Overview

• Wireless connectivity provider's Q1 revenue declined 4% yr/yr, slightly beating analyst expectations

• Company posted a non-GAAP net loss, with lower consumer sales offset by enterprise and automotive growth

• Q2 sales forecast at $12.5 mln-$14.5 mln, expecting sequential improvement

Outlook

• Airgain expects Q2 sales between $12.5 mln and $14.5 mln, midpoint $13.5 mln

• Company sees Q2 GAAP gross margin between 41.6% and 44.6%

• Airgain expects Q2 non-GAAP net income per share of $0.01 at midpoint

Result Drivers

• CONSUMER MARKET DECLINE - Co said Q1 revenue drop was primarily due to seasonal decline in consumer market sales

• ENTERPRISE AND AUTOMOTIVE GROWTH - Higher embedded modem sales and increased vehicle gateway shipments drove sequential growth in enterprise and automotive segments

• UNFAVORABLE PRODUCT MIX - Sequential gross margin decline was mainly due to lower enterprise gross margin from unfavorable product mix

Company press release: ID:nBw84ry4na

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Slight Beat*	$11.51 mln	$11.48 mln (4 Analysts)
Q1 Net Income		-$1.90 mln
Q1 Gross Profit		$4.97 mln
Q1 Income From Operations		-$2.11 mln
Q1 Operating Expenses		$7.09 mln
Q1 Pretax Profit		-$1.83 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Airgain Inc is $6.75, about 5.3% below its May 5 closing price of $7.13

• The stock recently traded at 64 times the next 12-month earnings vs. a P/E of 74 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.