聯網和售後市場是我們在可預見的未來的兩個主要成長動力。

Got it. Given the win that you're shipping this year in AirgainConnect the potential for follow-ons with that customer, new wins and more traction in the first responder market; is it possible that we see AirgainConnect revenue at or above 10% of total revenue for the year? And as a follow-on, what would be the margin implication to that?

知道了。鑑於您今年在 AirgainConnect 中取得的勝利，該客戶的後續行動、新的勝利以及在急救人員市場中的更多吸引力的潛力；我們看到 AirgainConnect 收入是否有可能達到或超過今年總收入的 10%？作為後續，這會產生什麼邊際影響？

Well, I certainly -- we certainly hope so, right? And that's what we're going to strive for. We feel there's definitely a really good chance we can exceed that. But the gross margin is something we're going to have to work on. I think that as we become more scalable, the gross margin is going to improve. One of the -- I would say, one of the issue right now with AirgainConnect is the gross margin, because when we ship small volume, the cost is high. But a couple of things that we already are working on. One is what I indicated to you about is being more scale.

嗯，我當然——我們當然希望如此，對吧？這就是我們要努力的目標。我們認為我們絕對有很好的機會超越這個目標。但毛利率是我們必須努力解決的問題。我認為，隨著我們的規模變得更大，毛利率將會提高。其中之一——我想說，AirgainConnect 目前的問題之一是毛利率，因為當我們運送小批量時，成本很高。但我們已經在做一些事情。一是我向你指出的就是擴大規模。

The other thing is the fact that we actually transitioned. That product now, we used to build that in-house, and now we transitioned that to -- with the CMs. It's actually creating a lot of benefit from a quality supply chain perspective, -- so we do expect that under Vic and his team's effort, we're going to start to continue see improvement from a gross margin perspective for AirgainConnect.

另一件事是我們實際上已經轉變了。現在，我們過去在內部建立該產品，現在我們將其轉變為與 CM 一起建造。實際上，從品質供應鏈的角度來看，它創造了很多好處——所以我們確實預計，在 Vic 和他的團隊的努力下，我們將開始繼續看到 AirgainConnect 毛利率的改善。

And the other thing I would add, Tim, is that in the road map of AirgainConnect, so just as you could imagine, with every product that you release, there will always be areas of cost optimization, and that's what Vic and his team have been doing for us the past 12 months. There are also product derivatives that are being planned to address markets that are very specific and also a redesign of the current platform that would allow us to really get those margins much higher than where they are today.

Tim，我要補充的另一件事是，在AirgainConnect 的路線圖中，正如您可以想像的那樣，您發布的每一款產品，總會有成本優化的領域，這就是Vic 和他的團隊所做的過去 12 個月一直在為我們做。還計劃推出產品衍生品來解決非常具體的市場，並對當前平台進行重新設計，這將使我們真正獲得比今天高得多的利潤。

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

至此，我們的問答環節就結束了。如果您的問題未被採納，您可以透過 AIRG@gatewayir.com 聯繫 Airgain 的投資者關係部門。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. We look forward to updating you on our next call. Operator?

感謝您參加今天的電話會議。我們期待下次通話時向您通報最新情況。操作員？

Thank you for joining us today for Airgain's First Quarter 2022 Earnings Call. You may now disconnect, and have a great day.

感謝您今天參加我們的 Airgain 2022 年第一季財報電話會議。現在您可以斷開連接，祝您有美好的一天。