Airgain Reports Second Quarter 2021 Financial Results

Airgain, Inc. (Nasdaq: AIRG), a leading provider of advanced wireless connectivity solutions and technologies used to enable high performance wireless networking across a broad range of devices and markets, including consumer, enterprise, and automotive, today reported financial results for the second quarter ended June 30, 2021.

“We saw revenue growth with our integrated wireless systems business especially within the Industrial IoT and traditional enterprise Wi-Fi markets in the first half of 2021, and we expect that growth to continue in Q3 and beyond,” said Airgain’s President and Chief Executive Officer, Jacob Suen. “With AirgainConnect® revenue poised for growth in the coming quarters and the revenue contribution from our Enterprise products, we are very excited about Airgain’s strong growth prospects. Despite seeing current quarter pressure from transitory supply shortage constraints, we’ve made excellent progress in advancing our strategic mission to deliver higher levels of integrated wireless system solutions globally.”

Second Quarter 2021 Financial Highlights

• Sales of $17.3 million
• GAAP Gross margin of 42.2%
• Non-GAAP gross margin of 42.8%
• GAAP operating expenses of $10.0 million
• Non-GAAP operating expenses of $6.8 million
• GAAP net loss of $2.6 million or $(0.26) per share
• Non-GAAP net income of $0.6 million or $0.05 per diluted share
• Adjusted EBITDA of $0.7 million
• Second Quarter 2021 Financial Results

Sales for the second quarter of 2021 were $17.3 million, of which $8.9 million was generated from the consumer market, $6.2 million from the enterprise market and $2.2 million from the automotive market. Sales decreased by 0.5%, or $0.1 million in the second quarter of 2021 compared to $17.4 million in the first quarter of 2021. Consumer sales declined from the first quarter of 2021 by $1.4 million primarily due to weakness from the chip shortage at one large North American service provider end customer as well as weakness from our international service provider end customers also due to the global chip shortage. Enterprise product sales increased from the first quarter of 2021 by $1.8 million driven by the product ramp of industrial Internet of Things devices through our acquisition of NimbeLink. Automotive sales decreased $0.5 million from the first quarter of 2021 driven mostly from the slower adoption of AirgainConnect products. Sales for the second quarter of 2021 increased by 51.1%, or $5.9 million from $11.4 million in the same year-ago period. The increase in sales from the second quarter of 2020 was primarily due to $4.8 million of revenue recognized from NimbeLink, which was acquired on January 7, 2021, and whose revenue is included in Airgain's enterprise market, as well as higher sales in our consumer and automotive markets.