Ondas lowers 2023 revenue view to $15M from $26M-$30M, consensus $25.67M.

The company said, “Ondas has lowered its revenue outlook for the full year 2023 from the original $26 million to $30 million target range due to a slower than expected ramp in systems production at Ondas Networks. The slower production ramp was related to component availability challenges that were exacerbated working capital limitations which created bottlenecks to ordering long lead time components. Ondas Networks believes that recent improvements in component availability and the engagement of a highly qualified contract manufacturer, along with the $15 million working capital provided by the recently announced financing, will allow for production to reaccelerate in the second half of 2023 and into 2024. Increased systems production is expected to coincide with an increase in expected purchase orders from Siemens on behalf of rail customers. OAS remains on track to meet its original revenue growth objectives for 2023, which will be supported by continued customer engagement in the UAE as well as new customer activity expected in the US and other key global markets. Growth in the US is expected to be further supported by the expected receipt of the FAA’s Type Certification for the Optimus System in the third quarter of 2023. For the second half of 2023, Ondas expects to generate at least $7.0 million in revenue across its business units resulting in a full year 2023 revenue target of $15 million, a more than 6-fold increase over full year 2022 revenues of $2.1 million. We continue to expect substantial growth in 2024 as commercial adoption scales at both Ondas Networks and OAS. Revenue growth is expected to fluctuate quarter-to-quarter given the uncertainty around the timing of customer activity, both related to orders and equipment production in connection with the commercial rollout for the 900 MHz Rail network and the timing of OAS’s orders and deliveries to the UAE and US customers.”