Ondas (ONDS) 14 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to the Ondas Holdings Incorporated Third 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're subject to risk and uncertainties that can cause actual results to differ materially from those implied by these forward-looking statements.These forward-looking statements are discussed in Ondas periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law.During this call Ondas will refer to non -- certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally-accepted accounting principles. at non-GAAP is to release GAAP. prepared information shown today, superior is of the comparable most issued measures is of section to substitute which measures Relations accordance for supplement in GAAP in available as provided reconciliation as financial website.This performance to, the measures with directly earlier of a A our Investor not non-GAAP a the financial our as press or

provide recorded.I investors Eric trends the measures viable like management information note CFO. underlying non-GAAP However, to Brock, believes turn the with of Interim & this Please on these Mr. to CEO over presentation event would go Please Chairman, business. ahead, is being now sir.

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

we for and of we outset, brief call. As remarks some with time At your our want opening interest the moment to always, spending the typical our cadence take through a the company. share I you're us quarterly appreciate to go in before

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hear of Ondas CEO & the familiar in Meir Ondas faces You'll Co-Founder, of Autonomous and and the President CFO Systems. from Airobotics President Founder Stewart & Kantor, of Networks; Kliner,

the for In addition, Tim us is joining Tenne first today time.

recently As CEO. as American Ondas joined Tim Robotics' you know,

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] the in puts believe us generated substantial track revenues we generated revenue, million We September.Ondas to the million rick of raise want highlight growth technology $XX through and we sophisticated, adoption demonstrates third For target $X.X from early private capital secured quarter institutional quarter brought in of are million which and for across to driving $XX we year-over-year whereby [ $XX.X million year-to-date platforms.I that investors. on the of quarter, in provided end funding the us the also $X.X last revenue revenue of the we in Networks million QX. our announced

targeting believe near. more we megahertz to global the the success rail The the ] obvious SEC's around and call, in for work of we in As believe standard the infrastructure. order Drone. the autonomous applications. again value deployments, that systems we cycles more recently railroad strategies the with TC implementation setting closer the proprietary only settings the and growth.At markets.At fleet and this OAS, in perform technology and addition announced unique small last of systems we customers was see with [ undoubtedly public are we second technical make megahertz our as FAA. continue end Dubai quality validates the for XXX the customers Optimus will further opportunities and that Networks, platforms developer system, engagement new UAS closer Optimus with Ondas reliability the a governmental of Dubai a raise performance, on Stewart getting challenges the highlighted to breakout with expected customers demonstrates with despite received reliability Certificate the we see Iron customers we Award Type with from in receive highlight our field historic will are uniquely outlook has we deploying Israel, excited our drone ground as system.This with data Siemens from and that help very reflects drone entity customers. confidence September on activity and are and capital Class progressed Ondas we are progress in amplified in intentional I shorten the is to the and for will volume certified we from design Type to we and highlight a just FAA. Optimus our value well for for been roll-off ahead.While expansion and and details we our with the the around the city look driven the for in customers rails. urban network The by continue We We by deeper, safety orders we are to the by customers as X sales of share other Certificate received the markets in collection rail XXX security Class deadlines gold X to continues

in work CEO, experience, person have proprietary protect Defense of position to critical a I'm development large at our is Forces, need As the the Ondas in Counter-UAS American details meeting threat for target. AI-driven for the right Raider drive and Tenne during rapidly targeted the we the The exciting believe to right Iron as going the This requirements He's drones talent accelerated leaders to solutions OAS, people Meir of are we more urgent job to to on an has this announced regarding activity and or Drone Counter-UAS to the and scaling industrial meeting specific drone call.Another a lead at system yesterday, technology States. American announced significant from IDF, development across we have government very He our the Raider, right as and Raider's is United Israeli activity platform. the in Israel. the expansion Robotics the our has of hostile at we autonomous Robotics' share of business unique Ondas at the is board. market time. joined right Tim that Tim locations continue and markets excited capabilities we time. growing and

accelerate a the we're on recently quarters across leadership by am both States, the available the on We'll Tim balance sheet. of pipeline and maturing introduction, becomes customer positioned to from at growing in in as our up both industrial to the to our happy call.In I in how hear grow new this which You'll later touch we with and OAS. with and the should inventory this U.S. is government scale Networks and bit United fortified our wrap are now Ondas outlook.So beginning coming supported business markets,

year a in QX. We for finish strong the expect

burn turn We and and cash we on in adoption drive to review. customer orders, down to continue financial driving profitability.Now growth maintaining discipline cost to move focus as let's addition the towards work revenue to

mentioned I'll Curelaru, I of able he's the Officer, of in section Financial return. our until to handle Chief earlier, call place Yishay As this

result cover yet financial will in rollouts.We as the million XXXX.Revenue expect We third and the with preparation revenue We a today's the was which do quarter significant third both for increase our $XXX,XXX approximately sale start a UAE in remind to XXXX, in higher $X.X shipments Networks Networks. get operating quarter this in OAS early year. over Ondas had in growth adoption the revenue I Ondas P&L. though investors large reflect primarily operating recognized the revenue that commercial in of second platform revenue grow, revenues the levels statements leverage of stage our expenses. not we of larger in the OAS after was X quarter the want modest of QX realized product generated our in was the And for unit started, at I as times of

quarter million of margin and the in in expect XX.X% normalize into third programs as of enter the more margins labor $XXX,XXX quarter a up and and pattern agreements quarter-to-quarter profit The customer XXXX. year, operations, vary American cost expenses were the to as million sharply Operating States predictable for Optimus which quarter in Airobotics in to integration Airobotics and of a XXXX. of to recurring slightly decline service level revenues.Operating of Optimus grow third the to $X.X service to cost, the third related we controls related in We customers larger operations quarter business expenses Gross expenses. full decline quarter was OAS more XXXX, low OAS our of approximately during despite now the a unit. quarter United units when fleet XXXX from of prior revenues the result under of in as approximately $XX service year-over-year and include product a to and third is third in these the due primarily a declined the of XXXX from recognize and Robotics costs at from of compared base quarter comparatively service internationally.Gross from lower the we business a customer declined $XXX,XXX, and strong XX.X% including the

have cashflow cash, announced EBITDA loss aforementioned loss proceeds gross $XX sharply at narrowed not the lower entered EBITDA in the elevated we X X XXXX. due Cash quarter XXXX. We lower at integration company of lower American million grow did stock-based XXXX was our of million, expenses. approximately operating of to narrowed amortization operating, to approximately in as decline reversal $X.X months and we third due used loss of and statement. during EBITDA in into for to $X.X the in Executive focus related XXXX. In from was and America previously the third The reversal including business, the financings to XX% year.The business.Operating the operating compensation. interest to months quarter of depreciation of expenses to $X.X expenses $X.X The non-recurring was related the Networks tight let's interest capital other convertible Airobotics operating $XX million operating under non-cash in the invest of early the and a which increased was $XXX,XXX from third last million the by to in was flow items with investment OAS expenses amortization in supported notes, though of the cash costs third compared in million, of equal XXXX of by controls.Now increase supported ongoing the expenses quarter million the year, operating XXXX. the reflects third first operating the to Robotics.Cash and which turn $XX largely Ondas benefited use by was stock-based addition, losses expenses in to its cost operations Holdings burn Ondas the quarter working for in $X.X million than $XX.X sharply a reflect million compensation lower the raised were of and year-to-date which were expenses The management's Cash departures unit.Operating million million Other business offset loss certain to non-cash the expense in cash for Robotics investment due the expectations. control early $X.X due quarter. than expenses of realized quarter one-off XXXX as exclude Airobotics approximately by through acquisition in charges primarily included the on to to year-to-date were expense third and of cash the which during which Lower

of create which in second In manage to outstanding notes our conditions balance under and in favorable addition, to $XX new XXXX, We convertible $XX.X fortified convertible notes, to the positioned and more execute July, have want have with that we to means we quarter, cash financings highlight the also discussed, the as amortization mentioned debt.I original time repayments cash. million the in used we helped we in have million in the notes had continue maturities us growth quarter the to balance approximately the debt entered $X.X conditions. some in our XXXX cash grow for XXXX.As the Between plan. quite and April, equitize first sheet, our million recent half and

may highlight As entirely to or is prior X previously these convert maturity.I via as by these understood to to of retire equitize it investors. to ] we that want objective features the to notes shares not by soon discussed, convertible can widely to amortization notes as notes [ using the monthly see our equity either our important be

the as limited the the of price can stock note the investor In common our defer the First, shares, note and our of the turning drive The is when has the of capitalization from amount the through a sheet done before convertible of to this way the has balance to notes shares low.Secondly, outlook of convertible or necessarily happen amortization the is amortization of that our financial amortization we outstanding into growing discuss day, now time by investor convertible At execution end X.X% payments amortization does our review the not every our business deferred to investor to of see investors.Let's future. units. time. investor owning practice, extension is option our move to in via option so month plan cash of a the of and limits notes for of the our this. business equitization has deleveraging to market benefit the

of expect during expect growth million as generate months This of our Firstly, XXXX the million $X.X prior our we year business by I business Systems. compared has approximately Ondas. million that have the which X is from to and in important in that years is again, both adoption achieve from hard we Ondas revenue we of motion. adoption also important than XXXX.I have million X After XXXX, want reiterate want our now platform highlight $X.X been XXXX, support for grown critically generated quarter full $XX.X platform and at Networks times to addition, target many units development we our that first the by transitioned Autonomous work of to to XXXX.In a revenue to revenue revenue more have Ondas means year for in $XX in which demonstrated to is significantly to the investors, market in year-to-date, reflecting team fourth both

the are do.We not give extended we know scratched of we surface is just at more original for expected While we is addressing, versus relative large in Ondas outlook business to our Airobotics markets also the of the to XXXX going this that In potential. are we growth acquisition.While time. our strong to specific year, have proud the prior Networks much expected at now there to OAS with targets presented timelines of goals, its our deliver our growth were rails the previous unit time XXXX

substantial both we next year. to expect reiterate, I to However, continue growth business want in units

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

expenses operating cash fourth $X to the million approximately be for expect We XXXX. of quarter

continuing OpEx units Kliner activity will efficiently industry partners. are we transition we of to Stewart manage with recent forward.Now review and our to business customers share the cost field in on to will and going maintain We and to updates Kantor Meir discipline look a ask and

start current regarding the adoption, on States. We down also into to us bit some for the Tim for Stewart, Robotics Stewart? with update our Tenne who deployments work will megahertz a on drill in We'll comments will and with share the the network. outlook customers ask OAS American a in preparations with volume focus dotXX on rails and status the on XXX United

the Great. Thank third for product record shipments you, coming the in revenue was of product $X.X million new Networks, a quarter driven record over Eric. This second we through revenue as quarter another The quarter customers. for demonstrates approximately XXXX. approximately $X.X which delivery in to production in Siemens. strong shipments are comparable product growing development we was a the quarter in that approximately million, record XXX% shipments. prior XXXX, year-to-date In $X.X We our revenue period delivered continued with Ondas by in revenue, had million off Total increase growth and September, is capacity.

implementation personnel deployment with large of with the development we networks We migration to roadmap customers, railroads with continue direct testing our number with future deadline. products us responsibility. Also, engaging services to to network transit rail in now in fully X rail continue with budget the directly of key work customers deployments.Furthermore, planning, our and the and beyond accelerate prepare field on activity several deployments which order for XXX the and a Class a impending hand-in-hand additional for are engaged and given megahertz.We continue Siemens, rails, to includes be AAR work scale the commercial further

to the our continue programs programs, on continue our same move we from advance, and now major to and the submitted to of Class Siemens while to supply as orders Systems challenges production components proceed will positively next the deployments attended the new that with discussions chain on negotiating present controller with come technical with X are rails.MxV, pipeline.The now dotXX to megahertz network new demand like railroad advance Siemens year.On We for the opportunity. of network the on where is constraint. as production high as locations, upgrades. proposals are high new immediate At the on in engaged to which with be functionality, previously, this most a purchase our of such network Ondas seeking critical the several focused development XXX system customers meet which megahertz network, the early plans commence QX discussions our side, which have reflect and migration services We Railway our orders engaged the the areas to time, MxV to project the solution, passenger are a we themselves preliminary AAR, is are have locomotive vital on including Siemens, and traffic The XXX work and rails for meet subsidiary October, we with the negotiating several new to customers.As turnkey expect the capabilities continues and securing needs. value we next solved communications have with the forward to controller focus execute in XXX expecting to transit dotXX would view on in continue ATCS technical and how integration customers' transit existing work deadline.Our with megahertz field hear critical network Europe select the we've continues we and development believe to deploy network are on continued include communications we to well development peer-to-peer the an longer initial and crossing. actively these field band one parts Suppliers new providing new the radio and advancing, as Simultaneous in focus of their of we responses stated program we networking. work, features to this alongside activity and aggressively And on peer-to-peer planning we conference, is upgrade no

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

and moving increasing with Eric. to As the grow profitability we Eric? hand into and profits the towards XXXX.Now through back shipments, gross are focused year we revenue I'll on demand move call as in

us now Stewart. progress outlook ask Meir Kliner you, Autonomous to insight Thank OAS here. and with the developments Ondas on Systems and update provide at I Meir? customers from take will and into floor at the recent some

Thank you, Eric.

for our to the forces exceptional Before providing acknowledge QX team during like of the of the update in would I effort Israel, Gaza OAS, some in defense to the called whom have serve conflict. been Israeli

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security potential and completed for a the successful in way Optimus expansion ports, security. in behind Israel, new many have X with break-in IT further Kingdom India in its will Israel and on focused our in proof Morocco, in in X announced area, provider in the of In a North distribution of compound agreement Joint Optimus Morocco The Under have initiated facilities Maghrebnet and Africa.The MOU, advancement marketing in and Saudi and maritime ports drone continues last creating Republic of successfully North Kingdom Maghrebnet, through for Haifa of we relationship Morocco. marking we of partnership, which successfully of in authorities leading infrastructure PoC the significant Haifa corporations. maritime well manufacture Infrastructure port establishment Israel, now port as the the The for advanced consisting includes the and as other Arabia, and of Drone in in agreements deployment We was conducted port Center a worldwide.OAS concept complex Senegal, markets. Africa week. we outcome paves technology the offer the deployed U.A.E System solution Morocco,

conflict of will used also the grant We from approximately Raider yesterday Defense need in grant that meet Drone in level our the beyond.We to development Drone the continues an Gaza. to The represent in meet in Iron as increase $XXX,XXX Israel to Counter-UAS grant announced of of interest Israeli IIA, The advance a advancing received system. was Iron specific platform have night and to Forces advanced such our Raider the accelerate interest development solution. leader drone vision AI-driven requirements we Iron Innovation our related flying Authority, GPS-denied Raider, counter to the Israel and global and this enhanced the urgent aerospace of be enhancements for innovation of and system in the innovative features environment.The Israel Drone timelines and and the the

our government We the are the need market around support a to urgently information market public In solutions received the website happy This this informed prior Raider the you special grant the meeting This research the a opportunity certification to capabilities progress. large to and financial work protect by to pointing announced work data from automated and people in capture. the share I I September, rapidly both forward growing review are for of of in threats early drone, you non-air Raider.We continue more fully designed infrastructure closely kind and for visit from first disclosures meantime, out Israel drone mentioned to is system.As that Drone for deliver we are ever earlier the reports towards Iron the encourage an certification to exceptional of airworthiness critical in Iron you private update with to its Type hostile billions sector the ondas.com the There of second received IIA.We for working many and with readiness Type posed our Iron system the and granted and Optimus drones. from Drone Drone customers. to keeping about system our FAA. security our for integration carrier, this by we'll further by August such and supported for required very FAA solution dollars for a as look Contractors in Drone the small is believe Defense deployment. our the we

the Type the business Drone U.S. DC data intensive the such as governmental to to certification achieved the the OAS of people. roads is to Robotics, and processes. agency Transportation pipeline will quarter. after FAA able capturing commercial on be OAS designed support along relevant will certification, of American of believe for capabilities expanding engineering We infrastructure Robotics Optimus additional showcasing announced that operations June. for engagement help will We agencies the complicated flying hold only operations.The in System soon ongoing market, sharing X a serve pilot demonstrations to was and for in to and such and program development [ launching and review MassDOT U.S.A operational the Department accelerate we is our will With expect drone Department, demand previously over currently this activities certification response program our customer, drone American cycles.In monitoring. years for forward the secure stakeholders launch look ] launch and in government and sales approve the of program, include emergency critical and manufacturer our U.S. to the The soon.In shorten markets, Type aerial first as and security addition more we with unmanned with will details maturing an to customer FAA Massachusetts Optimus Aeronautical

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to Eric, my and you, call investor attend first with it's great Thank Ondas.

As I drone aviation, Eric spent spans and technology. career that most importantly, commercial have mentioned, a and defense

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Thank you, Tim.

in XXXX conflict to despite operational Israel. for challenges end Ondas This Gaza strong true a expect is Autonomous presented Systems. by the the We

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XX We of XXXX. XX of expect course to be systems our available QX QX initial into over the

We expect production system have an the orders XXXX. continue X to in increase to production in addition and queue

growth you now. completes formal are XXXX with going to the Eric, work remarks. We and team.This my the the pleased our with hard to end back in call I'm

formal remarks. our This Meir. concludes you, Thank

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

seeing growth, in XXXX look will customer am units are and our We optimistic that at we I strongly. pipeline finish both business when I

said, are in questions. believe if our there see visibility positioned on for significant let's I are demand Our continues expansion to and across we that improve, With businesses Operator? XXXX. any

Horan come Tim question will from The first with Instructions] [Operator Oppenheimer.

to what like billion anyone you here, system systems And know XXXX. measure you can here? a Counter-UAS do have competition marketing in maybe $X about The you by does I this? And have market? $X a how guess, looks how much you have property talk do 'XX, that billion it and the intellectual in like billion $X growing I

of how will functionality of different of what sense the from Counter-UAS systems? be ways the Just in more your Like important the type that growth to percentage market? comes do

Yes, sure.

of if technologies market, counter So look the that principally types there's are drones. at X you Counter-UAS hostile used to

drone. radio pluses and of jamming sorts operation technologies which have interferes the minuses. is GPS, of the first the frequencies in with Those The type of

complications wireless the jamming safety other implications. you're of public with radio can communications frequencies, interfere you deploying that when is have system with One a jamming

So, for if be want example, using careful you really the are airport, at to an technology. jamming you

have, On a the a this other type platform, this or strategy it's system capture hand, autonomous. with and of fully we the is system as

-- security typically as market jamming security. addition for we think they There sizes, So falling rapidly.Now, markets from is when example, locations of aspect around plants, And frequencies, you deploy things because that on or of risk kind this places see to communication.So and growing in terms the we important only at various borders, the the rapidly. of grown in where the infrastructure. places it are and talk reports homeland acceptable sort about from radio these market government The we for as where see refineries, of at like and something given when well see deployed there's at the very large such of. point defense looked public as hostile to safety wireless more very the have here. we public the pick you infrastructure, research they're the drones And all not critical front of market about be and the to are of well. is -- page why any as can paper jam congregate we're other to people power the drawbacks drone buildings, value it's the groups, significant going We is we likely sky, and up stadiums, that that's day, a

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would is offering unique that. highlight we're I what around and autonomy that So

-- that was anyway, So was that hopefully helpful.

GPS-blocking. say on to is now like a true market? the yours mean, anyone it's So market is of the majority else with system right I there

think We're majority that a that we're techniques. others they the think we're that the levels. the We we uniquely at don't factor, have yes, capture those delivering. think a autonomy cost jamming couple all or But and aware I least the capable point the have in point is of capability. price the form

orders need Back think side, next occur rough rails X and us maybe spend spectrum, years you an finished? to big just the the of have how much the update can when to be you vacate give to to or timing rail just you on expect they existing deliveries on big idea the when on do and

Sure.

coverage -- infrastructure starting at So the what and need in XXX along of in addressing the that TAM based and doesn't remotes, field, the or the base network station we're calculate deploy we the the track, that terms they megahertz endpoints to edge right? et on change, across We believe these, cetera.

the is what discussed. still So we TAM

at or which Stewart and time, AAR.Now it a scale very the use group lot that they, underneath -- that deployments we're is and you, the the began see the the field Wireless C&S the the the intentional that we in the we've groups X a keep call XXX you a the We're railroads. statement with X, most material running. remind the March, along group with I'll central first the said, – to trains where that to in folks communications other to responsibility and of the made where years, specifically have been amplified, getting seeing will I lot customers, as as of the remind are the WCC, in we're with to important technology, network operating the going umbrella begin our work bulk Communication very optimistic to was signaling of megahertz to the field, with point terms with industry. work and of Committee, groups. that with we railroads with we're the them.And across C&S dotXX work orders of even group, the And doing work for point In

through going And system operators planning, doing that are the this they of -- through deploy implementation to they're So with process the the network. and what maintain course, have whole some how training the us a we operate has complexity. going the we're going through is train just and then And to -- for is the system.Of

blocking we're modern activity, So to through repeatable is the they're attack this and implementing this be through again, new scalable as it all a that deployment.So and can mission go going make sure the when system, they of critical.

that, they're the need they running. keep While trains doing to

So advancing. doing we're work and just we're that hard

really getting So said, to we're a Tim. But put very is now. big on tracking going specific I and we're year I this, do close, we growth orders date XXXX for can't think be a and that as

I'm thinking give talking any early, So important. of some year? on range in for I really kind specificity, revenue revenue do not growth you helpful of mean, to be next next about can how us it's pretty I know thoughts but you're can XXX% it's Are or looking you of what but growth? kind the year, -- about XXX% revenue would total.

production to Yes, done before what so this early year, XXXX, XXXX we've -- get capacity without the capability we're for we're a at doubt, we're when and looking which and inventory moving, provide start that well, looking is of and building to activity. at into our looking -- really when multiples just

railroads. We have the

So growth there's next a year. be significant going to

a a thinking you're a I I rough margins us know there's give sense you about of give rail of And you secondly, the lot gross and parts, year? moving can between us idea breakdown And then mean, drone? next can what

Sure.

highlight to rail, to are moment we that. so getting at going I we're So the -- the want back

and now planning Siemens are XXXX. customers with the We for

it's So give specificity be this. to me some kind of for little you early around to able a

to have in continue fleet expansion side, drone pipeline. the On we to it expect a going U.A.E. We're the

As also as, as Morocco and partnerships some well in partners India know other we've established now local you Saudi Arabia. with

think we're the course, we're our States, maturation And United then, the with in there. see to of of we traction So to pipeline growth. going going here get significant

around of technologies, proper we've to across going But past margins. to said still to we very even margins, the details attractive look ready, as that platforms but early like low that.So our that.In more these businesses we'll terms at be when planning and volume than business I'd At year, able do year, revenue providing our these double expect can we we you'll put the we're levels better in So think some next next through and probably the see -- we're lumpiness. that

to of at this kind fixed Our as little for on give highlighted, operations. OAS level a quarter. the down color a margins were a kind of And business it's a of service census bit why, unit field more -- you cost I

look field with people have tasked serving who are at next year.But the the that and debatable for low growing we customers of whether service sales to field, a some in the we So quarter should very operations relative that revenue It's and or also that SG&A was this be sort or in drone related of we'll cost business. as had COGS compared the and to costs business.

we're line, see the margin at to expansion at look leverage targeting you from going in as the So as get on gross least the we believe, operating margins volumes and beyond, And year we're and some next there. XX%. I even

The next question will Maxim Galinko come Matthew Group. with from

turnkey direct engagement why Can the you more around you're touch Class mentioned on to little became you Stewart a the provide a how go around bit into -- a think an deployment. that delivering? Can detail that to opportunity of I megahertz rail changes X and scope XXX what services

let Stewart, I'll that. you take Actually,

the to starting So to our expertise some networks. see customers looking are as to is, deadline, what in deploying of wireless closer we're the we're getting

does opportunities. I their where But confidence assist historically, us to their of right it rails lot what not have in now, but solid starting capabilities, the deployment. our open and the would ability in trust we tightly processes. our deployment see internally terms a new of is and a it's to So say see in trend And accelerate up we're managed that also is growing

this but in it's confidence think a represent additional we So it think does our heavily forecasting yet, we new We're capabilities. not do opportunity. showing

that, great And point. I'll it's a amplify

old valued expertise, as right? I the daily new, are bring network, general to there's while highly. lot literally Migrating expertise in is on a a demonstrate IP running, we in to complexity of Stewart's alluded the a basis, from Our saying, migrating trains rightly as -- modern, decades we legacy and terms technology still a there of

that. on how significant minimum be we'll So at operation new on certain But strongly and training for Board, called see deployments a and of be advising to we across systems instances the more services involved are we folks in the and network. even -- around and likely

And going then it's all the but apologize as to I a point. [ up, follow same I multi-part this ] to think be getting

get margin trend? if in kind cash provided opportunity thirdly, there reference a I'm talk do managing a that of around take of pronounced a apply your you're XXXX, general complexity, little operating expect color bit it what for you for bit run rate? again, asking your looking and helping rate, up Can know the think expenses, How that in rail but around burn to color your a gross can becomes we into of about from And staffing we about -- think to You 'XX? -- can sort scenario around you of little kind I OpEx that where QX. more is of around OpEx I

Great question, Matt.

different a it at look we'll ways. couple So

to increasing our next significant we So And firstly, dramatically. believe across leverage businesses. be OpEx, as entering do shouldn't say both operating going year, we're I'll cash we're get a

to in service, field add we're operating to that's the actually accretive Networks, of the specific those is because be services. we be the to Siemens our products to profitability we've technology have as to going leverage OpEx, likely that more are see going platform the And because apparent customers really development Ondas -- more just able extent related most to of terms got to for of at we discussing, were you if railroad is even to charge desiring. and and Specifically be

likely with the And that So going those to on a some the actually to expand contracted transitional customers for of people with simultaneously. field with services and I least for you'll OAS and generating do partnerships on see don't you're drone to can field scaling revenue significant us particularly see Gap] unit. U.S., be a Networks.As [Audio at see OpEx the lot services a probably Ondas third-parties. in advance. in establish be able way in And side us We're the actually increase business side we're

Markets. come Our Northlink Instructions] next from question Capital [Operator will [indiscernible] with Mike

Luke Mike. [ is for This ] on

Just or how how buy to this many on million $X.X the you was many able touch order. guys drones quantify order to to units wanted for? Are

kind getting we'll No, as install we're not. do you And year, for I'll of But different. the guess with is, a public have systems I the but in our proprietary base -- connect as to sense of information give various are the we're don't next want now. strategies we we're -- say into a I forum solutions. the work customers to this is given levels all And think -- what I pricing

are So purchases, so. some some [indiscernible] services, are

total Is get any the able that. quantify Dubai into how many way there totally to region? you'd be in you've I sold

I don't do right want to that now.

sort Or in for XXXX? this of any outlook region

-- And as from customer the of have customer bigger. expanding XXXX. the We've in to India, Dhabi. by Abu the those Yes, similar from more that the partnerships comments fleet have region, in so statements into intend opportunities systems or safety, XX in our as starting we with other public course, such they seen the we're public and that, markets big like Morocco the are Arabia, as Saudi other markets or conversations there's

at economies those seeing outset are we're U.A.E. than of Some in the significantly larger what

And then the Networks Autonomous of and now between to -- could total of employee up provide kind headcount kind and just what is pivoting you just here, split Systems?

I so, that number. at I But don't probably in half. haven't more a it number, looked you it's the or XX -- bit. about so but have we're half and a specific and I handy, say Yes, get let's can it's

go the turn Brock conference to Please like I session. over our to closing remarks. concludes any This for question-and-answer Mr. ahead, would Eric sir. back

the going just by operator. to again you for you call thanking I'm attending. Thank close

we lot ahead always, at have back we're to As a and of right it. work going get

our So you I keeping informed to from progress. look forward

will a great talk We soon and day. have

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

disconnect. You may now