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 provided a business
update and announced financial results for the third quarter ended
September 30, 2020.
Management Commentary “We’ve continued to
execute upon all of our key milestones year to date, most notably,
the second contractual milestone with the largest RF filter
manufacturer in the world—our strategic partner—for the development
of our XBAR 5G RF filters in mobile devices,” said George B.
Holmes, Chairman and CEO of Resonant. “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
contract period.
“In addition, our high-performance XBAR 5G filters were
successfully manufactured on two additional standard Surface
Acoustic Wave, or SAW, front-end manufacturing processes, bringing
the total to six, which fundamentally validates Resonant’s ability
to produce these high frequency 5G filters faster, better and
cheaper. Traditional high-performance Bulk Acoustic Wave (BAW)
filter processes are complex, requiring many processing steps.
However, XBAR, which provides high performance and wide bandwidth,
and is a BAW device, can be manufactured using much simpler and
more cost-effective SAW manufacturing lines.”
Holmes concluded: “Today, we stand in a better position than
ever to capitalize on the multi-billion dollar 5G market. Not only
are we validating our 5G go-to-market strategy with the progress
demonstrated in meeting the development milestone for XBAR, but we
are increasing unit shipment volumes with our customers, providing
new library designs to customers that are otherwise impossible and
growing revenues.”
Operational Highlights
- Achieved the second 5G Mobile XBAR® RF filter milestone with
the world’s largest RF filter manufacturer, which confirmed target
performance, packaging and initial reliability, approving the move
to the next phase of the Agreement, which focuses on building a
commercial platform & high-volume manufacturing.
- Over 4.1 million units utilizing Resonant’s technology were
shipped 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. Resonant’s customers have shipped over 46.5 million units
designed with the company’s technology to-date.
- Resonant shipped five RF filter designs focused on 4G to its
Chinese customers in the third quarter of 2020.
- Successfully manufactured RF filters for 5G with two additional
foundry partners using a standard SAW front-end process, an
industry first. The Resonant 5G RF filter was designed for the
non-mobile n79 5G band, which pertains to applications such as
infrastructure and automotive, among others.
- Announced existing Tier 1 filter customer commenced shipments
of high-value band designs into the above-average ASP automotive
market, which facilitates immediate billings.
- Released a new extension to its Process Monitoring Tool (PMTx),
which models and measures the fabrication processes of
Temperature-Compensated Surface Acoustic Wave (TC-SAW) filter
technologies for both Thick SiO2 and Bonded Wafers.
- Hosted two successful 5G public webinars – a thought leadership
event with over 300 investment professionals and media in
attendance.
- The event featured Resonant’s Advisory Board, which has
approximately 250 years of combined industry experience, who
participated in numerous 5G fireside chats designed to help
investors better understand the current state of 5G and the
technology roadmap for 5G deployments.• Expert Insights
on Unlocking the Potential of 5G• The Technology
Enabling the Transition to 5G
- The Company’s patent portfolio has continued to grow to over
250 patents filed and issued, 90 of which are related the
Resonant’s 5G XBAR technology.
- Appointed Glen Riley, a global technology industry leader with
over 32 years of experience, to the Company’s Advisory Board.
Third Quarter Ended September 30, 2020, Financial
Summary
- 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.
- At the end of the third quarter, deferred revenues totaled $2.4
million.
- Research and development expenses in the third quarter of 2020
were $4.4 million, compared to $4.6 million in the same quarter a
year-ago.
- Sales, marketing and administration expenses in the third
quarter of 2020 were $3.1 million, compared to $3.0 million in the
same quarter a year-ago.
- Net loss of $6.1 million, or $(0.11) per share, in the third
quarter of 2020, compared to a net loss of $7.4 million, or $(0.26)
per share, in the same quarter a year-ago.
- Non-GAAP, adjusted EBITDA of $(4.4) million, or $(0.08) per
share in the third quarter of 2020, compared to $(5.9) million or
$(0.20) per share in the same quarter a year-ago.
- 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 $20.1
million.
Conference Call and
WebcastDate: Tuesday, November 10, 2020Time: 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: 13711933Webcast: RESN Q3 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
December 10, 2020. To listen, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally and enter
replay pin number 13711933. A webcast will also be available for 30
days on the IR section of the Resonant website or by clicking here:
RESN Q3 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
Brooks HamiltonMZ Group - MZ North America
(949)
546-6326
RESN@mzgroup.us
Resonant Inc.Condensed Consolidated
Balance Sheets
| |
September 30, 2020 |
|
December 31, 2019 |
| |
(Unaudited) |
|
(Audited) |
| ASSETS |
|
|
|
|
Cash and cash equivalents |
$ |
20,123,000 |
|
|
$ |
10,688,000 |
|
| Other
current assets |
938,000 |
|
|
453,000 |
|
| TOTAL CURRENT ASSETS |
21,061,000 |
|
|
11,141,000 |
|
| PROPERTY AND EQUIPMENT,
NET |
1,668,000 |
|
|
1,885,000 |
|
| OPERATING LEASE RIGHT-OF-USE
ASSETS |
2,049,000 |
|
|
2,496,000 |
|
| NONCURRENT ASSETS |
3,123,000 |
|
|
2,625,000 |
|
| TOTAL
ASSETS |
$ |
27,901,000 |
|
|
$ |
18,147,000 |
|
| |
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
Accounts payable and accrued expenses |
$ |
4,024,000 |
|
|
$ |
3,989,000 |
|
|
Deferred revenue, current |
1,748,000 |
|
|
1,731,000 |
|
|
Operating lease liabilities, current |
651,000 |
|
|
612,000 |
|
| TOTAL CURRENT LIABILITIES |
6,423,000 |
|
|
6,332,000 |
|
| Deferred revenue, net of
current portion |
630,000 |
|
|
— |
|
| Operating lease liabilities,
net of current portion |
1,566,000 |
|
|
2,059,000 |
|
| STOCKHOLDERS’ EQUITY |
|
|
|
|
Common stock |
53,000 |
|
|
33,000 |
|
|
Additional paid-in capital |
162,959,000 |
|
|
132,214,000 |
|
|
Accumulated other comprehensive loss |
45,000 |
|
|
1,000 |
|
|
Accumulated deficit |
(143,775,000 |
) |
|
(122,492,000 |
) |
| TOTAL STOCKHOLDERS’
EQUITY |
19,282,000 |
|
|
9,756,000 |
|
| |
|
|
|
| TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
27,901,000 |
|
|
$ |
18,147,000 |
|
Resonant Inc.Consolidated Statements of
Operations(Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30 2020 |
|
September 30, 2019 |
|
REVENUES |
$ |
1,405,000 |
|
|
|
$ |
604,000 |
|
|
|
$ |
79,000 |
|
|
|
$ |
2,553,000 |
|
|
|
$ |
276,000 |
|
|
| OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
|
Research and development |
4,413,000 |
|
|
|
4,845,000 |
|
|
|
4,609,000 |
|
|
|
14,720,000 |
|
|
|
13,628,000 |
|
|
|
Sales, marketing and administration |
3,055,000 |
|
|
|
2,976,000 |
|
|
|
2,952,000 |
|
|
|
9,170,000 |
|
|
|
8,931,000 |
|
|
| TOTAL OPERATING
EXPENSES |
7,468,000 |
|
|
|
7,821,000 |
|
|
|
7,561,000 |
|
|
|
23,890,000 |
|
|
|
22,559,000 |
|
|
| NET OPERATING
LOSS |
(6,063,000 |
) |
|
|
(7,217,000 |
) |
|
|
(7,482,000 |
) |
|
|
(21,337,000 |
) |
|
|
(22,283,000 |
) |
|
| OTHER INCOME,
NET |
|
|
|
|
|
|
|
|
|
|
Interest and investment income |
1,000 |
|
|
|
7,000 |
|
|
|
42,000 |
|
|
|
65,000 |
|
|
|
220,000 |
|
|
|
Other expense |
(1,000 |
) |
|
|
(5,000 |
) |
|
|
(7,000 |
) |
|
|
(10,000 |
) |
|
|
(18,000 |
) |
|
| TOTAL OTHER INCOME,
NET |
— |
|
|
|
2,000 |
|
|
|
35,000 |
|
|
|
55,000 |
|
|
|
202,000 |
|
|
| LOSS BEFORE INCOME
TAXES |
(6,063,000 |
) |
|
|
(7,215,000 |
) |
|
|
(7,447,000 |
) |
|
|
(21,282,000 |
) |
|
|
(22,081,000 |
) |
|
| Provision for income
taxes |
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
|
|
1,000 |
|
|
| NET LOSS |
$ |
(6,063,000 |
) |
|
|
$ |
(7,215,000 |
) |
|
|
$ |
(7,447,000 |
) |
|
|
$ |
(21,283,000 |
) |
|
|
$ |
(22,082,000 |
) |
|
| NET LOSS PER SHARE – BASIC AND
DILUTED |
$ |
(0.11 |
) |
|
|
$ |
(0.14 |
) |
|
|
$ |
(0.26 |
) |
|
|
$ |
(0.43 |
) |
|
|
$ |
(0.78 |
) |
|
| Weighted average shares
outstanding — basic and diluted |
53,243,854 |
|
|
|
52,901,488 |
|
|
|
29,169,495 |
|
|
|
50,004,688 |
|
|
|
28,295,248 |
|
|
Resonant Inc.Reconciliation of non-GAAP
Information(Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30 2020 |
|
September 30, 2019 |
| |
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP) |
$ |
(6,063,000 |
) |
|
|
$ |
(7,215,000 |
) |
|
|
$ |
(7,447,000 |
) |
|
|
$ |
(21,283,000 |
) |
|
|
$ |
(22,082,000 |
) |
|
| Add (subtract) the following
items: |
|
|
|
|
|
|
|
|
|
|
Interest income |
(1,000 |
) |
|
|
(7,000 |
) |
|
|
(42,000 |
) |
|
|
(65,000 |
) |
|
|
(220,000 |
) |
|
|
R&D stock compensation |
645,000 |
|
|
|
870,000 |
|
|
|
703,000 |
|
|
|
2,163,000 |
|
|
|
2,026,000 |
|
|
|
SM&A stock compensation |
828,000 |
|
|
|
741,000 |
|
|
|
686,000 |
|
|
|
2,300,000 |
|
|
|
2,174,000 |
|
|
|
R&D depreciation and amortization |
193,000 |
|
|
|
202,000 |
|
|
|
183,000 |
|
|
|
604,000 |
|
|
|
589,000 |
|
|
|
SM&A depreciation and amortization |
45,000 |
|
|
|
48,000 |
|
|
|
51,000 |
|
|
|
143,000 |
|
|
|
146,000 |
|
|
|
Provision for income taxes |
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
|
|
1,000 |
|
|
| Adjusted EBITDA
(non-GAAP) |
$ |
(4,353,000 |
) |
|
|
$ |
(5,361,000 |
) |
|
|
$ |
(5,866,000 |
) |
|
|
$ |
(16,137,000 |
) |
|
|
$ |
(17,366,000 |
) |
|
| Adjusted EBITDA (non-GAAP) per
share – basic and diluted |
$ |
(0.08 |
) |
|
|
$ |
(0.10 |
) |
|
|
$ |
(0.20 |
) |
|
|
$ |
(0.32 |
) |
|
|
$ |
(0.61 |
) |
|
| Weighted average shares
outstanding — basic and diluted |
53,243,854 |
|
|
|
52,901,488 |
|
|
|
29,169,495 |
|
|
|
50,004,688 |
|
|
|
28,295,248 |
|
|
R&D: research and development
SM&A: sales, marketing and administration
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