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, has announced financial
results for the second quarter ended June 30, 2020, and provided a
business update.
Operational Highlights
- Shipped over 4.7 million units in the first half of 2020,
representing a year over year increase of >200% when compared to
the first half of 2019.
- Resonant’s customers have shipped over 40 million units
designed with the company’s ISN technology, to-date.
- Delivered first 5G XBAR® 5GHZ full band WiFi samples, targeting
infrastructure and other non-mobile applications
- Successfully fabricated 5G XBAR filters at a fourth foundry,
Resonant’s partner Teledyne Scientific
- Dr. Victor Plessky, Director of Engineering, awarded the
prestigious C. B. Sawyer Memorial Award for 2020 by the IEEE
International Frequency Control Symposium.
- Joined Russell 2000® and 3000® Indexes
Management Commentary “The second quarter of
2020 was dominated by our progress in mobile and non-mobile 5G with
our breakthrough XBAR technology,” said George B. Holmes, Chairman
and CEO of Resonant. “Not only do we remain on-track to achieve our
next major 5G milestone with the world’s largest filter
manufacturer by the end of 2020, but we fabricated 5G filters at
our 4th foundry, successfully packaged XBAR in two different
high-volume packaging technologies, and delivered a complete 5G
XBAR WiFi sample kit to a partner, which ultimately, helps support
major OEMs throughout Asia via its distribution and foundry
relationships.
Holmes, concluded: “Looking ahead, we expect
revenues and unit volumes in the second half of 2020 to exceed the
first half of 2020, while we deliver upon our major milestones in
4G and 5G and continue to revolutionize the RF filter market as we
know it today.”
Second Quarter Ended June 30, 2020, Financial
Summary
- Revenues of 604,000.
- Research and development expenses of $4.8 million.
- Sales, marketing and administration expenses of $3.0
million.
- Net loss of $7.2 million, or $(0.14) per share.
- Non-GAAP, adjusted EBITDA of $(5.4) million, or $(0.10) per
share.
- Cash and cash equivalents of $23.9 million as of June 30, 2020.
The company had no debt as of June 30, 2020.
Conference Call and
WebcastDate: Wednesday, August 5, 2020Time: 1:30 p.m.
Pacific Daylight Time (4:30 p.m. Eastern Daylight Time)U.S.
Dial-In: 1-800-479-1004International Dial-In:
1-929-477-0324Conference ID: 2681042Webcast: RESN Q2 2020
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 September 5, 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 2681042.
A webcast will also be available for 90 days on the IR section of
the Resonant website or by clicking here: RESN Q2 2020 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)
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:Greg Falesnik or
Luke ZimmermanMZ Group - MZ North America
(949)
259-4987
RESN@mzgroup.us
Resonant
Inc. |
Condensed
Consolidated Balance Sheets |
|
|
June 30, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
23,873,000 |
|
|
$ |
10,688,000 |
|
Other current assets |
653,000 |
|
|
453,000 |
|
TOTAL CURRENT ASSETS |
24,526,000 |
|
|
11,141,000 |
|
PROPERTY AND EQUIPMENT,
NET |
1,491,000 |
|
|
1,885,000 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
2,200,000 |
|
|
2,496,000 |
|
NONCURRENT ASSETS |
2,858,000 |
|
|
2,625,000 |
|
TOTAL
ASSETS |
$ |
31,075,000 |
|
|
$ |
18,147,000 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued expenses |
$ |
3,700,000 |
|
|
$ |
3,989,000 |
|
Deferred revenue |
1,076,000 |
|
|
1,731,000 |
|
Operating lease liabilities, current |
638,000 |
|
|
612,000 |
|
TOTAL CURRENT LIABILITIES |
5,414,000 |
|
|
6,332,000 |
|
Operating lease liabilities,
net of current portion |
1,734,000 |
|
|
2,059,000 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
Common stock |
53,000 |
|
|
33,000 |
|
Additional paid-in capital |
161,568,000 |
|
|
132,214,000 |
|
Accumulated other comprehensive loss |
18,000 |
|
|
1,000 |
|
Accumulated deficit |
(137,712,000 |
) |
|
(122,492,000 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
23,927,000 |
|
|
9,756,000 |
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
31,075,000 |
|
|
$ |
18,147,000 |
|
|
Resonant
Inc. |
Consolidated Statements of Operations |
(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
June 30 2020 |
|
June 30, 2019 |
REVENUES |
$ |
604,000 |
|
|
$ |
544,000 |
|
|
$ |
63,000 |
|
|
$ |
1,148,000 |
|
|
$ |
197,000 |
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
Research and development |
4,845,000 |
|
|
5,462,000 |
|
|
4,633,000 |
|
|
10,307,000 |
|
|
9,019,000 |
|
Sales, marketing and administration |
2,976,000 |
|
|
3,139,000 |
|
|
2,994,000 |
|
|
6,115,000 |
|
|
5,979,000 |
|
TOTAL OPERATING
EXPENSES |
7,821,000 |
|
|
8,601,000 |
|
|
7,627,000 |
|
|
16,422,000 |
|
|
14,998,000 |
|
NET OPERATING
LOSS |
(7,217,000 |
) |
|
(8,057,000 |
) |
|
(7,564,000 |
) |
|
(15,274,000 |
) |
|
(14,801,000 |
) |
OTHER INCOME,
NET |
|
|
|
|
|
|
|
|
|
Interest and investment income |
7,000 |
|
|
57,000 |
|
|
72,000 |
|
|
64,000 |
|
|
178,000 |
|
Other expense |
(5,000 |
) |
|
(4,000 |
) |
|
(6,000 |
) |
|
(9,000 |
) |
|
(11,000 |
) |
TOTAL OTHER INCOME,
NET |
2,000 |
|
|
53,000 |
|
|
66,000 |
|
|
55,000 |
|
|
167,000 |
|
LOSS BEFORE INCOME
TAXES |
(7,215,000 |
) |
|
(8,004,000 |
) |
|
(7,498,000 |
) |
|
(15,219,000 |
) |
|
(14,634,000 |
) |
Provision for income
taxes |
— |
|
|
1,000 |
|
|
— |
|
|
1,000 |
|
|
1,000 |
|
NET LOSS |
$ |
(7,215,000 |
) |
|
$ |
(8,005,000 |
) |
|
$ |
(7,498,000 |
) |
|
$ |
(15,220,000 |
) |
|
$ |
(14,635,000 |
) |
NET LOSS PER SHARE – BASIC AND
DILUTED |
$ |
(0.14 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.53 |
) |
Weighted average shares
outstanding — basic and diluted |
52,901,488 |
|
|
43,833,127 |
|
|
28,150,497 |
|
|
48,367,308 |
|
|
27,850,879 |
|
|
Resonant
Inc. |
Reconciliation of non-GAAP Information |
(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
June 30 2020 |
|
June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP) |
$ |
(7,215,000 |
) |
|
$ |
(8,005,000 |
) |
|
$ |
(7,498,000 |
) |
|
$ |
(15,220,000 |
) |
|
$ |
(14,635,000 |
) |
Add (subtract) the following
items: |
|
|
|
|
|
|
|
|
|
Interest income |
(7,000 |
) |
|
(57,000 |
) |
|
(72,000 |
) |
|
(64,000 |
) |
|
(178,000 |
) |
R&D stock compensation |
870,000 |
|
|
648,000 |
|
|
690,000 |
|
|
1,518,000 |
|
|
1,323,000 |
|
SM&A stock compensation |
741,000 |
|
|
731,000 |
|
|
767,000 |
|
|
1,472,000 |
|
|
1,488,000 |
|
R&D depreciation and amortization |
202,000 |
|
|
207,000 |
|
|
201,000 |
|
|
410,000 |
|
|
406,000 |
|
SM&A depreciation and amortization |
48,000 |
|
|
51,000 |
|
|
47,000 |
|
|
98,000 |
|
|
95,000 |
|
Provision for income taxes |
— |
|
|
1,000 |
|
|
— |
|
|
1,000 |
|
|
1,000 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(5,361,000 |
) |
|
$ |
(6,424,000 |
) |
|
$ |
(5,865,000 |
) |
|
$ |
(11,785,000 |
) |
|
$ |
(11,500,000 |
) |
Adjusted EBITDA (non-GAAP) per
share – basic and diluted |
$ |
(0.10 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.42 |
) |
Weighted average shares
outstanding — basic and diluted |
52,901,488 |
|
|
43,833,127 |
|
|
28,150,497 |
|
|
48,367,308 |
|
|
27,850,879 |
|
R&D: research and development
SM&A: sales, marketing and administration
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