Airgain, Inc.

Thank you. THE END Thank you. Oh, my God. Thank you. Thank you. Thank you. Thank you. Thank you. THE END THE END THE END THE END THE END Good afternoon. Welcome to AirGames' fourth quarter and full year 2020 earnings conference call. My name is Ryan, and I'll be your coordinator for today's call. Joining us for today's call are AirGames CEO Jacob Soon, CFO David Lyle, and AirGames' new Senior Vice President of Product and Marketing, Rab Sabi. As a reminder, this call will be recorded and made available for replay via a link available in the investor relations section of Airgain's website at www.airgain.com. Following management's prepared remarks, the call will be open for questions from Airgain's publishing sales side analysts. I would now like to turn the call over to Mr. Lyle.

Thank you, and good afternoon to everyone. 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 a 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 broadcast, February 18, 2021. Ergain undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call. In addition, this conference call may include a discussion of non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income, non-GAAP diluted earnings per share, and adjusted EBITDA. Please see today's earnings release for further details, including the reconciliation of the GAAP to non-GAAP results. Now I'd like to turn the call over to our CEO, Jacob Sim.

Jacob? Thank you, Dave. Welcome, everyone, and thank you for joining us on the call today. I'll start with an update on the fourth quarter and a review of our strategy and then discuss progress we've made on key programs. They will then provide financial details as well as our Q1 2021 outlook and color around how we expect the year to play out. Let's begin with our two big announcements, the acquisitions of NimbleLink and the release of the first Egg and Connect product into general availability. The acquisitions of NimbleLink, which closed on January 7th, makes for a really exciting addition to the Airgame family. We're at a critical inflection point in our transition towards becoming a more system-level company by providing even higher levels of innovative solutions. The acquisition is an excellent fit with our business and will play an important role in our overall growth strategy to broaden market diversification. especially within the industrial IoT space. Nemblen significantly advances our strategic mission to deliver higher levels of integrated wireless systems solutions globally. The strategic rationale for this acquisition really revolves around six key points. First, Nemblen's expertise in industrial IoT puts them squarely in one of our targeted sub-markets. within the bigger enterprise market. Second, NimbleLink extends the breadth and opportunity for our game-changing AirGain Connect platform. With the addition of critical expertise gained through NimbleLink for future AirGain Connect products, such as with modem integrated design, cloud management software, as well as operator certification, we expect that NimbleLink will enable critical future features expand cellular module design, increase supply chain flexibility, and improve product time to market. Third, because NimbleLink's historical revenue has been almost all based in the US, we have a real opportunity to leverage our international sales force to expand NimbleLink's sales reach. Historically, NimbleLink, being a smaller private company, focus almost entirely on the U.S. market. However, its products can be adapted to international markets with minimal investment and can be ready, in most cases, to deploy into a new market in a matter of weeks, not months or years. This rapid time to market is because NimbleLink's modems are certified in 26 different bands and operator-specific adaptations can be completed really quickly. Given AirGain's existing global sales coverage through our direct sales force and channel partners across different regions in Asia, Europe, and the Middle East, we expect to quickly expand international sales force of NimbleLink products. Fourth, by joining a larger company, NimbleLink can gain access to design opportunities they were not previously able to win. as it can leverage Ergen's broader channel, well-known brand in larger scale. Fifth, all Neverlink's products require antennas, all of which provide the opportunity to leverage Ergen's antenna experience to enhance performance of those products. And finally, the combined business will provide our customers the most skilled company with a more diverse offering and set up expertise. We have made very good progress on all six of these fronts and believe we will see positive results on all of these this year in terms of the integration effort. We are right on schedule and our employees are excited about the prospects of the combined companies. Now, let's move on to AT&T Connect. AT&T turned on and formally launched the HPE portions of the FirstNet network on January the 26th. AT&T rebranded the HPE network mega-range. So we'll be using these terms interchangeably. In turn, AirGain released our first AirGain Connect product into general availability. Since then, we have been providing products to prospective customers for demo purposes and have generated an extensive opportunity funnel. We've garnered significant interest and gain traction from police, fire, and EMS target market segments and expect to have some converted into purchase orders for delivery this quarter. Now let's move on to our strategy. This quarter, I will keep my remarks brief regarding our strategy as they lay out our strategy in detail in last quarter's earnings call. And on the conference call, we held to discuss the nimble link acquisition on January the 7th. Over the past few years, we've been transitioning the company from primarily a consumer market focused company towards the enterprise and automotive market. In parallel, We have also been broadening our capabilities beyond antennas into integrated wireless systems. We believe we have successfully executed on that plan and are now ready to resume our growth this year. We expect we'll see growth from our enterprise and automotive markets, especially with the introduction of the new game-changing platform, AirGames Connect, as well as the addition of NumberLink. If you look beyond those two major growth drivers, we believe we will see growth from our enterprise market as we begin to rent products from design lanes with our two traditional Wi-Fi enterprise global customers. Additionally, following a refresh of our automotive aftermarket product portfolio to 5G and with a renewed focus on selling our products into those markets, We believe we will see growth out of our historical automotive revenue this year as well. Now, last, shifting gears to our key design wins in the quarter and discussion about our ongoing programs in our three end markets. Starting first with our consumer products, we continue to see momentum for our Wi-Fi 6 embedded antenna solutions against Wi-Fi 6 and Wi-Fi 60 antenna designs provide numerous enhancements over preceding Wi-Fi technologies, including greater throughput, improved spectrum utilization, and enhanced multi-user experiences. During Q4, we received volume orders from both SKUs from different OEMs for a Wi-Fi 6 gateway program from a North American T01 operator. which we mentioned in our Q3 call last November. We expect volume shipments to continue through 2021. In Q4, we received initial orders to support first production shipments by Wi-Fi 6 tri-band router extender program, which we first mentioned in our Q1 2020 earnings call. We expect volume shipments to rent in the first half of 2021. We were also selected to provide a new Wi-Fi 6 router design shipping to an OEM in Japan. Production shipments will place in Q1, and we expect to begin shipping this year. In our enterprise market, we secure a new five-year LPWAN design for an industrial IoT smart utility application. We expect volume shipments to rent in Q2 and continue through 2025. Our design success in this project has led to engagement in two other programs with this same customer. In automotive, we continue to see solid momentum for our fleet products. This is best demonstrated by the multiple design wins we secure with the Tier 1 in-car video system provider. which we mentioned in our Q3 call. We expect these programs to go into production in Q2. As it relates to our game-changing AirGain Connect platform, during Q4, we received a meaningful purchase order from our strategic distribution partner, GetWireless, one of the largest distributors of cellular connectivity devices that support HPE communications for first responders offering an extensive product portfolio of public safety solutions. In summary, with the additions of NimbleLink and the production launch of AirGain Connect, together with growth opportunities across our addressable markets, AirGain is positioned to accelerate growth in 2021 and the years ahead. Now, I would like to turn the call back to Dave, who will walk us to the financial highlights for the quarter and outlook for 2021. Dave.