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MOBILE & TELECOMMUNICATIONS | Telecom Devices & Equipment
smarteq.com

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About Smarteq Wireless

Smarteq Wireless is a European supplier of antennas for vehicular, energy, and Industrial IoT (IIoT) applications.On May 3rd, 2021, Smarteq Wireless was acquired by PCTEL. The terms of the transaction were not disclosed.

Smarteq Wireless Headquarter Location

Kronborgsgränd 7

Kista, 164 46,

Sweden

+46 8 792 92 00

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Latest Smarteq Wireless News

Q3 2021 Earnings Call Script

Nov 4, 2021

11/04/2021 | 06:42pm EDT Message : Operator Welcome to the PCTEL third quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. As a reminder, this conference is being recorded. I will now turn the call over to Kevin McGowan, the Company's CFO. Kevin McGowan Thank you for joining us on today's conference call to discuss PCTEL's third quarter 2021 financial results. With me today is David Neumann, the Company's CEO. Before we begin, let me remind you that this call may contain forward-looking statements and projections based upon current circumstances. While these forward-looking statements and projections reflect PCTEL's best current judgment, they are subject to risks and uncertainties, particularly related to the COVID-19 pandemic, the global supply chain and transportation challenges, and the impact of our acquisition of Smarteq Wireless AB, that could cause actual results to differ materially from these forward-looking statements and projections. Risk factors that could cause PCTEL's actual results to materially differ from its projections are discussed in the earnings press release which was issued today and the Company's annual report on Form 10-K. The Company assumes no 1 obligation to update any forward-looking statements or information, which speak as of their respective dates. Additionally, our commentary will include reference to the following non-GAAP measures: non-GAAP gross margin percentage, non-GAAP operating expense, non-GAAP earnings per share, and adjusted EBITDA. We believe these non- GAAP measures facilitate comparability of results over different periods. A full reconciliation of these non-GAAP measures to GAAP is included in our quarterly earnings press release that was issued earlier today. I am now pleased to turn the call over to David Neumann. David Neumann Thank you, Kevin. Welcome and thank you for joining us this afternoon. In our call today, I will review our Q3 results, including the impact of supply chain disruptions, discuss significant product launches and design wins across our three product lines, and then share our thoughts on the remainder of the year and our expectations for 2022. As you may have seen in our press release issued after the market close, we met our earnings estimate on lower than forecasted revenue. Revenue grew sequentially, but the revenue shortfall compared to our guidance was principally due to two supply chain issues which limited our ability to manufacture, ship and 2 recognize revenue for certain antenna products during the quarter. Incoming orders remain strong and improved sequentially over the second quarter which, as you may recall, was one of our best quarters for incoming orders since the second quarter of 2019. We've addressed these two supply chain issues and we will continue to address others as they arise, but we believe quarterly revenue and earnings will grow through the end of the year and into 2022. Our customer service and operations teams have done an excellent job working closely with our customers to minimize the impact from supply chain delays. While raw material shortages delayed some shipments of our antenna products, we ensured that we met our customers' critical demand through planning, proactive communications, and engagement. Constrained supply of specialized plastic materials and adhesives used in certain of our antenna products posed the most significant challenges and had the greatest impact on our revenue for the quarter. These issues were resolved late in the quarter and we do not currently expect similar constraints through year end. In Q3, we achieved $22.4 million in revenue, $2.3 million in adjusted EBITDA and $0.08 in non-GAAP earnings per share. Earnings grew sequentially and revenue grew both sequentially and year-over-year. Revenues were 18.4% higher quarter-over-quarter, and EBITDA was higher by $100,000 compared to the second quarter. We achieved non-GAAP gross margins of 46.7% for the quarter, 3 which was lower than the third quarter last year as a result of a shift in product mix towards lower margin antenna revenue. Next, I would like to provide an update of achievements in our three main product areas: antennas, industrial IoT devices and test & measurement tools. Our antenna business, driven by strong incoming orders for agriculture and vehicular applications, is performing well. We added three new distributors since our last call and released a new 5G, configurable, and low-profile antenna platform that supports Intelligent Transportation and Public Safety applications. The new Trooper Max 5G antenna platform is designed to add Land Mobile Radio (LMR) connectivity through an external whip port, if required. It is compatible with the world's leading cellular routers supporting 600 MHz to 6 GHz frequencies and covers Wi-Fi 6 frequency ranges as well. Our Smarteq team continues to exceed expectations. Smarteq is recognized as a leader in supporting wireless connectivity for electric vehicle charging stations in the Nordic countries, and the team recently won the antenna business for additional smart meter and cargo tracking projects in Europe, which will begin to generate revenue in early 2022. We are pleased with our performance, and we will continue to invest in our capabilities and leverage these reference customers for open opportunities in the United States. 4 Within our IoT device products, we delivered our first ruggedized Wi-Fi access points that provide reliable Wi-Fi connectivity in harsh environments for industrial equipment, heavy machinery, and construction equipment. We expect to receive additional orders for the access points in the fourth quarter. As we mentioned in our last earnings call, we expected to see a temporary slowdown in 5G test and measurement purchases due to the European and Asian 5G deployment delays. These are short-term issues primarily related to the pandemic, such as spectrum auction and deployment delays. 5G networks still only cover about 20% of the global mobile user markets. The unique capabilities of 5G, such as 100 MHz bandwidth and support for mmWave frequencies, require more advanced test and measurement tools that PCTEL provides. In addition, wireless operators need to test 5G simultaneously with legacy technologies, like 4G LTE and 3G to support existing customer bases. This further complicates testing. With our emphasis on engineering expertise, PCTEL has a long history of developing innovative scanning receivers that often lead the industry in capabilities for testing efficiency. PCTEL is a leader in providing advanced scanning receiver solutions. We are very excited to announce the availability of our next generation scanner, the Gflex™. The Gflex scanning receiver is designed to support drive testing, inbuilding testing, and government applications for 5G and legacy networks. The Gflex is a single lightweight scanner that collects all mmWave and sub-8 GHz 5 This is an excerpt of the original content. To continue reading it, access the original document here . Attachments

Smarteq Wireless Acquisitions

1 Acquisition

Smarteq Wireless acquired 1 company. Their latest acquisition was Akerstroms on November 30, 2015.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

11/30/2015

$99M

Acquired

1

Date

11/30/2015

Investment Stage

Companies

Valuation

$99M

Total Funding

Note

Acquired

Sources

1

Smarteq Wireless Team

4 Team Members

Smarteq Wireless has 4 team members, including former Chief Executive Officer, Mats Teir.

Name

Work History

Title

Status

Shachar Bialick

Founder

Current

Mats Teir

Chief Executive Officer

Former

Jan Benjaminson

Chief Financial Officer

Former

Jan Benjaminson

Chief Financial Officer

Former

Name

Shachar Bialick

Mats Teir

Jan Benjaminson

Jan Benjaminson

Work History

Title

Founder

Chief Executive Officer

Chief Financial Officer

Chief Financial Officer

Status

Current

Former

Former

Former

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