- Five customers that received WiSA
E Development Kits represent about 50% of global soundbar market
share -
- Each customer has potential for
over 1 million units per year in volume -
BEAVERTON, OR -- August 15, 2023 -- InvestorsHub
NewsWire -- WiSA Technologies, Inc. (Nasdaq:
WISA), a developer of spatial, wireless sound technology for
smart devices and next-generation home entertainment systems,
reported second quarter 2023 financial results in its Form 10-Q,
which was filed on August 14, 2023. In its conference call and
presentation today at 8:00 am PT / 11:00 am ET, management will
discuss its WiSA E strategy and initiatives, the Company’s results,
and provide a general business update.
"In July, after collaborating in 2022 and 2023 with strategic
customers on features, performance, and pricing, we delivered WiSA
E development kits to five Tier-1 HDTV and audio customers," said
Brett Moyer, CEO, President, and Chairman of WiSA Technologies. "We
are excited about the prospects for WiSA E to unify a highly
fragmented market currently served by proprietary, closed audio
solutions. These customers alone each represent annual unit sales
opportunities ranging from 1 million to 3 million, or potentially
from $5 million to $15 million in revenue per customer, with
revenue contributions expected as soon as second half of 2024.
Customer enthusiasm thus far has been impressive, and one customer
is already evaluating an embedded software IP solution for
transmitting audio to its speakers from their soundbar. In a few
weeks, we will be launching WiSA E to the rest of the audio
industry at the CEDIA trade show."
"We continue to explore strategic opportunities, and the team
just completed two weeks of discussions in Asia focused
particularly on ways to leverage the value of our intellectual
property, such as that embedded in WiSA E. Concurrently, progress
is being made toward a definitive agreement to acquire Comhear and
expand our IP portfolio," continued Moyer.
"For the first time since May of 2022, we are seeing consumers
return to purchasing audio products. Our unaudited consumer audio
product sales in July 2023 have essentially matched Q2 2023 sales.
With higher consumer demand for audio products, a new WiSA DS
enabled soundbar launching in Q4, and typical seasonality, we
expect sequential revenue growth in Q3 and Q4 of this year," added
Moyer.
Q2 2023 Financial Highlights
-
Q2 2023 revenue was $0.4 million, compared to $0.9 million in Q2
2022 and $0.5 million in Q1 2023.
-
Q2 2023 gross margin as a percentage of sales was negative 47%,
compared to 20% in Q2 2022 and negative 267% in Q1 2023. The
decrease in gross margin in Q2 2023 compared to Q2 2022 was mainly
attributable to a $169,000 increase in inventory reserves
associated with our consumer audio products, lower sales volumes in
relation to the fixed portion of costs and lower pricing of our
consumer audio products.
-
In April 2023, we received net proceeds of approximately $1.0
million through the issuance of common stock and warrants.
-
In April 2023, the Company paid off in its entirety the
outstanding balance due under the Company’s Senior Secured
Convertible Note issued on August 15, 2022.
-
In May 2023, we received net proceeds of approximately $1.9
million in connection with a warrant exercise inducement.
-
At June 30, 2023, cash and cash equivalents were $2.0
million.
Subsequent Financing Event
In July 2023, the Company entered into warrant exercise
inducement offer letters with holders of warrants issued in May
2023. The warrant inducement closed on August 8, 2023, by which
time the holders had exercised 510,000 of these warrants resulting
in aggregate gross proceeds, before deducting fees and other
offering expenses, of approximately $678,000 from such exercises to
the Company.
Expense Reductions and Financial Guidance
The Company plans to reduce total cash operating expenses in
non-engineering salary and other sales and marketing expenses. Cash
operating expenses in the second half of 2023 are expected to be
approximately $500,000 less than in the second half of 2022, and
2024 operating expenses are expected to be approximately $2 million
lower compared to our 2023 plan.
The Company expects sequential organic revenue growth in each of
the third and fourth quarters of 2023, with projected revenues in
the range of $450,000 to $600,000 in Q3 2023 and in the range of
$1.0 million to $1.4 million in Q4 2023.
Q2 2023 and Recent Highlights
-
Hisense’s latest U7K and U8K Series ULED TVs earned WiSA
SoundSend Certification.
-
Began taking pre-orders for WiSA E multi-channel development
kits. Using the 5GHz portion of the Wi-Fi band, WiSA E offers
high-performance, high-quality wireless audio transmission and
reception at an affordable price.
-
Partnered with Sunplus Technology, a leading chip provider for
multimedia and automotive applications, to bring to market a
multichannel immersive audio System-on-a-Chip (SoC) targeting the
Atmos soundbar market.
-
Launched two new tools for WiSA Technologies’ customers to
streamline the development and manufacturing of WiSA E and WiSA DS
implementations.
-
Started shipping WiSA E development kits to key tier 1 HDTV and
audio customers in major markets, including Korea, Japan, United
States and China.
WiSA Technologies Investor Conference Call
Management will hold a conference call to discuss the results at
8:00 am PT / 11:00 am ET, on Tuesday, August 15, 2023. The
conference call will be available through a live webcast found
here:
Webcast |
Second Quarter 2023 Results Webcast
Those without internet access or who wish to dial in may call:
1-877-270-2148 (domestic), or 1-412-902-6510 (international). All
callers should dial in approximately 10 minutes prior to the
scheduled start time and ask to be joined into the WiSA
Technologies call.
A webcast replay of the call will be available approximately one
hour after the end of the call and will be available for one year,
at the above webcast link. A telephonic replay of the call will be
available through August 23, 2023 and may be accessed by calling
1-877-344-7529 (domestic) or 1-412-317-0088 (international) or
Canada (toll free) 855-669-9658 and using access code 5813612.
A presentation of the Q2 2023 results will be accessible on
Tuesday, August 15, 2023, under the "Investors" section of WiSA
Technologies’ website.
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
© 2023 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 the proposed transaction, revenue growth, business
opportunities and prospects, design production, product launches
and inventory levels, projected operating expenses and expected
sequential growth are necessarily based upon estimates and
assumptions that, while considered reasonable by us and our
management, are inherently uncertain. 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, among other items, the proposed transaction; and other
risks affecting WiSA’s business generally, including risks related
to market, economic and other conditions; WiSA’s ability to
continue as a going concern; WiSA’s ability to manage costs and
execute on its operational and budget plans; WiSA’s ability to
achieve its financial goals and other risks as more fully described
in WISA’s filings with the SEC. The information in this press
release is provided only as of the date of this press release, and
WiSA undertakes no obligation to update any forward-looking
statements contained in this press release based on new
information, future events, or otherwise, except as required by
law. WiSA disclaims any obligation to update these forward-looking
statements.
Contacts
David Barnard, LHA Investor Relations,
415-433-3777, wisa@lhai.com
WiSA Technologies (NASDAQ:WISA)
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