Vertical
There is a lot of traction in the satellite and public safety and military
spaces, where customers are relying on our ability to modify the software
of our 4G and 5G platforms to fit with the requirements of such
applications. Hence, we continue to be confident that 2021 will show
higher revenue in the vertical category. As I just mentioned, we count
services revenue recognized from our large 5G strategic deal in this
category and this will grow in 2021 In addition, our confidence is growing
that our vertical market customer in the satellite space will be successful in
winning the large project which has been awaiting a formal decision for
some time now. The decision is expected any day now and we hope it will
come in time to finalize the deal and recognize some initial revenue in Q1.
We have active discussions on additional vertical deals, where we are
optimistic because they are extending our work with satisfied existing
customers and some are with potential new customers.
To recap all these positive developments, we not only have a backlog that
is the strongest we’ve seen, but we have new design wins that could move
fast enough to contribute to revenue this year and will certainly contribute
to next year and beyond, plus new strategic projects that will help fuel the
next wave of growth related to 5G. We expect this will constitute enough
demand to achieve 2021 revenue consistent with our long-term growth
objective.
To elaborate on our growth objectives, we believe our company can be
50%-per-year grower for at least 5 years – not necessarily every year, but
on average as an order-of-magnitude indication of what we think our
business can deliver. In 2020 we grew above the trend line with almost
65% growth. We are not particularly concerned about whether our revenue
in a given period is slightly above or below the trend line since timing of
revenue recognition can be a major factor, in addition to demand. We now
have a line-of-sight that says we should expect to exceed $100 million in
revenue next year and to reach scale on a quarterly basis the year after.
With a whole new growth engine represented by our 5G Taurus platform
beginning to contribute in 2023, we can realistically expect to reach scale
for the full year in 2024 with revenue over $200 million. This is the growth
trajectory we keep in our sights, not the quarter-to-quarter fluctuations due
to seasonality or timing factors. |
