Airgain, Inc. (NASDAQ:AIRG) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 04:30 pm ET

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Airgain, Inc. (NASDAQ:AIRG) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. Welcome to Airgain's Third Quarter 2019 Earnings Conference Call. My name is Julianne, and I will be your coordinator for today's call. Joining us for today's call are Airgain's CEO, Jacob Suen; SVP of Engineering, Kevin Thill; and CFO, Anil Doradla.

I would now like to turn the call over to Mr. Doradla, who will provide the necessary cautions regarding the forward-looking statements made by management during today's call.

Executive
Anil Doradla

Thank you and good afternoon, everyone. Please note certain information discussed on the call today is covered under the safe harbor provisions of the Private Securities Litigation Reform Act. I caution listeners that during this call, Airgain management will be making forward-looking statements about future events and Airgain's business strategy and future financial and operating performance, including performance for the fourth quarter 2019.

Actual results could differ materially from those stated or implied by these forward-looking statements due to risks and uncertainties associated with the company's business. These forward-looking statements should be considered in conjunction with and are qualified by the cautionary statements contained in Airgain's earnings release and SEC filings, including its Form 10-Q, which will be filed today, November 7, 2019. This conference call contains time sensitive information that is accurate only as of the date of this live broadcast, November 7, 2019. Airgain undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this conference call.

This conference call may include a discussion of non-GAAP financial measures, including non-GAAP net income, non-GAAP diluted EPS and adjusted EBITDA. Please see today's earnings release, which is posted on Airgain's website for further details, including a reconciliation of the GAAP to non-GAAP results. Any discussion of non-GAAP measures is not intended to detract from the importance of comparable GAAP measures.

Finally, I would like to remind everyone that this call will be recorded and made available for a replay via a link available in the Investor Relations section of the company's website at www.airgain.com. Following management's prepared remarks, we will open up the call for questions from Airgain's publishing sell-side analysts.

Now with that, I would like to turn the call over to the CEO of Airgain, Jacob Suen. Jacob?

Executive
Jacob Suen

Thank you, Anil. Welcome, everyone, and thank you for joining us today. After the market closed, we issued a press release announcing our results for the third quarter ended September 30, 2019 which is available in the Investor Relations section of our website. I'm very pleased with our third quarter 2019 results with sales of $13.1 million, down 9% on a sequential basis and 17% on a year-over-year basis and within our guidance range of $12 million to $14 million.

Highlights in the third quarter results include a strong performance on the company wide gross margin front that was higher than our stated long-term margin goals in a year-over-year improvement of 270 basis points to 46%, largely driven by efficient improvements on the manufacturing front along with favorable product and pricing