WATT - Earnings call transcript Q3 2019

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Operator

Good afternoon. And welcome to the Energies Corporation's Third Quarter 2019 Financial Results Conference Call. All participants will be in listen only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded.

to Relations. conference like Bishop to now Investor with would turn over the Mike I ahead. go Please

Mike Bishop

Thank you, welcome, Kate. And everyone.

make These Before company's in we or inherent today's and will risks during Securities remind during filings participants looking begin, I are Commission. that Exchange would with call, like the Q&A and the the subject prepared uncertainties whether the in statements, to session that forward remarks statements. to company detailed are

any by forward-looking those as financial federal in SEC these undertaking securities are Web that which or Except Reconciliations obligation as please disclaims or posted of to the defined or regard events, measures publicly Energous included to G. elsewhere otherwise release, Also, circumstances. is statements during comparable note the updates call, financial release to on by in required will this or Regulation expectations GAAP with changes non-GAAP to laws, Energous most herein be the conditions company's to directly revisions discussing reflect press measures today's measures site. non-GAAP contained

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

Steve Rizzone

Mike. Good quarter call. Officer, welcome before financial the company's the a update. Sereda, a business to afternoon. the provide general conference like Financial me call Energous update for is turning with our third Chief today. joining Brian on comments And Brian also over I'd you, begin Thank to progress to and

We open will call then the questions. to

we from revenue a Looking are where be to standpoint. at not the third we quarter, expected

Energous. optimistic in confident about of a future However, moment, for I and on reasons extremely we'll the expand remain

new launch global basis. on been communicated in we've the As a has our goal technology to and establish a past,

significant are resources on North Europe, successful contingent regulatory accounts certifications and three opportunities our markets; making the Asia will focused To-date, lack expand on Again, and negatively and we global in verticals approval reach. Tier engagements major progress in in we've delayed expectations. in as has high America customer and revenue later X volume this in delay current launches, was This upon The strong. growth multiple regulatory originally remains both in plan Asia. see North ambitious our we call. been major We America, attention Asia, Europe, with as a a from which and customer of impacting

future this, of And spite here's extremely In remain and of why. the confident about optimistic I energy.

launches but seeing we able First, have prioritize This in where the projects, now our been already regulatory reset we we of term product are focusing benefits this time near some taken to customer certification. change. have on regions has

you example, PSAP before Delight, expanding of recently our the doctors their Energous For be progressed launch generation the formally an saw next evidence this that past the quarter. advanced regional launch is to first Delight commercialization. aid that full soon stage the developmental one certification of hearing regulatory the from initially hearing our technology and of to Oasis-RC market announced in available American the The audiologist, and Primo aid W was has tangible aid. NewSound, The U.S. will professional from customers, hearing Primo that partner, the launches. other Also, WattUp W into PSAP from North the

that will user from wireless management. start integrated hearing place WattUp The advanced The market. charging WattUp and of the interest the simply generated RF and the can their aid management hearing as light is manufacturers power W a based aids represent of in has hearing we first are the charged. serious full shut global of when charging. the for the automatically WattUp improves wireless onto any majority aid of at compelling, unique or charger orientation, and the estimate the batteries features experience and Bluetooth fully Primo many charging implementation our This then aids experience W technology, implementation incorporates off communication controlled user the is they and charging top angle solution hearing including Primo Bluetooth

hearables, as customer These hearing in addition, upcoming technology smart institutes charged are validate by and our product are their three unique target be Xth the artificial using WattUp smart public in launches These enabled beginning across announced smart developed product just will Dimension be generation three our expect with University. research They WattUp what by of applications understanding, next glasses also speech sound, wirelessly a the built glasses. months. coming we additional represent launches aid Xth that In important to Major French dedicated glasses and intelligence we will technology. the markets; Dimensions and partnership

you also first implementation launch charging their we be product, we the Since will growing to the customer customer of mention that the additional launch I'd of their name. can take formally that the the to market. we place end this our fast reserved expect before in like one specifically the right technology sensor medical tell has year. to WattUp But mention cannot

that the for single mat number surface, uses. technology. challenge separate which WattUp The body, key up to a charging sensors know advancement technological is One wireless application are we that charging all charged on between involves sensors been are from technology this in WattUp has of of five placed charging the which competing supports a a application via

few these expected of are with launch regional next the our to are and opportunities customer months. All within aligned strategy,

and to our certification. that is the evidence of launches our increasing customers market, track conference current and by in both of business, momentum Additionally, larger supported at we much fronts from on a we tracking product report progress XXXX which regulatory pipeline existing can Overall, this be will and we next number our for target call. have believe application are our technology

we've our and which third first for second complements PSAP. the and of technology. Field the my made The readiness hearing developer announced is developer just kit hearables, this aids for advancements across earlier quarter, charging technology for In our year our the reason commercial optimism Near portfolio the we launched

Developer designs, high Energous' as significant kit kit meaningful application, of is performance, configurations, software a antenna and a target the a high software penetration into will each efficiency production developer with contains just preconfigured ready beginning along represents kit and design. market. mature which Each enabling agile availability signal hardware

grow. future for There $XX I'm the third of is there that the about reports excited reason world market will the that indications demand no wireless to expansion The continue in the to Energous underway charging. doubt take XXXX. billion transition are a of strong wireless by charging over to Multiple that is

the and in other current we be However, what are numbers technologies. what these that requirements growing and is by cannot markets such changing, coil-based charging as is to believe Chi not incumbents, evidence met represented the is needs and

charging Clearly, of to current based and in of first implement This a smartphones generation is technology. player largely Chi adopt in roughly terms dominant the the Chi wireless product implementation. wireless began years, fact charging number that on Technology is XX after

dominance, overall see limitations of We their While began Apple's are mat. the utility desirability. evidence of believe of cancellation has functionality, charging the before to still we Chi-based technology signs and beginning its that AirPower the reached this even

no delays space also technology. else a property is intellectual another a applications, limitations in Despite flexibility the wireless single investment charging is are coil support efficiency, interest distance transition which the into market in they charging. seeing it upgrade believe technology first across our we anyone and charging multiple and noted of and all as will based charging past replacement in one contact generation are for have direction capture the is that we've an we footprint orientation and for to both occurring, the broad from smaller we transmitter, deeper moving strong dates like incurred, technology devices coil interest of clear with positioned share a Energous spectrum Wireless to with As charging of including calls, technology. markets RF based and charging see expertise improved

and in The anticipated. certification on to countries has in path Touching certification regulatory these than originally taken Japan. Korea longer China,

enabled half of However, year. of certification of see as or we in next beginning early optimistic countries, one as will regulatory we remain confident devices first the and WattUp that these more

believe a global reasons. for We following path certification there is also now to the

First, certification to take steps all transfer Energous based power wireless directly customers tangible three Asian and a RF forward with for are working WPT. our create process or countries to

charging us in alongside strong the global is Second, launch the is that joining approval countries. RF This regulatory expedite strategically efforts. in products consumer has manufacturers wireless certification for these process based interest our top tier direct to in important fostered

based RF and are process addressing Finally, in standards wireless of international spectrum transfer. the now formal organizations

WPT. global lead end progress It the in of half us goal of see global our regulatory to to more of company driving charging recognized with that leading a to efforts, is look We before product year. Energous we tangible we sharing certification, forward indicators important these the global in to worldwide the note expect based possibly months. can for are that XXXX on developments as All and first RF the coming is these next of the regulatory conclude leader efforts positive

to battery requirements would WattUp the announcement. the high and The joint as including We of identified ZPower, the devices, on glasses, generation partnership technology aids. as for the recent the to next be companies, more. ZPower in expanded for development meeting charging the has a medical innovator under smart well sensors both of performance of I as can hearing like all technology technology, cost also comment solutions markets uniquely currently leading other low providing hearing wearables, functional believe micro legacy our benefit of capable to

Dialog partnerships, our of topic the On relationship track. on remains with

benefit more as a is WattUp our time. domino what will and launch presence, synergies this term so between as this We from We with to enabled partner contributing hope target revenues will discussions play relationship to separate customers operations nothing into Dialog's, be effect are market. at Energous well note, and continuing, to there as we Dialog sales On tangible long expertise. our update ramp, a come on in continue believe global their products

take Networking CEO industry and General a Moving the semiconductor and a Business Units at members; on, currently to Rahul Vice like new Reynette Manager, and Intel. Noonen, and at moment President a Connectivity MixComm; Vice I President board Senior at startup, Qualcomm, would to welcome Patel, also our silicon veteran Au, Mike

matured board who experience have growth As have members high we focusing in the our company transitioned to on companies. semiconductor has we started scale, and

board. three are industry We privileged these very our have join veterans to

ended we under picture, Finally, financial in quarter history of looking for million growing backlog. last time first in the the our was and $XX cash at just

our currently enabling to We customers is also filed our corporate working in revenue, an work which top diligently priority. to we market, capital, supplement bring under to ramp engagement while ATM a

power deeper include, clearer the company market, has transition the they despite specific have Energous. believe wireless price is design, and ICs, the with technological qualified we and partnerships the software stock see anyone wireless hardware, digs and will we experienced, To silicon a charging engagements antenna active the the incurred no applications we appreciation delays have occurring into other that like customer

and confidence is Our optimism justified.

company Our relevance are this and goals profitability well and understood. clear leading

unwavering is success. are our determination expectations as Our for

I call would now for the financial like over to Brian? to overview. Brian turn a

Brian Sereda

press market earnings results At of ended operating the today, Steve. issued the XXXX XX. release Thanks QX announcing we fiscal our quarter our close of third financial September for

lower in the compared we the For recognized to in same revenues revenue $XXX,XXX than last quarter's quarter, last $XXX,XXX $XX,XXX year. quarter $XX,XXX of and

product Steve we year on track additional XXXX. we with just announcements for more As expected are later discussed, this believe for

But regional are before. and of similar and a of challenges us, and industrial single skew multinationals are customers from gone other of biggest range next one remain products. enabling wide internal cycles customers. before We to consumer integration a generation with multiple the our to have I've engaged development mentioned also with disruptive technologies with that this companies

in announced recent us in we initial processes charging verticals of other announcements and by spoke that based customers seeing Moreover, in However, technology joining QX the are RF that growing suppliers the significant ZPower key as partnership to. is a reflects Steve progress opportunity. the evidenced growth confidence these regulatory

of second the is total expenses. our quarter GAAP with and below R&D is last such prior minus expenditures, quarter $X.X year drop to in for The as Total last of expense and level expenses $XX.X the expense. development in the $X.X same in stock This can expense GAAP of over plus costs and range. mainly compensation a million year. the quarter years. below this was $X.X We lowest range third the prior quarter Moving along party million approximately million four million, believe result ship headcount the lower lower prototype maintain XX we the and

past levels quarterly the see to quarters same years. tape-out increases these R&D expense technology as in gains the climb to We could traction. and cover should requirements not occasional previous chip in in as But advances

we've in scalable relationship business their with customer thanks importantly to also a working consistent with Dialog operational global our and As emphasized, ability part to is leverageable and our and maintain capabilities. more model, facing or

was share year. the for million in on shares QX last This X.X or third average approximately loss on compares per per or in of or Net outstanding. $X.XX $XX.X million GAAP million XX.X $X.X basis, to million quarter, QX a weighted loss $X.XX $X.XX net net per share share and loss

let the numbers as investors, company stage when adjusted with t useful for of together Now, operating view our our believe comparison used provide me to information. turn -- non-GAAP of results non-GAAP we or a a for a net or especially for quarter, GAAP

$X.X prior the compensation the and non-GAAP our of last of million, totaled of operating $X.X Excluding expense $X.X and year. QX million GAAP from net $X.X stock approximately expense million, depreciation million below million in over $X.X down QX non-GAAP of quarter $XXX,XXX expense

revenues, QX last approximately than Non-GAAP period to last $X.X and was million and the last Net $X.X to than million, year. million of $X.X decreased the $X same of expenses lower loss prior in flat quarter million to operating $X.X lower than our million essentially quarter engineering non-GAAP year. better

headcount be discussed associated expenses lower lower party attributed I third costs. this chip prototype development with earlier, As and can to and

$XX.X Non-GAAP quarter $X.X and in lower $X.X cash. prior $X.X the million last same was due than of period SG&A used costs. the million legal Total quarter versus ending decreased by headcount the cash to the and lower approximately was million, with year million quarter,

free. debt remain to continue We

to facility prior investment During charging. on the the hyper at-the-market while customers leader year's next to focused an gen market working the our requirements, capital to implemented remain support we we capitalize quarter, RF in bringing based on as

launches beginning run quarters. cash these in for levels heading at expect track believe we quarter fourth closing, additional past in into remain rate on we We the more our expense and In customer lower low operating remain XXXX. new than

being Steve to and customer result process also markets, formed a remaining others the the R&D launches, joining few shaped As business from heavy our with key in highlighted, regulatory markets. partnerships vertical progress as our those has operationally being for transitioned overseas customers along from in approval us first

continued back their and support. thank it like investors I'd our comments. I’ll for for Steve to patience And to now additional turn

Steve Rizzone

Thank you. now will we take questions. Operator,

Operator

Please William will We of go begin a Gibson session instructions] question question-and-answer [Operator ROTH the now ahead. from First is Capital.

William Gibson

products on range, by the Any sort year? would market of on you next be of the Steve, of number expect the to end

Steve Rizzone

the double you of next certainly that. be I think By digits clarity would end more expectations. any don't year, give our I than can

have smart of talked the we medical with our and quickly about as As And possible. hearing we've said, I focus, new understanding importance hearables, markets we major also a refocusing wearables, key regional the that sensors efforts as this targeting are glasses. aids, revenue of of undergone generating

And launches those see, certifications where so digit the you'll I year. I in said, we have think as targeted double gaining momentum throughout across markets, regions

William Gibson

in that by hit the of three three? certification to a and also of up those potentially advance have Asian the in mentioned two business Could earlier one end or all XXXX. expect of would you And you open that countries

Steve Rizzone

the distinct the a a that in the of possibility could global there the a reasons engagements that It's I that that is to believe will next Depending our certify we've But have one in for that end the always my regulatory country, specific goal to remarks. of said, do a justified move year. on as half chance agencies, customer require basis the on it in conceivably dealing next there's cause based I optimism is regulatory timeline. of certification. countries more put noted that global believe impossible our first with the certification is I before forward year. a or on

tier have that top with, we're The customers they requirements. broad engaged a spectrum of

one certification jurisdictions. jurisdiction. Others not the Some only respective limited three active in require two, they're participants are all require and in because or

to will certification So up put open launch have or the that it hold a basically country been some is until a Tier approved. that possible have the on is a X of global in opportunities singular certification requirements singular

Operator

closing turn will Mr. to conference the for I Rizzone remarks. over now

Steve Rizzone

thank the you. a long thank vision continue Energous. wireless generation second powered I all would like to today, investors term who our for by technology of right, charging of you of in as well listening All to all believe

of the private understands As Directors stock the of delays significant Board executive stock, in affect our management Energous' concerns delays holders us. and of the with momentum. delusions the and revenue the team all investors' and These price

confidence our ramp. not after revamping regulatory However, or XXXX, which funnel, the will And company of we a forward. us leading related have considerable does any have is to forecast moving revenue dependencies, our have technologically for customer in revenue

There charging our in capitalize on is market changes state a of in uniquely of of the is positioned benefit that is all wireless transition, Energous also and constituents. strong evidence for these to the

ROTH We look reporting New additional of first after and call will year. we in next be the progress Thank the week next Conference at good York, and you, at afternoon. forward the conference our to

Operator

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

You now may disconnect.

Energous (WATT) 7 Nov 192019 Q3 Earnings call transcript