| | | During our virtual event last month, we also shared a snapshot of our
pipeline of potential business -- $500 million in product revenue, assuming
a 3-year revenue cycle from the date the customer’s device goes into initial
production. Also, we have indicated that we have another $100 million in
potential services revenue that we track separately because it tends to
convert to revenue a bit differently than products. Over this pipe of
opportunity, we indicated at the event that 40% of the product pipeline has
been secured by design wins and will turn to revenue. The percent of
potential services revenue secured by design wins is a little higher than
40%. Today, we are very excited to highlight further design-win progress
since the beginning of the year:
Massive IoT
We announced a design win with WiThings in January. This well-known
company is a spin-off of Nokia that provides smart health devices. We are
pleased to report that we have already received our first order. E-health is
an important market within Massive IoT and we have a great traction there
with many advanced opportunities. Specifically, we are finalizing and are
about to kick off two projects with the healthcare division of a major
conglomerate. Meanwhile, our existing E-health business, driven mainly by
the infectious disease testing application, continues to have strong
demand.
We continue to enjoy success in the metering market. We have secured
the second phase of deployment with Tepco in Japan. We are working to
launch the first Itron project and one with a new metering customer we
secured in Q4. Since our virtual investor event, we have landed another
major metering design win. Plus, we have strong interest and on-going
discussions with two new big deals. So we believe metering is going to be
a source of strong growth for the company.
In the smart home and security space, we have recently secured two new
design wins, both using our Monarch 2 platform. Product development has
started and they are targeting a launch in Q4 this year.
In the wearables/hearables area served by Cat 1, we have a major design
win in Europe scheduled to begin initial shipment this quarter. Also, we
expect to move the design win we have in the US from the proof-of-
concept phase to the full launch phase with the arrival of Calliope 2
Engagements on Calliope 2 will be developing through the year and we
feel very confident that we can end this year with multiple design wins in
this space, specifically through the partnership of Thales/Gemalto and
Renesas.
In tracking and monitoring, we recently secured several smaller deals and
we are working to close some larger ones as well.
In January, we also announced a demo of a joint solution with e-peas, a
pioneer in energy harvesting, a technology that would enable IoT devices
to run without batteries. While we are far away from generating revenue
from a joint solution, collaborating with this type of company shows our
commitment to remain at the cutting edge of technology and also
demonstrates our commitment to sustainability and a better environment.
In summary, we are entering 2021 with a strong feeling about the ramp of
Massive IoT and we see our business developing in the following four
markets: tracking and fleet management, medical and well-being, security
and smart home, and metering followed quickly by wearables/hearables as
a fifth market segment. And we believe, most of this business is very
“sticky” and will deploy over six or seven years, if not more. |
|
