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, today announced financial
results for the first quarter ended March 31, 2020, and provided a
business update.
“We are building momentum in 2020, demonstrated by our
sequential revenue growth, our expanding customer footprint,
especially in China, and the technological advancements we have
made with our XBAR® technologies targeting 5G,” stated George B.
Holmes, Chairman and CEO of Resonant. “Resonant has also been
fortunate to observe only minimal impact to our operations from
Coronavirus Disease 2019 (COVID-19) and remains cautiously
optimistic about the future.”
First Quarter and Recent Highlights
- Revenues up sequentially over fourth quarter 2019.
- Reduced annualized expense run-rate by approximately $5
million.
- Signed multiple license agreements with a Tier 1 Chinese
foundry for products targeted at the high volume, high value, Tier
1 China mobile market.
- Demonstrated XBAR is capable of 1.1 GHz of protected bandwidth
at 6.5 GHz, targeting Wi-Fi 6 and Wi-Fi 6E which delivers the full
promise of broadband video to phones.
- Strengthened the company’s IP portfolio with the issuance of
the first XBAR/5G related patents.
- Announced an Advisory Board of six industry leaders to aid the
company in strategy and tactics for its target markets.
First Quarter Ended March 31, 2020 Financial
Summary
- Billings of $280,000.
- Revenues of $544,000.
- Deferred revenues of $1.5 million.
- Research and development expenses of $5.5 million.
- Sales, marketing and administration expenses of $3.1
million.
- Net loss of $8.0 million, or $(0.18) per share.
- Non-GAAP, adjusted EBITDA of $(6.4) million, or $(0.15) per
share.
- Cash and cash equivalents of $29.6 million as of March 31,
2020.
Conference Call and WebcastDate: Wednesday, May
6, 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 Q1 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 June 6, 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 Q1
2020 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 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:Moriah Shilton, LHA
Investor Relations, 1-415-433-3777, RESN@lhai.com
|
Resonant
Inc. |
Condensed
Consolidated Balance Sheets |
|
|
March 31, 2020 |
|
December 31, 2019 |
|
(Unaudited) |
|
(Audited) |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
29,589,000 |
|
|
$ |
10,688,000 |
|
Other current assets |
536,000 |
|
|
453,000 |
|
TOTAL CURRENT ASSETS |
30,125,000 |
|
|
11,141,000 |
|
PROPERTY AND EQUIPMENT,
NET |
1,673,000 |
|
|
1,885,000 |
|
OPERATING LEASE RIGHT-OF-USE
ASSETS |
2,349,000 |
|
|
2,496,000 |
|
NONCURRENT ASSETS |
2,743,000 |
|
|
2,625,000 |
|
TOTAL
ASSETS |
$ |
36,890,000 |
|
|
$ |
18,147,000 |
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued expenses |
$ |
3,340,000 |
|
|
$ |
3,989,000 |
|
Deferred revenue |
1,469,000 |
|
|
1,731,000 |
|
Operating lease liabilities, current |
625,000 |
|
|
612,000 |
|
TOTAL CURRENT LIABILITIES |
5,434,000 |
|
|
6,332,000 |
|
Operating lease liabilities,
net of current portion |
1,898,000 |
|
|
2,059,000 |
|
STOCKHOLDERS’ EQUITY |
|
|
|
Common stock |
52,000 |
|
|
33,000 |
|
Additional paid-in capital |
159,993,000 |
|
|
132,214,000 |
|
Accumulated other comprehensive loss |
10,000 |
|
|
1,000 |
|
Accumulated deficit |
(130,497,000 |
) |
|
(122,492,000 |
) |
TOTAL STOCKHOLDERS’
EQUITY |
29,558,000 |
|
|
9,756,000 |
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
36,890,000 |
|
|
$ |
18,147,000 |
|
|
|
|
|
|
|
|
|
Resonant
Inc. |
Consolidated Statements of Operations |
(Unaudited) |
|
|
Three Months Ended |
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
REVENUES |
$ |
544,000 |
|
|
$ |
459,000 |
|
|
$ |
134,000 |
|
OPERATING
EXPENSES |
|
|
|
|
|
Research and development |
5,462,000 |
|
|
5,226,000 |
|
|
4,386,000 |
|
Sales, marketing and administration |
3,139,000 |
|
|
3,109,000 |
|
|
2,985,000 |
|
TOTAL OPERATING
EXPENSES |
8,601,000 |
|
|
8,335,000 |
|
|
7,371,000 |
|
NET OPERATING
LOSS |
(8,057,000 |
) |
|
(7,876,000 |
) |
|
(7,237,000 |
) |
OTHER INCOME,
NET |
|
|
|
|
|
Interest and investment income |
57,000 |
|
|
33,000 |
|
|
106,000 |
|
Other expense |
(4,000 |
) |
|
(5,000 |
) |
|
(5,000 |
) |
TOTAL OTHER INCOME,
NET |
53,000 |
|
|
28,000 |
|
|
101,000 |
|
LOSS BEFORE INCOME
TAXES |
(8,004,000 |
) |
|
(7,848,000 |
) |
|
(7,136,000 |
) |
Provision for income
taxes |
1,000 |
|
|
— |
|
|
1,000 |
|
NET LOSS |
$ |
(8,005,000 |
) |
|
$ |
(7,848,000 |
) |
|
$ |
(7,137,000 |
) |
NET LOSS PER SHARE – BASIC AND
DILUTED |
$ |
(0.18 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.26 |
) |
Weighted average shares
outstanding — basic and diluted |
43,833,127 |
|
|
32,747,090 |
|
|
27,547,931 |
|
|
|
|
|
|
|
|
|
|
Resonant
Inc. |
Reconciliation of non-GAAP Information |
(Unaudited) |
|
|
Three Months Ended |
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
|
|
|
|
|
|
Net loss (GAAP) |
$ |
(8,005,000 |
) |
|
$ |
(7,848,000 |
) |
|
$ |
(7,137,000 |
) |
Add (subtract) the following
items: |
|
|
|
|
|
Interest income |
(57,000 |
) |
|
(33,000 |
) |
|
(106,000 |
) |
R&D stock compensation |
648,000 |
|
|
797,000 |
|
|
633,000 |
|
SM&A stock compensation |
731,000 |
|
|
809,000 |
|
|
721,000 |
|
R&D depreciation and amortization |
207,000 |
|
|
199,000 |
|
|
205,000 |
|
SM&A depreciation and amortization |
51,000 |
|
|
51,000 |
|
|
48,000 |
|
Provision for income taxes |
1,000 |
|
|
— |
|
|
1,000 |
|
Adjusted EBITDA
(non-GAAP) |
$ |
(6,424,000 |
) |
|
$ |
(6,025,000 |
) |
|
$ |
(5,635,000 |
) |
Adjusted EBITDA (non-GAAP) per
share – basic and diluted |
$ |
(0.15 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
Weighted average shares
outstanding — basic and diluted |
43,833,127 |
|
|
32,747,090 |
|
|
27,547,931 |
|
|
|
|
|
|
|
|
|
|
R&D: research and development
SM&A: sales, marketing and administration
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