Why Ondas Stock Is Getting Slammed After Q2 Earnings? - Ondas Holdings (NASDAQ:ONDS)

Ondas Holdings Inc ONDS reported a second-quarter FY21 revenue decline of 25% year-on-year to $0.89 million, missing the analyst consensus of $1.2 million.
Increased development revenue helped offset lower product sales.
Margin: The gross margin contracted 1800 bps to 35% due to a change in mix between development revenue at a lower margin than product revenues.
Loss per share of $(0.10) beat the analyst consensus loss of $(0.12).
Ondas held $58.6 million in cash and equivalents.
The company used $7.09 million in operating cash flow during the six months ended Jun. 30.
Ondas continued to position itself for success in the targeted MC-IoT markets, advance business activity with the Rails, Siemens AG SIEGY, and AURA, bringing those projects closer to completion and volume production.
Ondas completed the acquisition of American Robotics, opening a brand new, substantial worldwide TAM.
Ondas expect to receive a purchase order from the Class 1 Rails related to the MC-IoT Rail lab in Q4 of 2021. It also expects to receive additional joint-product development projects with Siemens.
Price Action: ONDS shares traded lower by 9.84% at $6.87 on on the last check Monday.