Airgain, Inc.

Good afternoon. Welcome to Airgain's second quarter 2021 earnings conference call. My name is Chino and I'll be your coordinator for today's call. Joining us for today's call are Airgain CEO, Jacob Swen, CFO David Lyle, and Senior Vice President of Product and Marketing, Arad Spai. As a reminder, this call will be recorded and made available for replay via link available in the Investor Relations section of Aergain's website at www.aergain.com. Following management's prepared remarks, the call will be opened up for questions from Aergain's Publishing Sales Site Analyst. 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 live broadcast, August 10th, 2021. EARGAIN 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. Please see today's earnings release for further details, including a reconciliation of the GAAP and non-GAAP results. Now I'd like to turn the call over to our CEO, Jacob, soon. Jacob?

Thank you, Dave. Welcome, everyone, and thank you for joining us on the call today. I'll start with some commentary about Q2 financial results and then an update on the progress we've made towards executing our strategy. They will then provide Q2 financial details, as well as our Q3 2021 outlook and color around how we expect the year to play out. Let's start by addressing our Q2 financial results. Our Q2 revenue came in at the low end of our previous guidance range, but improved gross margins and potent operating expense controls allow us to beat the midpoint of our guidance range on EBITDA and non-GAAP earnings per share. Let's address revenues more specifically. First, it's important to note that our strategy to grow our integrated wireless systems revenue is beginning to play out, with our industrial IoT and traditional enterprise Wi-Fi systems revenue growing in the first half of 2021 and is continuing to grow in Q3. while our AirGain Connect revenue is poised for growth in the coming quarters. Our Q2 revenue was affected by lower than previously expected AirGain Connect revenue, and to a lesser extent, the global supply shortage. So let's look more closely at where we are with AirGain Connect. Based on discussions with our channel partners, we believe this is primarily a timing issue. current scale through has been slower than anticipated which is not uncommon for new products launching in new markets having say we are really excited about the prospects for growth all of egg and connect in the future so wanted to provide you with some additional data points we already have about 500 in customers leads we have more than 120 demos going on as we speak we have almost 50 different customers, indicating interest for future purchases. We have very positive feedback by those customers already using our product. In addition, we're excited about a new promotion that we just launched with our channel partners. Recognizing the importance of AirGain Connect's success for FirstNet, AT&T just introduced a new customer service credit of $800 per device for purchases of AirGain Connect in 21 targeted states for a limited time. In the spirit of good partnerships together with our distributors and value-added resellers, we committed to $400 in price reductions to customers for purchases of AirGain Connect. That amounts to $1,200 in total savings per AirGain Connect device to the customer. This speaks to the commitment by AT&T, not only to FirstNet, but specifically to our product, as well as a commitment by our distributors and value-added resellers to energize sales. All in all, we are very pleased with the performance of our underlying business in light of the difficult global supply chain shortages and slower ramp of AirGain Connect. We are especially encouraged by the momentum in our integrated wireless systems growth as we transition from a component antenna supplier to a system solution provider. Our embedded passive antenna components revenue is still contributing materially to our overall revenue despite our customers being impacted by the transitory global supply chain shortages. Let's now move on to the progress we're making with our recent acquisitions of NimbleLink, which closed on January 7th of this year. As you know, the acquisitions of NimbleLink played an important role in our overgrowth strategy to broaden market diversification, especially within the industrial IoT space. NimbleLink has significantly advanced our strategic mission to deliver higher levels of integrated wireless system solutions globally. We are really excited about how well the NimbleLink products have performed, bringing solid revenue growth to our overall business. This growth is being achieved despite pressure from the global chip and other parts shortage issue, and we believe we will see continued positive results throughout this year and through 2022. We've made excellent progress with the NimbleLink integration. In summary, with the additions of NimbleLink, in the launch of AirGain Connect. Together with growth opportunities across our addressable markets, we believe AirGain is well positioned for future growth. Before I turn it back over today, I wanted to point you to our recent announcements of the new board member, Kiva Augur. Kiva brings extensive technology industry, executive management, and board experience to AirGain, as well as diversity to our board of directors. Kiba has knowledge and insight into markets that are central to Ergen's growth, particularly in 5G and industrial IoT. She most recently served as the Global Head of IoT and Automotive for Ericsson. Prior to Ericsson, she served as Chief Commercial Development Officer for GE Business Innovations and as Managing Director of GE Ventures. Kiva also served as President of Qualcomm Intelligent Solutions and Vice President of New Business Development for Qualcomm. We welcome her to AirGain and look forward to working with her to help guide our strategic long-term goals. Now, I would like to turn the call back over to Dave, who will walk us through financial highlights. Dave?