Resonant Provides Preliminary Third Quarter 2020 Results, Delivers Technical 5G Milestone With Strategic Partner Ahead of Gui...
October 07 2020 - 8:31AM
Resonant Inc. (NASDAQ: RESN), a leader in transforming the way
radio frequency, or RF, front-ends are being designed and delivered
for mobile handsets and wireless devices, has provided preliminary
unaudited financial and operational results for the three months
ended September 30, 2020.
Preliminary Unaudited Third
Quarter Operational
& Financial
Summary:
-
Achieved the second milestone under Resonant’s agreement for the
development of 5G Mobile XBAR® filters with the world’s largest RF
filter manufacturer, a prerequisite that enables commercialization,
which milestone required Resonant’s XBAR RF filters to achieve
previously determined target performance, packaging and initial
reliability. With the second milestone achieved, Resonant will now
begin working on the balance of the mobile 5G XBAR RF filter
designs under the final two phases of the initial agreement. This
second milestone was achieved ahead of guidance, which previously
estimated achievement to occur by the end of 2020.
-
Resonant shipped five RF filter designs to Chinese customers in the
third quarter of 2020, a significant increase from the two designs
shipped in the second quarter of 2020. The designs shipped are
in-line with guidance that Resonant would ship five new designs in
the third quarter of 2020.
-
Resonant customers have reported shipments of greater than 4.1
million units in the third quarter of 2020, an increase of 163%
when compared to the 1.55 million units shipped in the same
year-ago quarter. Sequentially, this represents unit shipment
growth of greater than 28% when compared to 3.2 million units
shipped in the second quarter of 2020. These results are in-line
with guidance that unit shipments in the second half of 2020 would
be greater than the first half of 2020.
-
Deferred revenues in the third quarter of 2020 increased 14% to
$2.4 million, compared to $2.1 million in the same year-ago
quarter. Sequentially, deferred revenues increased 118% when
compared to $1.1 million in the second quarter of 2020. Resonant
will recognize these deferred revenues over the balance of the
respective contracts.
- Revenue in the
third quarter of 2020 increased to $1.4 million, compared to
$79,000 in the same quarter a year-ago. Sequentially, revenues
increased 132% when compared to $0.6 million in the second quarter
of 2020. These results are in-line with guidance that revenues
would grow sequentially in the third quarter of 2020. Revenues in
the third quarter are primarily related to the milestone payment,
while revenues for the fourth quarter are expected to be similar to
the revenues for the first and second quarters of 2020.
-
Cash used in the third quarter of 2020, net of the milestone
payment, was approximately $3.8 million, compared to $5.8 million
of cash used in the same year-ago quarter and $5.6 million of cash
used in the second quarter of 2020. As of September 30, 2020,
Resonant had cash and cash equivalents of approximately $20.0
million.
“The acceleration in our business is becoming apparent in the
third quarter of 2020, as we delivered against all of our key
metrics, including an increase in units shipped by customers, new
library designs delivered to customers, robust revenue growth and a
reduction in cash consumption,” said George B. Holmes, Chairman and
Chief Executive Officer of Resonant. “Perhaps most important is the
achievement of the second 5G XBAR filter milestone with our
strategic partner, who is the world’s largest RF filter
manufacturer. The achievement of this significant milestone
confirms our technology meets the necessary metrics to move towards
mass production, while also providing an influx of pre-paid
royalties which will be recognized over the remainder of the
contract. Taken together, Resonant currently stands in a stronger
position than ever to capitalize on the multi-billion dollar 5G
market.
“While large pre-payments, like those received in the third
quarter of this year, greatly enhance both the recognition of
revenues in the future as well as our cash position, they also
result in non-linear revenue amounts from quarter to quarter, which
we will see in the fourth quarter. Our guidance for the second half
of 2020 remains unchanged.”
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 and LinkedIn page 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 less cost and less time than 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 regarding
Resonant’s preliminary unaudited financial and operational results
for the third quarter of 2020 and the development of Resonant’s 5G
XBAR technology. Forward-looking statements are made as of the date
of this release and are inherently subject to risks and
uncertainties which could cause actual results to differ materially
from those in the forward-looking statements, including risks
related to changes in Resonant’s preliminary unaudited financial
results based on the completion of our financial statement closing
procedures and the review by our independent registered public
accounting firm of such financial statements. Additionally,
continued development of our XBAR technology is subject to numerous
risks, 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:Greg Falesnik or
Luke ZimmermanMZ Group - MZ North America(949)
259-4987RESN@mzgroup.uswww.mzgroup.us
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