Resonant Inc. (NASDAQ: RESN), a provider of radio frequency (RF)
filter solutions developed on a robust intellectual property
platform, designed to connect People and Things, has provided
financial results for the first quarter ended March 31, 2021.
Management Commentary “Our RF
filter designs continued to gain traction within key end markets in
the first quarter, as evidenced by the record 8.6 million RF
filters our customers shipped during the quarter, which were
designed with our proprietary design technology,” said George B.
Holmes, Chairman and CEO of Resonant. “This acceleration of unit
shipment volumes, along with our continued progress towards
high-volume manufacturing of our XBAR® technology, is validating
our strategy to capitalize on a multi-billion-dollar opportunity by
revolutionizing the RF filter supply chain with solutions that
innately and reliably meet the complex requirements of
next-generation, ultra-fast networks, such as 5G.”
“Our agreement with the world’s largest RF
filter manufacturer is advancing rapidly, following successful
performance and reliability demonstrations with our partner, which
confirmed our XBAR® filter designs are proceeding towards market
availability at mass scale. Additionally, we are working to help
our existing partners service the anticipated heightened demand in
the global mobile handset market and extended an agreement with a
Chinese Tier-1 foundry partner for 4G devices.
“We began sampling XBAR® Wi-Fi filters for
non-mobile devices to customers during the quarter, and we are
focused on expanding adoption of XBAR® technology for non-mobile
applications as we seek to engage new partners. Supported by our
robust intellectual property portfolio, to which we added over 30
additional patents since year-end, we are positioning ourselves to
be competitive with some of the biggest industry players in the
world,” concluded Holmes.
First Quarter 2021 Company
Highlights
- Resonant’s
customers shipped a record 8.6 million radio frequency (RF) filters
designed using the Company’s ISN® design technology in the first
quarter of 2021, representing an approximate 437% increase from the
same year-ago period and a sequential increase of approximately
25%. To-date, Resonant’s customers have shipped over 61 million RF
filter units.
- The Company’s
robust patent portfolio grew to over 330 patents filed and issued
to date, greater than 175 of which are related to Resonant’s
proprietary XBAR® and high frequency technologies. Patent count at
the end of 2020 was over 300 total patents with greater than 150
focused on XBAR®.
- We shipped
non-mobile XBAR® Wi-Fi 5 and 6E devices for customer evaluation
since year end.
- Signed an
extension to its licensing agreement with an existing Tier-1
Chinese foundry partner, collecting prepaid royalty revenues for
multiple RF filter designs to address the China mobile handset
market.
- Became an
official member of the Wi-Fi Alliance, a global non-profit industry
association of companies who share a vision of seamless
connectivity. Resonant’s proprietary XBAR® technology is ideally
suited for high-frequency 5 and 6 GHz Wi-Fi applications, such as
Wi-Fi 6E, a rapidly emerging segment of the market.
- Appointed
technical thought leaders Larry Larson, PhD, Jianming Jin, PhD,
Gabriel Rebeiz, PhD, and Raafat Mansour, PhD to the Company’s newly
formed Technical Committee to its Advisory Board, with the goal of
advancing XBAR® adoption and development efforts.
First Quarter 2021 Financial
Summary
- Revenues in the
first quarter of 2021 were $0.6 million, in-line with previously
issued guidance, compared to $0.5 million in the same quarter a
year-ago.
- At the end of
the first quarter of 2021, deferred revenues totaled $1.3
million.
- Research and
development expenses decreased by approximately 2% to $5.4 million
in the first quarter of 2021, compared to $5.5 million in the same
quarter a year-ago.
- Sales,
marketing, and administration expenses increased by approximately
30% to $4.1 million in the first quarter of 2021, compared to $3.1
million in the same quarter a year-ago.
- Net loss was
$8.8 million, or $(0.15) per share, in the first quarter of 2021,
compared to a net loss of $8.0 million, or $(0.18) per share, in
the same quarter a year-ago.
- Non-GAAP,
adjusted EBITDA was $(6.4) million, or $(0.11) per share in the
first quarter of 2021, compared to $(6.4) million or $(0.15) per
share in the same quarter a year-ago.
- As of March 31,
2021, Resonant had cash and cash equivalents of approximately $21.6
million.
Conference Call and
WebcastDate: Wednesday, May 12, 2021Time: 1:30 p.m.
Pacific standard time (4:30 p.m. Eastern standard time)U.S.
Dial-In: 1-877-423-9813International Dial-In:
1-201-689-8573Conference ID: 13719196Webcast: RESN Q1 2021
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
June 12, 2021. To listen, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally and enter
replay pin number 13719196. A webcast will also be available for 30
days on the IR section of the Resonant website or by clicking here:
RESN Q1 2021 Webcast
Note about Non-GAAP Financial
MeasuresA 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)
design 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® Design Technology and XBAR®:
Speeding the Transition to 5G
- Expert Insights on Unlocking the
Potential of 5G
- The Technology Enabling the
Transition to 5G
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® Design
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 and the markets they serve, the
timing and amount of future unit shipments and revenues, the
increased use of agreements with prepaid royalties, 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:Greg Falesnik or
Brooks HamiltonMZ Group - MZ North America(949)
546-6326RESN@mzgroup.us
Resonant Inc.Condensed Consolidated
Balance Sheets(in thousands)
|
March 31, 2021 |
|
December 31, 2020 |
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
21,589 |
|
|
$ |
24,968 |
|
Other
current assets |
852 |
|
|
719 |
|
TOTAL CURRENT ASSETS |
22,441 |
|
|
25,687 |
|
PROPERTY AND EQUIPMENT,
NET |
1,472 |
|
|
1,583 |
|
NONCURRENT ASSETS |
5,346 |
|
|
5,460 |
|
TOTAL
ASSETS |
$ |
29,259 |
|
|
$ |
32,730 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Accounts
payable and accrued expenses |
$ |
3,390 |
|
|
$ |
3,401 |
|
Other
current liabilities |
1,963 |
|
|
2,450 |
|
TOTAL CURRENT LIABILITIES |
5,353 |
|
|
5,851 |
|
TOTAL LONG-TERM
LIABILITIES |
1,659 |
|
|
1,826 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
Common stock |
60 |
|
|
59 |
|
Additional paid-in capital |
181,891 |
|
|
175,813 |
|
Accumulated other comprehensive loss |
25 |
|
|
87 |
|
Accumulated deficit |
(159,729 |
) |
|
(150,906 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
22,247 |
|
|
25,053 |
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
29,259 |
|
|
$ |
32,730 |
|
Resonant Inc.Consolidated Statements of
Operations(Unaudited)(in
thousands, except share data)
|
Three Months Ended |
|
March 31,2021 |
|
December 31,2020 |
|
March 31,2020 |
REVENUES |
$ |
608 |
|
|
$ |
607 |
|
|
$ |
544 |
|
OPERATING
EXPENSES |
|
|
|
|
|
Research and development |
5,351 |
|
|
4,757 |
|
|
5,462 |
|
Sales, marketing and administration |
4,077 |
|
|
2,980 |
|
|
3,139 |
|
TOTAL OPERATING
EXPENSES |
9,428 |
|
|
7,737 |
|
|
8,601 |
|
NET OPERATING
LOSS |
(8,820 |
) |
|
(7,130 |
) |
|
(8,057 |
) |
OTHER INCOME,
NET |
|
|
|
|
|
Interest and investment income (expense) |
(3 |
) |
|
1 |
|
|
57 |
|
Other expense |
— |
|
|
(2 |
) |
|
(4 |
) |
TOTAL OTHER INCOME,
NET |
(3 |
) |
|
(1 |
) |
|
53 |
|
LOSS BEFORE INCOME
TAXES |
(8,823 |
) |
|
(7,131 |
) |
|
(8,004 |
) |
Provision for income
taxes |
— |
|
|
— |
|
|
1 |
|
NET LOSS |
$ |
(8,823 |
) |
|
$ |
(7,131 |
) |
|
$ |
(8,005 |
) |
NET LOSS PER SHARE – BASIC AND
DILUTED |
$ |
(0.15 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.18 |
) |
Weighted average shares
outstanding — basic and diluted |
59,775,674 |
|
|
54,976,249 |
|
|
43,833,127 |
|
Resonant Inc.Reconciliation of non-GAAP
Information(Unaudited)(in
thousands, except share data)
|
Three Months Ended |
|
March 31,2021 |
|
December 31,2020 |
|
March 31,2020 |
|
|
|
|
|
|
Net loss (GAAP) |
$ |
(8,823 |
) |
|
$ |
(7,131 |
) |
|
$ |
(8,005 |
) |
Add (subtract) the following
items: |
|
|
|
|
|
Interest, net |
3 |
|
|
— |
|
|
(57 |
) |
R&D stock compensation |
972 |
|
|
590 |
|
|
648 |
|
SM&A stock compensation |
1,175 |
|
|
771 |
|
|
731 |
|
R&D depreciation and amortization |
185 |
|
|
208 |
|
|
207 |
|
SM&A depreciation and amortization |
50 |
|
|
47 |
|
|
51 |
|
Provision for income taxes |
— |
|
|
— |
|
|
1 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(6,438 |
) |
|
$ |
(5,515 |
) |
|
$ |
(6,424 |
) |
Adjusted EBITDA (non-GAAP) per
share– basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.15 |
) |
Weighted average shares
outstanding– basic and diluted |
59,775,674 |
|
|
54,976,249 |
|
|
43,833,127 |
|
R&D: research and development
SM&A: sales, marketing and administration
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