The wireless connectivity technology company, Airgain Inc. (AIRG) stock is soaring high in today’s premarket on April 14, 2022. This upsurge is a result of the company securing a multi-million-dollar contract with a major utility.
Hence, at the time of writing, the stock is trading at a price of $7.99 apiece after adding 14.14%. In the prior trading session, the stock had increased by 1.01% to close the session at $7.00.
AIRG’s New Contract
Yesterday, the company announced the selection of its AirgainConnect® AC-HPUETM by a major US-based water utility company. With up to 10x power, the company’s AirgainConnect provides up to four times coverage against a traditional router-mounted antenna.
The new contract includes equipping 3000 plus vehicle fleet of the utility with the roof-mounted antenna modem for optimum connectivity. Moreover, the contract for AIRG’s devices will be deployed through the end of the year.
The utility, now Airgain’s customer is one of the biggest and geographically diverse waste-water utility companies in the United States. It provides safe, clean, and affordable water services in an expansive area including millions of people. Furthermore, the utility’s contract with the company comes under its decision to upgrade to a high-power solution for its vehicles.
With the recent technological boom, the communications market has grown exponentially in recent years. The global wireless connectivity technology market is expected to register a CAGR of 13% from 2021 to 2027. Factors like increasing demand for cloud services, video streaming, and increased broadband usage with the continued digital transformation are driving growth in the sector.
Additionally, Broadband and wireless communication have centered themselves in our daily lives such that one cannot imagine a life without them. Moreover, the need for increased speed and larger ranges continues to boost development in the technologies.
The company and its stock alike were beaten down in 2021. Global supply shortages gave serious blows to the company which resulted in a YOY decline in its Q4 sales. Therefore, the company’s overall financial performance in the year was anything but impressive.
Thus, with signs of recovery in the global supply shortages, the company now expects to grow its revenue and gross margin in Q1 2022. So far, AIRG has seen increased demand for its AirgainConnect and other products. Additionally, the company was awarded the Andrew Seybold Award for Technology Innovation by PSBTA as well.
With new contracts, an increase in demand, and recovering supply shortages, AIRG is currently looking ahead to sustained progress in the future.