Management to Host a Conference Call Today at
2:30 p.m. PT/5:30 p.m. ET
Resonant Inc. (NASDAQ: RESN), a designer of filters for radio
frequency front-ends or RFFE, that specializes in delivering
designs for difficult bands and complex requirements, today
announced financial results for the three months ended March 31,
2017 and provided a business update.
Management Commentary
“The momentum we established in 2016 has continued into 2017, as
evidenced by our continued expansion of several licensing
agreements with existing customers,” said George B. Holmes, CEO of
Resonant. “These extensions continue to serve as validation that
our customers understand the value proposition we provide and that
our filter designs have the potential for long term commercial
success, retiring risk and setting the stage for royalty revenue.
We ended the quarter with six customers and over 30 designs under
development, most of which are ‘ISN Ready’ designs that are under
formal licensing agreements that include upfront, non-refundable
payments and negotiated royalty rates.
“In addition to customer engagement, we remain focused on
customer execution for the specific designs we believe have the
highest potential for revenue in the shortest amount of time. To
that end, in February 2017, our first licensee reached the million
unit shipment milestone of pre-production filters in three distinct
bands, to four separate OEMs, which provided an additional
milestone, de-risking Resonant’s technology.
“With a continuously growing number of designs under development
and expanding customer pipeline, we are continuing to invest in our
core infrastructure and the expansion of our IP portfolio, as
evidenced by the announcement of our 125th patent milestone.”
Financial Results for the First Quarter 2017
For the three months ended March 31, 2017, Resonant recognized
$156,000 of revenue primarily related to upfront and milestone
payments from contracts with customers. This compares to $187,000
of revenue for the fourth quarter of 2016 and $27,000 in the first
quarter of 2016.
Research and development expenses totaled $2.1 million, compared
with $2.4 million for the fourth quarter of 2016 and $1.2 million
in the first quarter of 2016. The sequential decrease was the
result of lower stock based compensation and incentive accruals
from the 2016 year end activity.
General and administrative expenses were flat compared to the
fourth quarter of 2016 and up from $1.8 million in the first
quarter of 2016. The fourth quarter of 2016 included year end stock
based compensation and related incentive accruals, whereas the
first quarter of 2017 included lower stock based compensation
expenses offset by costs associated with the senior executive
transition.
Net loss in the first quarter of 2017 totaled $4.9 million, or
$(0.37) per fully diluted share, compared with a net loss of $5.2
million, or $(0.42) per share, for the fourth quarter of 2016 and a
net loss of $3.1 million, or $(0.42) per share, for the first
quarter of 2016.
On a non-GAAP basis, adjusted EBITDA for the first quarter of
2017, which excludes non-cash charges for stock-based compensation
and depreciation and amortization, was $(4.0) million, or $(0.30)
per fully diluted share. This compares with non-GAAP adjusted
EBITDA for the fourth quarter of 2016 of $(3.7) million, or $(0.30)
per fully diluted share and $(2.6) million, or $(0.35) per fully
diluted share, in the first quarter of 2016.
Cash and cash equivalents at March 31, 2017 were $13.0 million.
This compares with $9.8 million of cash, cash equivalents and
short-term investments at December 31, 2016.
In February, Resonant raised gross proceeds of approximately
$7.5 million in a private placement of 1.6 million units each
comprised of a share of common stock and a warrant. Resonant is
using these proceeds to continue product development efforts and
business development activities, as well as for general and
administrative purposes.
Conference Call
Management will host an investor conference call today at 2:30
p.m. PDT (5:30 p.m. EDT) to discuss Resonant’s first quarter
financial results, provide a corporate update, and conclude with a
Q&A from participants. To participate, please use the following
information:
Date: Wednesday, May 10, 2017Time: 2:30 p.m. Pacific time (5:30
p.m. Eastern time)U.S. Dial-in: 1-877-407-3982International
Dial-in: 1-201-493-6780Conference ID: 13660154Webcast:
http://public.viavid.com/index.php?id=123958
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 10, 2017.
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 13660154. A webcast will also be available for 30 days
on the IR section of the Resonant website or by clicking here: RESN
Q1 2017 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. 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 is creating software tools and IP & licensable
blocks that enable the development of innovative filter designs for
the RF front-end, or RFFE, for the mobile device industry. The RFFE
is the circuitry in a mobile device responsible for the radio
frequency signal processing and is located between the device’s
antenna and its digital baseband. Filters are a critical component
of the RFFE that selects the desired radio frequency signals and
rejects unwanted signals and noise. For more information, please
visit www.resonant.com.
About Resonant’s ISN® Technology
Resonant can create designs for difficult bands and complex
requirements that we believe have the potential to be manufactured
for half the cost and developed in half the time of traditional
approaches. The Company’s large suite of proprietary mathematical
methods, software design tools and network synthesis techniques
enable it to explore a much bigger set of possible solutions and
quickly derive the better ones. These improved filters still use
existing manufacturing methods (i.e. SAW) and can perform as well
as those using higher cost methods (i.e. BAW). While most of the
industry designs surface acoustic wave filters using a
coupling-of-modes model, Resonant uses circuit models and physical
models. Circuit models are computationally much faster, and
physical models are highly accurate models based entirely on
fundamental material properties and dimensions. 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 eased because its
models speak the “fab language” of basic material properties and
dimensions.
Safe Harbor / Forward-Looking Statements
This 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, our intended uses of funds from our capital raising
activities, and the potential future licensing of our designs to
existing and new customers. 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; 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.
Resonant Inc. Condensed
Consolidated Balance Sheets March 31, 2017
December 31, 2016 (Unaudited) (Audited)
ASSETS Cash and cash equivalents $ 12,957,000 $ 5,084,000
Investments held-to-maturity — 4,747,000 Other Assets 270,000
216,000 TOTAL CURRENT ASSETS 13,227,000 10,047,000
PROPERTY AND EQUIPMENT, NET 880,000 994,000 TOTAL NONCURRENT ASSETS
2,210,000 2,158,000
TOTAL ASSETS $
16,317,000 $ 13,199,000
LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and
accrued expenses $ 2,142,000 $ 2,705,000 Other current liabilities
$ 273,000 $ 299,000 TOTAL CURRENT LIABILITIES $
2,415,000 $ 3,004,000 TOTAL LONG-TERM LIABILITIES 30,000 62,000
STOCKHOLDERS’ EQUITY Common stock 14,000 12,000 Additional paid-in
capital 64,944,000 56,331,000 Accumulated other comprehensive loss
(33,000 ) (51,000 ) Accumulated deficit (51,053,000 ) (46,159,000 )
TOTAL STOCKHOLDERS’ EQUITY 13,872,000 10,133,000
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$ 16,317,000 $ 13,199,000
Resonant Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2017
December 31, 2016
March 31, 2016 REVENUE $ 156,000 $
187,000 $ 27,000
OPERATING EXPENSES Research and development
2,110,000 2,448,000 1,209,000 General and administrative 2,786,000
2,787,000 1,752,000 Depreciation and amortization 188,000
192,000 145,000 TOTAL
OPERATING EXPENSES 5,084,000 5,427,000
3,106,000
OPERATING LOSS
(4,928,000 ) (5,240,000 )
(3,079,000 ) OTHER INCOME
(EXPENSE) Interest and investment income 9,000 12,000 4,000
Other income (expense) — (1,000 )
—
TOTAL OTHER INCOME (EXPENSE) 9,000
11,000
4,000
LOSS BEFORE INCOME TAXES
(4,919,000 ) (5,229,000 )
(3,075,000 ) Provision for (benefit from) income
taxes (25,000 ) (23,000 ) 1,000
NET LOSS $ (4,894,000 )
$ (5,206,000 ) $
(3,076,000 ) NET LOSS PER SHARE – BASIC AND DILUTED $
(0.37 ) $ (0.42 ) $ (0.42 ) Weighted
average shares outstanding — basic and diluted
13,393,190
12,426,745
7,337,572
Resonant Inc.
Reconciliation of Non-GAAP
Information
(Unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2017
December 31, 2016
March 31, 2016
Net loss (GAAP) $ (4,894,000 )
$ (5,206,000 ) $ (3,076,000
) Add (subtract) the following items: Other income (9,000 )
(11,000 ) (4,000 ) Stock compensation 693,000 1,309,000 358,000
Depreciation and amortization 188,000 192,000 145,000 Provision for
(benefit from) income taxes (25,000 ) (23,000 )
1,000
Adjusted EBITDA (non-GAAP)
$ (4,047,000 ) $
(3,739,000 ) $ (2,576,000
) NET EBITDA PER SHARE – BASIC AND DILUTED (non-GAAP) $
(0.30 ) $ (0.30 ) $ (0.35 ) Weighted
average shares outstanding — basic and diluted
13,393,190
12,426,745
7,337,572
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version on businesswire.com: http://www.businesswire.com/news/home/20170510006493/en/
Investor Relations Contact:MZ North AmericaGreg Falesnik,
1-949-385-6449Greg.Falesnik@mzgroup.us
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