Ondas (ONDS) 12 Nov 242024 Q3 Earnings call transcript

Welcome to the Ondas Holdings Inc., Third Quarter 2024 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. 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. Ondas undertakes no obligation to revise or update any forward-looking statements to reflect future events or circumstances, except as required by law.

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

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

key and your morning. by be happy our We appreciate to of CEO to Neil get Operator, the to Operating quarterly with you, the Autonomous spending and interest Laird; and by Chief our joined for Airobotics you're today want President our Meir and members Guy Officer good us Interim CFO, conference started our Systems team, our Networks; President I of and in the call. Simpson, and Founder you Kliner, Ondas welcoming of subsidiary. of am Thank Ondas including leadership company. I time

Now let's turn to the agenda.

call OAS we floor saying provide around Guy simply, Ondas. is the and will our exciting current units. questions. I the results. business business developments We our for will business begin then call business an our for quarter provide third this by the We'll will where both units, at business Networks financial then a Ondas ask comments with Ondas Ondas to a Then some for recent I the of commentary to investor Systems I call start hand highlighting review open and time wrap call will and activity. Autonomous XXXX for update Meir Networks will brief and Neil the

standpoint, the that but established Drone belief the This looking system challenging will Drone with signaled in the our prime and Optimus their financial our history. Further, effort pricing that course, the XXXX. The reusability entry its exceptional, Our hard for the environments, market not for capabilities OAS million global success, a importantly, continues Ondas margins more technology to translated Iron substantial to of candidate is significant military TAM markets this in to of dramatically as for also to expansion autonomous has platforms. to establishing platform global the in as markets commercial is Ondas QX global news military company's counter-UAS work for continuing expansion solution This both infrastructure. We portfolio. Further, record positioned unique the drone occasion in visibility performance Raider market. hard-kill Iron the our Iron OAS, programs improving point. third big and was announced believe platforms. We into ahead, revenue-generating autonomous customer execution, price complex the and as Iron into a a and threat revenue Raider the protect but for received into OAS hard-kill increased Drone SOM, being the and customer, is we both quarter Ondas hostile own a from a can their the secured that maturation time. obtainable is for the I platform translating the of vendor, into the This country of growing OAS Networks. in with has but from the perseverance representing has that also reflected leading team orders, through customers a has and increased. I category and for establishing for am best-in-class conflict while were growth in quarter, operational serviceable an the the the directly our today, incredibly market, Iron and our Optimus into believe only truly or supports in Israel and from defense orders and in of recently which a and proud military support see a the Raider we $XX.X Drone from have significant identify at high-performing of Drone opportunities and orders our further Clearly, also advance is disruptive been largest drones. is war This and to our pipeline bookings team there standpoint, business. while rise

are supported by we government-to-government are engagement customer. additional customers opportunities military fact, seeing those our with marketing tangible and In military initial already,

military-grade our be military will GPS-denied Optimus operations. its to market-leading unmatched autonomous secure believe to security for and checkpoints, rugged Optimus operations this bases reliability of functionality demonstrating now environments. markets. border exceptional complex addition, deployed this program aerial In the due system the high-value performing for We system was in Further, enhancing new entails for remote OAS in system to Optimus and chosen its critical requirement design this in allow capabilities security the

Our would for ability both our Optimus requirements by see stay a Iron valued utilizing This We like moment. systems. steepening highly remotely and services demand is and inspection for customers. I a expertise to to our on autonomous testament meet engineering across which aerial drone-in-a-box a security Optimus expertise, operated is is curve military these to Drone. demonstrated

and opportunities protection industrial protection includes data as including increasingly semiconductor technology pipelines establish Robotics ports, operations has and and of maturing. and see customer the most scalable and we to assets, safety critical requirements satisfy to protect see American the military secure work capability advanced, and critical to ability markets As the public locations. The public public customers assets specific infrastructure, well as high-value managers officials of are We centers in facilities. which our we for that with demanding safety applications, evidence and security scale realizing safety project and are military, existing critical in

commuter milestone, progress and order Siemens, partner, primary the new quarter. plans is want the is the For system-wide gaining to secured highlight Metra, railroad's upgrade This from Ondas on to the distribution on will the we Networks, for megahertz our XXX clarity rail strategically network. Chicago's in reflected I A-block network in support a Metra for XXX the system. a fourth megahertz of This beginning significant important

This Networks new fourth this Class Ondas quarter now year phase order deployment addition, been for a band that and secured railroad dotXX expansion expansion of is network live megahertz operating live with since an last in rail a operator. has an In Siemens network traffic the with of with of a a the XXX in is trial I Chicago. and an

and the megahertz a upgrades wireless adoption and the dotXX and country. American short, freight this in We of complex an plan XXXX, Chicago, railroad Networks North of of the is expansion Chicago network. In new across Ondas the in we most development, standard Chicago in expect with it broader railroads operator this standard with the rest to that megahertz a support are likely in activity comprehensive deployment migration result demonstrating railroad wireless in established start XXX as we clearly to industry deployment railroad for Siemens there. The to in important environment both Metra the signals dotXX have XXX by robustness as from that the

in PTC to Simpson as ATCS to regarding see cases railroads expand use In also megahertz Guy more the function move migrate where certain that hosting general-purpose platform In network that on supports to short, CTC should addition, known a a to network. In and a traffic the we lead host capacity PTC and the to as multipurpose as application robust the control network. new value hosting other on increased and moved train the dotXX and a deployments megahertz In the orders and with This well will either we ATCS, train the network. this CTC, regions, railroad multipurpose primary as for the and the will consensus locations, to both secondary transparency. carried XXX megahertz positive or our be will backup redundant XXX applications. Either In network, network. positioned both way, with XXX railroads flexibility increased of our control are legacy CTC using secondary XXX XXX protocols XXXX. network this system primary CTC a XXX XXX customers instance, megahertz network or is we situations plan emerging demonstrates legacy hosting. a But megahertz megahertz. will see use in across system railroads

Neil? through we fulfill to momentum up in should the introduction, I as business significant fourth with So move the backlog we We update. quarter. to see the both pickup as over the Neil at the also revenue see the a additional detailed units OAS, building see wrap we and the now balance enter hand orders provide to call quarter backlog third of financial QX. I will should

Eric. Thanks,

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

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

programs a as railroads, activity MxV internationally. In extended megahertz to rollouts agreements XXXX, fleet and both compared to depreciation of for prior to expenses quarter-to-quarter timelines the targeted the a amortization the approximately mix million, $X.X of operating basis $X.X year revenue. Operating Class with OAS quarter megahertz $X.X around expenses quarter-to-quarter service primarily Networks EBITDA $X.X with XXXX, the levels into to and of million. revenue fluctuate from development loss compared to $X.X the $XXX,XXX the service offset commercial were the for OAS year. Adjusted programs in we onetime performance in revenue credit third as increases with XXXX, as revenues delivery. by in orders base of XXXX. the in partially product, noncash pattern For to were the QX margin stock-based customer as lower-margin which enter margins million to as million for for more Rail. Similarly, XXXX. underway more a X% was XXXX, is the compared compensation million from margins million, of and on approximately and quarter, service QX to to front and as lower development low QX as QX costs of $X.X $X.X XXXX, was This as customers vary and million development revenues in million The third compared quarter network given XXXX. XXXX. The will expected gross of operating compared in quarter-to-quarter million reflecting to in uncertainty certain I gross be of Siemens due United expenses compared our quarter the exclude at Cash XXXX, the as started margin for credit recurring result of at $X.X compared the was of included for to XXXX, activity product to and in QX operating timing States Networks, stock million revenue compensation the revenues at fulfill are $X.X due XXXX. XXXX. $X.X was compared to grow can in the to related to well mix were normalize predictable Ondas compared of shifts the QX the revenue revenue prior OAS revenues and operating QX Ondas received $X.X Gross for the and million of customer between QX as XXX Cash and million in XXX for loss we expenses QX purchase quarters $X.X for as $XX,XXX quarter to Gross QX projects, was third $X.X volatile for those change in the quarter. Gross XXXX, fixed million higher during third QX XXXX, for in margin the the XX% and related

inventory secured $X.X decreased of via operating due operations XXXX, single XX, So & turn equivalents Ondas institutional Potomac. Cash equity held as cash used million the Networks XXXX. The by lower X the included statement. cash the to to of Airobotics first and by a X-month cash purchase and to of in from investor financing and integration million orders direct third flow in Ondas months American quarter in an Charles offset totaling and $X.XX because as Robotics of offering of third provided of gross We million now September December quarter. partially actions, million of $X.X the million million, compared XXXX. cash primarily million, let's XX, XXXX at expenses via million the in at The to additional includes registered a Holdings increase $X financing to $X.X the $X.XX which during cost-saving of $XX support received loans by occurred $XX

September financing through gross lines prepayments credit revenue for notes equity potential cash on under company efficiency activities, of controls borrowings QX operating we revenue in a from the of expense expectation as potential profits utilization XXXX, funds We the sources. to orders, our growth quarter. and growth, and our the leverage cost operations hand proceeds recovery unit fourth fund OAS to of continued the gross as debt improve offerings from comes and outstanding issued or from given additional seek the may generated payable, at warrants expect from XXXX. The of purchase Improved from or business cash fulfill proceeds in from cash expects backlog XX, from customers company orders its in profit and beginning that additional other and

XX, of as the we mentioned $XX.X notes Ondas in outstanding. in had Ondas million million at sheet, terms XXXX, Networks. September had previously, of convertible Holdings notes outstanding In And as convertible $X.X balance

We notes nonconvertible at million Networks. Ondas $X.XX also had payable of

We quarter September have have Ventures transaction capital. in XX, fourth million fund This current a $X.X maintaining a Eric Ventures at we Privet million Privet includes vehicle to is been via & owned to Subsequent an our an by $X.XX Charles convertible focused note funding our additional Brock. of raised investment growth on plan. the CEO, by led Potomac. and OAS, liquidity

In who Networks relationship KLEAR, backed addition, with a customer we've provider October, $XXX,XXX working invoices. to established Ondas capital by provided in a

OAS. And KLEAR support capital help working relationship have call and the orders will both grow back to the to additional at needs as Networks liquidity now expect Eric. I via to hand Ondas We

you, Thank Neil.

Simpson at and ask Now share to Guy Kliner and updates we Networks review to a operations Meir Ondas will and our transition units of business development and on business OAS. activity

Guy, increasing for who to that hand to the plans are call their encouraged vision begun transparency the we architecture certain megahertz. and from I want to network As reiterate by railroads have I communicate XXX

as Despite as for markets, megahertz timelines, we with Of I proceed. orders the technology networks wireless well visibility customers push utmost in the other for valuable customers. addition and Networks that critically railroad is timelines to prepare rail global XXXX. I Class opportunity Ondas for for remains rail as the we course, megahertz network XXX the rails, XXX the please to continue extended in private substantial. Guy, deployment the on have confidence for

the and of this Thank I've QX, you, with is Eric. is The Once their with share railroads' morning that plans. things making. In previous again, general I'm for happy progress to and OAS Networks definitely that working talked improved. to news be investors our lack of timescales here good the visibility calls, about the have in challenges deployment the

primary Class partner, received of A-block the that distribution a almost upgrade XXX megahertz network XXX new order live I supporting Chicago, Metra, to field Siemens in also Mobility, commuter system-wide the also Our a from Chicago, trial, of system introduction has the their general-purpose to for channels project to rail migration traffic been an order megahertz railroad network. of IP an from for the a and Mobility year. applications. Siemens XXX.XX includes support This a in received the expand

from railroads. The of As migration to to its megahertz positive and legacy train have or interest the control, megahertz with messaging only made FCC start products providing XXX the This redundancy to that scheduled but This QX, has this recognized achieve milestone to a or Class not by successful network the applications required being commitment start the multiple XXX In megahertz validates this operating this to now of trials this recent later XXX.XX of a adds into on of the XXX points support XXX.XX operations resiliency, centralized deployment supporting Airlink ITCM key objective. of eliminating PTC, our a over in failure. control, Field of is network. strategy XXX we month. This to value path Metra, traffic I critical the are products megahertz train XXX continued month. Multiple critical the the CTC, network of also megahertz and network backup railroad XXX on single the an is regarding customers activity the railroads Airlink networks AAR diversity new network general-purpose build-out, for activity the by new project use in legacy extending will integration migration. transporting the includes expressed the later A-block. primary

partner, Beyond new XXX with on program megahertz, our Amtrak. continue data behalf Siemens radio of to we the execute on PTC Mobility,

Amtrak to of QX, and the completed development track delivered activity were be radios QX First-prototype is in on XXXX. in to

radios of Mobility first-production with Siemens Amtrak data in delivery to the expedite XXXX. and QX We are PTC working of the

with work locomotive European new in a radio key with for to continue the XXXX. QX We achieved on U.K. market, milestones in Siemens the development

longer to expect trials NGHE, events with and are has comprehensive recently working prototype operation next-generation the Rail Europe. In bake-off program We to a actively develop or Colorado. deliver the few of Networks support rail safe MxV next and the to the unfortunate a trains, and next AAR response the and at the end-of-train, in in we Siemens AAR's weeks, technology initiated to in test has Pueblo, support identify various in to industry facility participated in the radios field first head-of-train solution. Ondas year

expenses network demonstrated for the enhanced and During XXX.XXt of compared successfully other of new commitments. performance the technology these with we commercial advance substantial visibility standard XXX prudently of our to the continue alternatives. Whilst improving, we in legacy tests, the is HOT/EOT megahertz orders manage

finally space XXX.XX rewarded. wireless confidence in technology the application Our railroad of being the in is

proven and the multiple to across be again, extremely and with is value there and remain opportunities. I positive of work applications outlook have on railroads. the expertise our technologies much our still done, we While time Time

fronts execute multiple demand. on positioned momentum the on and well building are pent-up to We

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

to Guy. ask please Kliner and us Meir's Meir, include floor I will will the Drone with take you, an on Meir Ondas now customers. thank Autonomous Systems. proceed. on progress Optimus activities at update and Iron update comments Well,

you, Thank positioning an the quarter, Eric. outstanding Ondas success. Systems Autonomous business for had long-term

Our safety generate purchase million in allowed energy for expand security to Optimus focus on and and bookings bookings public homeland a the orders. This military, decision advancing our both Drone. hard the $XX.X to in market us platform trend record development with quarter, Iron work in and positive markets validates

is the highly infrastructure, needs We and populations. Airobotics will most standards functional secure known rigorous the well and, ability importantly, locations, highly its industrial most and protect requirements. global meeting increasing and reliable autonomous systems, for assets and to address to produce complex critical

We not are but industrial-grade solutions, just military-grade. providing also

Our Iron demonstrate our technology produce to platforms Drone and ability Optimus dual-use and proven scalable autonomous built-for-purpose systems.

is Of this built the possible because have we will details within experience of bookings these I more our shortly. organization. give talent and about course,

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our extensively In network drone are local with and utilized governmental expanding, and our is partner well. the Dubai network addition, Optimus in operations performing extremely

forefront becoming day-to-day We action, are once-thought-to-be where at are the to a now urban reality. excited operations drone public safety be drone of futuristic

this Dubai to by news hearing We more looking are from forward year. end the good of

facilities Ports the potential fourth advanced Hamburg critical for as departments the intelligence prime continued contract with operations, customers emissions ] on expanding and Europe and the operate during public delivered BVLOS American support in for working key Long Optimus police partner, our customer the in the largest see providing monitoring quarter defense, Port also the the Robotics believe U.S. will U.S., leveraging have agency. American DOTs, AR perform HHLA have half pipeline follow-up customers are reach [ Optimus' by are Germany. In for and Optimus performed demonstrations security with the Coast Angeles Beach conduct American in the a the Robotics and to the Sky, the of to at and on ports ports key multiple highest demonstrations recognizing by November market system FAA showcasing U.S. We infrastructure and and aerial Robotics its second Indeed, of capabilities will successful of our We security for a American safety, type to of States Robotics data terminal remotely successfully system. We of into maturing, demonstrations castro to capability Los customers, maritime the of EPA system Guard drone opportunity management. federal one the with also a construction vendor initiative and Clean United fleets the centers, meet semiconductor requirements site deepening supported project to unique demonstrations. and certification in at

for models, data In with building and capabilities Optimus alliance addition, sophisticated OAS develop capabilities security the of together AI entered analytics develop system the with their inspection to Studio a AI-driven large go-to-market to leveraging required mutual in Venture strategic libraries data GenLab best-in-class applications the and capturing tools.

bookings details the mentioned, previously systems, Optimus our platforms. upgrades orders Raider provide were to purchases. We and we to had Iron controlled the we in additional capabilities for deliver specific August. like I As fulfill for for initial order and systems technical a demonstrate will customer deployed how these an explain Subsequently, environment. would Drone and order during received the which received both I we Raider and on record-high Iron Drone these

in September, military defending we are deployments deployment assets orders fleet order activities locations ground during third for These Iron and totaled completed Lastly, this Drone multiple borders, for for forces. a $X These customer. live million. for approximately

complex and border and expect the a This address if different serviceable obtainable security our for global including amounts deployments. base reliability military operations intend we few, systems the this ability for division meet security availability we the both system, $X.X Optimus market customer, United these X requirements, and well States. In from security defense comparable as border Drone homeland address dramatically are deliver support last Iron to in a our there short, for expand homeland military military Optimus order Optimus this Optimus and has We demonstrates a global able Optimus expanded are and and for persistent our significant as security. We and approximately to required aerial order and in and to perimeter a provide both environmental These any, to believe received intended and same the million. customers, and the which to for a Drone systems For to the months. distribution large customer capabilities Iron system. opportunity the to military for markets to for

forward We to the orders QX QX XXXX. are QX during looking fulfilling and

As we be into during many deliver success-based opportunities are XXXX. with these the we customers focus customer in systems, governmental and other this and expanding will defense sector, our which QX

advancing partners. will We required the sustainment deployments upgrades focusing customers executing multiple and support and of operational systems our to and be in on specific locations our activities implementing

orders will be volume on growth. and chain to services and our follow-on sustain We our working supply building infrastructure also securing business

global capture with customers. defense leveraging to our looking customers, these are We activities new current

in mentioned our opening, Dubai orders utilization during are coming I QX. to and witnessing the we more see As of strong drone in expect network

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rapidly the few drones. I will autonomous of dig growing market the the little the communities as realize system U.S. and benefits fully to well police last the call evolving opportunity which now years. drone-as-a-first-responder public owners a critical market is drive assets Eric, more over departments will infrastructure technology rapidly the hand and We and expansion and will Optimus the in the deeper operators who of as and growing as market, safety into and of

Thank growing take want you, time to and in the context share Meir. to on some public evolving I rapidly some safety. opportunity

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to ahead. on a X.X autonomy, ability that to is multiple exciting XX/X DFR details and So reliable. forward across scalable sharing It availability operations, market and scalable requires DFR remote service the infrastructure more network. drone this shared full in look requires quarters the proven We agencies

and XXXX. QX for develop and summarize call Let's how provide outlook in the will as business some now wrap to and context the the where

programs. QX, expect revenues Networks for in modest by We mostly driven Ondas development

we However, beyond that a are and in XXX in megahertz emerge to will XXXX. major continue orders opportunity financial optimistic see railroad and

we For as fourth to in see fulfill orders QX. the growth in military beginning OAS, we the quarter significant announced revenue begin

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the requisite and procedures with integrated our with We deploying systems partners. operating in are activities Drone sustainment infrastructure Iron command-and-control customer and standard the are developing and field

team to opportunity to marketing to sustainment Optimus additive We new to demonstration expect and operations existing training with standpoint. We happy months, will capability I to to revenue combat the American Maryland including expansion Iron success States, security the is and volume customer and as critical X.X The contribute highlight, Iron customers well are as substantial new the parallel, our infrastructure, capacity, will revenue allied Tenne and customer as our with coming defense likely preparing increase Drone result and believe as opportunity centers field as United the orders remote and assets those such critical XXXX militaries Tim in customers, on in of and we expand that DFR will both be for including our XXXX. I center demonstrate of stood in up. safety customers current expanded am other supporting for also we globally. with is and accelerating technology platform both facilities. data the very in and an to in ports sales deployment in progress which Robotics from and the have production want protecting an and and well Drone the pipeline cycles public maturation order This program. In semiconductor and with customer

capabilities centers response to and additional targeting infrastructure customers, in critical grow emergency infrastructure. The and and the secure need assets to establish States for and DFR, in and XXXX, targeting critical industrial locations, expect protect military civil safety in ports public customer technology continues We specifically and in similar United military and importance. to Europe,

services needs of highest We meet end have these product the and the portfolio markets. of to the platforms

liquidity in our to now NASDAQ Turning listing. position the

under seek and/or we debt said, borrowings or Neil may As or equity offerings through of credit additional funds payable, lines additional notes sources. other

Ondas Additionally, and our support OAS. to financial new capital for Networks we expect from nondilutive be available partner, funding to both working KLEAR,

investment, remain outlook investment. and $X the Ondas Potomac's and with convertible units. for million & on our grateful support I participated are a ongoing bullish in very for Charles and OAS personally business We We the

we've requirement. extension, from we course, to navigate addition, have Israel. share In to, the we additional from requirements year a we been wrap the are compliance compliance Ondas, notified has now and NASDAQ's price by timeline This had for NASDAQ. I the XXX-day an period an an uncertainty when request prepared minimum ranging want bid remarks. to for meet we'll on with to NASDAQ update issues our where in believe We regain of requested quite rail the the conflicts

remain objectives, totally positioned our teams deliver. committed to to and are we Our

We and let's we for about have that optimistic expect Further, XXXX. With strong XXXX if any on said, our regained note. and momentum, a prepared Operator? there questions. very now to are we see are close

question from Mike Capital Northland first Markets. The Instructions] [Operator with comes Latimore,

Congrats there. the on big the in quarter orders

might orders. how more? a could guess, talked bit another order sense In volume not, Iron would think, terms of a take to Just the if kind Eric, to major of demonstrating little Iron you more Drone I trying success you Have that And about, it Drone when prospect, kind I success? of of explain lead you get that come can had combat long combat to prove in. out?

you, ask comment I'm going to that. to on Meir Mike. Thank

take it? do you to me want Eric,

Yes.

can't I last and them work as Iron before, happening So in IDF-specific say with we months. we But we sell the specific about in what's Israel. together Drone, X here mentioned

operations. are the detection, the around doing described orders. specifics can integrating activities So the I to And of process. Mike, we've on process where with and I can't infrastructure, -- when -- to in mean, cetera. prepared And we will we in control, we orders to this, precise command that expect system's the I timelines around technologies we're the give in delivering as more are but We [indiscernible] et be add XXXX, just can't we're Mike, be that, that, on the say in on as say we delivery, which do installing live that this yet. is just

any additional the you do to on And on of certifications in DFR Okay. cases it. of to able U.S., to use pursuing? working get need then be drones Got the kind autonomous opportunity have you're these kind

with. And you're would we into other No, with work we public go the just of through -- And opportunity have say the with to like doing critical the from whether U.S. in terms that departments in go all integrating operations police protecting through the similar, it with I'd DFR the ports, application, it's or ranges centers, working here work about we et assets safety talking the with we're very data cetera. processes be regulatory the that,

and first from said, for the what the after much is us to we to type add just more easier deliver FAA, Eric So quicker process responder. the on the Federal Administration, regular got the Aviation certificate

about think I of project And quarter gross to just on Got this it. about a orders? talked gross you margin. What good $XX kind on then margin having of this one, Great. last is know revenues. million

will XX%. million, it For be of $XX north the

Mattson, question with next The Ladenburg Glenn from is Thalmann.

QX the I'm Congrats the be OAS particular. of side, Did that I Remind that QX? on $XX that did correctly? million you of most jumping orders calls, in of hear say a on sorry, orders, in strong the across would the recognized and and couple me, quarter

Yes.

order XX shipped time And you Can you on announcement by I Is me remind believe Can of was a how XXXX? Dubai us still XX that was -- then remind you've just end Great. the And of systems. you so sense? the kind early far? can many talking it about opportunity, the give the total frame? us

having to the So we've end systems of they're XX still shipped and by the customer, X XXXX. systems

Okay.

you theoretically over that to of So kind that kind you're higher trends throughout top come the online think the as you quarters rest as it's of to that and then couple like, a line? think potentially a in revenue kind have, because orders go backfill out year. year And Or end-loaded OAS of do -- of be the the of year? could going front of surge there'll well new as you kind backfill do some here,

and year-over-year the through of strong on we them certainly think build I and going sustain growth, can those think it's I to strong, start with year. the levels rest

expect here have military Robotics, with military also new pointed American customers. United you're with So customers customer with in additive as to will our that activity be we States the right, we and we and well. growing then which grow to existing And

to some a Or in at progress process? the orders there there this network lag Is will quickly? that revenue Great. be be side. And Siemens nice worked to see will at still inventory needs through So on turn that into point?

expand There'll a and the Siemens as the need of reordering. But of announced. more be lag these bit be initial railroads we've railroads a in orders will with get engaged,

fulfilled from, we say, through starting that. here, will the order be from the to But to specific, Siemens them from see be just So inventory. Metra, eat

on definitely we'll getting XXXX, expectations. be current reorders So our based

Matthew Galinko, from with is question Group. next Maxim The

call election have a this without bit. little I the a talking guess, Hard to, about week

So control domestic view industry? and can a government of how the trajectory us change you U.S. of might support DFR preliminary the the opportunity give the change federal on the in U.S. drone in

So the integrating security and both infrastructure. our really and, that Matt, for across into I think support and for with I'll say, commercial aisles more use military is DFR broadly, drones

supporting administration that's the will say the But the really particular at again, focus margin a shared. think I answer. I sector. the broadly domestic that's on we've new that short drone with seen So

it's relates supporting U.S. I think sure. I'd out, say netted positive, for producers, to it I As a all it if

to a marketing it's Optimus Drone Got conjunction XXXX? we've know it it. on with military seems And to Is I in I for guess bit evolution that. little Iron a like it before, about follow-up talked but come relatively quickly. unexpected an

So maybe where Optimus' against expectations about that's development. your of mapped talk

what system. viewed I industrial-grade, this we've robust is defense that. Matt, military-grade, autonomous really think We've deploying Optimus as and markets But seen move not answer but and just in to always the more a towards globally more is very technologies. yes

specific global to probably looking question no QX checkpoints in as the a there's we quicker other for at protect that [indiscernible] for use happened bit we're what bases So that's defense cases Optimus border military seen. And we've order the received than was customers. and

looking say, I'd in a come as sooner So XXXX, it's markets, have Optimus planned. for than little for we're in would probably yes, sure, global we defense

question me. final for And it. Got

opportunity. Just to can you production of to components a the that to and point? happen in has in source Optimus like position Or that the get feel done? you that build to building ability quicker in get Do scale what where maybe light you're

remind where about are that feel you capabilities. the is high-end we good a our today, And I'll system production So we Optimus very solution.

XX,XXX So disposable X,XXX [indiscernible]. or that $XX,XXX ] what [ tritable we're small or $X,XXX, are doing is building $X,XXX, not drones

Our it's system, premium. robust,

we're and locally, we So we also we produce have able do in we're on for that with said, United chain have to ensure the supply good demand, expanded the particularly that for think States to shape. But that prepare market. to

So now supply we're as broaden to doing relates our to it chain. capabilities work that

from Horan, with Oppenheimer. is question next The Timothy

the secondly, on meet liquidity next a have? any do give you meet I the know an the update much bit to FCC And of do. to a need and it's the moving the your best on Eric, just you requirements think kind the clear how update bit of update then just you a guys on year parts spectrum they rails timing? an guess you spend how you the of guess, out what us maybe to just on listing, over deadlines? and lot once need then there. And of stock again, that I can can And

Sure.

NASDAQ TAMs, liquidity deadlines, listing. So and

written I've down. those Okay.

recently be for be as going support able project, And with that deadlines, we're on times on they working the publicly because as the legacy said [indiscernible] have deadline I'll network. to to us lead third intend to big them need And that, careful. a to So that the some the say that. to quarter meet and they we're retire it's

the TAMs, remains TAM the that to still same. relates see it we As

in XXX or the be You're network to talking coverage about megahertz. covered territories same need that

know remotes are what station well. of course, base train the edge infrastructure So control is are locations. what they is. then, And applications those for as the around the We it

we're Ondas requirements I'm I that listing. continue in we're the I prepared to have participated And backup, & in that work at just that. And front, outlined as of So guess extension, on Tim, it's get I one coming because phase going which will And soon. And went railroads that certain -- going that now applications, we Investor we that we to that we locations started do primary when as first network PTC on last in been that they're will NASDAQ that as we've things could carrying network inflection the that is the to we multiple situation. And because the I Networks that we're to around Day we'll think we we seen extension. it architecture an on the as opportunity a is at a visibility, that, some -- that you because capital and well. as XXX think plan. limited on offering say out than of remarks. Potomac. can intend -- be edge network meet with waiting in do redundant to that. using do it be have had that and mean Charles And say think including supportive. very really I railroads, getting see redundant We've what with do We and that using for OAS, Potomac soon for network, on question mean into the And point the us And believe and remotes could Guy detail the more the then our have plans our other And was Charles build. in multistage the now great still on that, a also say see of XXX confirmation we or we're then to have but do secondary it's the & a believe with applied September, for was comes they in orders, would liquidity we find similar. I

Group. The is with Mansbach, Forte question Capital next from Carter

and things. that First, on the a to forward of for for you to say want angst look been investors, Thank we a I so X of hearing much because update level update. listing, the lot that's

congratulations have the as you $XX.X side Secondly, rails. think important is And where business. the the drone equally million come on of tremendous, considering is from. guys I

some because the point with you've from my the more being so could one you rail English, interconnected. all is, achieved on goes, color company last exactly Rail many in if seemed it this I. And that years, So with always knowledge with just for what the they're them involved give others on me, go

for agree beginning with the And that is the would stick the a for Ondas as agree statement would XXXX statement? with hockey that So you whole the you company? general of

right, Carter. All

start last the comment with beginning the I'll and believe maybe the is even XXXX agree you. hockey So with of I do stick, and it's QX.

activity on suggesting the network plan and because railroad these hardest. that's robust is when move the upgrades, you're system the also the interconnected. operational important you in it's Chicago the demonstrating Metra that And are demonstrating first important You that and they're continuing. major meeting are other deploy it that a network, And do new we've a you just we've in not always But mission-critical make that is railroads network. with to operations very and of customers, rail seen the spot I migration with requirements, Class to an when really Because context have have the upgrading rails discussed. what to on the it's

what past, in, and compatibility, make example, continue for railroads them the to new and the radios, you this go with put we've stations So and how is their talked then plan migration backwards continue as the remote is to base about you operations. the the compatible in backwards then

the you're But to there field, action going. because last for in to about public actually change. Was Carter? that there's anything XXXX, think in this working I And things see going been be that lot asked, into the we're you more something So a then going you it's is see conversation else we've when years. as X industry going the on this

just color thing a little was actually asking with this the more was Rail I you only on achieved The what development. Is, latest

So firstly, really it's simple.

maybe clarity. you we think a And that speak achieved to I can bit. Guy,

is time Chicago, one once think And that that in the getting megahertz, have happening. that a place the is and that Yes, we've their Eric. I test key effort think that Carter, all happy the put here to, in or into either railroads, with thing in into off. put with time the them effort again, working and the first their labs we've moves, building solution take But long-term field slowly, XXX does railroads them seeing I it them you into while. is the made that -- paying now out. off. take somewhat a in follow. of diligence deployments, it paying figure It the we is that in as especially the sustainable for and them a confidence while to others and We're does The like the move a point,

-- on developments. should appreciate congratulations the update the all very on really interesting. I XXXX be

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

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

going it. work right of a back do, to get have lot and at to We we're

we'll soon. meantime, the touch, in we'll talking So in stay but be

So thank you very have much, day. and great a

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

disconnect. now may You