Ondas Announces 2020 Financial Results
Monday, March 08, 2021 | Comments

Ondas Holdings announced financial and operating results for the full year ended December 31.

Ondas made tremendous strides in 2020, successfully driving wider commercial adoption of its proprietary wireless connectivity solutions for industrial internet applications and mission-critical internet of things (IoT) in two of the company’s core markets: rail and unmanned aerial systems (UAS).

In addition, with $31.3 million in net proceeds from its follow-on public offering in December, the company substantially strengthened its balance sheet, ending the year better positioned to support its long-term growth initiatives and investments.

“2020 was truly a break-out year for Ondas, starting with the announcement of a significant strategic partnership with Siemens Mobility to bring our game-changing wireless technology to the North American rail market,” said Ondas Chairman and CEO Eric Brock. “We also delivered the initial phase to Aura Network Systems 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.”

Revenues for the year ended 2020 were $2.2 million, an increase of $1.8 million, or 575%, compared to 2019, primarily driven by Ondas’ strategic partnership with Siemens in the North American rail market and the delivery of the first phase network for Aura, a nationwide US drone customer. Ondas is now completing, on schedule, its first major product development program with Siemens to combine Siemens’ advanced train control system (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. 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 U.S. 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.

Operating expenses decreased $3.2 million, or 20%, mainly due to expense reductions in payroll, travel and entertainment, and professional services.

As a result of increased revenue and lower operating expenses, the company’s net loss decreased approximately $5.9 million to approximately $13.5 million for the year ended December 31, 2020, compared with approximately $19.4 million for the year ended December 31, 2019. Diluted net loss per share was ($0.66) for the year ended December 31, 2020, compared to ($1.10) per share for the year ended December 31, 2019.

The company held cash and cash equivalents of $26.1 million on December 31, an increase of $23.8 million from 2019. The increase in cash and cash equivalents was primarily the result of $31.2 million in net proceeds from Ondas’ public equity offering in December 2020, offset by operating losses during the fiscal year. Cash used in operating activities was $7.5 million in 2020, compared to $14.7 million in 2019.

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 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 $2 million and revenue between $1 and $1.5 million. Operating expenses are expected to be between $2.5 and $3 million on a cash basis in the first quarter and may trend up modestly over the course of 2021. Cash operating expenses exclude non-cash expenses such as stock-based compensation.

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