FiEE, Inc. Q4 FY2021 earnings call

• Revenue: 2021 GAAP revenue $55.4M, up 16% y-o-y; Q4 net sales shrank 24% y-o-y. - Gross margin: Improved to 31.6% in 2021, up 328 basis points from 2020. - Supply chain: Headwinds in Q4 impacted revenue and adjusted EBITDA; delayed product launches and increased component costs. - Transformation: Focus on intelligent products, software-centered company; new leadership team brought in. - Product: ASP grew 7% in 2021; Motorola MG-8702 was first intelligent product; historic Black Friday/Cyber Monday sales on Amazon.

In 2021, Minim's GAAP revenue was $55.4 million, a 16% increase over 2020, resulting in a 3-year CAGR of 21%. The main product segment is cable modems, gateways, etc. Gross margin improved to 31.6% in 2021, a 328 basis point increase from 2020. Amazon.com sales channel grew 57% in 2021. Motorola products held 41% market share on Amazon in 2021, up from 28% in 2020. Retail sales were affected by supply chain issues, with Q4 retail sales down, but Q1 showed a return to quarter-over-quarter growth.

• Expect Q1 2022 to have quarter-over-quarter revenue growth of 20%-30% compared to Q4 2021. - Plan to balance hedging against supply chain disruptions with inventory management. - Progress on transformation includes bringing thousands more intelligent networks under management and releasing new software features. - Q1 earnings call in first half of May 2022; Investor Day in first half of June 2022.

• Supply chain disruptions affecting product launches and retail sales. - Macro headwinds like settling consumer demand and inventory rebalancing by distribution partners. - Potential stock delisting if stock price remains below $1.

Q: Granularity on why retail sales were down so much despite Best Buy performance and Q1 trend A: Supply chain issues disrupted buying patterns; return to quarter-over-quarter growth seen in Q1 Q: Cash balance, inventory levels, and path to profitability A: Cash balance dipped in Q1 but expected to increase in Q2; focus on inventory management to ensure liquidity, leveraging Mehul's supply chain expertise Q: Deferred revenue drop and 2022 guidance A: Q4 dip was one-time anomaly due to product return; deferred revenue expected to continue growing in 2022 Q: Stock price below $1, delisting concern, and profitability timeline A: Focus on sustainable growth, Q1 earnings call and Investor Day to communicate progress; confident in avoiding delisting Q: Growth drivers, inventory quality, and stock buyback A: Growth drivers include mesh portfolio, software integration; inventory quality high, weighing stock buyback vs. investment in transformation