Release Date: March 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide details on the $3.6 million order received this quarter and its fulfillment timeline? A: Ron Glibbery, CEO: The order is expected to be fulfilled in a reasonably linear fashion throughout the year, with a slight weight towards the second half due to shipping capabilities. The timeline is more focused on July and August rather than later months.
Q: How are other customer orders and inventory issues progressing, and are there new orders expected this year? A: Ron Glibbery, CEO: The inventory crisis is over, and we have diversified our customer base significantly, reducing dependency on any single customer. We expect new orders, including military components, to contribute to growth in 2025.
Q: Are you seeing engagement in all the military applications listed, or are those just potential areas? A: Ron Glibbery, CEO: We are focused on about a third of the listed applications, with active customer engagements. Some applications, like tactical communication links and drone video transmission, are already in progress, while others remain confidential.
Q: How do you see AI trends impacting your business, particularly in smart cities and edge applications? A: Ron Glibbery, CEO: We see opportunities in enterprise environments where AI-enabled devices require high data rates. Our technology supports these needs by providing fast data transfer, which is crucial for AI applications.
Q: With the ramp-up in millimeter wave sales, how do you see this scaling in Q2 and beyond? A: James Sullivan, CFO: We expect significant year-over-year growth, with millimeter wave revenue in Q1 2025 exceeding the full year of 2024. The new large order will be fulfilled between Q2 and Q4, contributing to this growth.
Q: What are your expectations for gross margin once millimeter wave sales dominate? A: James Sullivan, CFO: We aim for a corporate target of 50% gross margin, though initially, we expect margins in the 40% range. The transition from memory to millimeter wave products will influence margins, with improvements anticipated in the second half of the year.
Q: Regarding military applications, do you expect new customer engagements to convert to production soon? A: Ron Glibbery, CEO: Most new military engagements are expected to convert to production by 2026, as military projects typically have longer timelines. However, our first engagement moved quickly due to its urgent application.
Q: How do you see the BEAD program impacting your business this year? A: Ron Glibbery, CEO: The BEAD program's shift towards a tech-neutral approach is promising. We hope to see its effects this year, as the administration is keen on accelerating high-speed internet deployment across the U.S.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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