Ondas (ONDS) 15 May 242024 Q1 Earnings call transcript

Welcome to the Ondas Holdings, Inc.

First Quarter 2024 Conference Call. [Operator Instructions].Before we begin, the company would like to remind you that this call may contain forward-looking statements.

For these forward-looking statements reflect on Ondas' 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. These risk factors are discussed in Ondas' periodic SEC filings and in the earnings press release issued today, which are both available on the company's website. to events update required or obligation to forward-looking by no future reflect circumstances, undertakes revise any or statements law. Ondas except as

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

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

Ondas of operator, and company. joined of you, members and Robotics. welcoming subsidiary; want Chief call. Autonomous Simpson, our CEO Aerobotics to Systems Operating conference and our leadership quarterly the time of Meir CFO, morning. and to happy Tenney, and in our President team, and Guy appreciate the I of key Officer Networks; President by the our to including interest Yishay Curelaru; Kliner, our your of CEO Tim Ondas America Founder spending We with everyone for you're today get us by I'm be started good Thank

to turn let's Now agenda. the

quarter Networks I Ondas developments results. some for hand with call will Autonomous financial to our at brief Systems the both start recent will first units. of We business review comments a the XXXX Yishay then business call and Ondas highlighting

side, we activity. to today's then commentary the investor units, update call and and current to business will I open in given call weeks so, delivered provide of ago update I a quite in detailed business for provide That QX. activity Tim the a for investor our a X floor around productive call weeks. shorter Guy, we call where the expect OES shared be from our will ask bit we have last wrap business we Then the Networks on annual our Ondas just XXXX. will investor for covered have results Meir, X We when on been last questions. Even

we at discuss, will we have Networks business business Ondas and As key both OES our priorities units. advanced

start to Before XXXX start we from to want disappointing a the by revenue dig that, into acknowledging I perspective.

call from our on we expect mentioned we As a on perspective. growth year April X, a good

to XXX-megahertz our railroads to start as unit revenue the the to interruptions impacted, well second X adoption as network business be given timelines or a required data with for bottleneck and platforms, This conflict, across to Gaza expand the is course, that network include, Recall this announced very network. rail the the half to Northeast was market, deal, an with The radio technology deploy wireless XXX-megahertz confirmed we upgraded our as pass-through very corridor. in further excited upgrading SAM, extended the PCC system technology radio with related data will the to open key today Optimist our Northeast the weighted which, passenger corridor the standard, that legacy Class headwinds year, PTC the The customer of of heavily dotXX upgrade provide faced drone OES the the XXXX, namely network course, of However, marketing addressable IEEE are upgraded software-defined and activity. platform and created for large dotXX about are flexibility technology to we in X wireless Networks Gaza compatibility map the with radar. the Nonetheless, to advancing provides the cycle iron dotXX-compliant our FullMAX specifications which which Optimus landmark the of Systems negatively as market we was OES' a optimistic customer with railroad. Ondas a a value production ahead our we for conflict. of our XXX-megahertz engage well serviceable order road

are order excited Iron our Raider home-run with where specifications. is the week's we a market-leading Drone We update also highlighted are last platform. what for Iron about we Drone first believe product performance commercial

intently to sharing radar later We to these enhancements more the customer add capability our specifications a and even have on and defense technology partners details we rater, with forward at worked the look to and time.

all orders receive in the and we the operation customers to Drone Networks, innovation the Ondas valuable defense continue infrastructure a production the services These market of other where new for growth prepare starting additional orders to expand the in to opportunity demonstrate unit marketing and for coming advance. support we We expect At as and volume are Networks our security Iron critical with assets. bringing network megahertz continues major activity Ondas the and protect leadership provision platform to signs to OES critical and XXX for months business of globally. secure

with described to made on XXX-Megahertz call. I integration railroad that rail commuter and last Southwest. XXX-megahertz but legacy share railroads, in system will details, the progress provide and X happy a upfront effort backward Class am we the Chicago compatibility in On completed network smaller we on program, the our on systems more the a have the more including with integration now X have Guy we

deployment for still order new XXX-megahertz Chicago, which commuter work railroad. in in validated migration final progress the There's to and May being planned band, migration a received is demonstrating that the that was related to Our when more partner our of distribution now. frequency is system-wide on behalf an early

platforms. secure OAS.With as and of critical critical for Iron into protect Middle operators are well security and industrial tensions from move our technology services infrastructure, Drone significant evidenced government, East, rising assets. the we assets, benefit is and need and strengthening Ukraine, and conflicts strong tailwinds focus are As a in broadening seeing the at Optus as XXXX, These defense, as homeland Taiwan, by officials we opportunities and geopolitical to the and and

to addition Drone, our continue we customer milestone In activity for the our advance on Optimus to marketing system. Iron order

U.S. add in Meir on more efforts East later Middle robust in to well. of share the our the marketing and pipeline to will a activities, Europe perform Our call. details customer attractive the efforts while and Tim continue

a allow intelligence the industrial Optimus the bringing Systems Europe's programs where Ondas HHLA data and FullMAX is platform. week growing is of we for a a the and radio of broad The drone with more connectivity highlight that's inventory and operator Tim to is pipeline Hamburg strategic an XX Optimus systems, here the the markets of of expertise. will to we safety, critical security services will wrap the are markets world third to autonomous discuss, Drone revenue our largest QX last value add drone Yishay? order solidifies Seaport. and additional unit. of market terminal that global customer growing. data government This Sky, Port and HHLA that with relationship the is critical largest hand the entry update. the we business rail up will provide platform Autonomous weak in Further, now building introduction. markets player as business fast-growing The are a and large with would platforms. ability more customer to drive and our XXX security of availability This our our unit and of huge operators detailed maturing across pipeline. Iron first-half Meir believe commercialization in to revenue across Hala, belies With I value and I signed such to engage we security, for and build generation operations want customer intelligence in Sky, signal As megahertz will enable adoption for of also unit call to as the fleet a the defense, Sky infrastructure aerial German Yishay the I the customers an adoption to internationally the provide an HHLA PC providing improving. public market.So this important is scalable and across systems us requiring OES and U.S. activity terminal transitions global which in the system partnership financial and important radar the technology Germany, at

Thank you, Eric.

as about following our our streams, inclusion we're get operational that successful remind XX, January added will significantly and figures encompass financials are see, you the reflecting focus has effectiveness shareholder move our effective both value. XXXX, acquisition. market an the of our want increased our expenses, and OpEx to from addition quarter-over-quarter, continue. This robotics, Further, the scale noncash started, As the from strategic discuss presence, That efficiency. of augmented operating on cash revenue I I despite to down OpEx extreme enhanced and will investors Aerobotics

the QX of million decreased decrease $X.X to the a unit. activities X at disruption with of netbook supply the The quarter 'XX, compared in the business 'XX primarily $XXX,XXX connected revenues slow to related Class our to the Gaza start 'XX. year. at results. result railroad had In Ondas first to XXX-megahertz extended We the and Turning was in to a to timelines QX revenues chain OS war

of as over basis we a shifts and to the Operating targeting product and quarter-to-quarter primarily to due disappointing 'XX States quarter Ondas 'XX. to expenses grow customer development, compared in a base and Robotics negative $XX.X drop compared into the those agreements the networks to sharp development This and development Network provided to operating and development are the such QX cost acquisition revenue our uncertainty quarter to to in today. and quarter OES on was relative Please in fleet ongoing loss progress, low programs $XXX,XXX business gross Aerobotics to operating 'XX PTC underway performance was higher million million in QX $X in front [indiscernible]. operating controls QX services a margin targeted normalize The revenues QX note activity negative Aerobotics 'XX.The on primarily development quarter low-margin announced rollout from for enter of Siemens as as integration overrun of and for at due volatile as be to to new data 'XX. with January for $X.X more 'XX activity, and vary the is Networks, Ondas benefits from million to for narrowed Gross revenues we of service well in customer cost due low decreased services For closed R&D recurring recurring the QX programs can commercial at pattern and restructuring activity company gross quarter XXX-megahertz subscale in profit on the Ondas products, from revenue. in to to our on expected QX of connection more the XX.X% emphasizes XX. recorded levels predictable for Similarly, million The given margin decrease unit revenue decreased cash in United the to as around timing will in the as 'XX of radio the as and American compared Systems to for operations 'XX. compared QX mix given the QX expenses in margin after decreased network and margin the progress. customers Gross between as both typically are $X.X expenses quarter Gross for $XX.X fluctuate MXDrate. that million with internationally. Autonomous

noncash narrowed driven loss Adjusted strong our largely was improved Although million charges. to revenue control year-over-year for XX% XX% 'XX operating for lower expense and QX as by year-over-year compared $XX.X $X.X million to EBITDA 'XX. and decreased, loss QX

cash business $XX.X unit. to provided XX, by of and 'XX million restructuring during primarily Ondas QX financing due to statement. included of as March March our $X.X XX, million $XX.X Cash 'XX Now cash the additional flow gross let's QX operations to Autonomous of decreased turn million. by used had of in financing cash totaling Systems $X.X as XXXX. million We as compared equivalents the cash

companies We expect gross customer as significantly as from Improved cash utilization on in we operating spending come move to revenues at focus and both forward we growth driving expenses profit. adoption XXXX. and cash efficiencies improve into leverage

and an with we Holdings raise announced Ondas we Potomo noted, QX As sales led stock $XX.X by in in million through of capital Charles Capital. preferred February, stock the In and a financing cash. Ondas $X.X million common network ended

equitize July notes more to XX, the and convertible have XXXX, maturities have outstanding. to XXXX which notes, As It some create monthly XXXX, the convert these million objective maturity. is to can the of to we equitize March to Eric. in as convertible conditions April $XX.X to hand soon notes to using our had as conditions. by means in under either time over those the to notes and favorable the via I equity notes or call prior highlight that notes see want retire amortization manage now to we I back entirely shares we will amortization

Yishay. you, Thank

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

will the ask bit outlook the OES Tim for and Tenney regarding drill share to a into Robotics comments States. We America also in United down

believe as an to to deploy call valuable certainly the for technology industrial rail the Networks business markets We will Guy, well want the megahertz megahertz begin I MC-IoT year, rails substantial. to on hand I to technology rail emerging as Class critically Ondas addition private and deployments this wireless I please as customers, vendors, in remains and in other is opportunity that ecosystem. grow XXX I XXX ability commercial confidence As reiterate networks we at that have Guy, our with for in proceed. important large global soon, the the that

to Thank investors. Ondas here to morning share Networks I'm an update happy our be for you, Eric. and this

update As in upgrade detailed very stated megahertz provided call, the a recently. earlier XXX the we status activity on

the that network in integration I goals comments Class railroad my megahertz have legacy progress achieved our will ATCS outlook. share so to in live focus and XXX incremental happy the compatibility And systems the Airlink backward we on for products today Chicago. our and demonstrated am X are

is to the systems is Our to the that. next plan planned frequency the we the we believe just do quarter. and customer, This installed XXX with effort right migration new railroad complete of Airlink to being the step second and this this currently have effort advance band, migration with expect in the megahertz we to

we railroad a addition, Southwest. with commuter completed have In systems second a integration the in

has network. received legacy to on in partner signaling ability XXX confidence behalf an their upgrade Our already this the order distribution customer, of our megahertz

Let significant this network. process XXX is now well-proven making the starting a the order megahertz systems This first we the in the railroad. the commercial this validating highlight, Furthermore, important are with integration Midwest with system-wide network. are milestone, me progress is we Commuter

establish which products and recommended, they As Airlink they for various multiple technology will in we applications. have evaluate purchased to dotXX labs equipment

upgrades regulatory network the moment regions megahertz and through initial rail learned is The Class customers their planning our public mission-critical technology megahertz activities, I also scalable take the across XXX to Siemens across private We with and XXX believe response regarding be future AER's and a AAR of a the for closely other Class critical in comment lead support expected opportunity currently plans. XXX, that the X comment innovative statements want rails related AAR engagement licensed by strong Furthermore, while Megahertz created bands dotXX can for build-out, bands. processes railroads. other we industry's Also, for spectrum to continue licenses. platforms and railroads value that the network XXX, investors to the plans the takeaways. bands. and play network On XXX and component AAR to XXX submitted we operate further track highly our megahertz XXX a megahertz signaled the of band suite the highlights that operations. dotXX rails of XXX XXX, this the was the the letter that and networks remind X XXX May all across role on made in that full progress. Success letter, have private X and We, next-generation SEC legacy technologies to with megahertz these believe they train the frequency networks along highlight valuable spectrum of to AAR filings the to was the timelines in its the wireless megahertz the In Chicago the a some the reference spectrum and to for by statements spectrum the recent deployed integration the some to across XXX the all operations. lot the railroad operated networks Ondas new other We critical, megahertz frequency networks. some in referencing stated have key will key to X, own related network

support continue will work market We AER's and to requirements. realize massive to hard this opportunity the

radio. into the application. for control, radio to megahertz backward megahertz train upgraded partner now passenger made and data a distribution Ondas locomotive major with to compatible turn Corridor a Let's safety XXX Northeast be announcement our entered we Networks railroad. legacy will an regarding the host today key agreement PTC XXX with This has provide an critical the radio network positive

new megahertz, short, passenger track a new deliver on started, first radios of on our the application, or market, the train production In control. rail addressable in note and XXXX. it SAM, are win new positive program. quarter rail is and discontinued offer This XXX already adoption this data The radio transits, replace even is other has customer. shared specific Northeast for across want requirement Importantly, note and corridor, which legacy designed to radio upgrade track the by railroad rail an XXX this the project sector. the that private to new was radio where and XXX transit, a will new a a operators. One we Megahertz and service will to in path final a expands passenger, market, I of represents dotXX, freight network,

specifically point new networks regarding Rail to In and engagement AER addition, applications. MxV with continues and to expanded our work with the

on provide the management to advancing the controller use of I including commercialization our frequency ITCM redundancy for for over station cases network. For example, base dynamic new railroads PTC XXX megahertz, megahertz with provide work CTC and on the the Class required to resource XXX safety

will call back I Eric. hand the Eric? Now to

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

drone announced our scale as first one-holding Ondas newly enhance to of Eric. Autonomous the the we OAH. Holding, Thank formed you, This quarter, our flexibility Inc., worldwide. financial intended company and is In operational business formation we

market-leading by and our leverage targeted solutions focused specific operating providing Drone and and Optimus driving will data radio real for scalable models We holds platforms, Iron autonomous the drone the system, industry comprehensive verticals. security

Of course, vertical emergency we scalable management, go-to-market response, critical and markets initial where demonstrating including are project infrastructure, these safety public construction, data centers. success, and

Our both services significantly week Europe, U.S. has in our which as expanded Aerospace our months Sky C-Astral customer announced like include pipeline to begin organization in recent we last and mature. partnerships in HHLA with investments and

visibility demand Our improved QX being to now the we this after XX growing systems produced expect war. ability has receive dislocation the XXXX. currently from Optimus to of the delivery with production meet by catching Gaza system production, up On

are systems. these behind production We expand plans making to

and services and QX, agreement in robotics support a systems expanded to During our secured Israel. fleet UAE the Optimus the growing of

of by first services. its systems public where in This expected the end is Additionally, infrastructure for achieve XX a continue a entity to public deploying of the world's more local expansion governmental Emirates, drone XXXX. continued robotics is other to fleet than aiming and safety initiative United network the

military Ondas domain, Drone for urgent initial a this tailor company. as As for this this we expanded commercial the compared specifications Iron market. have incredible system order cases in to achievement we completed a recent an later have to are purchase accomplishments fast-growing for potential use and more other UAE, growing evident in network year.In The radar in and This we defense system even major the the on our announcement of we requirements. work the We see successfully continue say counter-drone the and expansion, for hope certain to very believe the well to radar support best-in-class our by in systems a is to team the positions market. effort disruptive

I targeting While in update will local where highlighting are activities on robotics provide that by leverage proven we we leveraging Tim activity, and partnerships robotics a to finish are want help the which have that OAH. business world-class development full to bringing value effort critical advantages the new potential a to of an scalable CEO are can the our update and business the market marketing expertise We many U.S. the my formation are Tanney highlight American the established with in business provide Europe, and customers remarks effectively table combining significant, American I of assets in technology we Europe is use that synergy core experience we Together, operating cases. prepared solutions key at markets an bring to construction, in Tim I to credibility we of now distributors. will our critical and and focused want transportation, believe hand other reliability, over making in we where market American and vertical best achievements Tenney, to protecting includes Obotics. on operations. and monitoring with the Robotics call of

Thank you, Meir.

well quarter, the These positioned flawless Massachusetts ability demonstrations program operations completed successful Aeronautical a segments, demonstration the sight. our the federal, the is sales continuing avoid pipeline line with and for demonstrations with and showcased the defense, Maritime to which remote During we detect Department maturing Optimus of our beyond and within to which Kestral at Academy. Optimus solution operate first successfully system consistently positions a the of Mass visual newly included and us the deployments. This Transportation drive of division, proof-of-value commercial system state,

operations expanded American also around technology and new field We partnerships our ecosystem infrastructure via Robotics. at have

tracking portable air of capability additional a well provider known for as aircraft system traffic. and we a for passive unmanned system For Senhive, example, counter participating noncooperative drones, as also a partnership a detection secured leading with as

UAS drone management assist cybersecurity the Green safety UAS and state compliance and these and with Act. in leader systems. Ondas quality Department assurance enhancing levels integration and country's Defense in through American Robotics governments operations with airspace partnership autonomous have autonomous we certify program highly base. the partnered Additionally, UAS American supply to of the during elevating engaged chain systems. automated data Vehicle International, of Defense with Systems safety highest the program systems Association to and aviation purpose administered technology will Resilience, the Green for Authorization of partnerships advanced a in real-time Together, green Robotics U.S. is UAS by requirements of the The for the quarter Uncrewed U.S. expects of with National complete X. the in many qualification management

We center expect forward to be Maryland completed on sharing demonstration County information on Baltimore in operations We everyone the more build-out training of our headquarters our soon. and June. launched to be new to look with detailed

customers are for the seeing the deployment of in demand both system potential and commercial Optimus segments. We increased government with an

American activities. investors is with on call defense the Drone. its our into and advancing Iron forward effect keeping go-to-market I anticipate and and during XXXX, new hand back both these opportunities security Lastly, that Optimus in informed Eric. look plans second will markets will to I come to half Robotics We U.S. of now the

will Let's wrap continue revenue need second improve conservative visibility and to off do order. outlook we outlook order XXXX. providing We given the for where half. the the secure call now we We're megahertz context on want initial provide that in going for and to to XXX hold to a be are. still formal believe and We summarize

build to to network have they recent urgency. will also that the We in and hard intending AAR out comments XXX some megahertz work the are railroads suggests suggest it continue public the

a around secured to and are conversations, half. expected and engagement, we Sky partnerships the as as the have customer announcement our to as second growth. build in OES, The support the Optimist add continue orders negotiations week field distribution of recovery various in HHLA to help last availability well also such will systems revenue For trials revenue

Lastly, has a Iron customer. by now the officially launched accretive accepted that important Drone very and been will to reference be outlook revenue

that So have our for be financial given investors in very from frustrated the we our especially remains your frustrations, operational Ondas. may standpoint. created large, with We extremely end platforms outlook positive high-growth and valuable a understand choppy markets. belief share performance technology I

hard to you. work to continuing are this We deliver to

We accelerate unit, are our working the confidence will remains include execution funding capital business its strategies, plans which OAH My of we strategies business at plan. on high. business believe and which

doing but we partners. to things be we rewarded. are to sure, job for you. team for remain that any work our XXX% will isn't hard and investors It our our deliver easy amazing if and Operator? see our meaning customers sure It is and make questions. said, there committed are that We With we, for will let's

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

coming think intent It's of in. need meeting clear to Can spend the us And reaffirmed deadline the kind of to much great the you do just on the FCC of kind little you kind that spectrum. color you rails the how more when to give they revenues a meet start that the a in bit to letter? think just rough update

Okay.

of comment the specific the we've shared as you letter. in still look often at I their past. that would with in TAM in used numbers the AAR to we sizing, So terms what point

used we've I think that's of that a in nice size. number terms

it equipment. refer I think to However, legacy does

activity have legacy is network. of railroads as last to timing, of other that and couple board the we've the apples-to-apples. are being in terms and and will we the on commercial with the upgrading So engagement And AAR watched calls, very will in been specifically with in very do further Chicago, discussing and closely. it's there, not believe plans across then necessarily their orders success that We for active we lead that

guess of think, -- I -- there few whatsoever? or any a best out point, updated year it don't start have more revenues seems there on Is the it's the if orders have you put probably strategy a TAM. pricing you'll to might work are you worse. And coming the the the I this in. guess So next firm years, do when like any been At in change you is now, your since scope change think you revenues in

Yes.

AAR I statement September to would visibility. the legacy to do to again because any move need and reminder, And want deadlines I as refer terms a commitments that in those meet of timelines are don't in the network. I covered So off the make we expecting the they're this XXXX.

is the where build-out deadline substantial addition, to have In FCC, to there that the coverage and a show railroads requirement April is XXXX.

initial and X the years. April XXXX in about XX than less is away X months So actually deadline is years than less

to to inventory I of ground you, And side get a orders tell we the in stakes Tom. you busy. can guess will want on on if we orders. revenue be bit have that's So off built I until responsive. add, so can the putting get I I all go. There we got do come we hold that

Do Great. update can on And capital are think your you this now fully liquidity can a just diluted diluted situation? you maybe us point? at your more outstanding A? raise basis. fully on need to what you remind just you us shares And B,

me I ago, to of you. liquidity specifically get call back But on pointed said capital, have to raise expect do last to to on the we that don't on activity X in side, OAH. the some and the front with count, we weeks share I'll and I've have that

it at So that. I'd like to just leave

Okay.

burn? would kind there another So or cash of for Or think quarter to good be burn X? any changes this the do cash you rate is

Yes.

I'd with generation levels. revenue. you'll gross think And say these where down. cash we'd slightly we we the at maybe And the utilization levels up see have into then profit like I lower. picking drive on side look the OpEx or our a these to that -- have will half, revenue drive then second And maybe cash or

comes Our Mattson Glenn from next Ladenburg question Thalmann. with

a of I say, a on disruptions us where feel the you give on the that you a just give you the based you for you But OAH little some us see can coming can side sense there's about what you the year. guess, just the versus scope unit of sense of mentioned? beginning -- at Yes, been, push-out were, into

Sure.

weakness citywide police, So and a I which up in and global first you. we've have activity publicly safety, At reason say year-over-year we're commercial I'll activity and we're and But specifics the public expanding we in in security continues. commercial our course, having half the infrastructure, more see with again think continue of seeing success drone entity do some OAH, the in that disrupted leading bit is as was But competitive great of to quite opportunities be mental for fleet just activity the The with want the revenue. there businesses expect active, is restated groups. that enforcement And to build to careful the the on or engagement and of And I about war, clearly clearly, to UAE there. shared work to pent-up UAE the that's a demand. is very reasons. there's their pipeline. government for They intent Dubai and well. be law That we Dubai be

very we're by So encouraged that.

and we're from agencies some we're have specific transportation building the are And we're inspection. a specifically is ports, this example security established operators seeing heading departments in intelligence Similarly, ports excite engaged. direction and be to going about government HHLA where programs good of us of relationship around other Sky the We quarter aerial highlighted or demands talking of terminal and there. the we're that we

add more we bit I see order we did orders. Radar. that also quite week. new expecting Drone the in a We're We opportunity. have would platform last So revenue-generating that of Iron a announce And

that's So growth help revenue to year. going this support

Okay.

on or you versus do competing stand do else think -- Where you other when the or a -- application? applications? it Iron is Or whatever, like you type the pipeline public are platforms it military And somebody more more there and is of bake-off sometimes seeing begins see build what what be? as for Drone, -- to like type is things? that you to whatever security safety you do against or you're when you On when you think more drone

Yes.

use demand customer So to first substantial have our clearly that going will cases, for is be and military here the initial come. opportunity. with this that's growth we believe And where orders we

bit also groups, say defense home seeing we're other from as I'd Now well. a interest governments, of and and security quite groups

table specifically feel where U.S. the see going counter we demonstrating to reliability we that Intercept play. that And the specifications for that that have we're drones platforms and that best-in-class test that's bringing we're you're product. So a the the to us

the So very is and big growing rapidly. systems for counter-drone market

well now going to So nice after a business, there that's be and to we very build of think positioned starting effort. lot a we're

you competitors when optimists that you're thing? go-to or becoming that maybe users just there's and X times or or kind the that? operators, type drone and having often people on X there and Are of you're Or features to like either is just that competing anything same ports business going for compete to on price solution the question the of And stuff. convert for need kind to

I a offer with it solution the markets activity can see intelligence, day, most from is We of I'll standpoint. incredibly single are bring provide purpose. look from They and So aero can I an We hours We can really using a persistence that's it don't we an do assure how solutions at piloted but valuable is and intelligence. functionality drones, the XX quite have that analytics standpoint these unmatched. the days week, the reliability them of a again, of X do security guess a bit in we solution. range and

the see you as realized spending workflows. being drone So and of drone into incorporated with value the

that what extremely these that we're doing think drive growth I competitive. And to markets. in I is think be helping we're going

like So I our position.

next Mansbach Carter Group. question from Fort with comes Capital Our

$X.X way name million congratulations I you And can computer. the any we Is guess, the that that So contract the this of on why? know not, company with? signed if there

with places request proposal those Amtrak, give what on of -- including the that our couple engagement me in publicly some we've Northeast a had you partner, Siemens. is the I'll for coming The background and the is came RFPs. corridor, So different say that from are disclosed let

order is Corridor Siemens. for the us active Northeast comes Siemens from very with So customers. this all

And Carter. say Northeast Amtrak But includes customer. freight the for the I end ratio which that will developed Corner because is So want well Northeast believe CSX, target it's it's Rail, a rental this rails, for this radio legacy specifically to and as Island a the is MTA, Jersey We discontinued. radio operators the key that Long certain be important to quarter like been don't MBTA, being Transit, New also understand radio. as of has life

Okay. That's helpful.

AAR has this floated been So about. conversation

that. mentioned Tim it. guys You mentioned

or article $XX the that that million. number was piece in So

of this? So what that action taken on be piece could

as that radio are operate. about talk band, calculate XXX to specifically I we What the in numbers far because systems I new those those certified, AAR they system, as can't the by they as certified FCC only will wireless that's only megahertz the new themselves. the are, the numbers, A So it frequency call say is and know, that we

industry spin-off of I get any to frame said time don't type question All it last understand that. you drone as Last we Okay. right. Can Because business. in this the regarding the what feel of is? call, the

happen how it's understand don't color to logistically any happen. Can investors think going give you how it be when discussing as to going you're to that's going us to I further. and

company What into I entity. I'll reiterate say investors and and today can't give you could specifics involve future, did I off conversations the that and a potentially the play is say, with and on of which investment that separate active variety I'll in there's a spending are out the scenarios that.

Mike from Latimore comes question next Our Capital. Northland with

this systems of networks kind Latimore. we of expect on autonomous give behalf year? revenue mix is and you This color would Aditya Mike on some for Could what between

will the the but revenue Well, have want forecast the Systems likely year mix. I unit outlook I say on don't networks, would is to higher business Autonomous our its for than

the your on could counter drones? price also, some And average selling color give you on what is

there you product. a for are margin. we competitive it's and that think we can reasons. it that at very is other that competitive at I very a lower we disclosing valuable than that going deliver to price not points I out It's very -- We're systems moment at see will believe and the tell this attractive

Galinko from question comes with Matthew next Our Maxim Group.

work military sold to the integration be other I'm expect as required and applications. defense radar you wondering to how much custom

don't have lot a the I So the think necessarily we Matt. station. right? and UAV work system docking on question, the of itself, Good

go different I'm there detect, when detect talking sorry. other about technologies. However, systems when radar or And markets, we radar we typically about to we're may be systems, talk

process system, not So to pretty if that we radar necessarily a have integrate system, different into we is very which need and radar straightforward costly. a

seen supply on a follow-up guess, I limitations just any business? you've Optimus scaling that of when or expect you side, navigate chain hiccups then, or to comes do the limitations up the do the is And you radar ongoing it given to some how

question. Good

the build customers as see So we produce plans globally, with Israel. likely the than the radar access we I would you the the other to is in system to tell we're a system well. And that radar of Optimus dramatically with regions in what current as and materials bill complexity standpoint. are less produce

that this to do identified plan we're tracking think But orders we've we and this can I think think got we've we again, we and that. So the say -- Radar. the now, for both current I'll produce, Optimus do

add have ready will in to parts other world, more build of when specifics We we'll to we're that plans to so. the and do

guess side. Or radar XXXX, Do relative going gradual and giving Optimus is expect pull-through XXXX you be on you're out the the Optimus? more a both And a final to not thread. to looking the on I 'XX that outlook. in on developing side, I demand outpaces you Great. it could to that Radar autonomous a uptake? just know But see have And question that how

question. Great

to is both believe going I XXXX for be So platforms significant.

and still number a well. where very you're XXXX Optimus will would that we're see as and say, see going will moving customers to think I engage, XXXX, in revenue adoption. to we're revenue to I larger through standpoint But a is be fleet as going this driven customers turn significant through into which from start existing fleets of year

there's thing we're here Same So with for Optimus. Radar. with what doing a of demand lot pent-up

we will able going think to When be they're still both with homeland add Radar be all existing up, think security revenue will than given to our the but other groups. I probably strong we're going it expand customers Optimus and significantly. defense but to you grow Radar, So models, engage is belief, the larger

[Operator I the conference to turn like Instructions] would Eric back over This any session. closing to concludes Brock question-and-answer remarks. for our

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

have you We hope lot look great informed on it, work going a day. I to we're you ahead, have I our at progress. and right a forward of keeping to get and back

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

disconnect. now may You