SAN DIEGO, CA--(Marketwired - September 20, 2016) - Airgain, Inc. (NASDAQ: AIRG), a leading provider of embedded antenna technologies used to enable high performance wireless networking, today reported results for the second quarter ended June 30, 2016.

Second Quarter 2016 Financial Results
Sales increased 63% to $9.9 million from $6.1 million in the same year-ago period. The increase was primarily driven by an increase in product sales.

Gross profit increased 79% to $4.5 million (46.1% of sales) from $2.5 million (42.0% of sales) in the same year-ago period. The increase in gross profit as a percentage of sales was driven by an increase in the sales of board-mounted antennas, which typically carry higher gross margins.

Total operating expenses increased 31% to $3.6 million from $2.7 million in the same year-ago period. The increase was primarily due to higher personnel expenses to support the company's sales and marketing and R&D initiatives.

Net income attributable to common stockholders totaled $700,428, or $0.15 per diluted share, an improvement from net loss attributable to common stockholders of $781,689, or $(1.22) per diluted share, in the same year-ago period.

Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, fair market value for adjustments of warrants, and share-based compensation) increased to $1.3 million from $71,165 in the same year-ago period (see note regarding "Use of Non-GAAP Financial Measures," below for further discussion of this non-GAAP measure).

Second Quarter 2016 Key Performance Indicators (compared to same year-ago period)

  • Total customer devices increased 62% or 4.6 million devices to 12.0 million devices
  • The average number of antennas per device increased 24% to 3.07
  • The average selling price per device decreased 1% to $0.79

Management Commentary
"Our second quarter financial results are largely reflective of the numbers contained in our S-1 filing in July and we're very pleased with our performance for the quarter," said Airgain president and CEO, Charles Myers. "We're also excited to have recently become public and be able to scale our organization even further with a much larger and more diversified shareholder base. Looking ahead to the rest of the year, we look to build on this progress by continuing to execute on our key strategic initiatives."

Conference Call
Airgain management will hold a conference call today (September 20, 2016) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results and provide an update on business conditions.

Company president and CEO Charles Myers and CFO Leo Johnson will host the call, followed by a question and answer period.

Date: Tuesday, September 20, 2016
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
U.S. dial-in number: 1-888-233-8011
International dial-in number: 1-913-312-0961

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay in the investor relations section of the company's website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through October 20, 2016.

Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay ID: 6790315

About Airgain, Inc.
Airgain is a leading provider of embedded antenna technologies used to enable high performance wireless networking across a broad range of home, enterprise, and industrial devices. Our innovative antenna systems open up exciting new possibilities in wireless services requiring high speed throughput, broad coverage footprint, and carrier grade quality. Our antennas are found in devices deployed in carrier, enterprise, and residential wireless networks and systems, including set top boxes, access points, routers, gateways, media adapters, digital televisions and Internet of things (IOT) devices. Airgain partners with and supplies the largest blue chip brands in the world, including original equipment and design manufacturers, chipset makers and global operators. Airgain is headquartered in San Diego, California, and maintains design and test centers in San Diego, Cambridge, UK, Taipei, Taiwan, and Suzhou, China. For more information, visit

Airgain and the Airgain logo are registered trademarks of Airgain, Inc.

Forward-Looking Statements
Airgain cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. These forward-looking statements include statements regarding our ability to scale our organization further and execute on our key strategic initiatives. The inclusion of forward-looking statements should not be regarded as a representation by Airgain that any of our plans will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including, without limitation: the market for our antenna products is developing and may not develop as we expect; our operating results may fluctuate significantly, which makes future operating results difficult to predict and could cause our operating results to fall below expectations or guidance; our products are subject to intense competition, including competition from the customers to whom we sell, and competitive pressures from existing and new companies may harm our business, sales, growth rates and market share; our future success depends on our ability to develop and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers; we sell to customers who are extremely price conscious, and a few customers represent a significant portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a few contract manufacturers to produce and ship all of our products, a single or limited number of suppliers for some components of our products and channel partners to sell and support our products, and the failure to manage our relationships with these parties successfully could adversely affect our ability to market and sell our products; if we cannot protect our intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; and other risks described in our prior press releases and in our filings with the Securities and Exchange Commission, including under the heading "Risk Factors" in our final prospectus. You are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Note Regarding Use of Non-GAAP Financial Measures
To supplement Airgain's condensed financial statements presented in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA). We believe Adjusted EBITDA provides useful information to investors with which to analyze our operating trends and performance. In computing Adjusted EBITDA, we also exclude stock-based compensation expense, which represents non-cash charges for the fair value of stock options and other non-cash awards granted to employees, as well as the fair market value adjustments for warrants. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash expense allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.

Our Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in our industry, as other companies in our industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. Our Adjusted EBITDA is not a measurement of financial performance under GAAP, and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. We do not consider Adjusted EBITDA to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of specific adjustments to GAAP results is provided in the last table at the end of this release.

Airgain, Inc.  
Condensed Balance Sheets  
   June 30, 2016   December 31, 2015  
Current assets:           
 Cash and cash equivalents  $5,260,098   $5,335,913  
 Trade accounts receivable, net   4,620,335    3,731,998  
 Inventory   77,224    119,733  
 Prepaid expenses and other current assets   485,481    191,502  
Total current assets   10,443,138    9,379,146  
Property and equipment, net   843,121    1,026,784  
Goodwill   1,249,956    1,249,956  
Customer relationships, net   2,980,418    3,137,918  
Intangible assets, net   319,903    345,069  
Other assets   168,283    121,541  
Total assets  $16,004,819   $15,260,414  
Liabilities, preferred redeemable convertible stock, and stockholders' deficit           
Current liabilities:           
 Accounts payable  $3,706,589   $2,873,471  
 Accrued bonus   796,500    1,335,500  
 Accrued liabilities   800,191    660,987  
 Deferred purchase price   1,000,000    1,000,000  
 Current portion of long-term notes payable   1,536,804    1,625,030  
 Current portion of deferred rent obligation under operating lease   81,332    81,332  
Total current liabilities   7,921,416    7,576,320  
Preferred stock warrant liability   -    709,504  
Long-term notes payable   2,000,000    2,721,865  
Deferred rent obligation under operating lease   505,275    558,641  
Total liabilities   10,426,691    11,566,330  
Preferred redeemable convertible stock:           
 Series E preferred redeemable convertible stock-10,500,000 shares authorized and 8,202,466 shares issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $16,636,346 and $16,274,823 at June 30, 2016 and December 31, 2015, respectively   16,636,346    16,274,823  
 Series F preferred redeemable convertible stock-5,000,000 shares authorized and 4,734,374 shares issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $10,761,246 and $10,517,081 at June 30, 2016 and December 31, 2015, respectively   10,761,246    10,517,081  
 Series G preferred redeemable convertible stock-23,500,000 shares authorized at June 30, 2016 and December 31, 2015; 10,334,862 shares issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $18,454,197 and $17,987,553 at June 30, 2016 and December 31, 2015, respectively   16,781,646    16,315,002  
Stockholders' deficit:           
Preferred convertible stock:           
 Series A preferred convertible stock, 313,500 shares authorized, issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $2,459,753 and $2,416,194 at June 30, 2016 and December 31, 2015, respectively   976,000    976,000  
 Series B preferred convertible stock, 1,183,330 shares authorized and 1,157,606 shares issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $5,081,890 at June 30, 2016 and December 31, 2015   2,457,253    2,457,253  
 Series C preferred convertible stock, 682,000 shares authorized, issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $682,000 at June 30, 2016 and December 31, 2015   549,010    549,010  
 Series D preferred convertible stock, 4,276,003 shares authorized and 4,091,068 shares issued and outstanding at June 30, 2016 and December 31, 2015; aggregate liquidation preference of $4,614,974 and $4,516,013 June 30, 2016 and December 31, 2015, respectively   1,986,286    1,986,286  
Common shares, no par value, 80,000,000 shares authorized at June 30, 2016 and December 31, 2015, respectively; 823,485 and 665,842 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively   1,166,675    1,094,375  
 Accumulated deficit   (45,736,334 )  (46,475,746 )
Total stockholders' deficit   (38,601,110 )  (39,412,822 )
Commitments and contingencies (note 14)           
Total liabilities, preferred redeemable convertible stock and stockholders' deficit  $16,004,819   $15,260,414  
Airgain, Inc.  
Condensed Statements of Operations  
   For the Three Months
Ended June 30,
  For the Six Months
Ended June 30,
   2016   2015   2016   2015  
Sales  $9,856,317   $6,058,125   $18,368,623   $11,790,858  
Cost of goods sold   5,309,556    3,513,801    10,144,237    6,763,838  
 Gross profit   4,546,761    2,544,324    8,224,386    5,027,020  
Operating expenses:                     
 Research and development   1,342,403    1,057,755    2,664,090    2,023,853  
 Sales and marketing   1,383,755    922,342    2,624,859    1,900,359  
 General and administrative   846,555    737,234    1,844,795    1,562,709  
Total operating expenses   3,572,713    2,717,331    7,133,744    5,486,921  
Income (loss) from operations   974,048    (173,007 )  1,090,642    (459,901 )
Other expense (income):                     
 Interest expense, including amortization of debt discount   47,294    8,321    99,770    17,690  
 Fair market value adjustment - warrants   (381,455 )  (15,145 )  (460,289 )  (258,138 )
Total other income   (334,161 )  (6,824 )  (360,519 )  (240,448 )
Income (loss) before income taxes   1,308,209    (166,183 )  1,451,161    (219,453 )
Provision (benefit) for income taxes   (3,000 )  5,169    800    9,400  
Net income (loss)   1,311,209    (171,352 )  1,450,361    (228,853 )
Accretion of dividends on preferred convertible stock   (610,781 )  (610,337 )  (1,214,850 )  (1,209,968 )
Net income (loss) attributable to common stockholders  $700,428   $(781,689 ) $235,511   $(1,438,821 )
Net income (loss) per share:                     
 Basic  $0.97   $(1.20 ) $0.34   $(2.25 )
 Diluted  $0.15   $(1.22 ) $(0.32 ) $(2.66 )
Weighted average shares used in calculating income (loss) per share                     
 Basic   724,979    652,208    695,415    638,979  
 Diluted   4,479,505    652,208    695,415    638,979  
Airgain, Inc.  
Condensed Statements of Cash Flows  
   For the Six Months Ended June 30,  
   2016   2015  
Cash flows from operating activities:           
Net income (loss)  $1,450,361   $(228,853 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:           
 Depreciation   236,357    229,362  
 Amortization   182,666    -  
 Fair market value adjustment - warrants   (460,289 )  (258,138 )
 Stock-based compensation   112,168    281,295  
 Initial public offering costs   -    (47,383 )
 Changes in operating assets and liabilities:           
  Trade accounts receivable   (888,337 )  746,901  
  Inventory   42,509    (39,913 )
  Prepaid expenses and other assets   (93,246 )  17,946  
  Accounts payable   827,453    (218,667 )
  Accrued bonus   (539,000 )  (334,374 )
  Accrued liabilities   139,204    96,515  
  Deferred obligation under operating lease   (53,366 )  (45,318 )
Net cash provided by operating activities   956,480    199,373  
Cash flows from investing activities:           
Purchases of property and equipment   (47,030 )  (93,455 )
Net cash used in investing activities   (47,030 )  (93,455 )
Cash flows from financing activities:           
Repayment of notes payable   (810,090 )  (134,412 )
Proceeds from exercise of warrant   -    225,000  
Deferred costs related to initial public offering   (247,475 )  -  
Proceeds from exercise of stock options   72,300    68,572  
Net cash (used in) provided by financing activities   (985,265 )  159,160  
Net (decrease) increase in cash and cash equivalents   (75,815 )  265,078  
Cash, beginning of period   5,335,913    3,590,745  
Cash, end of period  $5,260,098   $3,855,823  
Supplemental disclosure of cash flow information           
Interest paid  $99,769   $17,690  
Supplemental disclosure of non-cash investing and financing activities:           
Accretion of Series E, F, and G preferred redeemable convertible stock to redemption amount  $1,072,332   $1,067,448  
Conversion of warrants  $249,215   $-  
Airgain, Inc.  
Reconciliation of Net Income (Loss) to Adjusted EBITDA  
   Three Months Ended  
   June 30, 2016   June 30, 2015  
Reconciliation of Net Income (Loss) to Adjusted EBITDA           
Net income (loss)  $1,311,209   $(171,352 )
 Stock-based compensation expense   83,274    130,724  
 Depreciation and amortization   200,416    113,448  
 Interest and other income   (334,161 )  (6,824 )
 Provision (benefit) for income taxes   (3,000 )  5,169  
Adjusted EBITDA  $1,257,738   $71,165  

Contact Information:

Airgain Contact
Matt Glover or Najim Mostamand
Liolios Group, Inc.
+1 949 574 3860