Anthony Stoss: Okay, it’s nice to see the pick up for the March quarter guide. Either one of you guys, can you talk about to the enterprise businesses really snapping back in the March quarter? Jacob, do you think it’s going to grow sequentially every quarter this year? Then I’ve a couple follow ups.
Michael Elbaz: Right. So this is Michael, I actually think that you’re right. It is snapping up very nicely. It’s basically a gross across all the product lines that we have. The embedded modem is really a welcome sign, I have to say on the overall Q1 Quarter, mainly because this inventory correction that we’ve been anticipating is over on that specific product line. And this was one of the programs that was mostly impacted by the excess inventory in FY 2022. In addition, the Asset Tracker, even though it’s a bit of a lumpy business, on the hardware, the recurring revenues are relatively flat, but on the hardware level, that tends to be lumpy itself, but it is nice — nicely growing as well too, the custom product as well too, and then the antenna specifically on those IoT applications.
We do suspect that the overall enterprise market will be relatively flat, at least in the near future. This is going to be basically the ups and downs of some of the product lines. But it is good to see its coming back at this point.
Jacob Suen: Yes, and I will comment a little bit more, Tony. When Michael says we’re expecting to be flat, it’s flat over a nicely improved number already from Q1 — from Q4 to Q1. So we expect to be able to maintain that nice level that we’re going to get into Q1 for — in Q2.
Anthony Stoss: Got it. And then Jacob on the Airgain Connect the 2.0 the new product now it’s a couple months ago. Do you have an existing kind of customer base that are waiting for this product since they were maybe testing the original product?
Jacob Suen: Yes, we actually .have a number of customers that have been waiting. Now this product, I would say, is no longer one large customers like it was with the Version 1. It’s — we already have a lot of interest from a number of system integrators. Now I expecting these fields to be nothing huge, but it’s really diversified across domestically internationally.
Anthony Stoss: Got it. Then last question for Michael.
Michael Elbaz: Yes, go ahead.
Anthony Stoss: Go ahead Jacob.
Jacob Suen: Yes, I was trying to say we are going to be working with a number of system integrators and channel partners on the AC fleet product line.
Anthony Stoss: Got it. And then last question for you, Michael, on the inventory write down. Do you expect any other product lines to have the same write downs going forward? Do you think everything’s pretty clean, though?
Michael Elbaz: No, everything is pretty clean now. This was really the AC-HPUE has been a major product line for us of concern. And we did have a partial reserve last year exactly in Q4 of FY 2022. At this point, the product line is fully reserved. And we are fully focused on transitioning to the new Airgain Connect next generation AC fleet platform.
Anthony Stoss: All right. Very good, guys. Best of luck.
Jacob Suen: Thank you, Tony.
Michael Elbaz: Thank you, Tony.
Operator: [Operator Instructions] Our next question comes from Tim Savageaux with Northland Capital Markets. Please state your question.
Tim Savageaux: Hi, good afternoon and my congrats on the guide as well. Jacob, I wanted to follow-up on your Mobile Congress commentary and specifically the opportunities for the kind of coverage extension. Infrastructure product you mentioned, a potential strategic partnership with the International MNO. I don’t know if you’ve talked about the size of that operator, but my question is as you look at those sorts of opportunities, can you try to size them for us? And I imagine something like a strategic partnership would be larger than normal? And then how does that relate to kind of some of the served addressable market commentary that you made?
Jacob Suen: Yes. Hey, Tim. Good to talk to you. Good to hear from you. Yes, I was actually extremely excited about the feedback we got through a number of customers meetings. And certainly — normally they were really interested in the Smart Lantern that we announced during the show, and then the next gen, again, connect AC fleet. But there were a lot of interests on the Smart Network Repeater. And what I’m hearing consistently, especially with the international community, is that 5G coverage is an issue for them. I think that one customers told me that in Brazil, the government is mandating that they’d be able to cover 5G everywhere. And to do that now, especially some of the remote area, or even within the metropolitan area, there’s coverage gaps with 5G today.
And even you could be really close to a base station, but between buildings, there’s what they call the shadowing effect. And you’ll notice that even in New York Metropolitan. So how do you address that to install a lot of base station, it’s really cost prohibitive, right. And also sometimes it’s also challenging because you have to lay the fiber. And our Smart Lighthouse Network Repeater, really addressing that particular problem [ph] because with our Smart Network Repeater, all you have to do is connecting to a light pole that’s already existed. And with our smart feature with our carrier aggregation feature, this is the perfect product, ideal product for those particular carriers all the — all the power company as well. And as we are talking to these customers its becoming obvious that we are having a product that is really addressing that need.
And that’s where we actually going to have trials in Europe, in Middle East, in Latin America, and here in the U.S. So we’re seeing a lot of interest. And with this particular MNO, I mentioned, internationally, it’s in the EMEA area, and we already discussed about a very strategic partnership. We’ve already done a preliminary trial with them. It was extremely well received, and they really want to do a much bigger trial. They are willing to enter a strategic partnership with us, and I hope to update you in the real near future. As far as the size, we talk about, really sizable market, really large opportunities. So I hope to update you more, but exciting time here with our new products.
