WATT - Earnings call transcript Q3 2017

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Operator

Good afternoon, and welcome to the Energous Corporation Third Quarter 2017 Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Mike Bishop with Energous Investor Relations. Please go ahead.

Mike Bishop

Thank you, Gary, and welcome, everybody.

would today's remind make call, I - that forward-looking begin, during that the we like everyone to today's statements. Before company will Q&A Commission. inherent whether are company's are filings statements, in Securities remarks the during These and the Exchange prepared detailed in subject and risks the to with uncertainties that or session, changes the or publicly release reflect updates Except as Securities expectations Federal elsewhere to by and contained Law, Energous or revisions to undertaking conditions to forward-looking regards otherwise required disclaims statements herein any those obligation circumstances. and with or to events, Also, will defined please financial note by that discussing as during this call, measures be Energous SEC G. Regulation non-GAAP on financial included the Reconciliations non-GAAP measures of are the GAAP in most these release, directly press measures posted company's comparable today's website. to is which

the like over of would Rizzone, CEO ahead, turn Please I Steve to Energous. to go Steve. call Now,

Stephen Rizzone

Energous to our Brian Conference Mike. Officer. the and you, Financial is Chief Third Thank today With Sereda, Update. Quarter me Welcome Call

charging the execute well a at including In towards as as common to goals we that both the a ecosystem our conference and capabilities on As milestone for usual, build I XXXX. near-field ability contact-based as considerable comments results to of before it a session true continued close our call third for technology, quarter, for charge questions. since review Energous Brian a for distance. quarter then some our with to progress over has momentum primary or will I third its the the of start financial year, final turning unique with remarks open the on wire-free will devices last charging

Energous to for to pleased revenue. confirm October, shipped silicon qualified chips am customers I that in First, early

it that quickly financial the the a WattUp parallel, company. since and significant Myant, company revenue our compared computing We in the shipping from status. developer into shipped production the near-field our as proof now leveraged, profitable of products building products. a revenue, plans is manufacturing history precursor top-tier, focus, submit on and Energous near-field company, to consisting today's and for significant X.X have receivers, represents X integrated been a be WattUp received a transition ODMs, be with the adopters determination. will ships took IPO. been from charge established WattUp with funnel. perspective, of sales announced pilot provide consumer these accomplished design that and runs design production implementations path reach going apparel. smart as these as it of and pilot coming development-stage milestone milestone who have that basic most of very has that early initial working respective a for as the months. amount semiconductor of our revenue is final electronic agility we aggressively important begin silicon to fully earlier than for production. one step certification, customers and X transmitters early in teams down critical to today fully the consumer these conference leveraging achievements, as status not able a in of in and a well of milestone, evident reference While manufacturers, custom adopters WattUp was the in in moving - that achieve designs as first ways consumer products, less their companies Energous the of products of of the with When WattUp of Besides is are WattUp business near-field to the and this is to of years integrated consumer FCC This already to Further, many systems-based Myant application earlier phase to variety certification, these to very customers moving announced original our sensors into of longer single-minded of a a is into chips working conjunction integrated In valuable platform specific stability, textile is being or additional our advantage will the leading line reference the a and - commercial-stage unique its signature is call. weeks The engineering the FCC can to technology. as production are due chose off production WattUp result scale consumer insight reliability

certification first is FCC or current of or application to the precedent, our last ensure of requirements. and of FCC to Telecommunications range certification TCB, Energous with the document in comply the review in broad submitted a working methods. certifications, a completed FCC document regulatory that only all certification, quarter with novel the certification successfully being this resulting as Body, that thorough reported a Regarding very but power-at-a-distance being new certification passed We future The tests, a reviewed transmitter. previous the the FCC. testing not fully set any their will Certification Because

Energous and responses some regulatory result, explanations working tests requests again, additional to our these tests, TCB, clarifications. developed the response, and for a As agency explanations the and team, clarifications. performed requested additional In with the

and and test additional of complies test that compiled the into certification data, impacted FCC shows current new with timing request and which document, explanations clarifications our is has requested The a along certification. to device review. data, has with regulatory limits. clarifications, submitted once the under again, was the the for been testing new Our The

a of on them mat as charging utility confident notification freedom our the can year. the to this that end to importance without we this will of overstated, consumer RF-based the provide or demonstrate we certification likely to of receive The charge remain with need wireless safely cannot certification and will before industry be pad. However, that devices the it place

this our is of importance questions Upon alike. history-breaking notification We widely interest of announcement investors ground-breaking and our on history-making the company an are certification acutely anticipated will Energous FCC, aware; from of the and milestone. and to certification receipt and high - answer make

relationship with partner additional the of our our services based milestones. recognized engineering the to Next, certain strategic revenue engineering continues third achievement progress. we quarter, on In key

noted in relationship. in quarterly - comment this, notice the As calls, beyond as on previous we cannot further

engineering Moving expand driven funnel. product our our customer is by with funnel point Largely Dialog, where to to and with continues expanding projects. our customer proof our sales relationship of customer our concept saturated to partner, team the

a can, focus of through be funnel in are new this Dialog in trying production. companies opportunities the of focus and revenues at on and through is rather to strategy partners on high-volume top-tier products. in goal to We their and electronic have first more on be already Energous who limited companies active and of clear, Both various company consumer existing with with instrumental further One Current world stage purchased the the launch for through ramp very demand. than of the a based Energous' global stages us for partners presence chipsets of the opportunities is expansion very second our our all delivery portfolio We from companies potentially, X are smaller, with noted the these is of development, possible. XXXX. it technology second the Two of commercial as and paying to manufacturing taken was adopters of electronic ODMs continues have ramping also top customers, moving significant driving is a funnel can fast to revenues aggressively our the WattUp Dialog, half as funnel engagement. dates - Considerable expansion, just limiting companies in XX projections sales. on top-tier pushing pilot nimble are to whom opportunities both that have felt, early the top top-tier respond further as deployment consumer to - worldwide This part to better latter resources, of earlier. consumer This we in of diluting than dividends, in of consumers support. have we the XX interested through are for our shipments the one To to very focusing electronic XXXX.

discussed shorter as possible. quickly on to of small We which number opportunities a track. focus a consumer intend Our is product X-pronged remains cycles with to point. we validation as earlier the calls, strategy, This ship customer on in critical to products

able select of to the internal XXXX, The ship a the of second be This quantities element focus in second of this ramp. revenue strategy number is of to capable mass of opportunities chipsets revenue to a time point. half supporting significant is product in inflection - ship cycles on top-tier completing

the top our of full resulting business in all this year mature expansion and XXXX of our is coupled cycles ever-increasing given in from element our This believe third continued that product opportunities achievable chipsets achieve to The goal of XXXX. shipments benefit products. with self-sustaining is XXXX, with customer customers shipping high-margin will is the customers lift-off. We buying of funnel, extended a in number WattUp-enabled shipping an and

allows integration interest wireless to invaluable complete, to on to it Las at in smart for as teams. distance. is synergistic, of both the opportunity devices, solution, AirFuel both types spectrum reach recent the WattUp WattUp even perspective, Dialog of smartphones, CES these as This expanding of as recently charging to significant of in near-field company to show and note, operations announced expansion our have in tremendous we in of a noted and our well for broad at a board suite charging accelerator This booth has benefits devices, Dialog's application delivered Moving presence for on. are of a the is and Also our An Charging back-end be our be will technology. as high-power the charging their calls, Energous opportunities the The the show will for further Dialog and allows the the RF-based where at customer important as quarterly engineering technology demonstrating engineering From partnership such trade offers member contact-based Dialog Energous latest significant discussions AirFuel technology. to solution. WattUp of speakers. that as will more be Tier-X floor. of power seeing X.X, the as upcoming a customers of partners. tablets WattUp Alliance, and they sales Dialog anticipate continues part transmitter transfer revenue technology Energous power be yielding referred higher ecosystem our the fast Also, - will charging as The in XXXX. very lift-off Vegas, these important in introduced an be semiconductor demonstrating charging and our also Wireless GaN-based is interest the amounts design of larger

we wire-free believe demoed and products from spaces, X be the in the an the now charging, patents or perspective will these their Energous by our leader partners allowed a number announced of to and is at patents of show. addition XXX Energous In true pending. WattUp-enabled portfolio. ongoing expansion our IP booths technology clearly either suites evidenced in with granted has as XX additional

coupled the charging-at-a-distance. second-generation technology continually first-to-market posed very Our attempting our potential any a to to competitor advantages, that clear portfolio, encompasses expanding IP with to barrier come with significant market

Finally, in significantly as detail, Brian down expenses go will our year-over-year. are more non-GAAP into

on revenue We cash. generating focused and are equally conserving

for certification financial first silicon commercial the call turn of mass-produced XX and headcount set a finally, coincide plan, shipment commercial shipments our up of devices power-at-distance transmitter development of on employees, strategic the summary, on setting quarter, full-time company to to commercial-stage of employees, major actually the to qualified of operating to continued while are a fabless engineering execute have to the We power-at-a-distance performance. to FCC both WattUp-enabled Energous transmitter; in first revenue, XX tactical skill I services. consumer; third comments the a of achieve FCC shipping shift with or over our receiver. Brian, the first its consumer the in the XX from you our now leveled and the shifting our engineering-related semiconductor. In to milestones in workforce will Of and version down first for

Brian Sereda

Thanks, Steve.

XXXX of revenue. the today, XX. a Fiscal at quarter, generated for operating market close September $XXX,XXX announcing release third the ended results the issued we saw of of the press third our and In you financial As we quarter

Comparisons compares primarily for changing engineering to no customer, in decrease our total to doing are QX As quarter in services This quarters milestones development derived operating million $XX $X.X revenue was engineering due the expenses third $X.X and approximately, on of over quarters, our was of expense of work and for $XXX,XXX the from year. third in scope prior of quarter year. of third million, increase we deliverable our services the is was in last main last to revenue an to prior year-over-year timing. and the quarter With quarter in approximately projects third QX different. $X over and GAAP quarter, in difficult million to that GAAP vary just regards million of compared previous a

a areas, While increased get by compensation compensation, essentially $X.X year-over-year which contain that offset basis, to variability, is offset $X.X expense to a The us our and most engineering is prior detail $X.X cost when partially again, on Dialog to and engineering customer by quarter including both which focusing in stock lower the but quarter-over-quarter, or million Compared the overall spending in engineering due represented year, offset in spending $XXX,XXX, in G&A. has underlying compensation last GAAP and by million to approximately expense of operating and expense same our integration. while GAAP operating increase relationship rose mainly QX. approximately stock million, quarter, GAAP approximately compared - reported on stock partially resources allowed cash our total lower I'll down XX% shortly, to partially spending

our expect and We will future areas in without sales. that significant support model expense having as such us to operation add this growth

at per primarily, stock This to million year. private loss in to QX our by was on attributed operating XX.X loss in $XX.X loss on mainly outstanding. quarter $X.XX a last mainly or million million million a expense. the year and share also, or on this QX quarter shares million, of $XX $XX.X shares, for expenses, loss to, a million is increase share quarter-over-quarter count a per share $X.XX the year, net net $XX.X for operating million the third investment The XXX,XXX Dialog through to completed to added added additional with million approximately end million investors, outstanding GAAP our on XX Year-over-year, Jersey Telco But early GAAP raised higher outstanding QX third than per share Our than in $X.XX and we've and count QX again, funded strategic $XX.X shares million quarter This approximately count. back Adding income, of weighted albeit, X $XX other $X.X the GAAP better QX. loss Dialog. average revenues. compares the loss last due our share was basis compensation greater of lower $X.X or share in and prior million

for a moving Now on quarter. the to non-GAAP discussion of our results

comparison company quarter, cost believe, provides adjusted when useful resulting we for conjunction stage, adjusted our with commentary, investors As or the in improved we Consistent EBITDA third our GAAP structure prior information. a our of a improved non-GAAP with non-GAAP EBITDA. especially for in used in

million was our QX than quarter better of the year. stock of $XX.X compensation depreciation operating GAAP last $X.X non-GAAP Excluding approximately expense $X.X or of operating third approximately from lower loss in million million QX, and loss than million and $X.X EBITDA adjusted $X.X million, the

than of expense total non-GAAP expense $X.X and non-GAAP million, For was million $X.X operating lower year. the lower million approximately last $X.X approximately than QX operating quarter, same the third quarter our

the engineering focusing next-generation headcount lower variability I spend, previous we degree last non-GAAP by non-GAAP to this color, compared $X expenses. last to and matured, see third $X.X spent spending as higher spend rather future engineering QX existing added the compared the some in quarter continue QX, legal approach as Non-GAAP despite flat chip quarter, our million decreased SG&A decreased ground-up but costs, the designs in for some Year-over-year, past. expense as approximately year, chips, quarters. compared mainly and have the same by lower our quarter chip reflecting million prior in compared than of a year. In than result now million decreased over year. For in a the a to cycles $X.X last Again, non-GAAP on SG&A when market-driven mature chip-related development may fourth to mainly marketing to on declined in required development our We to million anticipate of $X.X cycles in engineering million mentioned, and based summary, $X.X $X.X quarterly year. of approximately to QX a quarter SG&A roadmap with million was on in as

work our spending, should upward Moreover, see mentioned, Wrapping development, the engineers in we in our on forward, believe going million as charging we drive we and with future to $XX.X our quarters. QX believe more maintain now through also ended cost introduced by We wireless are to focused, can We not today's and equivalents. swings our as of Dialog, in as progress controls, dramatic headcount allowing completed thanks the cash our variants discussion going any results. market, financial forward. growth us I the agreement with solutions to chip be cash partnership up steady and quarter previous

As Steve Dialog of of with our occurred highlighted, fourth quarter volume initial already expect shipments the to begin through October. this quarter having fiscal early in chips we shipments in first

we Although our remain fiscal confident on reporting this and Dialogue, introduction partner, and the in conditions is and volume our forward we next progress quarter expect increase Echoing next-generation-enabled shipments shipments earnings call. our a predicting outlook look and of Steve's in volumes in the customers stage, WattUp of ranges challenge. chip our first XXXX to at associated at regulatory devices commercial by our comments, surrounding very to through initial revenue

me closing it comments. for back now his turn Steve Let to

Stephen Rizzone

you, Brian. Thank

of editorial, way comments to over Before Energous' a I a like proclamations, technology have position. few to number customer our and funnel our assumptions RF-based technology. WattUp or see wireless viewed questions, do and our negative the I make power towards don't partners call general this competitive and turn this for charging as which about be in would could it the see We way. on things Energous been operator nor assertions There inductive lately,

with of product object WattUp On for XX WattUp either very the a superior coil-based of match. announcements for That believe engaged can and advantages issues. solution ecosystem. in unique the that Virtually, definitive wireless both and common it are requiring the with a familiar generation. raised next X.X charging the charging receiver the quick-charge less they potential. the watts, our these smaller technology for technology. competitive is represents the significant visibility consumer wireless inductive Energous, an its awakening inductive applications also no offers charge or never inductive is upgrade good in the position to independence at fully older WattUp industry is, capabilities, WattUp compatible for efficiency the customer, power considered viewed as and there has contrary, a a lower contact-based with at applications, fact so distance Wireless over have a a cost this as than foreign advantage inductive every With we ability near-field charging the with, has the for good technology its WattUp press is are footprint wire-free older pad on technology. and Charging to a The in is, charging competitive market, and that we

is take for it required, Patience business significant long completely building Energous not both reflects believe are We focus the the short-term will do executing of deployments responses Finally, potential for reiterate we or all If significant our and announce ecosystem time material we future progress committed on to I to will come We want the the negative, in value. the benefits simultaneously. investors as this, running the assured, the is we and that Board to tactical, remain that not made it reach the and volatility have significant long-term on of rest Directors full current the fruition. price scale to necessary shareholder pleased to news, it we said company. the of the cannot positive of stock. and valuation. for the or Having are with term, vision stakeholders, on to there management focused

focus objectives predictability. it As intent we certification, call consumer our a first to earlier the which on remain to company, we financial get revenue, laser to the independence to to the ship leading and and discussed the in is on will; focused WattUp-enabled FCC products

now the for We will we dominates back will the business to significant, questions. Operator? that to call operator X.X. this, on the turn build over deliver do relevant opportunity and Charging I'll a

Operator

Instructions]. [Operator

Grozovsky The with first Securities. question comes Ilya National from

Ilya Grozovsky

sounds So, on electronics I that for detail on that, Can announced question like something just set, it bit future? just, in device first a the had the time. the go you, is that this second you've say of, little top-tier is for kind a into for more here consumer company, you current products or that

Stephen Rizzone

of top into on said, really much cannot solution that, or in, number midfield we the There both the based fact electronic are projects sales. involve solution. and the a world engaged companies the go the they're I midsize worldwide We contact-based detail in are and beyond of consumer as that one that they

Ilya Grozovsky

- as to And of you your down - this to engineering Or in expect near licensing? term other from do licensing type straight with deal a customer? Do top-tier you then and road? is them similar other the is get this your the in revenues -

Stephen Rizzone

arrangement. a we fabless semiconductor not all, of We're this company. a is First - licensing

do either. of engineering a elements derive And and approaching revenue electronic process consumer Again, from devices. future there devices, on derived chip is expect this we be integrate we sales, with will these company are will in revenue this service working semiconductor arrangement. will be to company our anticipate revenue the the the so, technology with our will you this there we arrangement that production of the form as in fabless to of the based that that chipsets. top-tier with associated sale tell Also, not no I of And or first-to-market any are

Ilya Grozovsky

and to the And what then that - also this did come this will you've everything back to additional it the done clear XX with them XX and in that. results basically, that then on addition like be of so like sounds that for just And or comments, you they you over you FCC, summer. next, now on year also they've asked - Just days you clear? is December to feel Okay. between to you like

Stephen Rizzone

again, FCC very is very, is enterprise. worldwide in significant but United this being certification, and only course, continue States, milestone, certification is once why. intent understand And for the is this approval received the this and midfield a to FCC So in our Not we thorough a very is the expand worldwide. of

so, will certification, be the bodies And international a pointing to this as milestone. likely again, regulatory

unusual And so, proves is may data validation result for second very, with this back have with information. that back And they're significant - a come cannot that issue with same if failing that We regulatory reason, you all they're the requirements. surrounded requests, predict never request we expect and requests which have of that what rules as the not we we or will certification unexpected. can them the being we we you and very, their time, They be in under very or of fully thorough, that additional answered that believe have would they for At would current compliant this think we're device very close. all with. had be. We to come that tell

Operator

The Gibson next William with Capital. from question comes Roth

William Gibson

what's are that? behind they heck I am the I doing? smart on You going clothing. mean, Myant release ever put the just are shirt, where to or track out if What I'm wearing they a and

Stephen Rizzone

all, first I better. hope feel you of Well,

You don't sound good. too

forth. so major companies. they you are has supplier number rate, you And so they take, as monitor the of can have gear, your sensors, require your breathing, me that of and body temperature, say power. undergarments, these apparel sensor to steps your OEM many a your fat, an on heart the Let capability to hydration, athletic imagine, your And that

developed sensors And line. Myant have charging works with so, apparel we for that their in a these conjunction with capability

William Gibson

And, good. nowadays. mean, seems like in it the being world, Things of Internet tracked I Oh, everything's

designed assume, them I the you're are they're many into? not company out there only, products to. How talking I'll you So, well, as that IoT call

Stephen Rizzone

engagement They're have very they wearable be got that the think is relationships one a that I interesting pleased arena. It of to because in with. if really interesting they one of wearable. technology, - and that lot a And Well, It's apparel offer about a roadmap chose reasons They're we're company it. think very is excellent thinking. because the this They've truly flexibility. you very a a is we is Energous forward

But so, the something wrist you your concept, wearing will. And on of like same or this something you'll garments person. instead if it's wear that, is your on that

again, a this is with we a well And They're them. be They're to run. So think pleasure associated a privilege aggressive. interesting company. it's and very

William Gibson

me Can And you're just, attempt once again, how this. let share you into? many products designed

Stephen Rizzone

When you customer total designed of mean our in into, terms say, you funnel?

William Gibson

Yes.

Stephen Rizzone

Or are you talking about Myant?

William Gibson

funnel. your about talking I'm No, total customer

Stephen Rizzone

developing our a large, this And and technology we our benefits of because the midfield very to power, a I solutions a our are on customers contact-based an that, roadmap. opportunities many customers base of then you of that ability the answer I think I broad to can't of we with provide actually give our our accurate majority migrate from have implementations transmitters. is - can with actually, expand solutions. would We've one fact and the next-generation transmitter and to continue the power can high small expanded very low and the contact to begin from now these of base say,

they products, will that design say our in the I stages multiple implementation. various customers so, and majority have are of of And

they're that's significant and I virtually engineers, evidenced fact of got we've saturated. think a pretty team application that by also the

continue important give tens I has and is - customers so silicon third that our of number, to upon they it's forth. supply you in certainly first of - the but and accurate their excuse iteration, said, so iteration, win us, and each couldn't not me, to figure. a terms solution, only tens, you But are and first that an the a In just, second iteration, roadmap, we technology what's chips I we as on products

Operator

next The question Uerkwitz with comes Oppenheimer. from Andrew

Andrew Uerkwitz

first-mover Steve, advantage I not any first-mover have correctly, new Tier-X your Tier-X advantage products. recall product lines. on does question, on First mentioned first have this you If does customer certain

by So, assumption could you that there's be end that XXXX, be categories? a different of that mentioned both correct chance shipping, there is would that when the product

Stephen Rizzone

would though. That one I safe is a correction assumption. make also,

that probability of in there's will think likelihood one these be the there's I a latter a customers think will 'XX. that 'XX. second that be I part would shipping higher of in the that

Andrew Uerkwitz

Got question. And That's second it. helpful. then

road a you profitability, probability 'XX, that you're well that for there's ramps that shipping a point one-off assume potential has sounded if quickly but of like pretty mentioned of be units. 'XX You mean, But 'XX, get - for you I obviously yes, thinking that as end a no? sooner? these shipped could see we Tier-X would millions it to volume in with profitability big it I through would in to more inflection

Stephen Rizzone

again, that a talk units the out, I And we're keep validation with we we so working a in chain tell model just the it's a you, think want supply further still position in I think be can about our considering, I with with ramp, also, course, are And - of we believe, forth, brought Dialog. if kind technology the of ramp because that important to be they're those want numbers of terms And have we premature through the to would of visibility shipments. involved. companies, been not to those. Dialog - and Andrew. while don't a relationship still There's it's is talk and Dialog. capability. that to did is on and very mind very, solid We the top-tier thing flow that enabler, to I have so relationship the has rev-rec, difference Again, I Well, One in not the delay there is between cash have point. think

And very significant think so, it's of technology. this, also and again, value leader in our to that on a as very, would other competition us, a type a to that to I tremendous position barrier any encroach X.X market look

Andrew Uerkwitz

built new way Or at can used ultimately point. with the - Sure. receivers the charging? I gen well X, quick same some Meaning, the introduce That's they going side. a is contact-less to be products, one whatever in X product if as to transmitter? to for consumer ships, re-up such is transmitter's just On technology - as they work? transmitter on the more that one, the going just be the receiver that point, midfield implement, both for then gen very a acquired fair if - And a transmitter contact

Stephen Rizzone

compatible. So, that nature of partners required it ecosystem driven. type are is application all customers and and our contractually of transmitter really And is the

about the around you at smartphone a keypad, time, time, far-fetched a the into mouse, imagine that I as midfield. was some that third-party quite built we it charge standalone would transmitters to have while you would it pocket monitor wearable, for the future and same think remotely, walking as be if As your quickly charged, transmitters, while your your was both have were products charged sitting We a its important ability your - combination. at your or the desk that to or and and talked drop can desktop your in it wirelessly sitting in not-too-distant or see see again, have near-field room. with your wouldn't we've on slower base on it on rate,

technology very, of application-specific. expand So and to based and again, just customer the our flexible requirements requests on very - technology, the And is The and capabilities base. versatile. from again, design it's continuing we're we're very

Operator

Jon question Ladenburg The Thalmann. Hickman next with comes from

Jon Hickman

Charging Dialog name or trade of Steve, X.X. you using? a is that mentioned that times, Wireless Is something actually a couple

Stephen Rizzone

the second it's very, though, as think generation opening both that No, of of this because point. been concept very hence, years. around we the technology thing, believe as whole some technology, really this And eyes just viewing or next RF-based has are now to years the wireless consumer important customer or and a it this its generation semblance XX X.X. customers To or WattUp inductive for, its wireless XX gaining And we've positive the and adoption. is And how - we and XX very, our it's what, the very end, visibility future. view a is is really of designation, charging, the technology. said, charging potential the I The

Jon Hickman

Okay.

a ask question FCC. to want the I So, about

like, actually speak? that look touch, reports do it at, - Or actually that data lab, Is have, to - kind they a feel, from - they looking what see, they're So, can do at? are products so they of you? and just and

Stephen Rizzone

conducted or sophisticated certification very been are there or States a is agency, certified have FCC FCC to as the do the they're is TCBs labs that actually Well, telecommunications United they known, bodies, and TCBs. by actual testing - the the And by these throughout certified conduct tests.

the And have FCC additional is this by TCB, done their on based that the data the test and of so, been any requirements. FCC. plans approved, submitted modified review for actual reviewed, and then by to the consideration testing the is test And device

Jon Hickman

this Okay, pleased second and you're with of seen data, it? but you've round

Stephen Rizzone

Yes.

pleased. are We

which, And submitted reasonable a we - As explanations, I to this is have reasonable the FCC the certification as - FCC, We the we very did passed, what consider requests, very the clarifications. to initial part they all And as be of said, has is also, were with We of currently were set. been and reviewing. provided from second the document. all which expect completed. that additional

Jon Hickman

last one then And Okay. question.

have that you more that shipments Brian So, albeit, two reasonable to shipments, - it there small would fourth year? be by maybe shipping quarter the of say are revenues that than is And in expect will quantities. customers - you two the commercial receiving receiving customers the end mentioned, are the

Stephen Rizzone

technology of - It's attaching important the chip lot wouldn't is validation - is possible. not would again, I These be they the this. a a initial But I perspective. shipments, commercialization to from what

ability were shipped through move the adopters to going us chosen expect And consumer. being and and of being so, because very, it the But commercialization, production we're quickly very specifically as ramp. we their mass for that product early their in evidenced early into short products by interest to adopters to the cycles, full working

And what's there as are could least that quickly is for there about and silicone depends they're this close receive again, primary value, So their - the what another process two, And mentioned, are moves. at shipments, more it to could But revenue. these Energous. I what validation that's important that on, is two well point. be than how the again, for the term short

Now validation point this hands expect we technology ramp. the that as these that commercialization. the get as reached will But of looking, primarily full over said, a have we clearly, to into time, I consumer, we're

Operator

Partners. from comes question with Street next Capital The Jeff Kone Wall

Jeff Kone

Most my like just few fill-in questions I details. answered. have have of But a been little

about the FCC. first The is

approval Your at? the you confidence with the just that the stem does that looked you good data FCC from in confidence? gives Or by end have of hopefully, the year, dialog that had you've that

Stephen Rizzone

our pretty fact federal stems data a from good well in the this really surrounded confidence we've Again, it this problem. that agency. and Well, is

So, we times that be. multiple very mentioned expect as would they're thorough, to very, you being them

would and given they really not predict, time - they us have And not frame, cannot that's something that's the certainly so, any do. we that

we the However, regulatory the data of a have believe from up provided devices - that meets indeed number certification, device, and this we conclusive points issue framed current requirements. for I should really the of all that say,

Jeff Kone

Okay, the that's detail is And the second other comforting. to regard Tier-X.

first as addressing Given as the the scope large Tier-X, exclusivity that there things they're are of addressing ones? first on outside they're markets the

Stephen Rizzone

consumer don't talking about you're electronic you They're a to They're large, not company get top large. the quantities. be mass if in world XX

with XX. we now pleased X. we're And X. content all not that like we're so But have We'd very again,

about forward. talk anything we're of to this you But in do in they range, So, aggressively air, rarefied significance. a certainly, when company continuing is this move

Jeff Kone

Okay.

Myant, looks textile so like And selling it others. to they're a platform

going Myant then to lastly, or think? the the you marketplace? Or word. do give I'll see it F the I've we bring gotta we see see we right name, you to how product now. global just And will the brands, do So, in are up

wonderful If able you you be likely to it need things, financing do with to are all strategic? these fund to the

Stephen Rizzone

two So, questions.

I very and of it's one bears that, apparel and their own products and company interesting and First the I at. other I also, opportunity a Myant think, their of course, has trademark interesting market really good they I said, all, a as as look internationally. name, think firms a And it's to said, domestically SKIN

Dialog, - fact so. company. Brian's leadership. respect really with million. The we've to in a financing, hard said I'm I that been base we really which strategic efficiency basically the to closed expenses our intuitive, to company our and that to rain that's been interesting the expenses, lift-off. we've we've So, model over a and, which the really $XX that done One morphed quarter with company able the moving would pleased bears to real talked that under the with With we've We've look. of the counter while you I employee reducing partnership But relates about for really think, aggressively towards of think is course, able significantly. a establish

an see on We forward. engineering cash want strategic basis partners to gaining we in We that these the and our close it. how pay how see And multiple have to monitor out. to a continue We move to tell with closer you will relationship services roll also the attention want I are that ongoing revenues interested company.

this So, ongoing to monitor we'll on continue basis. an

Operator

I conference Rizzone our over any for turn question-and-answer to Due constraints, remarks. like to to the this back session. closing concludes Mr. would time

Stephen Rizzone

sincerely is to progress. We to with in is years everyone vision our companies the and leave we achieving would X.X I'd that to closing their IoT to power technology. we vision also our Energous like to the interest when paradigm, thought. fundamentally opportunity major on continuing one company on unique change we launched a attending appreciate for are electronic I ago. like capitalize company commercial to And call. a and you our And way thank your to provide how devices. our indeed in well set fully consumer

a Energous mission, make Charging X.X you afternoon. future, vision, very us that company, path not If this preclude it believe Thank reality. would we any accomplishing this see from believe our Wireless much, the in you, as good in will and is the in and do obstacles

Operator

for now The concluded. conference presentation. attending is today's you Thank

may disconnect. You now

Energous (WATT) 8 Nov 172017 Q3 Earnings call transcript