Resonant Inc. (NASDAQ: RESN), a leader in transforming the way
radio frequency, or RF, front-ends are being designed and delivered
for mobile handset and wireless devices, today announced financial
results for the fourth quarter and fiscal year ended December 31,
2019 and provided a business update.
“2019 was a pivotal year for Resonant,” stated George B. Holmes,
Chairman & CEO of Resonant, “ At MWC 2019 we demonstrated
our industry leading 5G XBAR® technology and subsequently signed
strategic investment and commercial agreements with the world’s
largest RF filter manufacturer for use of this technology for
mobile applications. This commercial agreement contains prepaid
royalties, diversifying our revenue streams beyond the per unit
royalties we historically secure for our custom filter and Filter
IP Standard Library-based designs.
“In 2020 we anticipate further broadening our potential revenue
streams and expanding our served markets. Already in the first
quarter, we signed prepaid license agreements that specify prepaid
royalties as well as additional royalties once minimum volumes are
exceeded, and we anticipate adding white label sales from our
foundry supply chain. In addition, we are targeting the delivery of
the first non-mobile samples, based on XBAR, in the first half of
2020.
“As many companies have already announced, the first half of
2020 may see lighter demand due to the seasonal weakness in the
first quarter combined with challenges in the supply chain created
by worldwide health concerns. However, our success in 2019 and in
the first quarter of 2020 to secure multiple agreements with
multiple parties that include prepayments should allow our momentum
to continue in the first quarter and throughout 2020.”
2019 Highlights
- Demonstrated the first working XBAR 5G filters with 10%
bandwidth and high-power handling at Mobile World Congress
2019.
- Signed a strategic investment and commercial agreement totaling
$16 million with the world’s largest filter manufacturer.
- Total units shipped to-date reached to over 35M. -- In the
first half of 2019, customers shipped 1.5M units. -- In
the third quarter of 2019, customers shipped 1.5M
units. -- In the fourth quarter of 2019, customers met
expectation shipping over 2.25M units.
Other Recent Highlights
- Development progress remains on track with XBAR and Resonant’s
partner, the world’s largest RF filter manufacturer
- Signed three new license agreements with an existing customer
for custom RF filter designs.
- Gained net proceeds of approximately $26.3 million from
February underwritten public offering.
For the Fourth Quarter ended December 31, 2019, Resonant
recorded:
- Billings of $100,000, compared $2.0 million for the third
quarter of 2019.
- Revenue of $459,000, compared to $79,000 for the third quarter
of 2019.
- Deferred revenues totaled $1.7 million at the end of the fourth
quarter.
- Research and development expenses of $5.2 million, compared to
$4.6 million for the third quarter of 2019.
- Sales, marketing and administration expenses of $3.1 million,
compared to $3.0 million for the third quarter of 2019.
- Operating loss of $7.9 million, compared to a loss of $7.5
million for the third quarter of 2019.
- Net loss of $7.8 million, or $(0.24) per share, based on 32.7
million weighted average shares outstanding, compared to net loss
of $7.4 million, or $(0.26) per share, based on 29.2 million
weighted average shares outstanding for the third quarter of
2019.
- Non-GAAP, adjusted EBITDA of $(6.0) million, or $(0.18) per
fully diluted share, compared to $(5.9) million, or $(0.20) per
fully diluted share for the third quarter in 2019.
For the year ended December 31, 2019, Resonant
recorded:
- Revenues of $735,000, compared to $524,000 for the full year
2018.
- Research and development expenses of $18.9 million, compared to
$14.3 million for the full year 2018.
- Sales, marketing and administration expenses of $12.0 million,
compared to $11.5 million for the full year 2018.
- Operating loss of $30.2 million, compared to a loss of $25.3
million for the full year 2018.
- Net loss of $29.9 million, or $(1.02), per share, based on 29.4
million weighted average shares outstanding, compared to net loss
of $24.8 million, or $(0.98) per share, based on 25.3 million
weighted average shares outstanding for the full year 2018.
- Non-GAAP, adjusted EBITDA of $(23.4) million, or $(0.80) per
fully diluted share, compared to $(19.2) million, or $(0.76) per
fully diluted share for the full year 2018.
- Cash, cash equivalents and investments of $10.7 million,
compared to $21.3 million at December 31, 2018.
Conference Call and WebcastDate: Tuesday, March
10, 2020Time: 1:30 p.m. Pacific Daylight Time (4:30 p.m. Eastern
Daylight Time)U.S. Dial-in: 1-877-423-9813International Dial-in:
1-201-689-8573Conference ID: 13699618Webcast: RESN Q4 2019
Webcast
Please dial in at least 10 minutes before the start of the call
to ensure timely participation.
A playback of the call will be available through April 10, 2020.
To listen, call 1-844-512-2921 within the United States or
1-412-317-6671 when calling internationally. Please use the replay
pin number 13699618. A webcast will also be available for 90 days
on the IR section of the Resonant website or by clicking here: RESN
Q4 2019 Webcast.
Note about Non-GAAP Financial Measures
A non-GAAP financial measure is a numerical measure of a
company’s performance, financial position, or cash flows that
either excludes or includes amounts that are not normally excluded
or included in the most directly comparable measure calculated and
presented in accordance with generally accepted accounting
principles, or GAAP. Non-GAAP measures are not in accordance with,
nor are they a substitute for, GAAP measures. Other companies may
use different non-GAAP measures and presentation of results.
In addition to financial results presented in accordance with
GAAP, this press release presents adjusted EBITDA, which is a
non-GAAP measure. Adjusted EBITDA is determined by taking net
loss and adding interest, taxes, depreciation, amortization and
stock-based compensation expenses. The company believes that
this non-GAAP measure, viewed in addition to and not in lieu of net
loss, provides useful information to investors by providing a more
focused measure of operating results. This metric is an
integral part of the Company’s internal reporting to evaluate its
operations and the performance of senior management. A
reconciliation of adjusted EBITDA to net loss, the most comparable
GAAP measure, is available in the accompanying financial tables
below. The non-GAAP measure presented herein may not be
comparable to similarly titled measures presented by other
companies.
About Resonant Inc.
Resonant (NASDAQ: RESN) is transforming the market for RF
front-ends (RFFE) by disrupting the RFFE supply chain through the
delivery of solutions that leverage our Infinite Synthesized
Network (ISN) software tools platform, capitalize on the breadth of
our IP portfolio, and are delivered through our services offerings.
In a market that is critically constrained by limited designers,
tools and capacity, Resonant addresses these critical problems by
providing customers with ever increasing design efficiency, reduced
time to market and lower unit costs. Customers leverage Resonant’s
disruptive capabilities to design cutting edge filters and modules,
while capitalizing on the added stability of a diverse supply chain
through Resonant’s fabless ecosystem-the first of its kind. Working
with Resonant, customers enhance the connectivity of current mobile
devices, while preparing for the demands of emerging 5G
applications.
To learn more about Resonant, view the series of videos
published on its website that explain Resonant's technologies and
market positioning:
- Resonant Corporate Video
- ISN and XBAR: Speeding the Transition to 5G
- Infinite Synthesized Networks, ISN Explained
- What is an RF Filter?
- RF Filter Innovation
- Transforming the Mobile Filter Supply Chain
For more information, please visit www.resonant.com.
Resonant uses its website (https://www.resonant.com) and
LinkedIn page (https://www.linkedin.com/company/resonant-inc-/) as
channels of distribution of information about its products, its
planned financial and other announcements, its attendance at
upcoming investor and industry conferences, and other matters. Such
information may be deemed material information, and Resonant may
use these channels to comply with its disclosure obligations under
Regulation FD. Therefore, investors should monitor the company’s
website and its social media accounts in addition to following the
company’s press releases, SEC filings, public conference
calls, and webcasts.
About Resonant’s ISN®
TechnologyResonant can create designs for
difficult bands, modules and other complex RF Front End
requirements that we believe have the potential to be manufactured
for half the cost and developed in half the time of traditional
approaches. ISN is a suite of proprietary mathematical methods,
software design tools and network synthesis techniques that enable
us to explore a much larger set of possible design solutions that
regularly incorporate our proprietary technology. We then quickly
deliver design simulations to our customers, which they manufacture
or have manufactured by one of our foundry partners. These improved
solutions still use Surface Acoustic Wave (SAW) or Temperature
Compensated Surface Acoustic Wave (TC-SAW) manufacturing methods
and perform as well as those using higher cost manufacturing
methods such as Bulk Acoustic Wave (BAW). Resonant's method
delivers excellent predictability, enabling achievement of the
desired product performance in roughly half as many turns through
the fab. In addition, because Resonant's models are fundamental,
integration with its foundry and fab customers is seamless because
its models speak the "fab language" of basic material properties
and dimensions.
Safe Harbor / Forward-Looking StatementsThis
press release contains forward-looking statements, which include
the following subjects, among others: the status of filter designs
under development, the capabilities of our filter designs and
software tools, the timing and amount of future revenues, and our
views on future financial performance and market share.
Forward-looking statements are made as of the date of this document
and are inherently subject to risks and uncertainties which could
cause actual results to differ materially from those in the
forward-looking statements, including, without limitation, the
following: our limited operating history; our ability to complete
designs that meet customer specifications; the ability of our
customers (or their manufacturers) to fabricate our designs in
commercial quantities; our customers’ ability to sell products
incorporating our designs to their OEM customers; changes in our
expenditures and other uses of cash; the ability of our designs to
significantly lower costs compared to other designs and solutions;
the risk that the intense competition and rapid technological
change in our industry renders our designs less useful or obsolete;
our ability to find, recruit and retain the highly skilled
personnel required for our design process in sufficient numbers to
support our growth; our ability to manage growth; and general
market, economic and business conditions. Additional factors that
could cause actual results to differ materially from those
anticipated by our forward-looking statements are under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our most
recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q)
filed with the Securities and Exchange Commission.
Forward-looking statements are made as of the date of this release,
and we expressly disclaim any obligation or undertaking to update
forward-looking statements.
Investor Relations Contact:
Moriah Shilton, LHA Investor Relations,
1-415-433-3777, RESN@lhai.com
Resonant Inc.Condensed
Consolidated Statements of Operations
|
Three Months Ended (Unaudited) |
|
Year Ended (Audited) |
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
REVENUE |
$ |
459,000 |
|
|
$ |
79,000 |
|
|
$ |
128,000 |
|
|
$ |
735,000 |
|
|
$ |
524,000 |
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
Research and development |
5,226,000 |
|
|
4,609,000 |
|
|
4,086,000 |
|
|
18,854,000 |
|
|
14,271,000 |
|
Sales, marketing and administration |
3,109,000 |
|
|
2,952,000 |
|
|
3,046,000 |
|
|
12,040,000 |
|
|
11,546,000 |
|
TOTAL OPERATING EXPENSES |
8,335,000 |
|
|
7,561,000 |
|
|
7,132,000 |
|
|
30,894,000 |
|
|
25,817,000 |
|
OPERATING
LOSS |
(7,876,000 |
) |
|
(7,482,000 |
) |
|
(7,004,000 |
) |
|
(30,159,000 |
) |
|
(25,293,000 |
) |
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest and investment
income |
33,000 |
|
|
42,000 |
|
|
158,000 |
|
|
253,000 |
|
|
481,000 |
|
Other expense |
(5,000 |
) |
|
(7,000 |
) |
|
(7,000 |
) |
|
(21,000 |
) |
|
(3,000 |
) |
TOTAL OTHER INCOME
(EXPENSE) |
28,000 |
|
|
35,000 |
|
|
151,000 |
|
|
232,000 |
|
|
478,000 |
|
LOSS BEFORE INCOME TAXES |
(7,848,000 |
) |
|
(7,447,000 |
) |
|
(6,853,000 |
) |
|
(29,927,000 |
) |
|
(24,815,000 |
) |
Provision for income
taxes |
0 |
|
|
0 |
|
|
20,000 |
|
|
1,000 |
|
|
1,000 |
|
NET LOSS |
$ |
(7,848,000 |
) |
|
$ |
(7,447,000 |
) |
|
$ |
(6,873,000 |
) |
|
$ |
(29,928,000 |
) |
|
$ |
(24,816,000 |
) |
NET LOSS PER SHARE – BASIC AND
DILUTED |
$ |
(0.24 |
) |
|
$ |
(0.26 |
) |
|
$ |
(0.25 |
) |
|
$ |
(1.02 |
) |
|
$ |
(0.98 |
) |
Weighted average shares
outstanding — basic and diluted |
32,747,090 |
|
|
29,169,495 |
|
|
27,203,705 |
|
|
29,409,776 |
|
|
25,290,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resonant Inc.Condensed
Consolidated Balance Sheets
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
10,688,000 |
|
|
$ |
4,394,000 |
|
Investments
held-to-maturity |
— |
|
|
16,863,000 |
|
Other current assets |
453,000 |
|
|
529,000 |
|
TOTAL CURRENT ASSETS |
11,141,000 |
|
|
21,786,000 |
|
PROPERTY AND EQUIPMENT,
NET |
1,885,000 |
|
|
1,987,000 |
|
TOTAL NONCURRENT ASSETS |
5,121,000 |
|
|
2,471,000 |
|
TOTAL
ASSETS |
$ |
18,147,000 |
|
|
$ |
26,244,000 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued
expenses |
$ |
3,989,000 |
|
|
$ |
2,994,000 |
|
Other current liabilities |
2,343,000 |
|
|
271,000 |
|
TOTAL CURRENT LIABILITIES |
6,332,000 |
|
|
3,265,000 |
|
TOTAL LONG-TERM
LIABILITIES |
2,059,000 |
|
|
81,000 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
Common stock |
33,000 |
|
|
27,000 |
|
Additional paid-in capital |
132,214,000 |
|
|
115,450,000 |
|
Accumulated other comprehensive income / (loss) |
1,000 |
|
|
(15,000 |
) |
Accumulated deficit |
(122,492,000 |
) |
|
(92,564,000 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
9,756,000 |
|
|
22,898,000 |
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
18,147,000 |
|
|
$ |
26,244,000 |
|
|
|
|
|
|
|
|
|
Resonant
Inc.Reconciliation of Non-GAAP
Information(Unaudited)
|
Three Months Ended (Unaudited) |
|
Year Ended (Audited) |
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP) |
$ |
(7,848,000 |
) |
|
$ |
(7,447,000 |
) |
|
$ |
(6,873,000 |
) |
|
$ |
(29,928,000 |
) |
|
$ |
(24,816,000 |
) |
Adjusted for the following
items: |
|
|
|
|
|
|
|
|
|
Interest Income |
(33,000 |
) |
|
(42,000 |
) |
|
(158,000 |
) |
|
(253,000 |
) |
|
(481,000 |
) |
R&D Stock Compensation |
797,000 |
|
|
703,000 |
|
|
523,000 |
|
|
2,823,000 |
|
|
2,556,000 |
|
G&A Stock Compensation |
809,000 |
|
|
686,000 |
|
|
781,000 |
|
|
2,983,000 |
|
|
2,706,000 |
|
R&D Depreciation and amortization |
199,000 |
|
|
183,000 |
|
|
197,000 |
|
|
788,000 |
|
|
732,000 |
|
G&A Depreciation and amortization |
51,000 |
|
|
51,000 |
|
|
43,000 |
|
|
197,000 |
|
|
108,000 |
|
Income taxes |
— |
|
|
— |
|
|
20,000 |
|
|
1,000 |
|
|
1,000 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(6,025,000 |
) |
|
$ |
(5,866,000 |
) |
|
$ |
(5,467,000 |
) |
|
$ |
(23,389,000 |
) |
|
$ |
(19,194,000 |
) |
NET EBITDA PER SHARE – BASIC
AND DILUTED (non-GAAP) |
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.80 |
) |
|
$ |
(0.76 |
) |
Weighted average shares
outstanding — basic and diluted |
32,747,090 |
|
|
29,169,495 |
|
|
27,203,705 |
|
|
29,409,776 |
|
|
25,290,426 |
|
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