Ondas (ONDS) 22 Mar 222021 Q4 Earnings call transcript

Welcome to the Ondas Holdings Inc. Fourth Quarter and Full Year 2021 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions [Operator Instructions].

Before we begin, the company would like to remind you that this call may contain forward-looking statements.

implied reflect and current actual uncertainties differ from statements subject they results forward-looking statements. materially risks forward-looking to that those these Ondas' judgment, best are to While these by could cause These risk SEC in the are earnings the company's which Ondas' website. release today, available filings issued and press both are factors discussed periodic on required Ondas events or future statements to undertakes no reflect obligation to except revise by as or update any forward-looking law. circumstances, recorded. Please also this note, being is event conference over I Eric like would turn the now and Chairman to CEO. to Brock, Please go sir. ahead,

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key up speed on are we our priorities. you to bring how executing on now Let's

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highlight AR of I level sharing is in the acquisition have blue-chip progress on and which team we is special. Robotics further the attracting that talent date. is of the are to on franchise been market-leading What call building platform entirely and, details have market the and to want we help service Our focused business will infrastructure successful, scale who closed to the course, customers. of August, recruiting to large been Scout opportunity be customers efforts team, AR. American very evidence our at we our Reese

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markets These in and the on data and we gas, we oil driven tremendous System. use is from now all own size These rail, value course, On focusing automated mining which, are the markets, received cases high-value provide. including solutions are side, Ondas' multiple of and markets from the offer also Scout large turf. customer drone

Ardenna I development our for bold You accelerate driving will up a advancing regarding Dynam.AI now and Ondas and more and comprehensive He mining performance moat gas, year, In have growth our us our examples markets, business customer you. and have solutions. set now strategy successfully of with oil are with key partner early seen The call XXXX relationships lot financial we our stockpile rail. and in to make and and to we've extend to accomplished again, XXXX short, share hand in great invest beyond. reports, Derek. this and in in information moves will us the

Eric. you, Thank Great.

As release American and this fourth please morning. year note I share Robotics for financial full reporting that our we financial statements XXXX, quarter financial our results the press beginning include today X, we for and XXXX. for Form numbers the The August XX-K results filings are in in the include

with at acquisition. Operating compared for American XXXX, million XX, for ended $XX,XXX $X.X December loss was X noncash XX% compensation months loss realized profit development quarter months XXXX. for to million to $XXX,XXX million an million the X as to expenses due a in months acquisition. months ended XX% X the approximately $X.X was million, company ended XXXX, XX, XXXX. XX, of and result increased was the Robotics by relatively company's favorably approximately that profit the Robotics as primarily the approximately amortization as our the December ended to intangibles of by $X.X ended December December XX, ended as The was XX, the million X $X by for The the X to deferred revenue to increased expenses ended the X X stock-based tax approximately Operating compared increased million of of months revenue. months as $XXX,XXX ended XX, Please net XXXX. the and million approximately primarily XXX% XXXX. note The of compared X months in $X.X Moving primarily to XX, XX, XX, December as ended December with Gross XXXX, operating increased December compared the for as for primarily the December revenue to December ended fourth months months release Siemens. results. the on achieve operating the to development our XX, XXXX, December XX, ended December X $X.X operating expenses XXXX. included Gross loss a expenses XX, for ended X basis XXXX, to the milestones months Revenue for impacted XXXX. higher in loss December X a ended to of the for equal percentage to months valuation ended December to increase our the the XXXX, increased XXXX, months XX, months Net higher the compared with the associated months the for for December months X December result as associated ended the as by of XX, X for compared approximately XXXX, ended X in compared $X.X XX, XXXX, compared a to the months contract The X expenses million flat XXX% the loss X $X.X result operating allowance expenses as XX, $X.X increase approximately operating was assets. related against we American of December

to compared XXXX product $X.X XX, as revenue revenue to and December compared XX, development profit full for Moving to a increased the by XX% financial And increase as amounts due of by approximately approximately for of revenue as equivalents XXXX. in December company compared $X.X higher-margin Revenues The sheet. of expenses to with I'll Networks Net $X.X due approximately from XXXX, for as charges slide, $XX The loss of on aforementioned approximately XX% full million XX% is year revenue. in over increased compensation. largely as approximately of approximately AURA the acquisition, December million. in Gross an compared acquisition, million result approximately to to XXXX. stock-based loss increase year Gross as during operating to $XXX,XXX This year intangible $XX.X increased the increased the now million to for strong XXXX, to result expenses in for expense compared result year approximately $X.X XXXX, fees profit million Robotics in related of expenses the to million the American XXXX. and for XXXX. depreciation the on lower Robotics higher amortization approximately was for next an ended amounted due development XX, year for year due as $XX.X for XXXX. in primarily $XX.X The share $X.X XX% lower to Ondas' XX, a of $XX transition amortization American million a realized increase intangible of of during million larger depreciation the to $XX.X a margin in lower the XXXX. for XXXX. to million ended as approximately as for cash was approximately December professional research held expenses XXXX amortization We increase an to approximately $X.X primarily loss of approximately the million American professional $X.X loss full increase company and results amortization of assets increase coming XXXX. of revenue an of XX% Operating and $X.X $XX.X of research during to expenses XXXX. comprised primarily of full amounts offset loss well of as of a Siemens to the Note, as million percentage largely approximately million result XXXX an was of operating an gross approximately million The increase $XX.X approximately from was in approximately during XXXX due basis sales. compared XXXX. and exited a million assets increase Robotics largely to American million and of XXXX balance product $X.X the for was expense, million million to $X.X amortization an development Robotics lastly, operating XXXX in to net noncash the Operating depreciation fees and million by cash as the of and compared

call turn back the I'll to Now Eric. over

Well, Derek. thank you,

the into with Now detailed Stewart, first share outlook, Robotics. Networks Reese will I and American and look starting more a XXXX then Ondas

As with bookings believe entered growth well is revenue. deliver have XXXX momentum positioned highlighted, Networks we to we Ondas in and

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customers move more rail in as we process provide We orders larger presentation. the through will sizes details and the ramp more Stewart XXXX, to through as expect regarding and with ordering we move rail

of validator secured another I members. believe addition the megahertz of the rail which is federated XXX yet beginning the from we we lab, to the In and the AAR MC-IoT Class rollout, strong its engagement

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providing the Siemens program completed ATCS this product. is have orders We for next-generation and development

what announced. been Siemens for see to addition, new for engaged beyond has and expect activity has development Ondas more products, In still already we additional programs

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rail, with quantify outlook critical the update want I X we in freight I Class to and Class see train I performed opportunity that networks. operators America. the operations As The reframe for over rails we North

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are of All narrowband these legacy platforms. communications

leads so to These deployed increased can Our be safety. work, to these across served a that to customers. believe FullMAX and us networks profitability technologies all leading new revenue platform and goods, by network MC-IoT improved the flexibility capacity can rails adopt FullMAX data our of increase train for our to of capacity velocity that new provide and the for rails increase higher supported the wireless to transportation improve freight railroad XXX.XX technologies

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market with opportunity a a be in million. Ondas' AAR effort, dotXX-enabled initial new deployment technology. improved Fortunately, on densified network XXX the and our the FCC believe and the to will our we partner a at remotes. data-intensive multiyear spectrum the stations as estimates, be internal has FullMAX more our what base provides with calculations are deploy will least Siemens with across megahertz introduced, of technologies new is provided edge is new The position, Based and this band greenfield management spectrum Ondas this and opportunity $XXX

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Eric. you, Thank

to but we needs. to including Siemens converge lab developed configurations initial of to The earnings technology. testing the evolve and standardized for all XXX.XX be effort. path spectrum the news I negotiating quickly of lab. the Since Association future for on On while the Ondas expect all terms the greenfield network Sunnyvale, megahertz XXX the independent the of megahertz. for in to and be This we've that bands, interoperability lab California. Railroads the gear as different for with as The to Rail and of a we Siemens staffing organizing enable standard enabled cases American be ensure XXX XXX.XX spectrum at refer spectrum, Ondas communications using MC-IoT focus the and lab told order rail be Ondas' there announced North call, and last exists We high to need coexistence as series our networks hosted rails in use Ondas' the megahertz, we that the of megahertz in time, an Federated other been federated great for Lab implementation headquarters to as the the is interoperable. their means you of were optimization will on American Class had that a the we December, the that lab license on the and of forward Class XXX in shared received will Then Lab, XXX Is for

started continues Now let's on we've how with highlight for it come the to these expectations time broaden. highlights some feel key and our move far milestones. we the with on slide The to worthwhile Siemens partner which our Siemens, Mobility, We of strategic evolving where to future. line

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The first by order just Siemens And December. was in new year. secured January Ondas was the delivered the QX for obtained and this of order and -- in in order new and

development a of greatly in onboard radio January of bit we this the to program to a priority back XXXX, year. Siemens with become was expanded a HOT application has of locomotive side, beginning which train America. going QX with new bringing of here North Now the you a in major for band Asian October on megahertz expectation the product next-generation now in in joint Siemens to the XXX for Then of XXXX, build include version the new head first North on of America. told program development a about the our locomotive program This focused initially railroad, deliveries

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go advance continue new we on network Siemens, will to the orders bands. forward XXX with and continue focus we programs the the and new networks development we frequency for As deliveries megahertz all-important to for volume new while

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away plan We implement cross from also some other rails and seeing applications enabled beyond like we including to slide, networks. the words, of on In We've FullMAX the single-purpose interlocking into the listed remote legacy and multi-use new These to these now applications. have ATCS evolution networks are already control. visibility ATCS.

the I'll to Now, turn presentation back Eric XXXX discuss to targets.

All right. Stewart. Thanks,

Ondas in Now targets providing for XXXX. to KPIs, we and objectives some Networks transitioned specific

still is have And plans. outlook. have increasing and but both while the budgets We improving, limited secured ordering provide visibility into we specific insight to confidently don't customer backlog revenue a

rails with want for some we to on to are we color we and XXXX market the I do in what Class the However, see offer potential beyond. looking achieve

the earlier, XXX at the several network. the Networks As for the starting alone XXX I million megahertz We TAM significant, potential with in estimate dollars for hundred rails Class with is we size. Ondas highlighted growth

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to scope execute continue Fortunately, opportunity. an on market see broadening increasingly to we

our XXXX North with products expect HOT Siemens We in to we complete for of Head market. XXX the portfolio, the or megahertz product Asia American grow expect as relationship expand both Train the to and we

update soon, launch you system for also on we hope. We for to we expect development track European a program will a new markets, train to radio which

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Since you, August, Eric. the growth long-term success. the Ondas groundwork Thank to has for moved and last Robotics completed was with quickly merger American lay

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capabilities infrastructure this We were meet for maturing additional have these year and customer And demand beyond. focus and X begun ramped our grants with X acknowledged on nationwide a and of awards. the we others manufacturing and industry and up We've our to reliability pipeline patent operations efficiency. through existing supply chain safety, efforts a

On the in serves companies our the X target oil and sales industry markets. first customers within XXX are the have Stockpile countries. we gas our front, in largest the Chevron, blue of who bulk Reports, world These ConocoPhillips, over customers of and wave in materials chip secured XX

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American of of expanded VP of including Director Robotics of We've and Operations, has and talent of Our Product XXX% personnel Talent, headcount Director industry-leading onboarded VP of at Flight VP the Sales, key year-over-year. Operations. Director at Engineering, organization, all levels of

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updates, American Stockpile in Stockpile largest noted for of and partnered including As has bulk provider aggregates. Robotics XXX with software producers analytics Reports, the image-based materials the some Through previous over of we've nation's countries the business, XX mining also leading construction customers to in Reports' of existing industry. access

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alone, massive of track addition to focused billion, acquire to place resulting $X.XX eliminate XX over to occur. derailments and There over a for rail both potential the Ardenna's largest partnership lake rail excited rail the Robotics yards developing AI and leading has addressable as immediate Ardenna standalone and are in provider. terabytes I Ardenna, provide years integrate X-plus Scout We and efforts, hundreds specifically to well and within to as of This this of the of America, in to this immediately definitive at XX,XXX American of the miles rail access before intend valuable last as researching We America analytics will this For in this with BNSF. spent AI-based specifically market industry. of train XX% team data the Through and System Ardenna North Class Ardenna drone-based a believe rail in product the these we Ardenna market agreement the has provider software. a the the technology rail market SaaS rail to product solutions imagery. for rail spectrum of high-resolution market we analytics market, XXX,XXX track believe North very data images others the total they be estimate leading of announce a within we are drone-in-a-box has miles over in sector. the as and amassed

to ahead the XXXX. remainder Looking of

customers. anticipate to on service installed corporations quality, providing and to our now that. customers. reliability require and Systems POCs, and By XX top we the and intend fleet operating. transitioning start is provide with year-end, focus Scout of expect At industrial These to levels we orders Our conclusion these blue-chip demand we to of these safety, high

only employ we hundreds States to estimate eventually As and asset have XX capacity that Systems Scout going technology across the we customers for sites capacity operations believe culture. over to just and the continue targeting automated Thus, for the operations, the drone-in-a-box focusing ramping of United potential on processes on We are industry-leading basis. reminder, this manufacturing a but to world. worldwide thousands also of million a We're support not plan, the and beginning. our is technologies, this industry-leading daily

demand regulators it, we customers intend Our deliver our and to demand it. it,

forward stockpile it System merger put a rail in gas partnership signal of already closing market in and our to flexibility And the I investment to to come for team. and Ondas, plan This reports American growth the in in Dynam.AI Eric in demonstrated to oil the accelerate the acquisition our materials will close target sharing an market of back platform with revenue the business both profitability. Ardenna Robotics market months mere moat our in I since Scout internal now as power is markets the we via remarks. all of via look investments being and have more with development and a an AR what's X some of our through into expand into Additionally, ago, via and action. a mining hand evidence and the and updates

Well, thank you, Reese.

technology generational As virtue value platforms. define in by see of the case we we've to today, outlined shareholders past, lead our scale, industrial and opportunity and market-leading made customers a we the create massive for

We have customers the systems, the and talent and to do this. experience investors from and mandate our

our balance in healthy ongoing a investment support to sheet technical and have We solutions business development.

million to cash for as about in million with requirements OpEx expected build $X to expect working inventory $X.X We be QX capital modest we growth.

Over be Networks rails. of as with the particularly and increasingly offset revenue will profits, course we to by it the XXXX, than expect gross cash Ondas grows OpEx higher a bit trend

offer Oppenheimer. this the XX-K announced company. provide the for we filing to the sheet addition balance our may for Networks public additional have or In American the of acquisitions. we demand. JVs may Ondas opportunities to to to ATM is Robotics and opportunities respond Similarly, The flexibility morning, with ecosystem offering ATM investments purpose We accelerate platforms market at around our customer or technology believe partnerships, to certain with

Ondas on intends dislocation MC-IoT equity and extend opportunities leadership have Ondas. We short, markets ecosystem. private to offense opportunities for seen our too within recently cement positions. This public some in and stay and our create pursue investment In could to

summarize the Let's to and prepared Q&A. to call wrap our take before we remarks minute move a

investment mode I The beginning XXXX. to transitioning in we Class in that is outlined, adoption from cycle network. megahertz platform XXX delivery is Networks As Ondas

to across American with from support will customer Ondas And In rail broadening will continue I'm have the segments. products, capabilities, to markets, and capacity I momentum AR payload Class as a networks in we orders. the this our mining and is preparing we gas, partnership technology, and XXXX in will fleet continue new excited in Siemens particularly customers. its Siemens expanding moats demand to by oil new the customers and in invest hand-in-hand and franchise scale about ramp-up its in internally operations key transition do in our sales with addition, is target rails Robotics and additional to inventory building we and data in for analytics expected XXXX. businesses.

hard. worked has team Our

Our I'd believe ahead. to firmly shareholders have the and fruits to visible begin Q&A. difficult in will open in we supported labor our the like of quarters very to call ways this bloom work, the Operator,

from Tim Horan [Operator question comes Oppenheimer. Instructions] first Today's of

extended of think the to to I I by out be August spectrum rails over needs questions. the One, or to out? to enable then much are have how of kind spectrum to next like And And vacate sort some how few the a Anterix. built they -- guess to August, network over of follow-ups. next some has a get tend that? relief have few as of turned really get much to going the they be I of Just have

the thanks Sure. question. Tim, for and

X legacy the period. So first retired half the spectrum be railroads other have to will network August of the the then, the megahertz XXXX. XXX about retired is XXXX vacate do periods. over it There's due that be to or then have is to and in half

a XXXX also is network us with see you're now outlook addition single-purpose about through Stewart we've and to then between can XXXX, going So happening, new to now what those So they given they're the applications think meet to flexible we've us see XXX And railroads we FullMAX is increasingly talked turning What as like. platform. new that, confident on ATCS some looks tell in deadlines. and you being rollout you're ATCS megahertz the the going outlined XXXX, ramp that migration between into And that built. see legacy and on and right? that

happening this the see have that build rest XXXX the we railroads So through half then -- XX. August over that we deadline and deadline for into

Okay.

a be August revenues spectrum spend to and million million ramp-up some that with now implies to be you they That on and next to clear to just just I $XXX need at vacate serious So clear, in between between $XXX guys. point. bookings it. want

initially it's the the applications building ATCS, these be it. new base expect devices edge ramp coming going called building a to station do just as and years. over again, for infrastructure, you the Yes. And then We serious

drones? obviously sitting here Okay. hundreds the Great. you've great. now? Is the that it of And then these total for thousands, mean, would on update, lot just what's be any mean a side, had on interest. color us can an from drone I you give for X I years demand more

that. Yes, sure. Reese ask take I'll to

Sorry, Tim, you the repeat can question?

thousands, the just how for the hundreds? your assembly of are you I the building apologize. to to thinking the talking you think an Scout understand a the line Yes, Could thousands, trying is get Are of for to just of what demand or hundreds tens? about manufacturing update as tens give production look a year, Because these are up for total you're thousands, designing mean about ramp on facilities we market? us drones we thinking you I'm sense at what these. you facilities now? I Just

million that over around asset XX there's believe out, world far systems. Roughly box Yes. the that deploy autonomous we the eventually sites we speaking, drone if look will in

our today, the I millions That's that's and capacity talking going have ultimately, not So about time. to do we goal to we're systems, of ramp over obviously what these think something but that a is. that's be

it's next of I So going and again, eventually but be trending towards think eventually in discussions the thousands, tens hundreds years, millions. several to and thousands around

to of facilities manufacturing up year still now? Because manufacturing facilities process it build and design year the get running. seems designing and these like you are per what a So couple to

the a process. see as We Yes. multiphase manufacturing

with now to probably and manufacturing up the capacity So working right the partners have that we're to thousands. do hundreds

to partners. get once to we to graduate think we'll manufacturing I larger that have point,

and Just to manufacturers them these systems. build work building manufacturing to not We third-party clarify, facilities. we're with how in-house contract train

certain to are for And are to groups and manufacturers of there ideal low medium medium, quantities, so high that high. contract very then

to I those see think levels over various contractors so And graduating we of time.

it to And immediately. for seems do just factor guess thousand model it for time very whole definitely trying that, deploying understand demand long business at manufacturing it like takes the like this I ramp but I because together, contractors bring could seems these stage? isn't you I'm these the understand have sell mean, thousands. a cities I to how you up gating No, you

now? why set basically X,XXX manufacture year up able So be not manufacturing per the to to

into taking place yet at operation these need are There We be deploying switch, number in the the and of today Yes. it's thousands a the factor. safety they that Chevron are audits, where It's we're to good simply other with large X point are out prove elements not integrated use to Fortune need cybersecurity are that talking they right to although tightly Chevron. question. it's that cycles I flip only give to work a not systems. companies of thousands that us a on we a deploy budget That's thousands how mean, and things. to aspects. is need going to that now customers some on we're of from of about that, a have Manufacturing even systems, be a months There things speaking, trained some on to ConocoPhillips, factor. know year. that eventually People systems. logistical measured And examples ourselves to analysis, very more want their stop XXX

the in have these I think scaled well. goes to to manufacturing that parallel So be ramp-up as other activities

et to maintenance So installation, again in going cetera, to be parallel the manufacturing. operations, is growing

then give maybe was it? stock helpful. did with lastly, revenue the can financials, you how give associated And the today, us you for any acquisition how much Very And acquisition? much

sure. I'll take that. Yes,

cash, We was purchase for in Ardenna little cost the XXX,XXX a and provide and mostly So shares context the value. equity. $XXX,XXX

software Ardenna, to strong a source lake, seasoned they We that partners software, many course, are and cost sweat spending to for the also pipeline in customer getting of of them capital top have the and BNSF this of for analytics and approximately of back railroad a multiples it which, -- the equity years And build cost applications. their on with of a value took is value other really data us. comes of of and spend And build suite it. to invested lot that what course,

build to learning analytics programs using data available. machine are that the need You technique the the AI

great accelerate we is Ardenna it's stand-alone only think software value this very on also, it our basis, us is does So a really ability Not going packages integrate and deal with But attractive. our dentist it as monetizing way a which home railroad, run. meaningful obviously a with capabilities we field penetrate give market. the very a in System, the is probably to Scout scale in service to that's in the attractive

Ardenna across we're that addressable program. at to will where pipeline course, more drones to with the customers. has -- them interest commercial had growing. railroad a have And the virtually the the on drone activity. point is going They've some with of be every market transitioning So And Ardenna that's revenue with their rail and is sector

can that from sorry? acquisition, give Sorry, clear, just to be us this color for revenue you any year

why about you talk landing for So we expect customers what don't Reese, year? this

Yes.

So I'll start off first.

a fantastic with customers. complete sense example is Ardenna full need you in I market of industrial our make stack that really think to philosophy this a for really end-to-end solution this

really but X it attached great dollars the partners to great. of to last have years detainer It's automated system I And sense. our software, rail make millions analytics their so be spent to Class over drone an needs

they've possible a years rails year past and software the we're excited X are it's up both pipeline deployments this They're sides where that development include building we And to know. about. SaaS that great Class point all of at in So parallel that spent really R&D likely. the initial deal for to I over customer a that this

able just revenue And quickly hands our when path opportunities. fairly think we'll be to it System. with we continue and we And get into about the the early quarter. going this as Scout we integrated the as to second share So in for well control, them closed I we're -- acquisition information -- on the more that

Northland Markets. question next comes at Latimore And our Mike today from Capital

say that you the bookings what outlook, did -- that Class expect Eric, you within from there's Is X you said? I So orders railroads.

we Yes, Yes, did.

a you before is cases bit there? these little done. lab guess work talk in I about can And orders are the coming use the

kind to of just maybe the the individual opportunity to lab orders wash prior what's working? So

take these that to about and Stewart ask I'll applications. new talk

Mike. Sure. Thanks,

a if rails about trains light, look been have you a individual connecting, network time. looking at of that call crossings more for specifically So we're approach for at the where centralized light, red application And a thing applications how one allows long And number interesting green that quite was we distributed is versus of it's coordination. the there's mentioned on and it interlocking.

is And at so one of the looking customers interlocking. a of wide deployment

they You where to occurs. single portion recall, rail interoperability networks large these then that's rail. a too, And networks focused of with have as other coexistence and rails, a that on the -- are the interconnect

the focus applications, mentioned of So interlocking, of the short number looking we bridge do then of are as to term. in we've got a that drops, some rails number waiting And a slides one trains things block is on is train train not a you're where stop they're working X where in looking applications and fixed at that another moving while forward. block for the moving

if one look autonomous that slide to we're block at So to eventually discussed, from trains. block you fixed moving we looking moving at

is now. this for occur started go use to the achieve get these have and applications on they've that rails whole that. a decided And cases series to ahead to of So

Okay. bookings. And on then the

for deployment assume I we after rev should don't purposes? know, those bookings So on that rec they months X occur is,

the at that. It's have hard to moment on visibility

we when in anticipation. in quickly to be we getting them or think advance We're around than much production more get that. ramping able should in I turn of inventory orders, kind

but we order think when precision the I it's into that turn with don't hits tell I So when X you of sort deliveries. can't and months,

Mike, the about design. also go the slide, launching their the of in we on that a methodology pursues rail lot talked Each terms and in own processes of there's place.

we're through it. one-on-one smaller doing prework, rail to So coordinate the go -- have mentioned they it depends that -- we've we launch orders. on the -- much But and why too that's -- so whether how rails they are with really individual some how as rails

for Some are preparing larger.

So that. we and Siemens are working together on

the And that Is drones we then ARR the year. right? $XX,XXX should think on is about about still a

Reese?

Yes.

it be being for think that though appropriate, is purposes now more we'll may I later end year. on conservative. to this right modeling Hopefully, share up that able

this with like or your And for, here, they some as anything more don't that additional it. Got know, require get asking I functionality year blue are chip R&D customers involved that? you

yes. Yes, in some circumstances,

stockpile So a our area with R&D. Reports for package that mature comes analytics no, market, In that with be gas, and Ardenna largest oil example, the the in Stockpile package. Rail, I would with partnership fairly that's mature think have the we in of software

of like some number for So ConocoPhillips payloads and that a we'd some with and associate new identified cases, Chevron use to analytics high-value others. we've and integrate and

National question next comes today our Morrison And Securities. William of from

great Guys, a happening. good things progress question bunch on of the across Class of some Is. I board, rails, a the had just

for that with out their XX% And that the $X.X budget, mentioned about they of of to year-over-year about network. just came -- One billion. a some for up modernization earmarked of was them

much would other How common -- would and to would that will like how So and flow infrastructure much down components? be that through towers what equipment just be how Ondas versus pure the radios?

thanks Well, the question, the said, spend is for to as here ability Bill. substantial. you And

the means of networks there's our utilization existing operate these flexibility which is when still flexibility, assets. in do upgrading bands, benefits capacity their the technology -- are with for their is out they're spectrum of more get to and all what more frequency One trying the more to railroads really

going field. the reuse even then, tower. deploying already are stations the base they the inside. at are our infrastructure have course, devices want have to in field. stations. the antennas have because of and very with you're they equipment same essentially They're often either to to the increasingly They basically the control new technologies FullMAX the be edge in we that in They where or seeing Siemens, So connected base monitor examples And embedded we're can

referring is the was spending internal telecom bulk rails of Stewart as own by equipment operate the and do substantial have themselves, labor earlier, done they budgeted -- to upgrade heavy many They essentially that. capacity lifting of most have operations. be the will And they'll the providing. and is their have on of we're to solution in to the course, So related network

Okay.

-- that's So good.

sourcing it align of have ramp like? than rail? the some -- for hundred must of to couple like book, that to your that that to what or mean million looks everything. most radios, if other they schedule So kind your order me, X for of a is all and you I look does just manufacturing of Because towards kind

as And budget is that preparing about. for time with like Yes. that increasingly expect. issues Siemens supply I now issue. spending of on real volumes you're are And chain. speak a the can't talking a But and customers increased exactly to lot we're we you would of course,

to that. this course, do that's to call get of Of front now, to not trying we're everyone something best our but on that's in unfamiliar

means we are is as the So railroads visibility. getting what that we referred and to it, increasing

need work will closely ability just sure to and and a expecting chain our there. them And is being supply deliver to that to visibility energy We plans there's lot be with in we'll to more ordering make that. their put produce of Siemens on and get the into

chain the meeting in supply And your for you infrastructure into own? what's you? on supply the help the right expectations Or early this the chain on Siemens occasion all are

teams Siemens are their they're and manufacturing very help process chain helpful. motivated what is going be and to they procure us components. supply motivated very do Obviously, big. are to in be And going to

do mean you I critical [fuel any see parts... or stoppers] any

some got points We're talk March, we hard try here chain doing certainly where identifying and component-specific and them in we're point. -- it well can be. we to tightness be can. supply the I it's we're it's as see can mean, -- as But do manage specifically. -- at to we've to pinch It's going those

And our with question today next Market Gottlieb Ophir Laboratories. comes Capital from

and then X a clarification point questions. just of Eric,

that for First like 'XX rail at is offset it for least gross of growth to operating cash says burn for and running revenue and XXXX be in breakeven? will expected mean rail. and it 'XX all, flow cash looks going profits XXXX Does

it's breakeven I wouldn't say for XXXX.

what it on as think a favorable. be in profitable. levels modest and described we revenue, we And Ondas about delivering payment on to get the orders receiving recognizing We we and start the basis a self-funding of see do quarterly by at I and Networks revenue terms and payment. the basis, I at we ramp will quarterly think way, become

OpEx. is the Networks. The less today around expenses. holding So is than company of in that little We're first and half you've OpEx. in so have rest or past of Ondas guiding heard A we quarter us about talk $X.X on our AR million the cash course,

But XX% profile sales Networks, the basis. you're on the -- revenue. our of just software So include does flow the And $X greater the given not million margin revenue. $X given cash quarterly margin our sale, this maintenance at and million for or profile, on recurring on an operating or platform Ondas system you're of on system positive

self-funding way XXXX. be understand think be, Ondas about move XXXX that's we'll receipts what year. it. we think on But by that we can ramp and we the So the should the we Networks and how turn believe growth Networks to should And I into orders cash I as see be Ondas through based

Okay.

So that million] you don't ATM? necessarily have [$XX on to tug

sheet given Exactly. as customers -- the Yes. all well also case is Ondas. looking flexibility described optionality as Reese could in referred be balance are This this The the we call, as for and as about and faster, to, right on this they ask to innovate solutions we do, we've ROI want and to and got the it. to ready actually and provide be might for mousetrap, to the us do we us what move if

Okay.

it? self-funding. funding put to to good there -- sounds that move be were going the Is accelerate, you'd not for if to a it but on since ATM opportunities just So it's for entity revenue the rail, like way

Exactly. our That's expectation.

All right.

X questions. So have I

Robotics. I American backwards sounds $XXX like X go there's rails million year-end. think And total $XXX shortly. how then addressable secured this And you've has there third like of at legacy for since a coming don't in, and that that let legacy Ondas on another have have of potential million once I come So way. I look you I and of that? this X is should me given XXXX XXXX? look a I a come Class follow-up network. off enterprises networks to ask was through I transition a but rails the say, to does markets, this a by And 'XX? guidance X Class What off available know they Is Or to revenue

No.

networks, for run new building of play of to XXX HOT that expect the maintenance be all the hundred dollars. locomotive the for on several radio systems upgrading wave high then, in, think Stewart several megahertz that the vehicles crossings that's track, earlier, and probably for build-out XXX describing XXXX, of rails Siemens network. deployment where to we're And I That's start the we'll was that rails, of kind along a already have HOT. see course, in applications other the when there's on over focus at EOT, you'll the product. out million And railroads that starting the for sides next are years, at including orders high the

And a place think this will we development again, some call coming with about the past, is Siemens. focus kind come it's what XXX of going we've So with Obviously, network kind of XXX in vast would XXX sequence, of of there. we side in rails, to we'll do doing a talked with be quarters, but on ask the -- the active development it. be I the the be the behind. And in the started of you XXX work that bulk XXX spend and in rails the the we sort kind will on we're product watch to of do

reasonable? track quite Okay. rail American of recurring plan in to it. That's It to hit million its should sounds least in to according $XXX that sounds million XXXX the $XX annual sound And how I Robotics million on read at like revenue. Does go deliver things revenue. $XX

in ballpark. are numbers those the think I

right. All Okay.

a question Robotics. have on American I So

Ondas. the it As happen But oil XX drones within sort X,XXX you hope I the fleet months can. Scout the the gas know, actually understood first There's they of to X in major could actually was, thought can of than say, X deployment the of customers. with payer. testing that to I and from I to say, payer, it time And these And X,XXX guarantees. lot spoke is is would no seems final know goes benefit It the the moment of from that's, assuming a what can them companies the let's company going course, just let's fleet order deliver faster to caps some scale, right, your if their order, for the it of of get function guarantee front year. essentially step manufacturing that line. to but seems a into these to a drones logistically it sort defining the a own they be me, me X to to of American mega for that with take CapEx, that And not from also they Robotics to it like would of firm, in occurred stake

If about Is American either all reasonable get these and X,XXX Robotics happening a are Or orders? relationship way going then think that conversations drones. you between order, they're a say to to internally the fleet into has Fortune that in can I or the moves that what a don't take know company. stake externally and step XXX actually that. about potential function want may you company tested the

deliberate And we've build to very think do a the destiny. our to technologies, Well, we we to buttress these to they're you're going we'll arrangements, I and is specifically the that. capitalized there's we scope And company can well big relationships companies, for built But in be control of if there's I they if true. with like guess will partnerships. what the infrastructure it's that to -- Ondas, can't These to there's talk particularly a And going time, be. have make investment to broadly, companies. see. We're we've to when means all I discussing service same there's at -- think and have sorts own that. emerging we But think got financial what terms an technology of in partnership. continue strategy mission-critical And a team

what see So we'll to happens. have

excited obviously things So take will we're work themselves. the care of deliver to and and do

sales, very we're long-term of approaching to drone units from of operations a become integrating companies pump these that important we're their in like them. with critical partnership that where as part assets, know their perspective. safety their to to isn't pure very day-to-day the we this point -- and Yes, succeed we cetera. systems, thousands Chevron the et and relationship just of that's assuming a conversations much is ConocoPhillips infrastructure and and This We trying it's many at a

recognize them working with And weekly so both that partnership that, I think basis a mindset. and to on sides really we're of establish kind closely

of that, all for out I door all come conversations sorts a sorts think and kind just of sales of the So we're things open again of leaving pure beyond relationship.

Robotics last guidance in Okay. in presentation XX, at I it which XXXs, And American Fortune for with fill year, Scouts, be was we add what saw American though these the given oil great American but Robotics, they take does the XXXX, guidance have that manufacturing. might contract the ability Does end that's could September you forward. that actually really the sort that accelerate will you the was and can It essentially to cap I be of Reese, more, have the be that be, methodical the of would the or top don't But delivered move that December to but this end it I it's know, could mega X,XXX I could of like current but scale that of X,XXX -- would Robotics do yes, planned, I do? for manufacturing? American given, continues Robotics know your actually schedule be ahead of, sounds blank, which X,XXX news, even gas in of know says, X,XXX

I mean it's theoretical.

rollout think or gentleman's don't X,XXX of those need a -- to even they Chevron. I I strategy I think each X,XXX power an Each end of when the install -- sites with to X being I there's as over, love a say, that build think thing. following requirements, drone interpret attached enthusiasm be needs all But systems to year. many cement pad for you determined, at the that I on order once. their systems would

you You vary can ensure site, that up be cetera. which to boundaries, with between and have to set each et plan, flight connectivity, has thing data need

bit, other American So time I just any have there's or occur is fine. Robotics company, that that over that its regardless -- think a to which of some there's steps little stretch

following be, but a out I think, the it yes, again, ramp-up scaled that's So year. would over

period each still have payback or just over close see you little than drones you to a are of how XX% -- X,XXX to a these expect wouldn't forecast about year presented? less the is They Scouts scaling next free of how of cash that it's and is things day. you're loop, flow margin of a of And Yes. still a on as that this, the still as sort the

that, when bit. chain to Generally, Yes. certainly, constraints like we supply quantities of component get And raise a prices little yes.

that border the XXX,XXX, But on right right quantities. we're certainly to So now of in low you when get yes, absolutely.

remarks. question-and-answer final And for to ladies any over team I'd session. back like and gentlemen, this management the concludes turn the to our conference

today, to Thank we'll for call. you. very be keep we excited. posted this going We're through thanks and the in on move we talk year to We've business looking attending soon. forward Well, touch. we're you outlined Okay. some got we'll and quarter, as We're as development this momentum,

gentlemen, We this all concludes and attending for presentation. today's conference call. today's thank Ladies you

You lines, may now your and disconnect wonderful a day. have