Investor conferences. On behalf of OTC Markets, we're very pleased you joined us for our Small Cap Growth Conference. Our next presentation is from Baylin Technologies. Please note you may submit questions for the presenter in the box to the left of the slides. You also may view a company's availability for one-on-one meetings by clicking "Book Meeting" in the top toolbar. At this point, I'm very pleased to welcome Leighton Carroll. He's the Chief Executive Officer at Baylin Technologies, which trades on the OTC QB Venture Market under the symbol BYLTF and on the TSX under the symbol BYL. Welcome, Leighton.
Thanks for having me. All right, guys. Appreciate the time. I appreciate everyone's here to learn about us. I'm going to walk through some slides, point some stuff out towards the end of this. There will obviously be a Q&A. Would love to answer questions. Actually, pretty excited about the company and what we're doing. We're kind of a unique company. Probably better to let me just go ahead and explain it. Baylin, it's been around through predecessor businesses for over 40 years, work in three kind of key verticals. All of our products are built and effectively predicated on RF engineering capabilities that we have. We do three things. We do satellite connectivity, wireless infrastructure, and embedded antennas. I realize this is a bit of an eye chart, so maybe it's best that I just kind of walk through each.
When I talk about satellite communications, there's a lot of stuff going on in the market right now. We have chosen to play in a very particular segment of that market. That's actually important, right? Let me explain this. First of all, we don't put things in space. We don't make satellite dishes. We focus on high-powered gear that effectively makes that work. Easiest way to explain this to people is if you like football, if you like golf, when you see the Super Bowl, when you see the Masters golf tournament on TV, and many, many more, those broadcasts you watch are actually powered by our gear. We do a lot of work with the U.S. government, with NATO governments. By the way, that's interesting because I think most people know who Starlink is. I think we all know who Elon Musk is.
Starlink is great technology. We saw that coming. It was going to disintermediate certain segments of the market. By focusing on high power, we're playing in spaces where Starlink really is not ever going to play. I'll give you an easy example. When I talk about NATO government work, what you see here, and I just threw a pointer on it, that is a huge amplifier system. The two systems here and here, that represents effectively about a $2 million purchase order. Why is that interesting? This is for a U.S. DoD application. We work with large defense contractors. This is part of a larger system. What is perhaps more interesting is that is one system.
There are 15-18 more of those because, like many of these large programmatic opportunities, that is a multi-year, by the way, multi-purchase order opportunity for us, where once you're in and as the standard, you are the standard for what they will do next for that technology. It's kind of a cool place to be. We have several things like that. We obviously do a lot of what I would call the normal base hits that you do in any business. When I look at a system like that, yes, we have purchase orders in right now. We are working on delivery of another system right now for that. There are many more coming. We don't have those purchase orders, but we know it's part of a large multi-year program.
That is a little bit about our satellite technology business without giving you all the details about the exact things of what we do there. Happy to talk about that, of course. Kind of a neat business. We feel that we are in a very good place with how we have chosen to position ourselves. By the way, maybe one other important fact about this business. If you look at the markets and where it has been, Starlink has disintermediated the bottom. You have got Project Kuiper or Blue Origin, which is the Amazon getting ready to come in. Those are playing in different segments. There are other people who do higher power levels. As you go up to higher power levels, it really thins out, which means the competitive dynamic changes.
It allows you to maintain pretty reasonable margin profiles and build actual competitive differentiation, which is something I think about all the time. All right, going to the next slide, wireless infrastructure. The easiest way to say it is we sell antennas specifically to wireless carriers, 3POs, and systems integrators who work in the wireless space. A way to frame this, so I've just had my fourth year anniversary with the company. When I joined the business, I felt like we were trying to be me too. Competitive advantage does not come from me too. You have to have competitive differentiation that matters. What matters, and we chose to focus on particular use cases and particular capabilities that would matter to those end customers and in places where we could get our own patent book and have unique competitive advantage. Let me just talk really quickly.
I'm going to start here with this guy, which is the world's thinnest antenna, right? I actually have one. Hopefully, you guys can see this. This is, yeah, it looks like a Frisbee. That's not what's interesting about this. As I turn it this way, hopefully, you guys can see that. This thing is hotel room card key thin. Why does that matter? If you go to some of the related properties in New York, Class A office space, they don't want sellables on their ceiling. If you go to MGM casinos worldwide, they care about the aesthetic. Those are paintable, scannable, by the way, very patented, and they work fantastic. We've sold thousands. This, it's called a whip, which isn't very exciting. It looks like a stick. Why is that important?
If you look at this picture and you're looking at the Empire State Building and a light pole outside it, what do you see? You see a light pole with a stick on it. Why does that matter? On the strength of this product and the strength of our carrier relationships with AT&T, T-Mobile, and Verizon, as an example, Crown Castle awarded us all five boroughs of the city exclusively for small cell. By focusing on having high-quality RF product where aesthetic matters, that has driven a lot of sales for us. By the way, it has allowed us to expand. This product is actually very important for us and has been a big reason for our growth. I'm going to come back to what we've been up to here in a bit. That's called a multi-beam.
When I joined the company, we were just getting our first one out. We now are well north of 30 of these and are considered leader in this product. There was a legacy technology that did multi-beam, and I can explain the technology behind this, but that handled high density, high traffic. They really kind of dominated the market. There were only a few problems with it. They basically look like big globes. They're insanely heavy. They were insanely expensive. By the way, long lead times. We have patented panel-based technology that has allowed us to effectively start to disintermediate that legacy. They cost less. They weigh half. They cost less in a material way. By the way, they work fantastically well. As an example, we never sold into Europe in this business line.
We now work with Vodafone, Telecom Italia, several other operators in Europe. We have trials with two more major European carriers. This is an example. You cannot see this ring here, but this is 80-something thousand people at a Harry Styles concert in Europe. The wireless carrier liked this technology so much they actually put their logos on the antennas so the fans who were going to this could see if they had good coverage, they knew why, they could see the product, see the logo. This is on a Verizon site. This is in an NBA arena. This product has been a huge growth engine for us. By the way, super patented. By building a unique book of patents and technology and focusing on competitive differentiation, it has allowed us to grow. Finally, we have always been really strong in stadium antennas.
Give you examples. You can obviously see Arrowhead, AT&T, and Verizon just completed a major upgrade at Bryant-Denny, University of Alabama football. It's all our gear. Kind of a neat place to be known. Obviously, these are competitive markets. There are lots of businesses in this space. I'm going to talk about our growth in each of the businesses in a second from 2024 over 2023. It will explain why some of the strategic points I'm laying out for you and why where we've chosen to play versus chosen not to play has actually been very critical in achieving that growth. Our final of the three business lines is our embedded line. The way to explain this is if you want cheap antennas for some IoT application, there are plenty out there. You can go to Quectel. You can go to FiberHome, both Chinese guys.
They have off-the-shelf antennas that engineers can just stuff in. When customers care about the RF quality of what they give their end customers, they come to us because we engineer antenna solutions that we then manufacture that are embedded into other people's products. We do a lot in home automation, Wi-Fi. I'm going to show you our customer list. You'll kind of connect some of the dots here. This one is actually a really neat success story for us. That is a body armor camera. Think police officers and first responders from a company called Axon, formerly called TASER. That's critical communication. When a police officer or officers are turning on their body armor camera in a critical incident, it has to work. By the way, not just work and store it locally.
It has to get up, get stored in the cloud, and back to the command centers so they can see what's going on. They chose us for the antennas to make the wireless connectivity work. We launched that in Q4 of 2023. It has just been a great product both for us and for Axon. That is a really crystal example of when we get chosen and why we matter in this space. It is great to talk about all of this. If all of this stuff I was saying was not real, I do not think our customer role would look like this. You can kind of see the level of customers we work with. By the way, on this four-year journey since I have been in the company, this has clearly expanded. It is one thing that I am very proud of what the team has done.
I'm very proud of the change in our go-to-market. And you can kind of see how there's been growth. To frame this, 2023 versus 2024 was kind of the good full-year views. 2023 was a bit of a challenging year, particularly for wireless infrastructure and for embedded wireless infrastructure. Wireless carriers had spent a lot in the prior years getting C-band deployed. T-Mobile was having a Sprint integration. We were barely active in Europe. As we got to 2024 for wireless infrastructure, that 2024 is widely considered the lowest capital spend year in the last six, and I would argue dollar adjusted in the last 10 for wireless infrastructure. Sounds like a terrible year. It was for a lot of people in the industry. Our infrastructure unit grew 40% last year over 2023. The embedded unit saw inventory builds, a bunch of stuff going on.
At the end of 2023, it had lower volumes. We actually expected that to continue in 2024. The opposite happened. Because of the diversity of our products, several of our products being successful, that business grew 23% year over year. And satellites, even with Starlink coming into the market, and Starlink disintermediated the maritime and aviation space very clearly. Our business was flat year over year. I'm actually very proud of the team for being able to get that result. Talking about where we're going, one is new markets. This is an easy one. Both within the embedded organization and within the infrastructure organization, we are looking to expand and do more in Europe. We are already getting a good reasonable amount of traction in that. By the way, that's obviously going into organic growth and margin expansion.
Part of the journey that we've been on since I've been here is to improve the margin structure of the business. By the way, you can only do that if you're operationally efficient, you have good control and use of your data. You've also focused on, for us in particular as an OEM, use cases that matter to customers where you can drive that competitive differentiation. Our margins have expanded pretty dramatically. When I got here, we were probably running around 15%-16% all in. We closed 2024 at about 42% and trending a bit higher. By the way, one of the things to talk about is tariffs. We've actually done a really good job managing that. I can talk about that all day. I know more about tariffs than I ever wanted to at this point. Inorganic growth is a big deal.
A couple of things just by the way, by way of background, I used to run the merger integration team for AT&T, AT&T Mobility. I've been in the middle market since 2014, have bought and sold several companies, and also have worked successfully in the PE world, having a successful exit for the PI workforce selling to a strategic. We look at are there ways to further diversify our revenue, diversify our customer base, diversify geography through M&A. The trick in that is it's great to talk about. To get it right, you have to be highly selective and be patient. For me in particular, I tend to be very selective. I'm only going to do something if I think it's going to be material, help the business, and grow shareholder value. If it's not doing that, it's not worth the time.
We have other things we have to do. With respect to new product innovation, there is a lot going on in the space. Both within the satellite business and within the infrastructure businesses, we have launched and are continuing to launch new products. In infrastructure, we have a new derivative technology of our multi-beam. It is kind of neat. It is not going to be commercial till more the second half of this year. We will have our first unit out. As we explain that technology to wireless carriers, we had seven tier one carriers, right? There are only three in the U.S. and three in Canada. We are past that. By the way, one of the U.S. is not there yet. You kind of get a sense that as we have talked to people, people get this new technology and what it can do for them.
Literally, obviously, we have to get the mechanics right. We have to get the commercials right. It's a good use case for our technology that is a unique opportunity. By the way, patents have already started to be filed, planning to commercialize later this year. Really, it's going to be a 2026, 2027 growth story. Within the satellite business, it's been a lot about product renewal, removing legacy product, getting to a simpler, more modular architecture, which, by the way, is important to me. It helps improve and defend our competitive differentiation, but it will also simplify our supply chain and over the long haul, improve profitability. Finally, new logo expansion is going to continue to be a big thing for us. We're seeing further opportunities in that space. We have a management team. There's a lot of gray hair. It's probably a big surprise.
We have a board of directors. Obviously, you guys will see this. Lots of people with lots of great experience and more gray hair. Good people, though. I like our board. I like the leadership team, honestly. Maybe the final thing to wrap up is this is our shares outstanding. This is where we are. By the way, the plan is not to be here. It has been a journey. When we started, when I started, the company was upside down in terms of its operating profitability, its operating EBITDA. It had a great deal of debt. Over these four years, we have returned the company to driving growth, having upside, actually generating cash flow, positive operating EBITDA. By the way, we have cut the debt in half. More work to do there, but it has been a good journey.
I feel solid about where we're going. With that, I probably used up a lot of time going through a bunch of stuff. Look, at the end of the day, I like our company. I think it's pretty cool. There are a bunch of questions that have come in. I'm going to come through and bang out some of these and give you guys a sense of them. One, what is the addressable market for infrastructure? And what is Baylin's market share? It's a tough question to ask because a lot of the data in terms of total wireless spend covers everything. To give you a sense, we compete with CommScope, which is now called Andrew underneath Amphenol. Since that acquisition, we see Ericsson. We see Nokia. We see JMA. Then there's a highly fragmented market of a lot of smaller guys.
Total market share, I would argue we're still on the small side. I think there are really two of us in the multi-beam space. By the way, there's a lot more spending there. I know I'm not giving it the crispest answer. It's because a lot of the data is noisy. You throw in geography. Within North America, I think we're well respected and taking share. Within Europe, we're nascent. If you look at just the antenna spend between those two markets, we're into the billions of dollars, low billions of dollars on an annual basis that would be spent in this space. We're growing and see further upside. Can you provide—let's see here—provide some more color around the strength of the IP portfolio? The IP portfolio for us, we really focused on a handful of key things.
It has allowed us to be differentiated. We have multiple patents granted. We have multiple patents underway. When I talk about patents, I talk about there is kind of your core patent set, which is how you do what you do. We knew we caught the tiger by the tail, so to speak, on the multi-beams. We put defensive patents in place. How do we build a moat? We talk about that internally. It is not just about having the patents on what you do, but how do you build a moat so that your competitors cannot do what you do? Within multi-beams, I feel pretty good about that. The legacy company is trying to drop prices to figure out how to compete with us. We are taking share and feel pretty good about it.
By the way, just to frame this, our multi-beams are approved at Rogers, Bell, Telus, AT&T, Verizon, T-Mobile, and obviously now in Europe with more trials coming. That is based on having this IP portfolio, not just having product, but knowing that other people are not going to be able to replicate that. That sets us up for future success. Providing 2025 revenue projections and what is the path to profitability. This one is a little bit funky to answer because my board has had a long-standing policy. They do not like giving forward-looking projections. Every time I do a quarterly call, I will always talk about the business environment where we are going. We feel like this year is going to rhyme with last year. We are going to—I feel good about the first half of the year.
Second half of the year and dealing with tariffs and some of the uncertainty with the current geopolitical situation is something that we look at regularly. It has certainly caused challenges for us. Even in the first half of the year, certainly tariffs kept a lot of us up at night, particularly in April. I feel like the business has been very resilient. I'd like to think that we're pretty smart in how we've handled tariffs, meaning in certain cases, we're able to pass on pricing. In other cases, we've been very successful at mitigating the impact of tariffs and continuing to drive profitability. Our product mix has helped. In terms of timeline to overall profitability, from a cash flow perspective, we're running along fine. From an overall profitability perspective, we're kind of on the cusp. Really, by the way, that's not good enough.
It's worlds better than where we were. From an adjusted net income perspective, we're right there. With additional growth, I feel pretty good about where this business is going. Competitive environment for the three divisions and how do you differentiate? Within wireless infrastructure, it's really been around choosing where we play and driving real competitive advantage. We're a Canadian company. Use the Wayne Gretzky saw. We try to skate to where the puck's going and get there before competition with really unique technology. So far, knock on wood, we've been doing that. We could expand into other product areas, but we've been very cognizant of how do we control costs? How are we efficient on our R&D?
Is it going to be of real value, not just having huge addressable market, but actually driving growth in real profitability and margin defense, or in some cases, margin expansion? Within the embedded space, we are known for delivering high-quality RF. There are a lot of guys who are in that space who do fast and cheap. Fast and cheap is great for certain applications. If you are AT&T and you care about the wireless experience inside a small business, inside a home for the equipment that is sold there, if you are NETGEAR and you have high-end RF equipment, you need to make sure that it is really quality. If you are Axon and it has to work, you do not use those guys. You typically will come to us. There are a handful of other competitors. Airgain is an easy one to point to. They are traded on NASDAQ.
We do see a handful of other people, but we feel like we're in a really decent place for a business and are looking for this business to continue to grow. One thing I should maybe say is that historically, this business has grown very linearly. It is a programmatic business. When we win a project like with Axon, that'll run for three years. Guess what? The next one comes out. We're in on that. It continues. You kind of get the sense here. If RF matters, that's our competitive differentiation in how we play there. That's less product like off the shelf and more custom engineering of product we then manufacture that is embedded. Within the satellite communication space, we compete. There's a handful of people. Teledyne Paradise is an easy example. Lots of guys who try to get into the space.
As you go into lower power levels, there's more competition. As you go into higher power levels, it really thins out. That is where you see three or four of us at a time. In things, for example, what we do with NASA, the NASA Artemis Lunar Space Mission, when we go out, when those modules go out towards the moon, the communication from the Earth is powered by us. That is in very unique frequency bands. We are leading in that space because of the power in those particular frequencies. I know that is a little bit of an obtuse technical way to explain it, but we compete in unique places that matter, which will have recurring spending for us. We can have good defensible margin profiles. That is how we think about the satellite space. How much converts are left outstanding?
I'm assuming these are convertible debentures. That is what the question is asking about. It's a tick over $5 million. They're actually at a pretty reasonable interest rate for us. So far, there was an extension done a few years back that I actually was involved in. Most of the people in those debentures see that as an income instrument as opposed to a conversion instrument. That's at least been my impression. We'll assess those when they come up for potential conversion or extension at that point. From an overall capital structure perspective, that's probably the lowest guy on the totem pole because we're servicing it. Those guys are pretty happy. Guys, I think we're about at the top of the time. Hopefully, I got through a bunch of questions. Really appreciate the time with you guys.
Obviously, hopefully, you guys know that I have a passion for our business. Personally, I love what I do. I have got really smart people who work for us. We have done a lot of good things. I appreciate you guys taking the time to listen to our story.