Ondas (ONDS) 14 Aug 232023 Q2 Earnings call transcript

Welcome to the Ondas Holdings, Inc.

Second Quarter 2023 Conference Call. [Operator Instructions]

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

While these forward-looking statements reflect Ondas' best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking statements. discussed press periodic are release on company's are in filings both factors the earnings the issued website. risk in SEC Ondas' and available These today which statements revise as except by law. update to or required obligation no future events undertakes any Ondas forward-looking to reflect circumstances, or

performance which directly During press the of earlier information GAAP. available to issued accepted supplement generally Relations accounting measures substitute refer A reconciliation release company GAAP to prepared Investor as measures. measures as non-GAAP financial financial comparable section with this provided non-GAAP our today in measures shown to, in non-GAAP is most This accordance or accordance at non-GAAP is call, a as to the the financial These for are will in website. certain not with measures the paired principles. not a of superior is of our

provide underlying this business. valuable these believes with information investors management being is event also the on Please today. recorded non-GAAP However, our of note measures trends that

like I CEO the Chairman, to Brock, go Eric Please President. and turn would to presentation over now ahead.

investor you, morning. operator and quarter to want started welcoming thank everyone our second I by to Well, get good call.

discuss Airobotics for and recently strategic to second the CEO our President progress of plan Kliner, with and and appreciate review President and and of Systems. XXXX today happy CFO of us the second Founder we the you're Stewart Networks; company. Founder, performance we quarter outlook the our completed Meir as Kantor, Derek beyond. your the half always, CFO; our Ondas financial and time the Reisfield, to interest in of As Autonomous by and joined spending our I'm Today, for be as and well Ondas

to turn the let's agenda. Now

for we reviewing of quarter announced second hand will financings and will I time advancing also spend our adoption quarter We then brief some a will significant about over have we detailed in today's financial the some the the the technology performance review made Derek platforms. our progress call call the of in comments performance. recent July. to with start I second

discuss our XXXX. part financial position on where provide ask the As the balance rest outlook update and Ondas I update sheet we liquidity -- Meir provide to for around provide a Systems, activity. then our will transition will an Autonomous for of review, current Networks and unit Then business Ondas business I Stewart and and in commentary of will

the open investor floor wrap then will and the call for We questions.

and with we continue customers As we at our move momentum both up to Ondas systems. the second quarter, pick through Networks Ondas autonomous

We are with driving million was evidenced customers customers quarter. in second with now and expect by existing revenue new we platform reaching which partners globally. This both ecosystem the broaden line and $X.X momentum to top adoption

will market million markets I our to of investors. This $XX growth. institutional the have sophisticated the half eightfold brings financing quarterly diligence technology technology performed my are our on these in opportunity. proprietary like though detail in platforms in value and for customers capital that this shortly, more the confidence reflects opinion, end targeting we investors raise In substantial The and $X secure an first in from of to discuss performance versus million for revenue private the increase which will is momentum first half allowed just I funding and us also additional million XXXX. $X

deployments. the Regarding network. activity XXX believe in customers specific field we activity these initial now what megahertz focused applications on of advance major volume rail deep orders with markets, in identifying in This Ondas the of beginning is for is end locations is Networks and volume

around select negotiating build-out pricing, rails purchase for has with and Siemens addition, volume In timelines. agreements key terms

XXX megahertz Siemens as XXX deployments. be work around will the While new share to XXX with legacy is to deployed ATCS frequency details from Stewart and megahertz the poised the the this ATCS outlook our migrating band in of more and Systems mission-critical. migration for work I is network Class first advancing, the the the customers is application rail

fleet move as the additional OAS, the fleet adoption along with Optima Abu Dhabi system for executes concept of in robotics of completion Gulf. a continues in partners At the orders to and and customers commercial from proof the

being particular government a large also We and X where new firm defense security Arrow knowledge HZ, markets. partnership with expansion we a entered India, into deep announced with strength that markets in firstly a into local in with

We Vision involved Saudi drive heels opportunity. heavily Saudi in also initiatives and economic significant and a Saudi this Excellence UAE Saudi the particularly of our transform announced is our us large, the about Saudi Arabia Optima comes to The the growth the to Saudi on with partnership in successes which excited Saudi XXXX allows in a is with Excellence Excellence I helping market. am system to economy. and bring partnership fast-growing

January, Optima public smart energy in the time have introduce on States closing here and to safety, we markets Of government the since industrial system and course, gas oil a and in invested to Airobotics focus particular acquisition and city United the with customers.

gain our As critical partner aeronautical announcements and mass with infrastructure BOT and efforts safety, the Skyfire are beginning public and U.S. customer evidenced in traction. these to and by

partnerships making advances Meir the additional the share in are half around the in United increase expect we operations India will the Saudi we second in System continued Optimus As the of XXXX. customer Arabia States. progress in and new fleet and inventory, announcements we details

business to to up coming fortified to and are grow how our beginning the I with by in quarters. at OAS. both we wrap sheet. So the balance are recently am happy Networks now Ondas supported our introduction, scale we positioned

focus towards customer we addition discipline in work burn driving maintaining to drive orders, and revenue We to growth adoption cost as cash on profitability. are and continuing down to move

to provide we take Before transactions. to the to details funding X QX our moment review the recently I announced hand raised Derek around I $XX results, the to a call some want million in

$XX of we were our a fund funding and in firstly secure be million by to on Networks difficult then outset, million $XX public market, and Ondas company the holding well-funded we at the X whereby to fortunate to at the drone company scale mentioned I to deliver growth platforms investors, were costs. able As groups plan supported

are on financings was completed their As these need for shares. overhang Potomac. capital The we Ondas for million Charles remove our And investment. weighing our the all investment significant closing led as a aware, and $XX last for company Friday, we by the final Networks was

believe extensive rail independent was growth the dotXX diligence C&P platform, senior is technology the of investment creation potential investors, as is a include significant Andes I some the standard behind Networks groups own rails. FullMAX after company. our and group ahead I investment and their the with personal the extensive C&P wireless Class made our validation capital Wireless putting value backgrounds The the their level sophisticated opportunity at that CMP with on

fund there Importantly, the from will and by to shareholders allowing growth see significant we next believe the benefit plan few Ondas this our maintain value capital fully the Networks over years. injection into control we creation

may our large addition, a as part the large C&P Holdings, In of group further with supportive given transaction. shareholders the Ondas investor warrants incentives of financial a This aligns in public partner. become the this they received

put on new pleased invest the we when much and terms ground our the ability our existing C&P details discuss convertible sheet. a their Ondas maturity. balance to these the excited in Net-net, have Group a note outcome for firmer about with execute shareholders. from investment and here our financings I'm our will another the company, convertible X-year I from note holding of convertible notes gross to proceeds on the $XX right which exercised provide million in At investor additional

I'm to review. now going hand financial call Derek to for the the Derek?

Thanks, Eric.

our large that of remind As want our platform for rollouts. investors Networks early I OAS get for preparation reflect and I the the financial and commercial both statements to started, Ondas adoption stage

though cover operating our grow, revenues do expenses. today's expect operating levels yet significant revenue We not

approximately XXXX. OAS of $XXX,XXX $X.X Revenue by also of quarter in robust for a and in second more have generated of first the the than quarter $X.X of Networks increase units quarter was growth showed the in second and of presented the from XXXX been million revenue which reported Ondas XXX% Quarter-over-quarter for periods significant XXXX. from business both revenue totaled the the million the revenues generated

deployments both customer Networks the to period higher for Gross was Growth quarter approximately in in $X.X was million, gross same UAE. XXXX the the XXXX product when from and profit related second System shipments OAS of Optimus result was for approximately of the a of profit increase primarily activity at Ondas tenfold $XXX,XXX.

the expenses expenses. which Cash to prior in quarter as operating Operating million line the $X.X operations a in year, slightly business approximately to to which the expenses larger $XX.X second declined now was with XXXX were approximately Airobotics in despite $XX.X equal million of about of full quarter expectations. million compared includes

integration on cost quarters, will few next realize benefits additional from OAS we believe Over that the the side. we the

second the and up expenses, approximately primarily $X.X during and was compared of for the compensation revenue for second operating due XXXX. generated of in quarter. million million This second in this $XX.X quarter second of higher The quarter quarter $X.X quarter totaled The expenses of operating XXXX. the slightly is noncash XXXX. as the an stock-based to approximately $X.X of Noncash loss million gross losses of XXXX decline to including profit amortization from million realized depreciation company and the for

The a loss for profit quarter of in million with second company second EBITDA and of EBITDA to $X XXXX an improvement quarter. compared gross million expenses, the an the an was Excluding as XXXX. compared loss $XX.X The XXXX the of the $X.X net of was noncash due the realized quarter second quarter million which million quarter the revenues higher of for of the second in loss generated during to loss XXXX. company loss an $X.X lower

to $XX in ended the July. transactions, cash, cash balance million Pro We for the to funding first the prior $X.X was closing transactions million. approximately funding $XX.X forma quarter Now turn the let's sheet. Ondas in with million announced balance

forma details in pro more on provide will the a We moment. sheet balance

investment in The half first cash the the reflects business. ongoing in burn

non-restructuring OAS So American costs business unit. to elevated due was the related and certain and the Airobotics of into Airobotics the and one-off of acquisition integration robotics to the burn

capital half cash repayment $XX.X $X.X Airobotics. debt including first the convertible XXXX of $X.X to working note cash in and to of at repayments approximately million loan a costs, and which million inventory the capital the In investment, addition for integration related receivables the of included and half debt in in retirement used alone first million we approximately approximately of working amortization and

will grow Eric our perspective light expenses, controlling the revenues outline profits, believe quarters. and that burn gross cash As while as in CapEx our and we from remain decline businesses a next, will capital coming we

I hand will Eric. the back now to call

you, Thank Derek.

notes, convertible funding million execution funding, our a in cash as can. sheet we plan. growing outstanding soon $XX as placed approximately $XX.X had benefit by drive way Pro have in and Between recent loan investors. XX. capitalization us forma has we look the deleveraging will that of Ondas equitization million on balance substantially balance of our our we the fortified market strong notes is of execute a The the through of footing June original previously, our to new the described to sheet of As approximately the equitize growth extension, and for balances business our for our plan and to as and

and that investor effective CMP prior notes, Group convertible convert The convertible original from interest a balance the the of at monthly Ondas in shares the now consolidated our amortization equity network are share. for per we to minority investors shares price reduce XX% to the as to XXXX notes Regarding is maturity convertible agreed to subsidiary also provided reflected in the an Networks XXXX. approximately original Ondas maturity preferred that October Note with $X.XX the which into sheet. of the note. This notes works April exchange to the extend interest

move to the turning a Let's units. review our of outlook discuss now financial to business before

are have Ondas In scalable. strong demand and both transition we growth. for to real units poised they that Firstly, at our ready we to generating a commercially demonstrating as are are business revenue year technology and platform very XXXX,

and as multiyear our we that expect achievable. our difficult trajectory just the lumpy to for growth are can our curves growth substantial With We believe this beginning. beyond and and in forecast expectations year said, remain XXXX continue to adoption be

position full the targets to we laid fall out XXXX, due For call slower is of year capital our ambitious the largely were identified component purchase Networks, Ondas we short we by a last of production tight to make exacerbated initially conference working our ability availability challenges component which a constrained to on expect rate begin the the result revenue This at that to year. commitments.

financings, More improved. recently, production. of availability course, component capital the working to has And with we recent accelerate have

here. plans activity from As such, we launched increase have production to

original our times lead X-month from to catching given up However, targets via be is on revenue shipments to shipment, going production product difficult.

our with the the we earlier try. XXXX units. in activity unchanged remains and in OAS, as will see in and international well both additional significant the still execute we With as We XXXX shortfall growth order of XXXX as customers across markets United drive versus Despite certainly second and half to outlook States. business respect into both targets,

We expect million new at of target to approximately the over for $X of the brings million half full to XXXX a which $XX generate least revenue year. for revenue second

reiterate, we front to volume Siemens field an as want work advancing order I tracking expect update to orders available. and are and meaningful with on share the

improved adoption As remain will revenue drive deliver scale and expenses we focused we we as controlling towards growth, on profitability.

in the million quarter for cash completed the XXXX We is third targets consistent quarter. which expect operating approximately with recently to of be expenses $X

we going maintain efficiently to will are and look forward. to We manage discipline continuing cost OpEx

will we the partners. our updates review Kantor Kliner Meir share in of and a Stewart industry with units customers on transition business activity to to ask Now recent and and field

preparations with volume will on new us megahertz the in start with who rails the adoption will our deployment customers for work We the Stewart, the focus on status on update network. and on XXX dotXX current with

Stewart?

deployment for approximately Networks, This At to Thank shipments the driven quarter, record delivery and in the quarter had approximately record fully customers. the Ondas with revenue of Is. I And record shipments a first Siemens. of large-scale million second standard Eric. Class we solid in previous megahertz. Moreover, commercial quarter deployments product new product further March off we're a of coming revenue Great. engaged XXXX, development We $X.X you, the amounts shipments. a is we with $X see to rails Siemens with of in the with for delivered by revenue planning Class at XXX prepare the in million adoption among in amount increasing

hand-in-hand personnel working on budget deployments direct now with rail key are We with responsibility.

critical site July, we Specifically, locations preparation ATCS a completing ATCS new major with and in work commenced detailed visiting in installations. rail of their surveys

in XXX shared for we XXXX, the network. Railroads combined the by megahertz last the in advancing dotXX of rails As March approaching the retire the on around migrating megahertz XXX legacy our with to that activity September greenfield network deadlines is announcement of network chosen the was the call, deployment the American formal Association platform the by

locations this as believe communications have focus as are as new of critical rails. network megahertz focused the on rail on the XXX such Siemens opportunity. deployments and Our initial actively is high-traffic reflects with in select positively areas We work negotiating come the vital purchase how Simultaneously well this work, endpoints crossings. to rails to value orders

of with dotXX the on MxV standardization, a dotXX controller is features engaged focus critical a and subsidiary and new the like demand network continued of Rail key plans development the which thoroughly terms In on functionality, high networking. AAR, including peer-to-peer network integration is

integration. to MxV XXX.XX for bands our frequency targeted continue and activity to with new expect as additional We use are cases expand

every after constraints side, impacted earlier to transition manufacturers And we effort financing quarters product had and have challenges which shipments. production. limit we lead alleviated components ship for the us Eric, capital allow ability but first necessary by as recent initially to to many production as us the working will are described to making to ramp we we early of to And key faster. continue X of the On our much times which contract gives planned our may inventory move ramp as in our production, obtaining

obtaining growing new new intend capabilities. With move capital secured, and aggressively to our on we the forward production orders

migration. revenue see us who that XXXX. production Class of across to in of have network will build-out build second the we new and are and is on inventory of To engaged by allowing clear, move the manufacturer, need the front significant the tempered in drive growth I course, XXX a we megahertz will XXXX aforementioned of year XXX rapidly recently rails bottlenecks. We migration rails a the what to seeing be some to scale to a begin half, front Siemens this We with early in in megahertz capable believe as contract we be continue believe U.S.

will we QX and So Ondas slower Networks despite revenue production grow still the ramp, expect in QX.

our recently promising. we announced program continue foster and passenger in At and to which responded scope. And network will new Europe advanced the The previously for locomotive expanded same is major now have to well very development Siemens existing time, be X programs. has and transit we appear to proposals

operating close grow, levels as to spending we on we pay towards attention drive As we profitability. will costs

and expect year As revenue grow as through demand XXXX. self-funding and we be gross increasingly and profits the into we increasing shipments, with move to

the call hand Eric? to I'll back Now, Eric.

I Meir of floor on a Systems take and customers with rest update to Stewart. for the some you, provide outlook and insight the Kliner Autonomous ask Meir? Thank progress XXXX. Ondas will into now us at

Eric. Thank you,

continue Autonomous reaching second build million, million. $X the Ondas substantial over a QX quarter at to $X.X increase We of momentum revenues System in with revenue

In team Dhabi, evidenced the proof-of-concept customers advancement are well service OAS the secured successful activity operation our continuing partners additional new year. globally. completion as the UAE to Our later expand and to this customers systems relationship We and agreement by Dubai, footprint of an in execute Abu we our to expand and our city the and existing of well, government. continues in as for deployed ongoing plan as with with

report Dhabi, welcome an as study other is receiving acquiring certification Optimus focus United in in the and qualifying FAA-type on our FAA type activities System, customers certification our added July with to fleet States. the new we growth and ongoing expansion in the we throughout We region Dubai important customers. and countries provided We the with investors in XXXX into Abu as XXXX

the with other government agencies Transportation, which demonstrations includes attract program for These aeronautical demonstrations secured relevant may proof-of-concept across MassDOT, and Massachusetts department an of the Massachusetts Department stake orders beyond. to for state. have agreement We

We public desired to state-of-the-art which state the in our are of functionality enter is cases of can Optimus agency showcase charge the to System use and providing excited which the services capabilities by Massachusetts. various critical

Additionally, Drone consulting game-changing with combining and Skyfire's or public Skyfire expertise very we is on We DFR, progress going spending and that solutions public team Skyfire, have in in System, programs By Drone made with first leading for market safety the type partnership our Optimus in made into a now safety believe have field. certificate our in large is market we advantage. states rapidly. One significant various responder,

excited significant demand market the to we believe firmly opportunity bring see and U.S. the adoption where Again, fleet to Optimus one we drive to are in substantial infrastructure. as

side, previously announced, was System On for the successfully the type less FAA the strategic Optimus has its as the by test the certification NOIs a required to obtain completed which system. certificate

Our reports coming certification and to we the currently team and can soon. see is its FAA the finalizing conclusion last the to process dedicated submissions

important I of with United milestone is would in type such is the OAS. a States, capturing requirements. certain take explain parcel purposes comply delivery the like for most line flying to an to anyone The drone a of why common operate a drone sight In or to wants moment certification for one must the data pilot.

specific Additionally, over are drone drones these flights more. are requirements, operator To waiver fly of each not by not granted and FAA. a infrastructure night conduct for allowed people the the must always And apply time. at and over for to area outside sensitive

aircraft, of in of FAA to needs solid every men the the level to the operations just human lights aircraft. of establish the aims of type engineering rely that like launch understand The we system can process involvement. the System. no a The hundreds criteria certification can with concept and to on understand For week FAA Optimus, the like Optimus worthiness

to work certification robotics is are in complex to on the conducting operations, type the we When will similar what be the FAA with UAE. completed, process able

safety government over For for use and features. flying power as municipal example, buildings cases roads, urban and like public plants, critical as people, other which flights include infrastructure, well

solutions partners be offer to Based captured the along by new American able area best and U.S. will in streamline for its our on data System the the new certification, drones. one with Robotics world's automated of Optimus

which global the U.S. announced expansions growing and ARO In Optimus security to our working to HZ, regions. systems have systems drone from specialized company our an in designated partnership radar market, the addition been and significant local presenting efforts in other expo enter the we on to industry. stimulated and a interest India We Indian and OAS' defense with

partnership produce will opportunity. We are drone optimistic that this

we Additionally, this alliance in and company leading and will Corp., Saudi we office security government establishing our growing on defense strategic Kingdom relationship local market. in the the enterprises to technologies to offer Excellence a initiated providing Saudi and the with accord have new Saudi Together, a a solutions work next-generation KSA.

country smart and We within defense and city as see enormous as opportunities well industrial in security applications. in

share to We and entrance months. the in on Indian more our into the expect markets details coming Saudi

of Lastly, company. important the policymakers Drone the White key Commercial body Eric's CDA promote one an appointment of the collaborates to House Congress the CDA, achievement to the important with is was Airlines, Board an and business The that DOT, USA. for in Directors industry and in FAA, various industries closely the

the during XXXX forward expect related milestones Drone are the in Optimus the orders country. to on and additional U.S. Progressing and continue deployments we in expansion Iran announcing the fleet in and to planned, We delivering UAE fleet as countries. additional other successfully more and deployments anticipate look of to achieving

team we and smart and market In other of business penetrate large accelerating engage by presales addition, safety, India. to Arabia We new industrial city, remain U.S. construction U.S. a footprint partners customers public ecosystem and advancing Robotics activities local achieve sales expanding with with To focused expansion are and our are American this, to we markets. actively number leveraging in development on partners. Saudi

'XX. XX building are System we to manufacturing the Optimus inventory and and end by complete Additionally, expect deliver of new

systems XX of total a Optimum on have order. We

believe are tip drone-in-a-box benefits, to iceberg. of look drones operators rooftops. is firmly are the of we market drone seeking in drone consensus concept a for become what The substantial has witnessing the entities ahead, and U.S. we autonomous many the remove and we today that As only understanding

envision positioned we is certification market exponentially this together, OES come lead and revolution. As this to well processes like type growing

call to completes I'm going the to formal remarks. my This now. end Eric, you back

you, Thank Meir.

our Before want for is over Q&A, remain that we and Ondas turn call the we I believe business considerably. reiterate to to strengthening bullish outlook

We The on to Ondas a for know, have side particularly have challenges extended had timelines, rail investors for Networks emerging with have by though, backdrop extremely and we we the have worked XX been difficult bumpy technology faced a small we included growth, funding as hard position all our months. companies. exacerbated more which

have we I the and FullMAX are Nonetheless, believe in investments we significant on monetize made clearly the to our path Optimus platform technologies.

Of strengthened course, the megahertz now by rails this The is deeply ramp big engaged Class planning growth plan formal supported now believe in our are network we is I balance ahead XXX improving and sheet. dramatically. in visibility for the migration

we volume for look fall parallel, the work to meet the in and prepared through be will order expected to scale We to production orders ramp. as move

the United States early evidence hedge when on stage stage OAS broader is in both the you faster set technology are At well. are engagement Optimus a that and initial is you're the adoption OAS, valid with driving in customers and partners provide. drone India including new as deployments This broader automated of fleet as our want exactly in for reliability such in services exponential Arabia the engagement of growth. our well and The curve of across course, of to see of safety as networks Saudi value is globe, System in as what markets the the and we and and the

outlook which with momentum here, to to second significant coming we getting ramp deliveries the the allow only grow in better a and discipline and is better. combined firmly maintain the have leave us I our to Ondas half reward us expect This with into XXXX in will continued From beyond. growth, shareholders. We XXXX cost orders will and allow for built

there let's if With said, that questions. see Operator? are any

Horan we Instructions] first At come question will [Operator our Tim take from with Oppenheimer. this will time

you you solved the to related talk sense in talk can how process about are rails? XX months it going understand next come can't orders of deliver. rail starting us if you be how Can orders I talk at can much equipment sense working how a just in, have you do talk Or next margins what kind point? about you've give or XX And -- of you much Like orders? then X you've in mix can basically still a to about about is months you of gross you're you And the of seems And you to think guess equipment front most anticipating? then know questions. it's a like received you the orders And the can the expect a then of capital, us the from build here? the how X problem? that ordered to just you of give the totally to much -- that trying And are in this the maybe I months? in on in that's if to now, this, the equipment. orders many And you've to

trying the basically, here have in making equipment? in then you equipment Just on start received, making what And orders do when you you whole rails -- put front orders? of when to you started process -- the from the understand -- the you when do the

and start and margin I'll we'll Tim, Great. the then question build over with expectations next gross quarters. ordering the talk few about process the of we'll first how

on gross are side Ondas to XX%. at targeted XX% Networks So the [ph] system margins

the little we bit on pull-through. give on volumes And that into a we what around it as of these bounce course, clarity margins. looks more the see volumes. the like we we'll that's but that ramping volume until do revenue get But see get You'll bigger

locations, we're the of with In equipment terms of about bulk and customers around What is we of up is what want with planning talking we're pricing, cetera. customers, Siemens to your with that, they front. the first. In doing really do and Siemens and capacity of negotiations the order Discussing parallel, Siemens. in is volumes that field with handling in and ramp. on production course, process building we're today working but what in and et for terms inventory hand-in-hand applications hook requirements

year, of this we having the conversations front through production So our orders are as targeting see timing inventory and in of and that. about moving we're significant

expect need is what XXXX is start meet of receive what year. that build-out big dynamic we orders to we these the with in to the So of in do we we a front ramping that deadlines and -- And XXXX to the think doing expect balance we're over now. to be function

think we'll building building will be inventory for more for demand even we certainly and So XXXX, the into Siemens increase. returning

the XX a of that? would XX to to of about do capital talk you in? months, of it margin. you're on amount million of gross XX% get I kind mean, going replaced the kind Can you need plan suggest If dollar $XXX How like next orders working you've in million you at funding orders like XXX

So are we do component payment arrangements support build. inventory to have to to help expecting a -- have Siemens we

aspect So we when of ship receive that's expect and bill to very we And attractive a of one terms payments. and terms have also it. payment in

So quite Was we that element that's on think there a us question? to bit help of going working capital. another

like orders at rough size talk you you you of yes, about much this you point? Can the -- placed how see

understand, to an we're as negotiating. conversation on number of the want would inventory to do signaling that that of get mean So delay would is work with those on firm sort I just in defer the moment. this I certainly, I to build want we because part Siemens not question commitments you getting yes, can the And I where upfront that on that to of want to front don't that yet. want the to want on to that, to impetus sort at for some of railroad of put extent so we a this in

quarter the you it will are guessing of months when then really fourth start the do will the And first a X year, have in? Is And really you start to this quarter, revenues, in third and to kicking I'm quarter the orders after flowing? next do sense set but a year? orders have orders X kick

Yes.

things. So a couple of

again, course, need having capacity ramping and to building And the the I'll to specific orders that I of only do and next we a where want start over But the we don't think of are equipment, then the months, put we through now thought Siemens year. few standpoint. us, I to competitive that we do timing on knowing secure a going the visibility from in discussions balance on these we the year. we're expect turns can So expected in ramp given it, I say the be

So I more can't than point. that any granular this at get

kind the quarter best it. this and But it really really year. Is you're like of Got second your the and that at seems the and Okay. to next orders third then ramped quarter fair first the say point? of revenues in the expecting quarter fourth guess ramp

we think when be revenue that is think to of I the the very It But see will into moving a about believe QX are year think numbers do well. say large if QX, ahead -- nice I as we us. through fair we're uptick that

QX revenue receive expect kind these So you of orders pretty will from good uptick. to in a be

Okay.

-- on can at so And received you've how the order of this year know some us give where you're had the a you QX? bookings year. the you sense an far, so you're us for give for the much guidance Can of you tracking beginning expecting I a sense

Yes.

on as as give bookings we want further moving And the -- as don't go you we've we of to So we we're didn't on gave second targets can. for today. And as we side we -- we'll I that guidance half, revenues. the course, update bookings haven't into updated

will next Group. with Matthew from Our question come Instructions] Maxim Galinko [Operator

there? next I'll bit contract volume be the Or to commitments to work that to more meet point? get do do Is to place do you the get extent that a orders engaged have that from you rails fixed brief. manufacturer X. little And to capacity? the now. expect expect in with a I wanted more color to or you're this year maybe in manufacturer just on to Any that the

was some an I'm a going Siemens. been obviously of firm anticipation qualify that to the ask details. for with And Stewart this manufacturer, we've it share it's On with parallel increase more volumes. And is doing to been now. in we've this time again, in working to contract quite -- that

So Stewart, add you to what that? would

the Yes. many they U.S. lines. the support we Siemens manufacturer Matthew, with contract this so we is -- their qualified one Siemens in of is and product in

a now critical And in turned have the the been feel bottleneck boards them working we new and have development over we've they're capital, we engaged that capable. our very past. as secured some in So

prepared they well to So are ramp qualified. and are

us key manufacturer some for other also that's in supporting Canada components. We another have

we I them. feel So with think confident very

Got understand for but a in needed better. how engagement evaluation you've -- just into of, bit to, that and factors understand in doesn't and to get we imminently expect could it ramp still U.S.? engagement and timing me post me you help hey, U.S. or to the maybe certification it. seem it certification you up little And volume question orders a just on you type entities. get several the additional help a before something build it the pipeline, months Is on the with like U.S. if And

Matt. Thanks,

the customers out a ways flight type received can we it because has itself been approvals and there's or receive certification other barrier conversations for lacked we has get with formally So not the operations. to

is UAE. I marketing customers And for it's think have these have we efforts, what easier being level quality as for environments when the to the you'll engage hours, experience certification, see our easier that do in able in like commercial well the is in lot validated things that's this deployment urban to type flight it's more a to point conversations. to of as quickly example, all by we're

sales Meir, to in anything I as to activity the can -- maybe going as that? efficient a will I shorter be customers, So can result. with of you think you would more be it think of accelerant the an it's add process

Yes.

we a the the waiting our approval. this to specific for in will without first to can make this need the more is finished In last now FAA area people time we scale with because operate above build as and United markets remote the not we it's opinion, final waiver. accelerate as open So need the and in approval going approval And this that give get us we're ability area. human will new asset have States game to in only with the in do fly industry anyone to a quickly mentioned, the changer with we will and Eric to deal because and clients it the in one infrastructure

question Our [Operator with Riley. B. Morrison come Instructions] will from William next

to inventories going to out. insightful particularly that shortages understand have be there be wouldn't You might

last the was So what under exactly we talked went this, X Because times it about control. wrong? like

So what changed ball? who dropped like the

-- back component did time. the volume I'll of we production we Bill, we highlighted we're ramping been for to refer had first some that bottlenecks as Well, experiencing our last up the really conference call,

first of but into volume time supplier enter we've guard. qualify to work you off with orders them, lot done components So catch these the can a they them

production. other So things that in those of components us. components bottlenecks. in Stewart say we've sometimes ramp for good we're pretty highlight chain issue shape sort be on volume active But purchases we advanced of a relieve kind did specific We're capital We these bigger to take some And the but as a been had mentioned, -- as base in we July. for earlier going commitments bit addition time. how on to the working can having focusing this has to particularly contract trying a today, supply And you with is I'd we to in moving believe for has last certain we to that's of know, get qualifying as financing completed diversification purchases make financing we the particularly to vendors call. it. manufacturer to component were dealt but the

is just we higher the contract supply, these have the to that some QX. with to that means lead and go through for times, will the ramp, volumes pull started So after that given of described other funding we and ability production announced component the manufacturer the the as -- really into we orders

to is of And how OAS? much applicable this

January. supply the recall, related the XX we that Optimus in to has for Airobotics OAS and XX new the on we're the ramp. we acquisition closed track talking ordered at And -- we And is System. year to OAS -- of as you in were year, specifically entered chain we're time, half have the that. about Networks receive expecting we second still Ondas

for then And orders like fleet but hundreds while, been about a right. those what kind for not systems. we've of major All of looking XX

we there, you'll we've sort new partners. of solution, we identified markets X, we couple get perfecting goes experience. a how When on valuable more out. and that as the at year and still We up that the with We're targeted publicly least were States, or units, to in of like early deliberate United about maybe -- -- spoke time highlighted UAE Arabia, we're deliver to course, activity but they kind working them customers work the XXXX. UAE, customers the again going customer. discussing when they to India, see to so of the ramp of of and adoption Saudi And the of XX hundreds per to Elsewhere, can give the customers -- into a commercial systems in in them with out. quickly And fleet start the from more we're we experience System, adoption. build We we us a through them scale been then have to we've talking take course, came furthest along way, Optimus little with the the in those going we right, do

the other and the were think deployments we in how we guess that do think And as to as on I specifically get you you'll give with UAE. we'll we'll share you able see U.S. in plans busy as markets what we're customer So you'll more path with look as -- like. with -- these customers, the on well, we we activity pet

that, Brock closing any will the Eric to And like remarks. I'd for to turn conference question-and-answer this session. back over with conclude our

Okay. Thank you, operator.

again by today you to Just thanking call attending. for going close the

work progress. to to of staying lot a look it. and on keeping have in going we get informed always, And we we're our touch ahead at back forward you right As and

Thank you. great day. So a have

presentation. now has conference for today's you The attending concluded. Thank

your lines. disconnect now may You