Gauzy Ltd. Ordinary Shares (GAUZ) 12 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the Gauzy Limited Third Quarter 2024 Earnings Conference Call. Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Daniel Scott, Investor Relations. Thank you. Please begin.

thank for and us operator, you, you, joining everyone, today. Thank CEO call Eyal today the and are Peleg. Hosting Meir Gauzy's Co-Founder, CFO, Peso, and historical uncertain. and assumptions, management forward-looking of which, on call, be nature, many current facts, are their not inherently management's projections this based which beliefs, On expectations, by are will statements, making These forward-looking to subject are risks and statements, which uncertainties. www.gauzy.com. in forward-looking or Actual and which can results of other today's beliefs, of projections be assumptions our the during incorrect any news website, comments factors could the latest each differ or this earnings discussed and statements materially and on release conference Securities found key if filings Commission, with from in of are our reports because made Exchange expectations, our call our to We forward-looking any any not statements. undertake duty update do information today, This only is that XXXX. XX, call accurate contains November as time-sensitive of disclaims law, or reflect to Except occur Gauzy update required that to circumstances any as information revise events or obligation call. any this by publicly after also non-GAAP presentation references to financial includes Today's measures.

refer measures You turn Eyal. non-GAAP quarter information historical of to company's call financial me With to and the reconciliations that, for third over in press measures. let release the the definitional should comparable to information contained the

delivering reflects the focused and our my can relationships commitments. today hard with going Thank talented focus opening our and opportunities new much, deepest appreciation beginning achieved and remarks This a existing quarterly to of driven I'm our Thank Throughout X on good strategic you on dedication accomplish, XXXX, want our strong strong investors support. of team our by what on base. growth my impressive exciting continued our express work, our their for I and to to company vision remain our we've you Dan, for topics. expansion commercial June is both morning, loyal following earnings very This everyone. public to executing professionalism joining. as and we your just second customer call performance IPO, and team for the and exceptional

demand highlighted and our business growing First, some the X new along customers and with divisions, strong across contracts. strategic

Second, our accelerating in the I'll expand goals to including we give third meet production to actions how quarter while year-to-date, have output to of we maintaining taken our continued summary a and profitability. demand reach short-term performed high-level

I'll of Finally, how innovation we deliver our our on backlog and positive XXXX. advancing discuss outlook pipeline quarter are achieve strong business the to to positioned for the while fourth in in our

will to financial on Officer, fourth Chief as turn that, will well quarter Following over provide as third highlights from Gauzy's give the it quarter Financial I Peleg, details guidance. who Meir initial our

manage was our demand was seasonality partnership where two, support point steadily quarter up with we our unions first to, allows production outpaced and much higher in our a typical in we one with more our one, that a ramp in on third diligently closely France, underlying labor production Case demand and would without platform cost work our profitability. strength to as with This shift improving and Aeronautics our Rather at company agility accelerating Europe. deliver our add second one to for and ways, labor quickly focus rapidly on adding require us a high ability for The unions additional based long many than Gauzy. effectively on new in efficiently that and and staff profitability. the our of division and costs; fixed balance the constraints at a demonstrated important we sacrificing training in cost term, an our facilities

the we adding our our products we demand constantly, pursuit customers our but business how growth. operate are we of key business, sacrifice scale that's outsized from X point across in profitability fueling divisions, a to As technologies that and speaks and accelerating won't

As flow in and is our business cash EBITDA stay The narrowing and growing eventually demand of on improving income. we as cash we positive, and free net about we flow towards driving losses, on net laser-focused you real tangible. talk can continuing see trajectory profitability the followed our are by operating

You can brands largest international iconic auto for bus business airline products companies largest just new choose market the Yutong, deliveries of technologies the third announced cruise are some world, They the of but a us the in a the we Ferrari, in see of ship world. one in one largest of fourth not major key in and In by in manufacturers largest cap quarter, OEMs with most it make. the they manufacturer that the the the order, multiyear and for world. single the world. and fundamental for

XXX% me I mentioned is the compared some Tech demand increased QX previous manufacturer, the those So key of business expand by orders now Safety bus who and let our upon X our divisions. across year. drivers for to division, other In largest Yutong, world's

thousands installation on delivered testaments reflecting driver are of we and authorities our on than XX Vision this system of worldwide. In on us buses the impact quarter only Smart that in XX% This with our Assistance Systems, company revenue Advanced expand division ADAS, buses of ADAS relationships a That record Driver OEMs AI-powered the already in of transportation a mirrors positions models. of in Gauzy next-generation unveiled transportation. we commercial both Both or division with is our some see trucks. now on system ADAS, of decker for same XXX% buses our expand major global growth. public can market-leading with You In installed growth passenger to of the order double to on is relationship tens how September, in a OEM cities the regional in are covering growth year-over-year. world they single number as and the alone, our today these growing Australia, of cities still complete position year-over-year. in no more

technology of serial trucks. to years XX their minimum among on Ford for first production the and exciting a is signed Trucks of select us this OEMs has

shading with it fleets. Our analysis cabin blind increasing image international and aircraft alerts Smart cabins our or provide signed with division, deliver high-definition spots for new shading in ADAS smart to and where into development Aeronautics by we important class learning, through and as major an replaces is represents eliminating airline we displays traditional for control real-time that fleet ROI the increasing both based light grow a with cameras agreement predictive systems Vision on MAX our an commercial on business LCG trucks glass existing products mirrors XXX penetration rapidly. cabin market and their In efficiency. This audiovisual safety

we contract to major right additional to a before, market into of our is first our announced minimum XX,XXX from globally aircraft. expect that signed average contract applications share shading during cockpit in European that XX% for have how commercial with represent and we we quarter million this a year, in reached to XXXX. early to an largest date. and product into strong and expect private revenues ramping the disclosed we leverage As And for landed volumes. In presence X-year we in this of This OEMs now, business Gauzy support our OEM. in Earlier the we example XX over division, with high years. our next to win is relationships $XXX expand aggregate contract how contract Automotive auto we of an this to deliver realize per represent we cars up revenues Activity year a

we Ferrari we proud Additionally, time for we a its new of a mass SPD has is supplier provide production a first new division, to Glass X the recently This the are And implemented exciting serial Ferrari level production strategic selected our their and number that Glass awards. as technology on announced of in any has year. to for Smart this years technology Architecture Gauzy for part Smart be designs, of committed. next had offering for

new ship over will First, Gauzy to has XX,XXX of a enable display square cruise transparent their large in facade. Florida, terminal selected which PDOC maker host Gauzy Miami, feet a for

We manufacturer. and future that into of be implemented vessels current also technology our expect to

the Gauzy X,XXX Delhi. starting developers a feet new commercial in has one country, of largest over with with Additionally, India's new signed multiple New square of center the buildings in for the in sector establishment in

with We opportunities come initiatives first And ever we tech, to and supporting hospitality solar-powered in the environments. have revealed address at LCG smart customer, sustainability we further in to sector region. finally, orders excited the the about the this Glass in are pipeline built this glass

We expect market. revolutionary commercialize growing on offering this to in and a XXXX capitalize

revenue Next, allow our grew of this same me third XXXX. thoughts quarter the performance versus on in quarter to XX.X% year-to-date. the provide in and year-to-date and total XX.X% our period some We high-level

work This that Our with certain was we ships as third in quarter to on our considering quarter. was unions late increasing particularly in now we demand. the add were Aeronautics division to impressive we meet shipments expect additional to primarily our ship strength fourth

our for was products demand just continues already and to the there Importantly, accelerate.

we are that are shipping With backlog fulfill XXXX to the second already now shift and beyond. well demand increased and into positioned staffed,

shared current we the million quarter, ship approximately QX. will the X in pre-announcement, As orders scheduled now in of USD our third quarter for

our Tech an the our When a year, for look higher particular reminder would the the is first typical basis, that Architecture. revenues results helpful revenue a strength XX.X%. gross Our quarter The is quarter. quarter in our at featured be and performance up in was Safety primary you profit in of XX-month A trailing weakest. impressive on increase driver in our

and the to quarters Our middle quarter due our largely patterns fourth far, are X Europe. vacation strongest by similar in is typically

the We IPO. since our few have busy been very months in

shift our out We our have utilizing labor increased of the unions. support a with second

next generation winning continue trucks, we We offerings commercial have our and Vision like new ADAS key for Smart introduced the business. of

markets are end Our growing fast.

ramping orders an and our is over winning confident demand is The turn will it are that, market and update will I our on on Meir we backlog fully deliver The we are there, Our Gauzy's results. to goals. With for financial are share. products there.

Thank you, Eyal.

for Revenues full were more generated which revenues third Tech, on Aeronautics million, prior reflected $XX.X our preannounced of up our in from with year divisions in a we and line the of these the year timing automotive offset than Demand contract. For Safety across quarter, deliveries the from architecture levels. period strong. a that XX.X% and products was decline

As ability involve of and quarters order and across in full there the demand our based quantities, customer case said, a those Eyal shipments typical on the quarter, our year contracts ship. to this be variability in can

you third us basis, year an look but million, can of equated in well produces Aeronautics divisions, compared our of gross XX.X% This This from the quarter third revenues results strength held far becomes period. at up prior quarter-to-quarter the the to $X profit when prior for margins, on was such, Amongst the was model mainly apparent. highest the Gross year to full a our of XX.X% the to period. more mix in XX.X% increase due vary, our $X.X quarter year million divisions. margin As in quarter. from during which the

year However, an the the was the in compared other of for loss period. period. a in the quarter $X.X adjusted third X.X% quarter, press due R&D $X.X million, reflective the $X.X prior strong lower prior loss of mix loss noncore and million excludes year in was mix net the release. to aeronautics were Adjusted income SG&A year income a quarter the adjusted of million investment the amortization compared XX.X% divisions. our quarter for net prior gross overall table lower loss from in in million gross see of presented to mainly resulted net our compensation the for profit from the and $X.X $X.X intangibles, innovation. Adjusted of quarter year expenses quarter and higher of items. quarter net growth. Please Net profit commitment up $XX.X to million revenues support in net to million, was stock-based prior to up margin in gross from

million delays to add compared results, to Aeronautics. to The second prior division quarter Unions to the the in company was European shift driven mainly worked $X.X by with $X.X X.X% Turning Revenue with increasing million its in division our shipments this meet decrease in year demand. the quarter. a was starting in as

the of majority in primarily Aeronautics equated gross in fixed Lower $X.X profit base. million across shipments in from XX.X% quarter. ago the margin result gross representing to was This Gross to approximately Eyal $X cost the year-over-year. fourth profit those a lower decrease of quarter. As the expect revenues XX.X% a said, margin we XX%, down the occur of of million, was year

a in was decrease million division to turning $X.X Now demand in in in quarter compared results. division's growing prior the in Architecture our the profit Revenue $X.X to revenues, reflects and the in profit quarter. up division mix million, was year Gross our This the this year-over-year. ago The gross higher to quarter. XX.X% higher XX.X% worldwide. Architecture margin million XX% increase operating $X.X reflected The a favorable an efficiencies. from gross equated margin of product of XX.X%, year

$X.X our Revenue to prior the Automotive to Automotive in year the turning division. million million compared Now in quarter. $X.X division in quarter the was

was We product average Gross million, in expanding increase deliver XX.X% compared equated XX% per our quarter. in rapidly million our largely European Safety large XX% for prior biggest year $X.X both are Gross for which in a division, does million X $X.X in the product loss just year of Tech result XXX-basis of this One example to into mainly cars years, proud our quarter year-over-year. backlog Smart program signed in million The customers. is Vision profit driven And committed division, approximately This in XX,XXX $XX.X production to gross increase of by was The serial prior XXXX an a quarter. in $X.X on starting the demand of decline margin an from revenue automotive our mix. Safe was was ADAS average was a OEM. periods. not with in X. continued our Tech reflect growth the year strong our profit of the today yet announced to XX.X% we to in point compared ever

capital last our long early you we and completed number Moving to for call, third in of to the actions we sheet. our simplify the resources On sheet term. a balance told quarter, balance our how

previously IPO the provider reminder, our original of of $XX million chose million a participate $XX undrawn credit in line of the amount. their total was line, to which million our drawn reducing $XX to As while availability credit

As used fees. a drawn what we a had proceeds our we of repay plus result, portion IPO to

and by the balance sheet, liquidity. financial provides ample additional we flexibility total and supportive group, undrawn terms million in which, achieve capacity profitability. to under objectives execute cash on ended year-end, credit which liquidity growth add borrowing million, million $X.X results enhancing when of have $XX line, further with combined We a of the $XX.X with to with lending highly our us our favorable our We expect quarter

it color turn quarter. to Before me back some the let expectations I our Eyal, fourth you on for give

We guidance $XX are in strong our for $XX quarter, we million to previously off announced the a and to start million. are reiterating

half to expect half in continue to of be first the leverage. associated revenues and margin to timing compared We based gross second the higher operating the as on

XXXX. Finally, in to we expect adjusted net loss narrow XXXX as compared to

I back for remarks. turn over it Now Eyal will closing to

Meir. you, Thank

to outlook ramp from growing marquee Simultaneously, bus will In is strong, serial we're across business rapid facade and all airline through divisions particular, the globally demonstrating Our quarter beyond trajectory. innovative model. division the aircraft demand for massive expansion adoption game-changing introduction our fourth from Automotive clients our technologies by we cockpits continuous solutions ongoing the in accelerate commercial experiencing of exceptionally our robust of expansion of as and growth X of that scalability to expect OEM is building driven orders our we seeing our deployments divisions and cabin across other OEMs advanced with expanding to in worldwide. fleets our momentum truck production, the exciting chaining up

and Boeing We Yutong Ferrari Gauzy that are appreciate growth. of way Thank as today. will part entrusted us for and Ford, time intrinsic the important have future such many or the investors same an increasingly companies you with of confident your value their that others

open Now line questions. for we up the will

[Operator Instructions].

at Sheerin from we First, will Stifel. Matt hear

me, from A couple of questions Eyal.

EBITDA still getting that? profitability, expect from in growth, So, of the about I some sort Or let's there there an start that there? you've terms to QX. issues other you sequential been in in standpoint the do With are breakeven terms know First, of profitability. talking of

the Matt, thanks question. for

of comes delayed what EBITDA second pushed production So this and have have be heavier hiring that us resolve and more shipments and focus and we're is breakeven really add point. that a were than ship that to as this that on major talks yes, reiterate for our breakeven manpower is because positive, that would What done previously then announced, shift into late we to the in we teams previous with QX rather like for calls we show mentioned to I'd on in and or together in track that is a had that QX to you.

focus our goods you'd on of both this on going we're reach So, is doing we're in and that on current believe to that be my where exactly our both that and is positive. delivering QX, And so OpEx that, mentioned is to before, on based I expenses, breakeven as yes. to if point our that cost -- targets be. answer We're

Okay. sounds terms on your of And like it sounds you're in like then automotive, outlook, bullish. more it

really be You of next start traction you that terms business. half? year to wins. in When parts of talked of first prove you some labor And rate? you other to of have run to customers can in had revenue should capacity, terms obviously, in about then it gain issues Should you've your or your ramp second half some

So how come to capacity those positioned you are as ramp on? orders

that aero very good a capacity a It's numbers to in lines fit roll-to-roll resolves a shipping to to projecting. like support That's little extending where is enough a moving and very bit say second that Matt. business. to capacity, or the very different current our It's just I'd automotive and 'XX only the to we basis machinery. the where issues, well not on that are question, we're product HR again, it's important in it production the note shift that

I'm positioned that are we stating Currently, lines of this this a well So, it's have. support all production demand needs. to again, different automotive different require we

seeing of half you'll first towards it seeing end expected the it in of XXXX. are You QX I not be and

And Our with, years, reiterate are and bookings serial are respectively, and programs like production X growing X production the again next committed Ferrari, this per our European heavily we and big other already ramping point for dramatically. its next instance, I'd year. commitments where initiating OEM OEM year. to Ferrari the with a signed with this started minimum up take year year, rate is serial

That into $XX in what that We it to year are apply quarter, we the those the minimum coming purchase the that X.X quarters. maybe commitments You is backlog. not commitments, do see we all on not only actually get orders. need ship million do per in minimum the backlog, really

answer it's later to see on QX, to said, question, many towards shipments. also your this half is to booking be So, kicking sealed first you're for, as we going and agreements these But going in years. in demand 'XX on all signed the there

be Next at question Barclays. will from Dan Levy

first with with provide on some Maybe just question to dynamics. you on can wanted further flow a just color dynamics. I cash free us the ask the

capital You position, you EBITDA just of Perhaps maybe there, talked trajectory And further perhaps some something improving liquidity about about could just on you working color address timing that. capital. then working us, mentioned remind the reaching could the breakeven. you

Thank you, Dan.

$X.X IPO disclosed paid the expenses than This of repaid if them the and capital Working is beginning in we -- difference, mainly our It cash when as quarter, interest million. in from payment. the want is I mainly will in the So, flow, we we it QX rather to be facility free comes driven July that million paid QX flow many for said, altogether repaid QX. free from quarter of the cash financials. in $XX.X interest accrue mainly was minus for the to EBITDA bridge

cash EBITDA the And changes So, $X.X million. this free this from is flow. is to major

and our we flow. free $X.X represent CapEx million, Additionally, cash this full spent at

regarding of EBITDA-wise EBITDA business on being $XX want be together our are and capacity of pursuit beginning we and out what the expect term. Regarding funded IPO, in that it objectives. which the credit liquidity, QX results full improvement the well year we positive, XXXX remind process adding of in we in lending said, I And provider we as and would Eyal million by favorable to line our which repaid July, year-end with a facility the to we drawn said are million, $XX we his participated at you of the sorry. And

that which to just that for are about Dan, the want us like add supposed to will talked of okay, that, liquidity give financing adds And to in some $X.X extra On is projected gives top, undrawn, year-end, CapEx we 'XX. and I'd more I that $XX that if we invested to until that liquidity. million be have us of instead we closing add the about QX to it's everything million need. credit and we more the CapEx

CapEx 'XX. amount to we're plan to of going we spend So, the reduce in

instead. time. really with and it's line to X our product release We We Smart that Vision trucks So, was had of on the ahead production complete the announced early. for X IAA,

And in already this QX. we in product QX. expect was to it start ship already So, to

budget So, a 'XX. going of little that remove to we CapEx from bit advanced 'XX. in our We're from

So, not top, say on it's it's important instead. as to That's well.

it if So, of cash have, reduced sounds interest, forma the pro consider CapEx. down sort a that look a to you rate is you paid were like just free better to forward? going What we considering some at

borrowing? the For additional

yes, Just the get forma, trying free run items here. cash flow to forward talked better rate about pro you've going of that a --

the better. looking just we're Dan, question each to other Maybe at understand

we enough all funding with for adjusted. were positive full on offered have message doesn't It the our for change about the is even now We still talked the short with on again, that following flow mean, term also terms, becoming liquidity the and -- and quarterly get extra The basis CapEx liquidity. positive year. favorable EBITDA we positive to next enough the to lenders year. plan have cash we no I with a at EBITDA to by reiterate You our year

regarding flow, topics. current cash cash all free quarter So if ask take I onetime you those maybe if the flow

affected lower profit forma repaid, big which gross this $X.X basis. quarter. to the for million, course, working additional million we And by about one of capital $X.X $X we it's million and the the So, a be in pro were facility would totals reduced

well. $X by hit this as us million So, additional

side of I on could color Great. maybe future revenue a the sort provided bookings follow of up some on could you disclosed you've having maybe in I us Matt's of in just that And question maybe give bookings. acceleration coming hopefully, the here But what's to wins. if see give activity sense and that additional appreciate but then the ahead. commercial or confidence level we commentary, that of that there's today, revenue activity discussions the of you're don't that the future

we're X we have is of Sure, our take -- them, tech. I'd minimum with say years high program they Dan, and a put to it the be us reiterate I'll on an a in that. big But They a was again, production important right growth which invested committed rate. Ferrari take one as they X because to on now. book contract like with to rate, And so to Gauzy's They we a very a did invested for first serial invested others trying next not again on when this very say take as for expect with really, signed have minimum for very, option. bet it I X like number money, years. engines is a product their high for years, in like most that but not

have, what So, is which QX Xx committed would a number it XXXX. this book of of we ship order than to if between bigger committed. QX I in That's would the real would be put book, order we a

a least committed sign they usually hit usually that Now that a minimums at usually, even it's but always We XX%. they They commit never than on, we're minimum. XX% deliver, hit to that. more the uptake

good that opportunity we good what to kind to give you public made announced Another answer and a asked. of

to of little a bit our We we're quarter, supposed in 'XX. maybe next million increasing backlog into right now $XX have that ship

We have cockpit. of $XX about million

that committed announced How of us mentioned these month have things an to order with now We exactly $XXX last we live I right Ferrari. million. have like together, do book

ship. the invoice come committed for cockpit we Aero X, minimum then have X, model and the But base XX in with of orders we with POs every paid. every how on backlog, month We more get which within they to ship and many $XX business the years or million have signed the in we

is have So, cockpit to healthy for reflect you business million that and how the to take million that a the figure in $XX if you'd little in within multiply right now saw we our big 'XX it and coming QX our QX and how we backlog the ‘XX. long, you product $XX have to this like of for that years. you in and have committed realize how have the into by bit order we then much ship book And our to

Automotive an of XX long is ADAS, X, is not we it's aeronautics going I'd a years and production serial So, signed also with even of XX Safety period. be programs. Tech With would average years. X say years to average trucks, X XX. have

And It's I it's signed maybe when the ship, the So, to So the very book, not to we order I air. get hope programs answered ready with production book. minimum order serial okay? say I'd you big be that must on like that's how Dan. confidence question, that commitments in

be TD Jeff Next question Osborne will at Cowen. from

couple questions here. of or should X? next been the of a OpEx lot how a just There's rate? been cash questions quarter focus on think we the run about you in meaningful the around margin looking A mix, answered, over uptick anticipate lot OpEx but Meir, ahead, a do EBITDA. has But

if OpEx compare the stable. during I along quite the we're So, quarters, XXXX

course, adjusting IPO. had Of the the I'm expenses for we onetime

we do and having profit this gross the but first D&O of in that mainly quarter will of that be and we as public we didn't and XXXX have quarter, positive. public as that XXXX we bit a a bring stable, bit company, PwC reduced R&D, more but much compensation expect as Of now okay, insurance EBITDA revenue next become are a a a expenses expect also private the that also a and public full expenses company, have company. us being way and legal be along We will in OpEx to we consider company, course, a other have is meaning directors to

summer just assume the end year maybe is the meet final the European about that tail revenue over then first model you itself, the we mentioned that shipments cadence? And that a of then it. OEM to that Or half. towards ramp is the I of OEM the aggressively positioning starts XXXX on you Got of think questioning line OEMs new the car vehicle? how would that do launch

Yes, exactly.

to us so this it these and make that they to with I'd we of -- EVs. selected product be they're it is per starting customers. for the they inventory us, Tier can year. for for towards These for early time 'XX, to build because But sizable provider shipping So, going wrote be And very, manufacturer ship with that a cars OEM. start already roofs X together But average late to ship, models QX, to for and enough to in to new inventory until very, an EV we're here up to they starting their late say, glass -- 'XX. very has It's like you a 'XX. customers. ready We're real well-known need X have big on takes embed amount sure a are they all said, QX, glass it's cars XX,XXX roofs heavy Tier

you're I'd before August, little yes. a So, say right. but bit

other of share. to it. couple that, willing on if nitpick just a Got Maybe ones you're

First of or or solution combination? all, PDLC SPD is it a a

interesting. product. that details I provide announce to more features special it's disclose point. cannot auto-grade we'll itself, we LC. very other But OEM the at on are are There deal. Yes, a once LC an this the this It's

monitor? then a then vehicle? helpful, And it it. XX,XXX you It's car ranges. per of kind -- content for need the that can Got to standard it Or the we And option an share is any feature? is

Sounds how impressive, is we specialized it think content, should given about car? especially but the

models. the between looks announcement say. are X it Yes, option to car. be fundamental with where the our XX,XXX of to them for rates an kind like would became option. sell I'd XXX% to mix but some an say it that it an also a was I'd point Ferrari, to some take would at it's like be take It's a say important rate not of, be it But and that might like option,

then about for up, there lastly, follow vehicle how the content just range to we kind any is that? should or think per And of

for later a like This is to the to average This like $XX,XXX take say we a models. X be want the on. do wishful a financial that I'd that thinking. to I per not commitment keep I'd what is more between minimum this disclosure permission, could year, that have Jeff. rate. that say or is It either

[Operator Instructions].

Next B. is Joshua Nichols at Riley.

to wanted clarify. Just

the is mentioned quarter revenue. that in point. it that, overall? I bit in deliver going to fair Is backlog, Aeronautics you of the $XX of backlog last a was think fourth get assume to The business to million there's a last I touched to run think plus rate you in million or the quarter Aeronautics year But that quarter. kind if revenue you relative on $XX quarter on per back to that down

didn't we in announced is quarter in last ship Josh, late that I'd your quarter, say question to having the the I'll approved like take second vacation and have because it. that meaning shift patterns of only simply by from late of that it unions time, most Aero. we Europe answer comes of To our most our on shipments yes.

say track the already like we that more conservative. to with these on shipped Yes, I'd late seeing shipments we XX than So relatively it's if all be ship significantly should claim shipments. the going we're in QX, also you us be back okay? higher to before, quarters late track with yes, So, that is very much on

Got it.

half saw. you first in that So, the over the guys trend

customers. talked a it, the of expectation the lot these new how with to and you the like of half up, opportunity. margin call let's year contribution next there terms about gross ramp margin the we profile I some Good of automotive could What's as there. second automotive some expansion in just curious start drive the to I some potentially? the like we've was see think wins think revenue the of

that break just business in term. healthy point the top. to down be tell we're kind good that from our like be. we because are And margin numbers What can as have. into much fair very announced automotive of very soon X want are asked of a transparency, questions we because you average the not we're previously the going taking as margin massive the one, towards long representative scale to have to young the helping margins that kind as is, task it's that creates I company the of figures automotive you gross been that ourselves expect So, we help that's and you I because to we've that the on to a do a happy everyone company. And the public want you showing market, to big a

and especially business I'm have And better that European others, Ferrari than conviction divisions. matter a both we in other because obviously, of source in we're SPD, -- in with averaging is supply. OEM in And this a single saying So, scale. this and also

of mean, we're this source Tier with unique scale, But our to course, in products profitable us in for working going their industry. X closely to opportunity we be make a supplies, everyone helping strong this us is it's kind I a that because have sure a to embedded above. very single of with customers position from But margins vehicles. reiterate So, X, as for like average Tier on it's our I'd our

then me. for question And last

expected so like million your hit one that year. end on the how in next in revenue next million think I of relative I'm expected to of year the by touched you curious generated you've aggregate you be CMS what your received releases, far? $XXX that from generated of just $XXX to like revenue to much is offering press

future if our business, -- it's careful trucks, had guidance backlog, on I'm you we message. that take but we with that trying So, specific said X I'm in to reiterating be When have towards next Josh, end yet, we year, year. as all haven't of we we business the time towards will the but of that that beginning we case announced the the with the announced, that

it's next that's the that model take are We And have these trucks, share trucks which trucks in only truck for many fast. if platform of that per per of offered the at must hundreds in beginning because X industry. is tremendous ramp we for X of IAA. scale and they're production announced become or we OEMs we're claim not per X by of quantities Smart that regulation just look of the next you ROI, Vision of and numbers on selling on trucks, in of in fair And the production must year But very, and tremendous ADAS XX,XXX a because their our OEM, that because going really today you you And of up 'XX, one and the replying also platforms biggest truck reported. take one of RFPs traction do, year the X year OEM 'XX, see a for XX very on years, 'XX. to a I thousands is becoming you'd

going trucks. trucks drive believe between really X to Volvo the one year. And I are which ADAS, brands, for they're per XXX,XXX So, MAN have trucks making truck. you a platform going to be how they is XXX,XXX select

that to very million you're figures If system, exact to get per an on going it. ADAS costs, But selling quickly. multiply we're much you disclose it, order we as figures take book the truck I how can't of $XXX it our mentioned and

we're talking in that and models more. think of X much that, about covers X I OEM

that reiterating start to like more answer short our input Smart Vision are my we on. we for working X provide more QX, announce is So, in once message. I'm that trucks wins shipping and hoping to we're

Mr. back At this time, I would like Peso. to to turn the over call

us the great to for So, you our future on today. Thank We rest you forward for of joining a you, everyone. update day. and and look progress, announcements thank have discussions

at sir. lines. we this Once does time, ask and that your again, thank conclude for do this And attending. you you disconnect Thank please Ladies gentlemen, conference indeed you, call today. for your