Aviat Networks, Inc.

Q1 2022 Earnings Conference Call


spk_0: good afternoon walk to ever yacht networks first quarter of fiscal twenty twenty two earnings call at this time opposition don't listen only mode a question and answer session will follow the former presentation please note that coffers is being recorded oh and also in the conference was your host was the kid veteran vice president of global finance and investor relations thank you you may begin
spk_1: thank you and welcome abby on networks first quarter of fiscal twenty twenty two result conference call and webcast divide are formed going to press release and updated a better presentation and the i r section of our website at www dot area network dot com along with a replay of today's call and approx
spk_2: really two hours
spk_1: with richer day or pizza at the out president and ceo seo to begin with opening remarks on the company's first fiscal quarter of followed by david great party a vote for you to finance results for the first fiscal quarter people them provide closer in march on our a strategy at outlook fall by qnx as a reminder do during today's call and webcast management they make forward looking statements regarding our the other is that including but not limited to statements related to financial projection business drivers new products with expansions the impact of cool with nineteen and economic activity and different regions beef and other forward looking statements reflect the company's opinion only over for date of this call and webcast and evolve assumptions risks and uncertainties that could cause actual results to differ material from those statements additional information on factors that could cause actual results to differ material from the month made on this call can be found in our annual report on form ten k filed with the lpc on august twenty fifth twenty twenty one the company undertake no obligation to revise are made public and revision of these forward looking statements in light of new information or future either additionally during today's call and webcast measurable reference both gap and non gaap financial measures please refer to our press release which is available in the p i or section of our website at www dot area network dot com i financial people there in which include a gap to non gap reconciliation and other supplemental financial information at the time but like during the call over our the at the president and ceo smith be
spk_3: barricade and good afternoon everyone thanks for joining on to do for successful quarter the comedy contributors cute on t long term focus areas of grow martyr expansion and meaningful bottom line proven the army on the tram commemorate resulted in first quarter revenue of seventy three point two million growth of term point four percent from the burn quarter of fiscal year twenty twenty one first quarter of the become origins of thirteen point zero percent compared to twelve point seven percent for the first quarter of fiscal year twenty twenty one and a solid don't she and liquidity position with nurture and forty seven point three million north american first quarter revenue increased twelve point zero prefer or five point four million euro rear international burns quarter revenue increased six point nine percent or one point four million euro reader a just leave a dog was nine point six million for the first quarter representing an improvement a one point two million version of the same period last year the improvement in revenue and adjoining the radar for the first quarter was primarily due to i am a private network business increase will thrall riyadh store or third formerly rural broadband space improved international business driven by mobo man wins and an increase in software and lengthens sales to achieve these results we must recognize our suppliers and the all beyond supply chain team sublime barman is incredibly challenging we take our suppliers and our team for continued performance our last call or allied the differentiation in our radio products specifically the w t m four down and platform which has played a significant role in our recent growth and five g and rural broadband and today's call i will reiterate some of the key points and subsequently however some of the wins that this platform has delivered this quarter the army on wp m for doesn't leave the industry and system game enabling radio waves to go further and distance have greater the ability to overcome whether about floyd grade and use smaller antennas which is an important element in obvious total cost of ownership value proposition and october you can for thousand and portfolio includes the industry always single box more by band radio for john gibbons percent capacity along with our software and ecommerce differentiation this product and to some positive developments in the market this quarter we are same strong role in our north american role broadband segment we now supply to thirteen of the top thirty world digital opportunity fond or are no winners and are in advanced discussions with five others of the top thirty is based on our w t m for another platform and it's going strong for us internationally aviano has had one of the does corners that our history with regard to win a new ago many yorkshire games imparting revenue and future quarters including a large ministry of defense network in northern africa two new tier to operator wins in africa one in chad and another in angola which included in a hosted frequency assured software recurring revenue when er first batch when in africa to new operator when from south eastern europe and in a practice quarter we penetrated one of the largest mobile operators a tier one operator achieving first ever sales robbie are obvious i'm older man solution we are extremely excited about this development as well as all the other new accounts mentioned you're on top of all these markets successes in the quarter aviano announced the significant new product for operators high availability routing software running on our cdr use
spk_4: i'm forty router platform
spk_3: the new high availability routing software as a compelling choice for operator seeking an affordable rotting solution that is a reliable skeletal and secure audio is now one of only a few router lenders on the margin to support i am ill beliefs awkward while the software was desire for north american mission critical private networks we are starting to see demand and five g networks worldwide and the of all to meet the needs of critical use cases such as connected cars industrial iowa t machine to machine communications and public safety applications as five g transport networks work to become a more reliable this offering along with our crew and portfolio of highly reliable hi system game radios jews are we a strong value proposition with that let me and produce david see a all and their turn the call or damn to review our financial before going back for some final comments came to all the are from superior ethics where he was ceo of the approximately two point six billion dollar multinational company with a significant telecom equipment presence prior to his self employed years with superior ethics david l financial leadership positions of increasing responsibility on a number of prominent and companies including couperin nor rants and phillips electronics we're thrilled that i'm on board
spk_1: as we continue to focus on corporate growth and margin expansion thank you be and good afternoon everyone during my remarks today only review some of the first quarter financial while note that are detail financials can be found in our formed ten queue and earnings room with of which were filed this afternoon for the first quarter we reported total revenues seventy three point two million dollars as compared to seventy one point seven million for the prior fiscal quarter such a sequential increase of one point five million or two point one percent and as compared to sixty six point three million for the first quarter of fiscal two alan twenty one year on year increase six point nine million or ten point four percent the north american dream continue to focus on expanding sales and seizing on obvious unique product and service differentiation north america revenue which comprise approximately seventy percent of total revenue for the first quarter was fifteen point nine million an increase of five point four million or twelve percent from the first quarter fiscal twenty twenty one he was driven primarily by our private networks business rural broadband and software international revenue for the first quarter came in and twenty two point two million compared to twenty point eight million for the fourth quarter of the school twenty twenty one and increase of one point four million or six point five percent or foot the bill ratio for the last twelve months we've one and are backlog remains of of two hundred million for poor gross margin thirty five point seven percent on both gap and non job patients as compared to thirty six point one percent gap thirty six point two percent non go for for for him twenty and thirty six point six percent go through six point seven percent non go for the first for fiscal twenty twenty one or mornings in the for a quarter or negatively impacted by inflationary pressures and significant expedite fees and from to overcome supply chain and logistical bald these were partly offset by price increases surcharges and favorable mix the added back of these factors was approximately one hundred this for for a job operating expenses which include restructuring charges and schervish compensation were nineteen point three million dollars compared to twenty two point one million for the fourth quarter of fiscal twenty twenty one and seventeen point seven million for the first quarter of fiscal twenty twenty one first quarter of naga operating expenses which were the impact of restructuring charges cerberus conversation were seventeen point nine million compared to twenty point four million for the fire fiscal quarter seventeen point two million for the first quarter of fiscal twenty twenty one can you to make or the investments with savings from previously announced today restructure reporter gaap net income which includes restructure charge the jurors compensation was four point seven million dollars compared to two point eight million for the prior fiscal quarter and five point nine million for the first fiscal quarter twenty twenty one the year over year decline was due to zero point seven million of restructuring chargers in the current quarter and one point five million higher tax expense resulting from leaf good us to for doctor for valuation around as reported in our fiscal que three twenty twenty one results a reminder the company has over five hundred million or noel that will continue to generate shareholder value for the foreseeable future five order non gaap net income was three point zero million compared to five point three million for the prior fiscal quarter and six point nine million for the first quarter of fiscal twenty twenty one or not your vps came in and sixty seven cents per share and her to forty five cents per share of fire for and sixty two cents per share the difference between twenty twenty one adjusted ebitda for the first quarter was nine point six million compared to seven point zero million for the fire fiscal quarter and an increase of two point five million forty eight percent compared to one of fiscal twenty twenty one adjusted he retired increased by one point two million were fourteen percent or adjusted ebitda margin scam and a thirteen percent for the quarter of or nine point seven percent for the fire fiscal quarter and twelve point seven percent for the first the school board of twenty forty one and turn to profitability this with the highest just with utah percentage in history the company front of accomplishments given the inflationary a barman we're all operating you
spk_5: moving on to the belch
spk_1: or challenge article once at the end of the fourth or were forty seven point three million dollars compared to forty seven point nine million at the end of the fourth quarter of fiscal twenty twenty one and thirty six point two million at the end of the first quarter twenty twenty one
spk_6: we have noda
spk_1: during you one we repurchase zero point seven million over common stock the bell she remains very solid leaving of well positioned to execute er long term plan
spk_5: whether i turn it back to beat final call
spk_1: favorite favorite sort of you would do comments before what are you from kyoto are extremely proud of the entire your fame for their significant contribution to our goal for the first quarter of for for your twenty twenty two
spk_3: we're truly well given the constrained supply situation and the inflationary environment to support the environmental challenges we are far or previously announced their annual guys have two hundred eighty three to two hundred ninety three million in revenue
spk_1: thirty five to thirty eight million in a job for the result we are the truth about achieving the higher end of the roof provider your customers with the most advanced reliable and does total cost of ownership symptoms for mission critical work that our shareholders would probably grow for me
spk_3: dog all would that operator for children or proportion
spk_0: at this time of the like to remind everyone in order to ask a question please post star then the never won the it's your telephone and it's all a phone keypad will pass was just a moment to compound can win a monster
spk_7: your first question comes from the line of theodore oh neil with litchfield hills
spk_8: oh thanks very much congratulations on the good quarter and welcome aboard david
spk_9: yeah so
spk_1: bush question is about margin my second question of is about as she know so in the queue in in you're prepared remarks you mention margins is quarter compared to previous year were impacted by inflationary pressures apply to purchase bottlenecks you just mentioned that that was some extra bike fees was an issue to get around the supply chain
spk_8: glitches to bottlenecks and i know that last quarter you talked about having to keep a higher level inventory on hand to avoid running into some of these issues so can you talk a little more specifically about where you're seeing i'm both inflationary issues and the which is the bottleneck
spk_10: yeah so no thank you so the
spk_11: deflationary as much on the logistics on my sorry ah come into the same place saw possibly ah the semi semiconductor ah suppliers right so sometimes on
spk_10: our suppliers decide to increase and other times the
spk_12: you know to do you tube snow you to
spk_11: you need to be in as but i see would you know what i wanna do is talk a little bit about moving about that to in the corner we have you know what we call cause inflation of one forty boobs and you know david time as last quarter about whether or not we go you have to replace surcharges a recovery and we are doing on we we we were able to execute on a london did surprise recovery and the we had the will be mix of tuna worry about leave mothers' no one hundred
spk_13: that's what we would say about the environment
spk_11: inflation his moderating ah hopefully not persists and or recovery as we look for new will improve right and on talk a little bit about the recovery the second and how he winds up with our business right some of these has been a charges or these past increase
spk_10: says do nearly instantaneous so the recovery takes a little bit of time so we think you know within barmy given no change in inflation the will be
spk_11: will be net positive by you aren't you for fiscal year twenty two and a little more tolerant recovery i'm or business cycle you we try to have three different business cycles are certainly for business which is really tight or you farmers and all of our price lesser charge actions are in our mid cycle business which is our international mobile network operators the takes about a quarter or so to get him in progress north in place more for that that won't work as well and we have that in place and will start to get some live from that going forward and then our private network business is a long cycle business and not saw you know that i'll take a little bit longer to to play ah so you know that kind of highlights are we did have significant cost inflation in the quarter we have started to execute on on price surcharge recoveries we take our customers burn their incredible cooperation in the difficult environment and we think over the next couple years will be a little to be offset or the inflationary pressures as long as the inflationary
spk_8: environment does not deteriorate okay i'm hoping you a or that the double as good so the next question i have is about as una which was below year ago and down sequentially i know you're not gonna give up guidance for as she neighbor can you get a sense you talked about it coming down as resulted from a restructuring can you give us like gear at least
spk_14: qualitatively about about whether they should rise to the us to the ears stay the same herb continue to go down we expect thirty it a little bit of seasonality there has been historically in your overall our backs that so so key one should be the one point or the year i'm having said that we continue to to him best missing the savings from much of the restructuring is you know andy projects and that does the greenlit so i'm you know that there should be ah know a reasonable
spk_15: and
spk_7: ah lift from from our what we currently have been died and shouldn't be anything out of the ordinary that yeah this is marie
spk_16: thank you very much thanks thanks the have got your next question as from scott cheryl ladd or off capital it good afternoon thanks for taking my questions i'd like quarter and david welcome more congratulations and the at just you up to diving quickly and follow up to had prior questions i'm really looking at they'd the favorable makes in the quarter as wonder if she could provide a little bit more color i'm assuming that's more private networks are wondering if there was something else it was going on on that front also given the supply constraints i'm wondering if there are any shelter were left on the table in the september quarter in
spk_17: kind of how you feel sequentially as we go into the december quarter he out given the backlog in a book the bill over one but also the supply constraints you to have pretty good visibility in terms of your ability to deliver you know in the near term and kind of what of the concerns or and also directionally how you're thinking about gross margin celtic they're lot of moving parts are the get you are higher by
spk_14: june quarter but kind of wonder what your seen in the near term
spk_18: and start off of next month
spk_11: when a dumb the mix has driven primarily your i live my private networks as evidenced by the the the larger increase in north american been happening where elsewhere for the networks know many times that that was certainly a driver as well as a man unison so software in a licensing them
spk_16: as well so in terms of revenue the we didn't get out to on i would say be to two to three million though that is far
spk_10: are we have that performance of mighty know we would have been able to achieve
spk_19: and so gun what what did we not it not answer i went and looking forward to the december quarter how you feel and directly than given you know give the supply chain your inventory levels seem like they're okay i think they're flattish with with the doom quarter so are there any are there any concerns had idea think things progress directly from there on other and
spk_11: he thing in particular that worried about from a spy point yeah so you know getting saddam we're managing the supply chain of better than a lot of our folks in the industry
spk_20: three with that said you know what thousands of components go into unlikely radio and of one of them doesn't come down will get her the we're we're starting to feel that we made so let's if you give me the exception that i'm i might get impacted by a single supplier
spk_12: at the end of the quarter were feeling neutral to positive on our ability to navigate this obliging but i also need the out because of the is uncertainty overall
spk_16: but if we don't have a one off event we feel that this oblige he will be the same if not sleep the better
spk_10: in the next quarter
spk_11: and that's great i'll take neutral positive all day long and eight of dig it it a little bit on a summer geographic makes it tells like you start to get some wins in europe historically that just hasn't been a up a big revenue base for you guys hell am i wonder if you collaborate on that a little bit terms of what's going on the pipeline is that a bigger opportunity for it and maybe we wildly into the conversation their on what you see and where they show and opera they not shown up so so that european when that's in our shareholder learn that was on airwaves in the uk are you know our leadership retains leadership about a little over a year ago and media me a region of building a new movie the funnel and with me that europe is on me on the upswing so so we feel ah very good about your of with respect to private networks and are i'm ah dear to ah operator so ah steve doing a good job there and then ah with respect to while we shared games we see that those opportunities in eastern europe
spk_16: africa and it use a pack in a little bit in ah latin america and we we think that i'm well we know that are funneled and we don't know what the conversion rates going to be and how the cycles going to be the we have sixty million dollars of opportunity and are funnel you know this is is this opportunity is new to us and ah a bunch of other posts are we don't have a competitive dynamics are are are gonna play but play out and what the time he's going to be but there are sixty million dollars of of you know why we you know formally you know while we had a
spk_11: lock hold on and were scrambled and now oh we're getting up to bat so we're we're encouraged about that and you know we hope over the next couple of voters we can talk about some sure against them great very helpful and and less if i could just digging on your up your commentary related toward our funding you've got up fifteen at the top thirty am i believe a lot of that funding is not really been released yet so i'm wondering if you've actually seen the benefit of that or we should expect all the benefit of that to start comment and calendar twenty two for art
spk_16: frank thanks
spk_21: but we've yeah i think you've gotta write it up
spk_7: would be a positive catalyst in arm calendar year twenty two as the are not ah as banging heads
spk_22: great that's a much nice clerks thank you
spk_11: your next question cause i'm dave that be riley i think a good afternoon they get fat my first question is regarding act kit chips and so last quarter you thought that the pressure in inflationary pressure with stabilizing because i'm you mentioned that he pays word on in stabilizing ah or been stretched out in the last couple of mine and at his desk of the case or has thing it's changed since then yeah i think neutral you know neutral a positive is same as last corner right and ah some folks have asked me when do i think this gets better i listened all the the ceos of semiconductor companies and read on literature and my guess in this is a guess in that you can take it for whatever it's worth is either i think the environment starts to improve after in in april after we get through then the on
spk_23: the christmas season and chinese new year of ah but that's my guess i would say don't just the environment that are the odds exposed is our ah neutral ah and were the where the positive comes from as we were not getting worse lead times are are stable and
spk_24: you know you know we've we've had a couple months of stability so we think that there should be on which should start to get give better ah but with that said of one of our suppliers has a an exceptional then we we will then in her so
spk_22: you know i'd like to be more precise not not for so that we could run our business better but that's the best information i can give you that does not help guide off
spk_10: yes very helpful
spk_11: just dumb and a cow gross margins on regarding your outlook for the year and i couldn't talk about next quarterback by a snake sort of a neutral as far as the supply chain situation is concerns i should we expect gross margin it was down that of it sequentially and first quarter but of about second quarter show he be taking kind of flattish or maybe even further step down i actually think about i guess i'm a quarter gross margin in terms of ago and we've tried out directly so the yeah so so we think it should be incrementally up ah provided we don't have any additional inflation excursions right so so we we go
spk_25: i'm ready for inflation starting last january
spk_11: to start to put our process these and the figure out how are going to pass on price and surcharges but the the problem with that as we didn't know how much was going to come and how how was going to be delivered so so we're working through that so we think dumb we should get more price recovery
spk_22: i'm in our the next quarter and in on if a mix where's was flattish ah then are margin should not take up and i don't want to be specific on that because i can all i can tell you what makes is gonna be
spk_10: the i can't tell you you know the full uptake of our price actions mom the what you know what i'd like our investors to know is we recognize inflation we did we have enough differentiation and our our products and our customers are ah cooperating as we worked offset the ah
spk_11: difficult got it at my last question is and i you figure eight prices on your price out when was that an outlet was that on him and when with the communicated to your customers and did that cause or of a surge in order as as that ha ha ha take care advantage of of our prices before they go up
spk_26: yeah so and so you know this environment is not know everybody likes throw word that round the word unprecedented that is unprecedented
spk_27: and you know so for for sword cycle or ecommerce ah that was done instantaneously and then for are bigger customers it was a negotiation and effective but we know i'm pretty familiar with ah you know bringing in demand ahead of a price increase and i i
spk_7: would have to say that that was ah de minimis and and certainly not
spk_28: material on that to be honest in my in my house rules i see know i can point to a single example where are we saw demand pulling ahead of the ah
spk_29: i'm a price increase
spk_28: got it thank you your next question comes from camps of other way that north london good afternoon and that congrats on the quarter let's talk a little bit about ah url broadband i'm kate out that the and guess my first question why they're what sort of proximity we are to that magic ten percent of revenue number with regard to rural broadband or any update as to when we might get their that and i guess how out how church
spk_11: in the with the following premise which is when you are at our rural broadband forum the good mentions and additional for our it off wins to gators thirteen apparently he been busy in the last month and and picked up to more i'm so as you look at that considering them it as a market out there i guess in addition to that yeah cheating that milestone a talked about kind of over forty percent or so market share in rural broadband do you think you're in a position they're on about that now and then i'll i'll follow up at a second her so yeah we put in our ah on duster presentation them
spk_28: or as is pretty close to forty percent share you know look with these new wins on is possible that we put our country try not as the are not funding or takes hold and i think i'm you know a couple more quarters of performance and ah the flow of the art off funding should have bouncers over not that ten percent hurdle so i'm so we get rid the you know
spk_11: i i think i said that we'd be on we'd get there by the end of this fiscal year and i'm ah more confident in that and is is not by the and is piss we're in my be soon
spk_28: tim so off not it it sure as an end to follow up they are our friend and i'll have one works that but see talked about now fifteen at the top thirty overall award recipients i guess and and and asked two questions on that which is
spk_30: can you estimate the total funding received by those fifteen that you have one from art off question number one and questionable to are those only wireless guys have an extent you've got fifteen and your workout five or it seems like it could be
spk_28: some fiber guys in there to ordered as all fixed wireless in terms of access not it's we we may while we can't get the so we should tell you let me go back and figure out how many of the guys that we can never get because they're fiber but there are some of the yeah and of thirty and your question about estimate the funding received we haven't done that but will take down as an action to those are both curve license yeah i think that's worth doing and shifting avert internationally
spk_31: as you mention a pretty strong order quarter i love your throat and kind of international book to build metrics but if you did that would be great
spk_28: i'm the of the if the issue the interesting thing is that you know based on some other locations that you called out you know these are allocations are legendary for being our
spk_11: and so when you when you talk about now them talked about a very large tier one
spk_10: maybe that's it so when you
spk_11: i want to dig into that dynamic a bit more when you talk about share game you know to be more granular about that given that a gang it's not like yoga are talking about web uk or the western europe western europe or japan or areas that have been explicitly and moving while way out but some of that locales or that probably the areas that they're hanging on the best so are those competitive wins and not political ones i guess i'd say on the one hand and on the other if there's another share a dynamic outside of while i love to hear more about them so so on yeah you ask a hard question so the dynamics it's difficult for us to decipher and in our voice to the customer process we asked whether
spk_10: the engagements are due to ah politics or supply chain and the answers are are both
spk_11: i'm were mixed sometimes it's supply chain sometimes it's ah ah politics and you know we we we want to know so that we understand the dynamics of we can try and replicated but we we're getting both both both answers and you know ah and the and who they were can indifferent different as long as we get up to that and then a little more color on where they're coming for from the on our value proposition international your strongest your with normal day band and with our ah in regions than have hi spectrum costs because our total cause the motor ship is strongest so we're seeing
spk_7: operators that are having difficulty with
spk_32: with either some while a supply chain or the the political bar the geopolitical environment is changing and the
spk_33: nine spectrum cause that's where we are seeing the biggest opportunities so have i have i been fully responsive to your question work mrs apps are absolutely i planetary lads chart
spk_34: again if you would like to ask a question please press start and the number one under telethon keypad as star one your next question cause some and martin with
spk_10: a i g investment partners
spk_11: site admirer they are th requested an asteroid a particular by scott but out to l issue a nice quarter out for see breaking out your revenue buckets industry this ecommerce the than that mid market and
spk_35: largest retailer to
spk_11: castle to the price increases that a look at the street buckets and sort of how much of your revenue cut it for much of your revenue is a twirls as buckets ah so
spk_10: in economy goes
spk_33: the smallest is the shortest cycle and know
spk_23: the biggest is the longest cycle
spk_36: and so so look for for passing on price arm or longer cycle businesses are big begun so that's why you know if mixes flat and
spk_37: and there is no additional ah takes in inflation we feel good about
spk_33: expanding our gross margins going forward
spk_11: got it so i'm that as it but effects can be more gradual as a get it over the next you know nine to twelve months along lead omnia on the vast majority that that's fair yup on
spk_33: and just a clarification on the book the bill was it the but the bill above one for the past twelve months or for the quarter itself yeah we typically only talk about twelve months trying to the project nature
spk_38: mom you know the project nature and the fluctuation so we will have enough have to go over twelve months and that's where we are comfortable discussing ah here but i'll let me give a limb or time
spk_11: ah when are we were writing a script
spk_33: you can talk more about supply chain the difficulties in a how uncomfortable
spk_39: ah we are with the demand environments were pretty comfortable ah with demand and you know a lot of our the management teams focus is going towards our delivery so we we feel good about the demand environment
spk_7: okay thanks address i a lot less clutter
spk_40: was it day progress a one what they are little better to and actually buying backstop this quarter
spk_41: a lot
spk_42: thank you my that's all i'll say i wish it off as a shovel and steady at a higher than are traitors
spk_17: that was it is depressed to get to keep buying that more
spk_11: forget
spk_41: dick
spk_43: your next question cause some are and hershman with a i g eight investment partners
spk_41: hi how are you read the increased the to yep increased the trigger you know
spk_44: i signed up about her
spk_11: roger they created with our that fly for helping him but it it imposed them the overall is that if they would not have been constrained by with apply if any clue how much more you to accept than the corner on i did we said two to three million
spk_45: okay
spk_11: and in terms of the overall momentum on the private network kite getting in line
spk_41: five the competition aspect of it you know how would you characterize that momentum compared the thick month the our year ago
spk_11: i'd say it's the same
spk_34: i yeah i think the mom momentum is the same the the private network teams are doing
spk_11: a great job the opportunities are are the same if fun and there's potential positive tunnel or surround our
spk_41: our poor funding bill that nutter so i teeth the same with some possibility for improving the in the drivers to the customer the same
spk_11: you know being led by security oh and if anything time they are of the direct
spk_10: not not i'm so are our private network company's customers are principally on you know nine one one first responder networks
spk_46: secondly would be ah
spk_11: utilities ah you know i think long term the utility marked it is improving with of further focus on security were sensors and utility yards some water race water i'm with the third worth would be willing gas and i would say that which which is a really small part of our business but i think the the demand drivers are about the same as they were six to twelve months ago
spk_41: you know with the the one car the other utilities the the macro trend would be favorable for private network demand
spk_7: okay and left the not the hung on for for thigh the know it's to the tiny people however that they today by the king of kind of update have that going for the guy on that that i'd and a nail of developing a little amputation help that going at the term economy
spk_11: yeah so did this will applications we expect in the next twelve months to launch or a follow on offering ah to faster would you know we're not ready done ah to talk about or detail but would be added of ah to fasten would solve ah
spk_7: more network operator problems i'm and you know we would say our software business is still small it's going well and it was a positive contributor to the ah the mix ah though he cited as ah the mix which was on we are favorable makes and part of that was due to

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