Airgain Reports Sales Growth and Optimistic Outlook

Airgain, Inc., a prominent provider of wireless connectivity solutions, has announced a 7% increase in sales for the second quarter of 2024, reaching $15.2 million. This growth has been largely driven by a surge in sales within the consumer market, especially from cable, broadband, and mobile network operators. The company also began shipping its Fixed Wireless Access Lantern solutions and Wi-Fi 7 antennas to a Tier 1 MSO partner during this period.

Despite the challenges faced across the industry, Airgain remains optimistic about its growth prospects, bolstered by a strong product portfolio and strategic initiatives.

### Key Takeaways
– Sales for Q2 increased to $15.2 million, surpassing expectations and reflecting a 7% year-over-year growth.
– The company made its first shipments of Fixed Wireless Access Lantern solutions and Wi-Fi 7 antennas to a major MSO partner.
– Airgain achieved several design wins for 5G automotive and enterprise antennas.
– A slowdown in design wins is expected in Q3, but the company remains positive about future growth opportunities.
– There are substantial growth prospects in asset tracking and 5G connectivity, with potential markets exceeding $700 million in 2024 and reaching $1.7 billion in 2025.
– Q2 gross margin stood at 41.5%, with operating expenses remaining relatively stable.

### Company Outlook
– Airgain foresees continued growth in the consumer market for Q3.
– Challenges persist in the automotive sector due to excess inventory.
– The company expects to generate significant revenue from customer trials of its AC Fleet product.

### Bearish Highlights
– The company faces ongoing industry-wide challenges.
– Design wins are expected to slow in Q3.
– Excess inventory issues remain in the custom products and enterprise sectors.

### Bullish Highlights
– Progress has been made with the AC Fleet 5G vehicle gateway, which is currently involved in over 25 customer trials.
– Successful live network trials and commitments have been established with three international mobile network operators and one domestic power company.
– Airgain’s three main product lines are projected to represent over $700 million in addressable market opportunity in 2024.

### Financial Performance
– Q2 adjusted EBITDA was negative $0.4 million, with non-GAAP EPS at negative $0.05.
– The company’s cash balance as of June 30, 2024, was $8.4 million, aided by net cash proceeds from an ATM offering.

In summary, Airgain has demonstrated a positive trajectory in sales, fueled by growth in consumer market performance and new product launches. The company’s strategy focuses on expanding its integrated wireless solutions, positioning it to capture significant market share in the connectivity sector. Despite ongoing challenges, Airgain appears well-positioned for future growth.

### Closing Remarks
Airgain’s management has expressed confidence in the company’s ability to navigate current market challenges while focusing on strategic growth initiatives. Attention is being given to upcoming product launches and their potential impact on revenue in the coming quarters.