Ondas Holdings Reports Full Year 2020 Financial Results
Ondas Holdings Inc. (NASDAQ: ONDS) reported a significant revenue increase of 575% to $2.2 million for the year ended December 31, 2020, driven by partnerships with Siemens and Aura. The company's net loss decreased to approximately $13.5 million, down from $19.4 million in 2019. Ondas ended the year with $26.1 million in cash, bolstered by a public offering yielding $31.3 million in net proceeds. Looking ahead, Ondas anticipates initial bookings from Class 1 Rails in the second half of 2021 and expects first-quarter revenues between $1.0 and $1.5 million.
- Revenue increased 575% to $2.2 million in 2020.
- Net loss reduced to approximately $13.5 million from $19.4 million in 2019.
- Cash and cash equivalents rose to $26.1 million from $2.2 million in 2019 due to public offering proceeds.
- Continued operating losses underscore ongoing financial challenges.
- Operating expenses, while reduced, remain high relative to revenues.
Ondas Holdings Inc. (NASDAQ: ONDS), a developer of proprietary, software-based wireless broadband technology for large established and emerging industrial markets (“Ondas” or the “Company”), today announced financial and operating results for the full year ended December 31, 2020.
Ondas made tremendous strides in 2020, successfully driving wider commercial adoption of its proprietary wireless connectivity solutions for industrial internet applications and Mission-Critical IoT (“MC-IoT”) in two of the Company’s core markets – commercial rail and unmanned aerial systems (UAS). In addition, with
“2020 was truly a break-out year for Ondas, starting with the announcement of a significant strategic partnership with Siemens Mobility (‘Siemens’) to bring our game-changing wireless technology to the North American Rail Market,” said Eric Brock, Ondas’ Chairman and CEO. “We also delivered the initial phase to Aura Network Systems (‘Aura’) of a groundbreaking wide-area network intended to offer drone navigation capabilities to UAS operators. These key business development successes were capped off by a public offering and Nasdaq listing in December, which affords us the flexibility to continue executing our ambitious growth strategy and realize the full potential of Ondas’ transformative wireless broadband technology in large legacy and emerging infrastructure markets.”
Full Year 2020 & Recent Highlights
-
2020 revenues increased
575% , primarily driven by Ondas’ strategic partnership with Siemens in the North American Rail Market and the delivery of the first phase network for Aura, our nationwide US drone customer.
- We are now completing, on schedule, the first major product development program with Siemens to combine Siemens’ ATCS protocols with Ondas’ MC-IoT technology in the greenfield 900 MHz licensed band.
- Siemens is in the final stages of launching Airlink, a Siemens-branded version of Ondas’ MC-IoT technology for the North American Rail market. The initial focus of this product line will be the nationwide 900 MHz network, which the US Federal Communications Commission (FCC) awarded to Class 1 Rails operators in August 2020.
- In February 2021, Ondas and Siemens began work on a new product for global Rail markets, the development of which is expected to be completed by the end of 2021.
- Also, in February 2021, Ondas entered into a strategic partnership with Rogue Industries to advance the adoption of Ondas’ MC-IoT platform in US government and defense markets.
- In March 2021, Aura ordered the next phase of the joint-development program with Ondas to begin commercialization of the previously mentioned UAS wireless navigation system.
Full Year 2020 Financial Highlights
Revenues for the year ended 2020 were
Operating expenses decreased
As a result of increased revenue and lower operating expenses, the Company’s net loss decreased approximately
Results of Operations |
|
Year ended December 31, |
|
|
|
|||||||
($ in 000s) |
|
2020 |
|
|
2019 |
|
|
Increase/ (Decrease) |
|
|||
Revenue |
|
$ |
2,164 |
|
|
$ |
320 |
|
|
$ |
1,844 |
|
Cost of sales |
|
|
1,236 |
|
|
|
79 |
|
|
|
1,157 |
|
Gross profit |
|
|
928 |
|
|
|
241 |
|
|
|
687 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
7,642 |
|
|
|
4,793 |
|
|
|
2,849 |
|
Sales and marketing |
|
|
1,224 |
|
|
|
5,404 |
|
|
|
(4,180 |
) |
Research and development |
|
|
3,586 |
|
|
|
5,416 |
|
|
|
(1,830 |
) |
Total operating expense |
|
|
12,452 |
|
|
|
15,613 |
|
|
|
(3,161) |
|
Operating loss |
|
|
(11,524 |
) |
|
|
(15,372 |
) |
|
|
(3,848 |
) |
Other income (expense) |
|
|
(1,954 |
) |
|
|
(4,018 |
) |
|
|
(1,817 |
) |
Net loss |
|
$ |
(13,478 |
) |
|
$ |
(19,390 |
) |
|
$ |
(5,912 |
) |
The Company held cash and cash equivalents of
Summary of Sources and (Uses) of Cash |
|
Year ended December 31, |
|
||||||
($ in 000s) |
|
2020 |
|
|
2019 |
|
|
||
Net cash used in operating activities |
|
$ |
(7,534 |
) |
|
$ |
(14,664 |
) |
|
Net cash used in investing activities |
|
|
(16 |
) |
|
|
(355 |
) |
|
Net cash provided by financing activities |
|
|
31,458 |
|
|
|
16,042 |
|
|
Increase in cash |
|
|
23,908 |
|
|
|
1,023 |
|
|
Cash and cash equivalents, beginning of year |
|
|
2,153 |
|
|
|
1,130 |
|
|
Cash and cash equivalents, end of year |
|
$ |
26,061 |
|
|
$ |
2,153 |
|
|
Outlook
Ongoing investments in market expansion and deeper penetration of select verticals are expected to continue supporting bookings and revenue growth in 2021, as Ondas advances its long-term strategy to drive commercial adoption of its proprietary technology across multiple markets. The Company continues working closely with Class 1 Rails and strategic rail partner Siemens to advance the adoption of Ondas’ FullMAX platform in the 900 MHz network, greenfield spectrum. Currently, the Company anticipates that initial commercial bookings from the Rails will commence in the second half of 2021.
In addition, commercialization efforts with Aura, the Company’s drone partner, remain on track, with the expectation of at least two revenue-producing product development agreements in the first half of 2021, as well as initial equipment orders for UAS customers and ecosystem partners for testing and network expansion during the year.
Ondas intends to continue pursuing additional bookings and deployments of its proprietary technology in security and other addressable markets, throughout 2021.
For the first quarter of 2021 the Company expects bookings of at least
Earnings Conference Call & Audio Webcast Details
An earnings conference call is scheduled for today, March 8, 2021, at 8:30 a.m. ET. Investors may access a live webcast of the earnings conference call via the “News / Events” page of the Company’s Investor Relations website at https://ir.ondas.com. Following the presentation, a replay of the webcast will be available for 30 days in the same location of the Company’s website.
Live Listen Only Webcast |
|
Participant Dial In (toll free) |
1-866-777-2509 |
Participant Dial In (International) |
1-412-317-5413 |
Participant Call Pre-Registration (encouraged) |
About Ondas Holdings Inc.
Ondas Holdings Inc., through its wholly owned subsidiary, Ondas Networks Inc., is a developer of proprietary, software-based wireless broadband technology for large established and emerging industrial markets. The Company’s standards-based, multi-patented, software-defined radio FullMAX platform enables Mission-Critical IoT (MC-IoT) applications by overcoming the bandwidth limitations of today’s legacy private licensed wireless networks. Ondas Networks’ customer end markets include railroads, utilities, oil and gas, transportation, aviation (including drone operators) and government entities whose demands span a wide range of mission critical applications. These markets require reliable, secure broadband communications over large and diverse geographical areas, many of which are within challenging radio frequency environments. Customers use the Company's FullMAX technology to deploy their own private licensed broadband wireless networks. The Company also offers mission-critical entities the option of a managed network service. Ondas Networks’ FullMAX technology supports IEEE 802.16s, the new worldwide standard for private licensed wide area industrial networks. For additional information, visit www.ondas.com or follow Ondas Networks on Twitter and LinkedIn.
Forward Looking Statements
Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including, the risks discussed under the heading “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”), in our Quarterly Reports on Form 10-Q filed with the SEC, and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
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