Especially after rebounds in several product lines in Q1, we believe that our industry has started to turn a corner. And I am confident that our resiliency while effectively navigate these headwinds will pay off in the coming quarters. Third, our products are at the heart of our value proposition for our customers, especially with the many emerging trends within our industry, including transitions to Wi-Fi 7, increased demand for asset tracking capabilities and long standing pinpoints in the 5G coverage space. We are confident that the worldwide connectivity opportunity is vast and growing, and our many geographies around the globe represent under tapped markets for our industry and our business. For example, our next generation Smart FWA, AC Fleet and Lighthouse Smart Repeater products aim to solve key challenges in the connectivity space, and each has generated strong interest from several major players.
We believe that innovations like this set us apart as a key player in our industry. So far in second quarter, we have maintained our existing business execution and continue making progress on our strategic initiatives. We believe in our team, have confidence in our overarching strategy and look forward to the path ahead for Airgain. And with that, operator, please open the call for Q&A.
Operator: [Operator Instructions] And our first from Capital Group. Please proceed with your question.
Anthony Stoss: Jacob, I wanted to focus in on the Fleet products just to confirm what I heard or believe I heard. Did you say that you’ve got — it seemed like over a dozen, is it trials that are going on? At one point in the call you talked about you’ll be shipping to revenue in the second half of the year. And then I had a follow-up for Michael.
Jacob Suen: Good to hear from you as well, Tony. Yes. So we are going to the last stage of the product development cycle. And the product is due to shipping in the early second half of the year. But meanwhile, we actually have 20 plus customers trials, both domestically and internationally scheduled in this quarter, second quarter to go through the process.
Anthony Stoss: Is that a short trial or do you think this is many, many months, or how do you handicap when you think it converts into revenue?
Jacob Suen: I think it varies. It could be from couple of weeks to potentially one or two months.
Anthony Stoss: And then Michael, I’m curious your thoughts, if you want to peek into the future. Do you think you’ll be potentially positive EBITDA in Q3 or you seem like maybe you have a better shot in Q4, any thoughts on that?
Michael Elbaz: We don’t give that much of a guidance altogether. But I think from a direction standpoint, we certainly would like to be breakeven in Q3, they might be in Q4 in terms of a positive EBITDA at this point.
Anthony Stoss: If I can sneak one more in on Wi-Fi 7 for the MSOs, Jacob. It seems like everything is being teed up for the second half of this year. Do you think you’ll have meaningful revenue on Wi-Fi 7 or is that more a 2025 event?
Jacob Suen: Based on the current feedback, I think that we have one major MSOs, Tier 1 MSO in the US, that’s already indicating that we’re going to be receiving PO from them and then they’re going to be shipping in the, I would say, Q3. So that one we are expecting material revenue contribution for the second half of the year. The second major US Tier 1 MSO seems to be a little bit behind and the anticipation is that we’ll be able to ship maybe some in the latter part of the year.
Operator: Our next question comes from the line of Scott Searle with ROTH MKM.
Scott Searle: Jacob, maybe to dive in on Airgain Connect, the next gen product. Could you give us an idea of how that’s shaping up for the second half of this year, kind of what you’re looking like from a channel and dealer perspective and kind of the early expectations on that front? And then, Michael, just to dive in a little bit more in consumer in the second half of this year. Are you seeing enough in the pipeline that the consumer business with Wi-Fi gets back to doing $5 million a quarter? And then I had a follow-up or two.
Jacob Suen: So I’ll address the Airgain Connect first before I turn it over to Michael. So because of our previous experience, we feel very comfortable about how do we are going to go to market with the AC Fleet. So right now, we are targeting really three major aspects. One is on the VARs, the distributors, the channels and those are the ones we have dealt with previously. And so, this is one partner relationship, I guess, the market. And then the second one is what we call our direct accounts. We are actually currently targeting about roughly about 80 customers right now that we’re focusing on. These are mostly private fleet companies, such as the utility companies, as an example. So these are the ones we are actually engaging them directly.
Third, there’s another category, what we call strategic partners. And this will be the likes of somebody like Exxon or Sierra Wireless or Motorola Solutions, that type of names. And those are the ones that don’t buy directly from us, but they can work with us, the likes of AT&T as well. So those are the three partners or direct customers that we are actively engaging. And we do expect that to really generate material revenue for the second half of the year.
A – Michael Elbaz: And to answer your question, Scott, on the consumer market, the lead time cycle is very short on this market. So data or backlog data is not very meaningful to predict what will happen for the second half of the year. However, what I can say for sure is that the current backlog that we’re sitting on right now is definitely promising for the second quarter. It would be the main driver of the increase on a sequential basis. We do have a first PO for Wi-Fi 7 small, but first nonetheless and that’s promising as well too. And the one thing that is also encouraging for us is the MNO Tier 1 design win that we had announced that is in the process of ramping up at this point. And so we do see the growth taking place, so somewhat of a recovery as to what shape it will be in the second half of the year. It might be a bit early to tell right now.
