Airgain, Inc. (Nasdaq: AIRG), a leading provider of wireless
connectivity solutions that creates and delivers embedded
components, external antennas, and integrated systems across the
globe, today reported financial results for the third quarter ended
September 30, 2023.
“Our team continues to navigate a challenging macro-economic
environment,” said Airgain’s President and Chief Executive Officer,
Jacob Suen. “We delivered quarterly sales of $13.7 million, and we
remain focused on launching our three major product initiatives,
expanding our customer base and growing our geographic reach.”
Third Quarter 2023 Financial Highlights
GAAP
- Sales of $13.7 million
- GAAP gross margin of 38.2%
- GAAP operating expenses of $7.1 million
- GAAP net loss of $1.9 million or $(0.18) per share
Non-GAAP
- Non-GAAP gross margin of 39.1%
- Non-GAAP operating expenses of $6.0 million
- Non-GAAP net loss of $0.7 million or $(0.06) per share
- Adjusted EBITDA of $(0.5) million
Third Quarter 2023 Financial Results
Sales for the third quarter of 2023 were $13.7 million, of which
$6.8 million was generated from the enterprise market, $4.4 million
from the consumer market, and $2.5 million from the automotive
market. Sales decreased by 13.5%, or $2.1 million in the third
quarter of 2023 compared to $15.8 million in the second quarter of
2023. Sequentially, enterprise sales decreased by $0.5 million and
consumer sales decreased by $1.8 million, while automotive sales
increased by $0.2 million. Sales for the third quarter of 2023
decreased by 28.7%, or $5.5 million from $19.2 million in the same
quarter a year-ago primarily due to lower sales of $2.9 million
from the consumer market and $2.6 million from the automotive
market.
GAAP gross profit for the third quarter of 2023 was $5.2
million, compared to $6.3 million for the second quarter of 2023
and $7.4 million for the same quarter a year ago. Non-GAAP gross
profit for the third quarter of 2023 was $5.4 million, compared to
$6.4 million for the second quarter of 2023 and $7.6 million for
the same quarter a year ago (see note regarding "Use of Non-GAAP
Financial Measures" below for further discussion of this non-GAAP
measure).
GAAP gross margin for the third quarter of 2023 was 38.2%,
compared to 39.7% for the second quarter of 2023 and 38.8% for the
same quarter a year ago. Non-GAAP gross margin for the third
quarter of 2023 was 39.1% compared to 40.4% for the second quarter
of 2023 and 39.4% for the same quarter a year ago (see note
regarding "Use of Non-GAAP Financial Measures" below for further
discussion of this non-GAAP measure).
GAAP operating expenses for the third quarter of 2023 were $7.1
million, compared to $8.5 million for the second quarter of 2023
and $8.7 million for the same quarter a year ago. Non-GAAP
operating expenses for the third quarter of 2023 were $6.0 million
compared to $6.5 million in the second quarter of 2023 and $7.0
million for the same quarter a year ago (see note regarding "Use of
Non-GAAP Financial Measures" below for further discussion of this
non-GAAP measure).
GAAP net loss for the third quarter of 2023 was $1.9 million or
$(0.18) per share (based on 10.4 million shares), compared to a net
loss of $2.2 million or $(0.21) per share (based on 10.4 million
shares) for the second quarter of 2023 and a net loss of $1.3
million or $(0.13) per share (based on 10.2 million shares) for the
same quarter a year ago. Non-GAAP net loss for the third quarter of
2023 was $0.7 million or $(0.06) per share (based on 10.4 million
shares), compared to a non-GAAP net loss of $0.1 million or $(0.01)
per share (based on 10.4 million shares) for the second quarter of
2023 and a non-GAAP net income of $0.6 million or $0.06 per share
(based on 10.5 million diluted shares) for the same quarter a year
ago (see note regarding "Use of Non-GAAP Financial Measures" below
for further discussion of this non-GAAP measure).
Adjusted EBITDA for the third quarter of 2023 was ($0.5)
million, compared to break even for the second quarter of 2023 and
$0.8 million for the same quarter a year ago (see note regarding
"Use of Non-GAAP Financial Measures" below for further discussion
of this non-GAAP measure).
Fourth Quarter 2023 Financial Outlook
GAAP
- Sales are expected to be in the range of $9.25 million to
$10.75 million, or $10.0 million at the midpoint
- GAAP gross margin is expected to be in the range of 37.3% to
40.3%
- GAAP operating expense is expected to be approximately $7.5
million
- GAAP net loss per share is expected to be $0.34 at the
midpoint
Non-GAAP
- Non-GAAP gross margin is expected to be in the range of 38.5%
to 41.5%
- Non-GAAP operating expense is expected to be approximately $6.0
million,
- Non-GAAP net loss per share is expected to be $(0.19) at the
midpoint
- Adjusted EBITDA is expected to be a loss of $1.8 million.
Our financial outlook for the three months ending December 31,
2023, including reconciliations of GAAP to non-GAAP measures can be
found at the end of this press release.
Conference Call
Airgain, Inc. management will hold a conference call today,
Thursday, November 9, 2023, at 5:00 PM Eastern Time (2:00 PM
Pacific Time) to discuss financial results for the third quarter
ended September 30, 2023.
Airgain management will host the presentation, followed by a
question-and-answer period.
Date: November 9, 2023 Time: 5:00 PM Eastern Time (2:00 PM
Pacific Time) Participant Dial-In: (877) 407-2988 or +1 (201)
389-0923
The conference call will be broadcast simultaneously and
available here and for replay via the investor relations section of
the company's website at investors.airgain.com.
For webcast access, please follow the web address below to
register for the conference call. Registration:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=NwQD8V4m
A replay of the webcast will be available via the registration
link after 8:00 PM Eastern Time on the same day until November 9,
2024.
About Airgain, Inc.
Airgain is a leading provider of wireless connectivity solutions
that creates and delivers embedded components, external antennas,
and integrated systems across the globe. Airgain simplifies
wireless connectivity across a diverse set of devices and markets,
from solving complex connectivity issues to speeding time to market
to enhancing wireless signals. Our product offering includes three
distinct sub-brands. Airgain Embedded represents our embedded
modems, antennas, and development kits that are designed to help
design teams bring connected products to market quickly. Airgain
Integrated represents our fully integrated, off-the-shelf products,
such as our asset trackers and AirgainConnect® platform, that help
solve connectivity issues in an organization’s operating
environment. Airgain Antenna+ represents our external antennas,
such as our fleet and internet of things (IoT) antennas, that help
enhance wireless signals in some of the harshest environments. Our
mission is to connect the world through optimized integrated
wireless solutions. Airgain is headquartered in San Diego,
California, and maintains design and test centers in the U.S.,
U.K., and China. For more information, visit airgain.com, or follow
Airgain on LinkedIn and Twitter.
Airgain, AirgainConnect, and the Airgain logo are trademarks or
registered trademarks of Airgain, Inc.
Forward-Looking Statements
Airgain cautions you that statements in this press release that
are not a description of historical facts are forward-looking
statements. These statements are based on the company’s current
beliefs and expectations. These forward-looking statements include
statements regarding our fourth quarter 2023 financial outlook and
overall long-term strategy and priorities. The inclusion of
forward-looking statements should not be regarded as a
representation by Airgain that any of our plans will be achieved.
Actual results may differ from those set forth in this press
release due to the risks and uncertainties inherent in our
business, including, without limitation: the market for our
products is developing and may not develop as we expect; our
operating results may fluctuate significantly, including based on
seasonal factors, which makes future operating results difficult to
predict and could cause our operating results to fall below
expectations or guidance; supply constraints on our and our
customers' ability to obtain necessary components in our respective
supply chains may negatively affect our sales and operating
results; risks associated with the performance of our products,
including bundled solutions with third-party products; our products
are subject to intense competition and competitive pressures from
existing and new companies may harm our business, sales, growth
rates, and market share; risks associated with quality and timing
in manufacturing our products and our reliance on third-party
manufacturers; we may not be able to maintain strategic
collaborations under which our bundled solutions are offered;
overall global supply shortages and logistics delays within the
supply chain that our products are used in, as well as adversely
affecting the general U.S. and global economic conditions and
financial markets, and, ultimately, our sales and operating
results; rising interest rates and inflation may adversely impact
our margins, the supply chain and our customers’ sales, which may
negatively affect our sales and operating results; our future
success depends on our ability to develop and successfully
introduce new and enhanced products for the wireless market that
meet the needs of our customers, including our ability to
transition to provide a more diverse solutions capability; we sell
to customers who are price conscious, and a few customers represent
a significant portion of our sales, and if we lose any of these
customers, our sales could decrease significantly; we rely on a
limited number of contract manufacturers to produce and ship all of
our products, and our contract manufacturers rely on a single or
limited number of suppliers for some components of our products and
channel partners to sell and support our products, and the failure
to manage our relationships with these parties successfully or a
failure of these parties to perform could adversely affect our
ability to market and sell our products; if we cannot protect our
intellectual property rights, our competitive position could be
harmed or we could incur significant expenses to enforce our
rights; and other risks described in our prior press releases and
in our filings with the Securities and Exchange Commission (SEC),
including under the heading “Risk Factors” in our Annual Report on
Form 10-K and any subsequent filings with the SEC. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, and we
undertake no obligation to revise or update this press release to
reflect events or circumstances after the date hereof. All
forward-looking statements are qualified in their entirety by this
cautionary statement, which is made under the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995.
Note Regarding Use of Non-GAAP Financial Measures
To supplement our condensed financial statements presented in
accordance with U.S. generally accepted accounting principles
(GAAP), this earnings release and the accompanying tables and the
related earnings conference call contain certain non-GAAP financial
measures, including adjusted earnings before interest, taxes,
depreciation, amortization (Adjusted EBITDA), non-GAAP net income
(loss) attributable to common stockholders (non-GAAP net income
(loss)), non-GAAP net income (loss) per (basic or diluted) share
(non-GAAP EPS), non-GAAP operating expense, non-GAAP gross profit
and non-GAAP gross margin. We believe these financial measures
provide useful information to investors with which to analyze our
operating trends and performance.
In computing Adjusted EBITDA, non-GAAP net income (loss), and
non-GAAP EPS, we exclude stock-based compensation expense, which
represents non-cash charges for the fair value of stock awards;
interest income, net of interest expense offset by other expense;
depreciation and amortization; change in the fair value of
contingent consideration, acquisition-related expenses, severance
and exit costs, amortization of inventory step-up and provision
(benefit) for income taxes. In computing non-GAAP operating
expense, we exclude stock-based compensation expense, amortization
of intangibles, change in the fair value of contingent
consideration, acquisition-related expenses and severance and exit
costs. In computing non-GAAP gross profit and non-GAAP gross
margin, we exclude stock-based compensation expense, amortization
of inventory step-up and amortization of intangible assets. Because
of varying available valuation methodologies, subjective
assumptions, and the variety of equity instruments that can impact
a company’s non-cash operating expenses; we believe that providing
non-GAAP financial measures that exclude non-cash expense allows
for meaningful comparisons between our core business operating
results and those of other companies, as well as providing us with
an important tool for financial and operational decision making and
for evaluating our own core business operating results over
different periods of time. Management considers these types of
expenses and adjustments, to a great extent, to be unpredictable
and dependent on a considerable number of factors that are outside
of our control and are not necessarily reflective of operational
performance during a period.
Our non-GAAP measures may not provide information that is
directly comparable to that provided by other companies in our
industry, as other companies in our industry may calculate non-GAAP
financial results differently, particularly related to
non-recurring, unusual items. Our Adjusted EBITDA, non-GAAP net
income (loss), non-GAAP EPS, non-GAAP operating expense, non-GAAP
gross profit and non-GAAP gross margin are not measurements of
financial performance under GAAP and should not be considered as an
alternative to operating or net income or as an indication of
operating performance or any other measure of performance derived
in accordance with GAAP. We do not consider these non-GAAP measures
to be a substitute for, or superior to, the information provided by
GAAP financial results. Reconciliations with specific adjustments
to GAAP results and outlooks are provided at the end of this
release.
Airgain, Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except par
value)
(unaudited)
September 30, 2023
December 31, 2022
Assets
Current assets:
Cash and cash equivalents
$
9,989
$
11,903
Trade accounts receivable, net
6,272
8,741
Inventories
3,950
4,226
Prepaid expenses and other current
assets
2,041
2,284
Total current assets
22,252
27,154
Property and equipment, net
2,454
2,765
Leased right-of-use assets
1,604
2,217
Goodwill
10,845
10,845
Intangible assets, net
8,977
11,203
Other assets
170
216
Total assets
$
46,302
$
54,400
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
5,425
$
6,507
Accrued compensation
642
2,874
Accrued liabilities and other
2,538
2,615
Short-term lease liabilities
909
904
Total current liabilities
9,514
12,900
Deferred tax liability
145
139
Long-term lease liabilities
878
1,536
Total liabilities
10,537
14,575
Commitments and contingencies (Note
13)
Stockholders’ equity:
Common stock and additional paid-in
capital, par value $0.0001, 200,000 shares authorized; 10,985
shares issued and 10,444 shares outstanding at September 30, 2023;
and 10,767 shares issued and 10,226 shares outstanding at December
31, 2022.
114,166
111,282
Treasury stock, at cost: 541 shares at
September 30, 2023 and December 31, 2022.
(5,364
)
(5,364
)
Accumulated deficit
(73,037
)
(66,093
)
Total stockholders’ equity
35,765
39,825
Total liabilities and stockholders’
equity
$
46,302
$
54,400
Airgain, Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share data)
(unaudited)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
Sales
$
13,696
$
19,198
$
45,970
$
56,006
Cost of goods sold
8,460
11,755
28,137
33,902
Gross profit
5,236
7,443
17,833
22,104
Operating expenses:
Research and development
2,298
2,901
7,337
9,117
Sales and marketing
1,704
2,808
6,875
8,552
General and administrative
3,144
2,998
10,533
9,738
Total operating expenses
7,146
8,707
24,745
27,407
Loss from operations
(1,910
)
(1,264
)
(6,912
)
(5,303
)
Other (income) expense:
Interest income, net
(34
)
(26
)
(68
)
(37
)
Other expense
1
9
16
39
Total other (income) expense
(33
)
(17
)
(52
)
2
Loss before income taxes
(1,877
)
(1,247
)
(6,860
)
(5,305
)
Income tax expense
4
52
84
134
Net loss
$
(1,881
)
$
(1,299
)
$
(6,944
)
$
(5,439
)
Net loss per share:
Basic
$
(0.18
)
$
(0.13
)
$
(0.67
)
$
(0.53
)
Diluted
$
(0.18
)
$
(0.13
)
$
(0.67
)
$
(0.53
)
Weighted average shares used in
calculating loss per share:
Basic
10,430
10,210
10,370
10,179
Diluted
10,430
10,210
10,370
10,179
Airgain, Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(unaudited)
Nine months ended September
30,
2023
2022
Cash flows from operating
activities:
Net loss
$
(6,944
)
$
(5,439
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation
500
502
Loss on disposal of property and
equipment
—
3
Amortization of intangible assets
2,227
2,269
Stock-based compensation
2,472
3,575
Deferred tax liability
7
24
Changes in operating assets and
liabilities:
Trade accounts receivable
2,469
1,305
Inventories
276
(396
)
Prepaid expenses and other current
assets
203
(733
)
Other assets
6
109
Accounts payable
(1,100
)
2,353
Accrued compensation
(1,338
)
(54
)
Accrued liabilities and other
(102
)
(1,383
)
Lease liabilities
(40
)
(52
)
Net cash (used in) provided by operating
activities
(1,364
)
2,083
Cash flows from investing
activities:
Purchases of property and equipment
(172
)
(634
)
Proceeds from sale of equipment
—
10
Net cash used in investing activities
(172
)
(624
)
Cash flows from financing
activities:
Cash paid for business acquisition
contingent consideration
—
(7,015
)
Payments for withholding taxes related to
net share settlement of equity awards
(690
)
-
Issuance of common stock, net
232
235
Net cash used in financing activities
(458
)
(6,780
)
Net decrease in cash, cash equivalents and
restricted cash
(1,994
)
(5,321
)
Cash, cash equivalents, and restricted
cash; beginning of period
12,078
14,686
Cash, cash equivalents, and restricted
cash; end of period
$
10,084
$
9,365
Supplemental disclosure of cash flow
information:
Income taxes paid
$
78
$
196
Supplemental disclosure of non-cash
investing and financing activities:
Operating lease liabilities resulting from
right-of-use assets
$
11
$
364
Accrual of property and equipment
$
17
$
19
Cash, cash equivalents, and restricted
cash:
Cash and cash equivalents
$
9,989
$
9,190
Restricted cash included in prepaid
expenses and other current assets and other assets long term
95
$
175
Total cash, cash equivalents, and
restricted cash
$
10,084
$
9,365
Airgain, Inc.
(in thousands)
(unaudited)
Sales by Target Market
Three months ended
Nine months ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Consumer
$
4,404
$
6,189
$
7,334
$
15,725
$
19,377
Enterprise
6,791
7,366
6,747
22,594
24,496
Automotive
2,501
2,275
5,117
7,651
12,133
Total sales
$
13,696
$
15,830
$
19,198
$
45,970
$
56,006
Reconciliation of GAAP to
non-GAAP Gross Profit
Three months ended
Nine months ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Gross profit
$
5,236
$
6,279
$
7,443
$
17,833
$
22,104
Stock-based compensation
29
29
36
73
71
Amortization of intangible assets
89
89
89
266
266
Non-GAAP gross profit
$
5,354
$
6,397
$
7,568
$
18,172
$
22,441
Reconciliation of GAAP to
non-GAAP Gross Margin
Three months ended
Nine months ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Gross margin
38.2
%
39.7
%
38.8
%
38.8
%
39.5
%
Stock-based compensation
0.2
%
0.2
%
0.2
%
0.1
%
0.1
%
Amortization of intangible assets
0.7
%
0.5
%
0.4
%
0.6
%
0.5
%
Non-GAAP gross margin
39.1
%
40.4
%
39.4
%
39.5
%
40.1
%
Reconciliation of GAAP to
non-GAAP Operating Expenses
Three months ended
Nine months ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Operating expenses
$
7,146
$
8,491
$
8,707
$
24,745
$
27,407
Stock-based compensation expense
(494
)
(939
)
(1,084
)
(2,399
)
(3,504
)
Amortization of intangible assets
(654
)
(653
)
(668
)
(1,961
)
(2,003
)
Severance and exit costs
22
(365
)
—
(548
)
—
Non-GAAP operating expenses
$
6,020
$
6,534
$
6,955
$
19,837
$
21,900
Airgain, Inc.
(in thousands, except per
share data)
(unaudited)
Reconciliation of GAAP to
non-GAAP Net (Loss) Income
Three months ended
Nine months ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Net loss
$
(1,881
)
$
(2,205
)
$
(1,299
)
$
(6,944
)
$
(5,439
)
Stock-based compensation expense
523
968
1,120
2,472
3,575
Amortization of intangible assets
742
742
755
2,227
2,269
Severance and exit costs
(22
)
365
—
548
—
Other (income) expense
(34
)
(16
)
(15
)
(62
)
1
Income tax expense (benefit)
4
(2
)
52
84
134
Non-GAAP net (loss) income attributable to
common stockholders
$
(668
)
$
(148
)
$
613
$
(1,675
)
$
540
Non-GAAP net (loss) income per share:
Basic
$
(0.06
)
$
(0.01
)
$
0.06
$
(0.16
)
$
0.05
Diluted
$
(0.06
)
$
(0.01
)
$
0.06
$
(0.16
)
$
0.05
Weighted average shares used in
calculating non-GAAP net (loss) income per share:
Basic
10,430
10,413
10,210
10,370
10,179
Diluted
10,430
10,413
10,524
10,370
10,468
Reconciliation of Net Loss to
Adjusted EBITDA
Three months ended
Nine months ended September
30,
September 30, 2023
June 30, 2023
September 30, 2022
2023
2022
Net loss
$
(1,881
)
$
(2,205
)
$
(1,299
)
$
(6,944
)
$
(5,439
)
Stock-based compensation expense
523
968
1,120
2,472
3,575
Depreciation and amortization
900
927
921
2,727
2,771
Severance and exit costs
(22
)
365
—
548
—
Other (income) expense
(34
)
(16
)
(15
)
(62
)
1
Income tax (benefit) expense
4
(2
)
52
84
134
Adjusted EBITDA
$
(510
)
$
37
$
779
$
(1,175
)
$
1,042
Q4-2023 Financial
Outlook
Reconciliations of GAAP to
Non-GAAP Gross Margin, Operating Expense, Net (Loss) Income, EPS
and to Adjusted EBITDA
For the Three Months Ended
December 31, 2023
(dollars in millions, except
per share data)
Gross Margin
Reconciliation:
Operating Expense
Reconciliation:
GAAP gross margin
38.8
%
GAAP operating expenses
$
7.5
Stock-based compensation
0.3
%
Stock-based compensation
(0.8
)
Amortization
0.9
%
Amortization
(0.7
)
Non-GAAP gross margin
40.0
%
Non-GAAP operating expenses
$
6.0
Net (Loss) Income
Reconciliation
Net (Loss) Income per Share
Reconciliation(1):
GAAP net loss
$
(3.6
)
GAAP net loss per share
$
(0.34
)
Stock-based compensation
0.9
Stock-based compensation
0.08
Amortization
0.7
Amortization
0.07
Interest income, net
—
Interest income, net
—
Income tax expense
-
Income tax expense
—
Non-GAAP net loss
$
(2.0
)
Non-GAAP net loss per share
$
(0.19
)
Adjusted EBITDA
Reconciliation
GAAP net loss
$
(3.6
)
Stock-based compensation
0.9
Depreciation and amortization
0.9
Interest income, net
—
Income tax expense
—
Adjusted EBITDA
$
(1.8
)
(1) Amounts are based on 10.5 million
basic and 10.5 million diluted weighted average shares
outstanding
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109738834/en/
Airgain Contact Michael Elbaz Chief Financial Officer
investors@airgain.com
Airgain Investor Contact Matt Glover and Chris
Adusei-Poku Gateway Group, Inc. +1 949 574 3860
AIRG@gateway-grp.com
Airgain (NASDAQ:AIRG)
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Airgain (NASDAQ:AIRG)
過去 株価チャート
から 5 2023 まで 5 2024