Michael Elbaz: Thank you.
Jacob Suen: Thank you.
Operator: Our next question comes from the line of Craig Ellis with B. Riley Securities. Please proceed with your question.
Craig Ellis: Yeah. Thanks for taking the question. And Michael, welcome aboard. Look forward to working with you. So I just wanted to start with a clarifying question as we look at the first quarter. So in the first quarter revenue guide, we’re clearly down meaningful quarter-on-quarter, and we would always expect there to be seasonality in the quarter. But could you provide a little bit more color around what’s at play because it seems like we’re — we wouldn’t have any AirgainConnect in the quarter, although it’s not clear if we had in the fourth quarter. So maybe you can clarify that. And is it just declines in each segment or is it more pronounced declines in auto and enterprise, given the fact that gross margins are staying very resilient despite the significant revenue decrease?
Michael Elbaz: Hi, Craig. Thank you very much for the welcome. The Q1 number, as you pointed out, at the midpoint is about 17% down sequentially, which would have expected a drop because of seasonality compared to last year, it’s about 6% down. And that is really speaking about the demand softness that Jacob was mentioning on some of the inventory level that we currently are seeing and the market is trying to sort through over the next few months. The aftermarket business on the automotive, the aftermarket business remains a bright spot. We do expect some continued improvement on that. To your question on the AirgainConnect, we did have some shipments of AirgainConnect HPUE in the Q4 quarter. And overall, it basically speaks mostly from the demand softness that we’re seeing right now for the Q1 quarter.
Craig Ellis: Got it. And then, Jacob, I wanted to cycle back to an issue that was brought up by a few of the others that inquired earlier and just focus on calendar ’23 and where you think the business can grow year-on-year as you look down to your three primary segments and subsegments. So clearly, in consumer, carriers are trying to sort out what they do with Wi-Fi 6E and 6 versus just hopping straight to 7. But can you talk about what your sense is for whether or not that business can grow and when you look at enterprise and auto, what the potential is for those businesses to grow as we think about kind of the exit velocity of the business overall as we work through the back half of the year?
Jacob Suen: Yeah. Sure, Craig. So as I indicated in the press release, with the new products that we just recently announced, we actually have expanding our SAM, which is the — it’s actually our addressable market, right, almost — it’s more than double what we have. And one of the reason is the new product that we now have with the service provider market that’s under consumer, right? And now — and it’s really now executing on the strategy that we laid out to you guys actually a couple of years ago is that, how do we upsell to the service providers that we have built a strong relationship we have and their trust throughout the years. So instead of showing them a $2 to $3 antenna content on the component side, we are now able to sell them a system product that are 10, 100 times more than what we’re able to do.
And as a result of that and the trials already alluding to, they have actually already have come trial with one of the largest operator in the U.S. today. And I expect more to come, indicated earlier, even in MWC, we received quite a few inquiries to do trials, and these are major operators globally. So I feel strongly about the prospect of picking — we’ve got some very, very highly differential (ph) product. Products are really I think differentiate what we have as a company. And then fixed wireless access, there’s also the networking equipment product that we’re going to be launching. So overall, I feel good about where we’re heading as a company. Now, specifically about 2023, I think we’re going to focus on heading the milestones, right?
How do we get more customers trials? How do we get the trust be successful and then get the certification, right? And then ultimately winning the SKU. So that’s where we’re going to be focusing a lot on. But meanwhile, we still have a steady stream of revenue that’s going to support the company’s growth. But I think the bigger growth is going to be 2024 and beyond. Does that answer your questions, Craig?
