WATT - Earnings call transcript Q3 2021

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Operator

Good afternoon, and welcome to the Energous Corporation, Third Quarter 2021 financial results conference call. All participants will be in listen-only mode. [Operator Instructions]. At today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Instructions]. [Operator event this being is note recorded. Please going Sullivan of now to turn Matt to over conference Investor the I'm Relations. Please go ahead.

Matt Sullivan

Thank you, everyone. Anthony, and welcome

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

Now, to go CEO of the ahead I Energous. Cesar. call like turn Cesar would Please to over Johnston, acting

Cesar Johnston

Thanks, Matt. third Good call. afternoon, and conference welcome XXXX to the quarter Energous

our Bill Mannina, Financial Officer. Chief is acting today me Joining

for an any key no the technologies, number we networks. reasons. we The watt third our Company, FCC X, received several far-field power distance of focus limitation. quarter we and next important vision accelerated low the at transfer for of the into labels, WattUp significant new a a by at made at important; the computing. inflection delivered for powerage distance; very move is this into on the of deployment harvesting low distance retail we and and believe established PowerBridge wireless Number market technology transmitter in beyond. for partnerships energy electronic tags, and significant We X, and being drive number XXXX investments to with will that that X Energous And including Energous shelf X: with wireless will devices, leverage XXXX phase sharpen IOT active demand power Company Number was as continue leaders IOT approval the are a sensors, at point for power powerage our we companies for

leading of semiconductor deployment player are Power We development networks. Transmission for in of a wireless devices power gaining generation new a as RF recognition the of

Power We market transmitter our within at RF Transmission of constraints at earlier driving context which watt development power. unlimited is Union certification availability WattUp X our distance, and that of for a our the regulatory and of solutions continues announced PowerBridge Regulatory vision watt complements evolve, Our needs conducted recently for to and solution, X.X one wireless approval distance charging. see we watt and European

networks customer with of from and all, batteries deployed to that maintain even network, the We have power these network be can at support deployments. power healthcare, power with in will numerous in Given related wirelessly wireless positive industrial, retail, their receiver receiving segments easier no of power our orders first traction, deliverables the that smaller an to CPUs. devices When lower with IOT power cost, leading and where to Energous share WattUp networks of to greener, vertical our sensors batteries, power to market multiple beginning from with tasks, to and receivers X the WATT for we're serve WattUp wireless XXXX. our fulfill started we wireless breach will believe IOT this production broadly needs transmitters, pleased Ecosystem, power QX

audio to for the flows. at receivers example, of (ph) As IOT wireless improving many timeliness or Currently, uptime, video device could edge data processing, support artificial processing IOT intelligence of new power cycles, network ambient implemented, deployment an devices into call-in an and IOT cycles. be limits this IOT the of feasibility. performance greatly depletion of to power improve Energous device environments harvesting demands struggled can Injecting and features wirelessly due and their battery power

our pleased quarter report Sequentially, Xrd balance rose thousand financial in at revenues to revenues $XXX to third that Looking quarter performance, $XXX the are XXXX, we -- thousand compared thousand quarter. to $XX,XXX third more from $XXX further through we recently provide quarter. breakdown a announced results, in including up were our financing. ATM detailed will previously strengthened second our our Bill financial sheet, of thousand which

Now, for our update operations. an on

no Renasys updates. consequence, closed semiconductor. a now terminate to Energous XXXX, agreement a agreement the during we previously their into that for notified dialogue. continues and immediate Our and announced our In And as wish going Renasys amicably was August CEO quarter acquisition dialog system with our have Renasys, search with of

And XXXX rights X agreement: which would the the termination out, important to Energous designed the own it's point part [Indiscernible] agreement watt of to X transmitter, were Company devices EN and and have were note notice XXX% all that them. devices back and that the which of an one all EN transferring Our provides operations of to for we XXXX, are EN EN exclusive Namely XXXX, like transition, engineered IP, is by And our we receivers, and amplifier, we to our power upon orderly the have this the our I manufacturing for the most XXXX, Energous. devices. begun

the this also devices, which the to these designers team have important test then deep actually of smooth technical Now, to for dialogue them, will that why a transition Because factory knowledge it's engineered as back processes, we have and deep Energous. of and allow we understanding out? of point a

deeply Simultaneously our support to customers, customer will Energous production is dialogue our the and for ownership support that of negative on In the these test and relations. Energous Furthermore, been had expect our our as technical, transition we devices with business the which employed we to not on side, a has and th materially transition the production engaged sales, together other at, portfolio, customer in independently part and funnel. capabilities full at agreement. sell dialogue we and existing today with manufacturing third-party the foundry expect sales the We destined a devices complete are do as our business Renasys will operations direct dialogue joint potential the way working business impact summary, now fabricated of and we we use the have team, not both dialogue a the opportunities Company by business were and with whom has team trustworthy providing team Energous proceed long smoothly. that which

WattUp on we're to Power wireless of which excited today. you our side, breach like would very, technical the the represents more moving we be and believe Now, we background a networks, Company backbone of market very for transmitters provide to power and opportunity significant the our base vision for WattUp

strengthened more, types build manner with we IOT of power. multiple a WattUp position architectural power simultaneously PowerBridge -- network quarter, by application ubiquitous of immediately devices, third networks our in across our WattUp the power direct case networks deployed deploying to in technology. a power that communication receive receiving During multiple a in be transmission our manner needs WattUp device, the of This transmitters results networks similar supporting wireless active communication transmitters Harrison levels powered networks as transmission via once via a supporting Energous area. merge power Ink. operate this wireless of multiple in an E can ecosystem given

industrial, in billion things, and As retail, active can XXXX of non-IT the a as devices such year connections and with in potential healthcare to report market by a XX of IOT IOT and devices statistics, tags device an example, be XXXX, sensors, total connected worldwide stated varying from to internet the statistics installed as XXXX. adding needs, markets power by a addressable

networks we bridge to technology addition received WattUp has our of mentioned Energous developed first rapidly deploying app power kit transmitters XXXX. us recently production benefits we Power explore devices solutions. Union WattUp power developer designers Furthermore, technology via and one In announced a in approach our Power wireless which of the WattUp in their allows European availability of the transmitters to May of back -based IOT common it's Bridge earlier, shipments platform our which certification been on WattUp

software Our advanced to and again data which key us as infrastructure. discussed, previously powered our communication WattUp by bridge build cloud allow devices, receivers to a to developer RF monetizable ingredients our transmitters, antennas into kit any are valuable and effectively and the WattUp along data infrastructure can complement semiconductor be concentrating IOT gather deployed

attached easily deploy, d. Fi is coverage - leveraging PowerBridge our Wi WattUp consistent our provide to rapidly investment existing a desire if to powered example, customers access and For point,

concentration, to can interface channels, and Our communication Wi-Fi and relaying IOT APs, devices. to data data be BLE even provide leveraged, additional communications data performing

partners. our on update quick a Now,

Energous significant wireless we in development IOT ahead, networks. powered to player Looking the be positioned believe now that a of is

vision technologies. companies We continue with partner and productively our that to and multiple share complement

partnership discussed previously And Atmosic, and e-peas, and Technology. to Ink, have collective we productively leverage efforts our uniting We our individual are our announced E investments. with

new low-power -- Wiliot, a of call collaboration or RFID positions development of announce providing IOT world Cloud. monetizable -- Wiliot and our will in in The task relevant and important happy important technology real very it, with into extraction is market. the ultra next-generation quarter emerging as of we're this networks, This they support partnership data Which deployment and Wiliot. Smart to is to new leader, the an pixels. very the a as the Wiliot's Energous revolutionize deployment -like the

opening continue and On progress internationally, to wireless transmission. are side, for new the we power regulatory see we markets

discussed and to advantages which Energous crowded bands, in higher propagation efficiency compared we calls, megahertz are technology range. in and advantages substantial previously other the both solutions our enable significant which see losses, As from XXX suffer WattUp previous band earning in more

steady allocation wireless a power power International of continuing band. progress wireless broadband Additionally, global the Telecommunications we're megahertz wireless including seeing we're the on full XXX progress ITU, the transmission. RF And -based seeing in Japan, towards transmission, this at forum Union,

FCC, obtaining our now and regulatory approval with engagement we discussions the continue that has systems. with on of filling focused part test industry of higher-performance We are and expert collaboration an our next-generation

that Bill. we we end-to-end that summary, as IOT announced X to with pleased of share of WATT network are an as for WattUp the January, the to support winning in all the we're Awards: CPU's CES we the received DCO XXXX the and first will In our and WattUp receivers partners distance power acting well. sustainability, networks. Energous second technology. you wireless to and recognized hub, for advent sensors, These and markets and for at now include RF Bill in present demonstrations Finally, open have with to awards power will EU near-field call of ready and transmitters Mannina, IOT embedded technologies. demonstrating CES Energous and wireless ecosystems SmartHome. PowerBridge PowerBridge our harvest today, display transmitters technology, design, transmitters, multiple our earlier and the CFO. over We'll I the charging also age, our including U.S. turn power Edge a operating at our award

Bill Mannina

Cesar. Thanks,

you financial results QX and at release As market the the for of September third our saw we close announcing quarter-ended earnings XXth. press issued operating XXXX our the today, fiscal

the the $X and prior in of quarter quarter was recognized accounted quarter, small increase quarter, third our $XX.X decrease third quarter million the GAAP than million for quarter, resignation $XX,XXX a Together with prior a largely and last approximately million for to which due increase of offset expense. the the compensation expense last the to we severance $XXX,XXX in year. the compared was in by $X.X a of partially $XXX,XXX accrual third severance CEO, expense the quarter than last product of $X compared higher in $XX.X related to million, million operating $X.X same operating For the year. quarter revenue, was stock million approximately compared former accrual last the same the expenses, approximately year. to of most higher The development of increase in to

million loss million net QX approximately for net $XX.X the compares X million, quarter, $X.XX was in a or XXXX. X loss loss due accrual, loss increase Year-to-date, accrual per for share in share, year-to-date in I The expense shares $X.XX XXXX. share, operating QX, compensation. of of our Regarding only to higher a the than year-over-year end or a weighted GAAP GAAP stock-based to This in was net fiscal per of million like GAAP XXXX. $X.X payable a third $XX.X remain the loss the of severance $XX.X former of on million operating at the million expense to an the $XX million and of CEO, or The million and primarily accrual would $X.XX XXXX, our million, loss QX $X. XX of X.X severance average was note that per basis, increase an outstanding. on

QX share increase weighted Our of the of shares in cash to shares count XXXX, our and were of The completion which added $XX.X year-over-year or mainly additional fourth average XX.X offering, an quarter was the raised XX.X at-the-market XXXX. million due shares. in ATM, million the million in

of a as our provides together comparison we when believe numbers especially the at adjusted Company a non-GAAP or useful non-GAAP stage, view Now, quarter, for a for information. used for investors, for our with GAAP reporting

decrease increase prior approximately to QX, $X the was $X.X net an from and of approximately to for higher expense, year. QX $XX.X of operating compared our lower total was of loss depreciation million A year. compared and operating stock million, million approximately thousand non-GAAP of approximately approximately of $X.X and $XXX million approximately compared QX approximately million operating non-GAAP to to loss $XX compared of severance, quarter, $XXX,XXX $X.X Excluding QX $XXX expense expense loss million. GAAP approximately last when compensation, of an thousand last $X.X of QX thousand and

expense reminder, quarter, XX an to to expense $XXX design was an due to The and had thousand approximately the $X.X the a engineering business travel approximately QX, approximately lower costs. the versus increase was thousand decrease prior supplies expense, COVID the SG&A year. $XXX XXX for Non-GAAP an disruption, to versus of increase decrease higher compared million, million QX spending same compared pandemic. Non-GAAP and reduced chip increase and of etc., to recruiting quarter, and approximately consulting prior to meeting-related due prior mainly to last the was As thousand $X.X year's decrease quarter and costs was increase quarter, a XXXX period QX recruiting was engineering higher year-over-year in expense attributable of costs non-GAAP costs, mainly over thousand and year-to-date headcount of sales cheap Year-to-date, costs. due annual The was $XX.X prior million, million the in The in sales mainly mainly total personnel our to higher also increases million and costs. an last marketing QX. design The was due year. and in expense compared increase the expenses marketing, to $X.X due costs, the $XX the than fiscal XXXX. increase in non-GAAP

cash financing, in million ended with our cash Turning QX to with the balance our we debt-free. sheet; remain Also, we proceeds filing we raised in mentioned earnings as QX in in $XX.X release, month. SEC we million in announced ATM last gross which a and have $XX.X the of from

approximately approximately our million should the non-GAAP range, an to Overall, non-GAAP to non-GAAP turn expenses now expect rate current net quarter. excluding operating Cesar. expenses. XXXX operating in one-time expense call over remain QX our reflect items, We averaging $X.X XX% run will back fiscal increase I our XXXX per

Cesar Johnston

for questions. up like Bill. the call would open now you, Operator, to Thank we

Operator

now At assemble time, We will Instructions]. we to begin our will [Operator roster. this the pause momentarily question-and-answer session.

comes with Desliva Capital. Suji question from first Roth Our

ahead. go may You

Suji Desliva

Hi, Cesar. Bill. Hi,

question the applications difference go-forward business four are products So and back. transfer products that sell of the way you happens? the -- and the What to the Renasys manufacturing agreement of the the budget this cost model. as the of model transfer Just understand on

Cesar Johnston

asking you're some so details definitely. agreement of the Yeah,

right some are which some with that and local products partners, devices to own movement are hardware-related have with by of we the in far of GAN -- PA the setup parallel test we lines related as That way, controllers. being setup hardware, those wafers CMOS test the lines, and in transfer, our and the the of now. we the and those done as As speak includes and other

at costs we expense will as the level, high there. extra where no as Okay? cost, there is share an with was concerned, Now, as far the are agreement that a with us share Dialogue that longer Dialogue and

other questions? So much add revenue. Any pretty we to our overall will that

Suji Desliva

for and And partners partnerships they traction?. then is. Yes, regions Technology, -- Wiliot have and we these in are the next do of -- at where the the what those sure and is steps go-to-market market terms to Energous look Yes customers, bring that in what you in if two

Cesar Johnston

There they here the European bring -- this of -- they them to the partners add in types systems customers Yes. technology. are, and add a that's What is two or that have. specifically question. partners the for partners, are case There they potential that Union. Thanks engineering support are call very development integrators, further we capabilities side potential in good and our to other in side in

they our on of find And kits. need our today So, customers focused to that team. helping team, will it's and access of an new training customers, A are us development team extension A or potential also our

technology So that's the side.

CPU comes with in it able Power cost. to very when X are a Energous solution low-power is are Wiliot very Now, companies were at power have extremely a being tags a similar way very, in a targeted very Transmission, unique a of partnered because tax okay? partnership specific, specific a Targeted such and special interfaces BLE this to different that partnership. That very new they low type to that more case are Wiliot, -- we together much have is have smarter very of low devices way power Wiliot Active and market at open base to with low that RFID now up but very

and to enable wireless limitations networks potential and of or that across retail, networks was no transmitter, distance we it deploy this special opening we very X able together systems IOT now a through industrial, piggyback floor, to in on any together been transmitters, watt we and with deploy are type. up our are power new nonexistent Wi-Fi brand market that has So, vertical add our case healthcare

be move you; them, as being next devices the business with the as potential we for we on technology. that on to described will find very what are certainly eventually we forward. worked to to as this retail. we we're prove looking far technology, the customers doing side opening at, markets continue that side, and use as up months those devices will three show steps development the market, as those of the technology and anywhere move PLCs in and that I track progress on the to on closely forward multiple will together healthcare, And and there are We customers we industrial, that able Now, and

Suji Desliva

Thanks, Great. setting the really the approval helpful. on technology of retail you do across energy tags a there last can And and would Cesar. or What question or? differentiation that? it Okay. Is any are other at then of perspective FCC color the market distance. Any be there implications from are the that implications a what now

Cesar Johnston

question. Great

demonstrated, the know, In us no X have unique by or a standards we a can along again, pushing virtue As been actually and limitation. of for lines in now We've spreading we've have within the which multiple even case for wireless shelves have watt area. limit given technology of those the on that no we on solution to using points and you XX, plant distance. that, systems, transmitters, par industrial and pushing distance networks pass We have site. power that different by been places of By Wi-Fi or access years. the - allow

Suji Desliva

right. Okay. All Cesar. Thanks,

Cesar Johnston

you. Thank

Operator

with from Jon Ladenburg. Hickman Our comes next question

may You ahead. go

Jon Hickman

setting questions. up yourself have that deliverables X X into this of that this you for chip I Hey, for for quarter? think year. mentioned is Does QX were translate I sales you

Cesar Johnston

you? how John, Hi, are

Jon Hickman

good. Am

Cesar Johnston

we're up have and at doing systems orders have that hand so those build transmitters, us our Yes. to into to Glad we a manufacturing contract we that that we're And is what -- you lines ramping can to the integrated in now. that today. chips, right allow actually such fulfill have we way been we talk have

fact So transmitters on we're which has we combination of benefit that it. putting those extra that adds value top an it's a But together, certainly from of on chips, the also value the that. and a

Jon Hickman

were like So or was in that QX our sales NEE product there – any our

Cesar Johnston

and And we've doing and evaluation been while. have we the Definitely. continue kits of do we've a done. I we to sales part that's for that mean, that

Jon Hickman

last Okay, and to going you're so marketing my question to is now organization? the have sales build

Cesar Johnston

Yeah.

-- Okay so

Jon Hickman

in picture the Dialogue's...

Cesar Johnston

that Great question. always get We question.

dialogue been here have came knowledge to partnered it's operation connected marketing a okay? fact to the we the that unit and business was that been what the the they've sales with similar technology So through added the a and been took we do But lead them. of the have. and relationship there, so It's and team where our has have organization, took engaged that always we only as ones there, and context were dialogue, with But always always ownership we the the dialogues, always the we could close deals. and operated

that that is team, and still So we intact do have team here.

question is that. further to business, Now, as Yeah, we will grow future? add we the consider we the the will in need definitely

Jon Hickman

Okay. look to the are or just you do around like to going going manufacturing? Dialogue Are you for another partner

Cesar Johnston

Again, in been mentioned time only manufacturing. do for this I enabled during were you if Dialogue. mean, we At I with of limited a number years. that presentation point devices where the can the recall, we've

have We products GAN our and devices other line controllers. other of including

perfectly matter up, certainly of sense but whether evaluate not capable continue other show of Energous. or opportunities that partnership it's So to do and makes are now if a the we that and to will doing we'll potential we

Jon Hickman

you. Thank Okay.

Cesar Johnston

Thank you.

Operator

session. Cesar Johnston like This concludes I our to to turn conference for over closing back any question-and-answer the would remarks.

Cesar Johnston

ongoing We're making thank future Thank investors and would a WattUp our power have to production story their wireless ramping support. up and you. and to of We reality, delivery. networks for partners a the like

levels power open updating Thank quarter. to enable you new regulatory resulting via new continue forward in while We streams. future look our continue to to will efforts, revenue potential will opportunities, to we deliver markets our We also push you. technologies next up working higher to

Operator

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

disconnect. now may You

Energous (WATT) 12 Nov 212021 Q3 Earnings call transcript