- Q2 2022 revenue increases 67% vs. Q1 2022
-
- WiSA DS gaining design traction with TVs and
soundbars -
WiSA Technologies, Inc. (Nasdaq: WISA), a developer of spatial,
wireless sound technology for smart devices and next-generation
home entertainment systems, reported its second quarter 2022
financial results.
“As anticipated, Q2 2022 revenue rebounded 67% from Q1 2022, and
we expect an additional sequential revenue boost in Q3 2022. While
it is difficult to predict end market consumer spending in the
all-important Fall season, we expect sequential revenue growth for
the remainder of 2022,” said Brett Moyer, CEO, President, and
Chairman of WiSA Technologies.
Moyer continued, “WiSA DS technology, our IP using a 2.4 GHz IoT
Wi-Fi module from Espressif, is performing strongly in the testing
and evaluation cycles of our target customers. As a result, 12
companies have 15 WiSA DS projects under consideration. Those
projects include:
- 3 TV brands testing for integration into TVs
- 8 soundbar brands and speaker companies
- 1 application targeting the automotive aftermarket
The first two projects are planned to go into production in Q4
2022.”
WiSA E
WiSA E’s technology launch is progressing rapidly. The Company
anticipates sampling to the first 4-5 Beta customers in Q4 2024. As
a refresher, WiSA E uses the Company’s IP on 5 GHz Wi-Fi chips and
its first partner is Realtek. WiSA E will be licensable to smart
devices for transmission to WiSA E certified speakers.
“A key element of our long-term growth strategy is built around
WiSA E, our interoperable IP targeted for licensing and to run on
third-party chips as well as our own modules,” commented Moyer.
“WiSA E greatly expands our addressable market to a broad range of
middle market products, including HDTVs, smart speakers, home
theater speakers, PCs/laptops, among others. We intend to extend
WiSA E technology into licensing partnerships in these markets, as
our IP can be adapted and implemented without relying on the use of
WiSA Technologies’ modules.”
Patents
Patent filings under both WiSA DS and WiSA E continued to
expand, as the Company ended Q2 2022 with a total of 24 issued
patents, pending patent applications or patent filings.
WiSA Wave
WiSA Wave, one of the Company’s branding initiatives, which
includes direct-to-consumer, e-tail/retail programs and WiSA
stores, had over 570,000 visitors to WiSA’s websites in the first
half of 2022.
“Based on changing consumer behavior, we slowed the WiSA Wave
promotional activity during this quarter and shifted our WiSA Wave
marketing spending to the Fall selling season, which adjusted our
overall target to approximately 2 million to 3 million visitors for
the full year 2022. Building on growing interest in this category,
we expect to add 3 to 5 new WiSA Wave storefronts by year end,”
said Moyer.
Q2 2022 Financial Highlights
- Q2 2022 revenue was $0.9 million, compared to $1.6 million in
Q2 2021 and $0.6 million in Q1 2022.
- Q1 2022 gross margin was 20%, compared to 29% in Q2 2021 and
11% in Q1 2022. Gross margin in Q2 2022 was impacted by lower sales
volumes.
- At June 30, 2022, cash and cash equivalents were $4.8
million.
$3 Million Convertible Security
- In a separate announcement today, WiSA Technologies signed a
definitive agreement with an existing investor for funding of
approximately $3.0 million in a private placement of a senior
secured convertible security with funding to occur when all closing
conditions have been met.
Q2 2022 and Recent Highlights
Hisense U7H and U8H 2022 TVs received WiSA SoundSend’s
certification.
- Dynaudio’s New Focus Series, a complete wireless sound system,
earned WiSA HT Interoperability Certification.
- Wharfedale’s WiSA certified Opal Wireless Home Theater Speaker
System launched for sale in China.
- JBL launched their new hi-fidelity JBL 4305P Studio
Monitor.
- WiSA Technologies’ new 2.4 GHz Multichannel DS audio soundbar
module outperformed the leading 5 GHz modules in independent
testing.
- WiSA SoundSend named a Top New Technology (TNT) award
winner.
Financial Guidance
- Revenue increase in Q3 2022 compared to Q2 2022, and a
sequential revenue increase in Q4 2022 vs. Q3 2022.
- Gross margin target range in the mid-20s % range for Q3
2022.
- With the abovementioned $3 million secured convertible security
commitment, the Company believes it will have sufficient cash to
execute its business plan into 2023.
“We grew revenue in Q2 2022 from Q1 2022, and we expect to again
deliver strong sequential growth in Q3 2022, and then again in Q4
2022 as compared to Q3 2022,” said Mr. Moyer. “We are nevertheless
taking a cautious approach to expectations in the balance of the
year, as parts shortages and lagging consumer demand limit
visibility and may challenge margins into Q4 2022. We reiterate
that WiSA DS and WiSA E products, comprising the core of our
long-term growth strategy, are positioned to constitute a growing
percentage of our sales mix as we aim to penetrate larger and
faster growing segments of the immersive sound market.”
WiSA Technologies Investor Conference Call
A conference call is scheduled for today to provide the
Company’s business update, including second quarter 2022 results,
at 9:00 a.m. PT / 12:00 a.m. ET. Shareholders and interested
participants may listen to a live broadcast of the conference call
by dialing 669-900-6833 and entering the meeting ID 95912577140 and
passcode: 369678 approximately 10 minutes prior to the start time.
A live webcast of the call and accompanying slide presentation will
be on the investor relations section of the Company’s website at
ir.wisatechnologies.com and here, and a replay will be available
for approximately one year. An audio archive can be accessed for
one week by dialing 669-900-6833 Meeting ID 95912577140 and
Passcode: 369678 approximately.
About WiSA Technologies, Inc.
WiSA Technologies (Nasdaq: WISA) develops, markets, and sells
spatial audio wireless technology for smart devices and
next-generation home entertainment systems. Its consortium—the WiSA
Association—works with leading consumer electronics companies,
technology providers, retailers, and industry partners to make
spatial audio an experience that everyone can enjoy. The Company is
headquartered in Beaverton, OR. For more information, please visit:
www.wisatechnologies.com.
About WiSA Association
WiSA® educates, evangelizes, and promotes solutions for spatial
audio in the home. Working in collaboration with technology
developed by WiSA Technologies Inc., WiSA Association engages with
leading consumer electronics companies, technology providers,
retailers, and ecosystem partners to make immersive audio an
experience everyone can enjoy. WiSA, LLC, which operates the
Wireless Speaker and Audio Association, is a wholly owned
subsidiary of WiSA Technologies Inc. For more information about
WiSA, please visit: www.wisatechnologies.com.
© 2022 WiSA Technologies Inc. All rights reserved. WiSA
Technologies Inc. and the WiSA Technologies Inc. logo are
trademarks of WiSA Technologies Inc. The WiSA logo, WiSA®, WiSA
Ready™, and WiSA Certified™ are trademarks and certification marks
of WiSA, LLC. Third-party trade names, trademarks and product names
are the intellectual property of their respective owners.
Safe Harbor Statement
This press release contains forward-looking statements, which
are not historical facts, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Our actual results,
performance or achievements may differ materially from those
expressed or implied by these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of
words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,”
“anticipate,” “believe,” “estimate,” “predict,” “potential,”
“continue,” “likely,” “will,” “would” and variations of these terms
and similar expressions, or the negative of these terms or similar
expressions. Such forward-looking statements, including statements
herein regarding revenue growth, production, stores and launches,
are necessarily based upon estimates and assumptions that, while
considered reasonable by us and our management, are inherently
uncertain. As a result, readers are cautioned not to place undue
reliance on these forward-looking statements. Actual results may
differ materially from those indicated by these forward-looking
statements as a result of risks and uncertainties impacting WiSA
Technologies’ business, including current macroeconomic
uncertainties associated with the COVID-19 pandemic; our inability
to predict or measure supply chain disruptions resulting from the
COVID-19 pandemic and other drivers; our ability to predict the
timing of design wins entering production and the potential future
revenue associated with our design wins; our rate of growth; our
ability to predict direct and indirect customer demand for our
existing and future products and to secure adequate manufacturing
capacity; our ability to hire, retain and motivate employees; the
effects of competition, including price competition within our
industry segment; technological, regulatory and legal developments
that uniquely or disproportionately impact our industry segment;
developments in the economy and financial markets and other risks
detailed from time to time in WiSA Technologies’ filings with the
Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220815005240/en/
David Barnard, LHA Investor Relations, 415-433-3777,
wisa@lhai.com
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