RESN - Earnings call transcript Q1 2018

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Operator

Greetings and welcome to the Resonant’s Second Quarter 2018 Corporate Update Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I'd now like to turn the conference over to Moriah Shilton Senior Vice President of LHA Partners, Resonant’s Investor Relations firm. you. Thank

begin. may You

Moriah Shilton

operator. you, Thank

XX, the section call CFO, financial George and www.resonant.com. available ended Resonant’s for accompanies release this call the today Killian. Earlier company's are is June XXXX Jeff of released the second CEO, The this earnings the that Investors Holmes; on quarter On XXXX. of afternoon, results at Resonant website

and could contribute with statements regarding of the recent of of forward-looking to that XX-K undertakes over date you supply Company and to the that, filings Form pleasure plan guarantee to and any from turn the statements the predict. call. on subsequent call words similar that statements that the the George. information expect, factors most of Several speak in as some information statements, this call that only it and forward-looking statements cause XX-Q conference to the not Resonant's are contains could those prospects, company's forward-looking. this differences assumptions contained of optimism, statements. actual publicly to With are SEC. in in of but performance difficult risks, results involve statements identify or update differ a such new their circumstances forward-looking the this reflecting forward-looking Words such anticipate after uncertainties no expression Such materially intend, does date not mean and obligation detail described current satisfaction and or Additionally, as call as and such with believe, the as absence not forward-looking variations is are my well These

George Holmes

us call. And to everyone on Great. Thank good afternoon you, today’s Moriah. joining

Resonant as The second accelerated. customer our was exciting engagements quarter for

an with with believe platform. ability and filter this at track engagements our cost continue that that that We time we the the with us. advance met deliver filter last market support of another quarter, ISM gain rates, our customers key grow approaches. software validated Combined continues to milestones additional our secured significant customers, hit and are this of customers, we foundry agent of several reached program we for XX in our who customers on half two to I for was momentum to belief. and now week the our During and the our fact half The the quarter, to a record and execute traditional solutions have milestone staggering customer

increasing number expansion vertically Our customer manufacturer, the Tier X of total of our integrated filter customers Tier to includes X XX% base. a new customer

enable to filter the as the number to range And grown ability engagements of new current customer second devices own as is existing contracted contract packaging is China. should These new for duplexers it our high. We company new which have new Our we will to record year, their greater customers’ sales of for market. filter capabilities. is market the forecast, market. on And our filter by materials the contracted now the billion rapidly complex customers that of million gross anticipated XX share of develop Resonant quadplexers, XX% end high filters, the from to particularly of or XX%, typically qualification as XXX designs They integrate in our bring with total of rates our estimated about fab royalty a demonstrates under approximate plan enter them XX, companies another based estimate to the another has share in to over for annually. exciting XXX than over now company. their based Signing $X devices and be

not customers this of ability through XX% of We to rapidly QX, deliver control running cost, of of We believe base. ISN platform our cost and also existing developed fabrication our turn and to with burden filters, allow their model complexities our market the is of significantly and customers with complex filter give and the our to to extremely software and the enhance our improving a to the lower products with was to the the point customers and foundry yield significant novel competition. tools address program, platform competitive. This our a supports by enhance enable which of We be changing accentuated one will times module improvements. total types them channel. capabilities their We of to handset we market with a it’s with Enables building continue we’re customer will to of we leapfrog inflection help major to market significant even customers. advancements time that In milestone. continue deployed fabrication ISN them growth blocks valuation largest our giving faster software Asian developments our in a increased and design, cost our process to fab believe potential these through structures

than focus we footprint on to than use extensive importantly, as ended are million are through we traditional We believe to both on forecasted. the our patent and in we both track or had of secrets. quarterly trade cash, billings highlight IP through that continue Fundamentally more quarter up we with previously I also $XX broadening expansion sequentially and year-over-year. more want

Middle Whitebox business. this as details have services. were by rates doubled XX% a shift the have value of like were our over revenue ASPs provide Killian application have East, royalty cycle primarily have I’d of now increased our to low segments to in three in second revenues volumes our devices key to and though CFO, of design accomplishments Jeff from the the short delivered quarter in timing we For a our sequentially due quarter planned. even impacted Jeff? on in phone average down XXXX design life filter And recognition made

Jeff Killian

George. you, Thank

our our tools with three discuss to achievements first of significant this quarter. ISM know, team. platform software there and many business, of I you technology our As like important and segments are tools,

First, customer deployment.

making other ISM George number module to This milestone to real We control a customers are process in real our enables software by ISM time, As more and parameters of module for a and information process hit of ISM cost module customer. development all. platform to the deploying our reduce obtained the of the control expensive our this slow, external first whereas turn believe tool ability fabrication competitive. at manufacturing methods not has in into in Resonant cloud-based the turns customers, mentioned, them time drastically major the in

performing technology. BAW in expected to higher produce should in currently insertion structure, structure BAW platform or order In a And X bands our lower regardless could the the process well Resonant solution developed and GHz complex, best second resonators. Second, the as the to process results In the market. handling patented wafers. of simulations anything successful, today then we a includes solutions. the rejection laws, our These expansion FBAR our design XG supports technologies margin and best-in-class successful, novel GHz validate of outperforms COG in TC-SAW on XXXX. range developments If market and levels, higher SAW test if and quarter BAW margin, prototyping less technology enable X frequency band this platform. available both new to this FBAR are power late in ISM with and wider Currently, roadmap novel become which better are technology, higher pass

solution. reduced Third, Part expansion third-party headcount expensive dependency development team. our our bolstered on of ISN software

or team assembled a in world-class such, CEM. electromagnetics specializing As computational we

solutions developing begun to simulation times. have We largest today, address face time design bottleneck we design and the

On third-party roadmap multiple design simulation today. designs and more us internal increase devoted shorten per what parallel and and IP in received parts portfolio. These filed with patents designs, engaged QX, vendors cost specific expand simulation package work design cost. This optimize license more, the modules with as which our IP a boards and believe in documentation to new in We and to we strategic per time the our we designer, phone design to modeling seven pending to our into for and are digit and to our to parts total technology. we our importance. double We patents. year continue efforts of is created the that also parallel and more In part large effectively dramatically issued bringing focus our enables future. of secrets a the be XXX trade efficiency match Further, to electromagnetic to seven the to a lower team's George to faster noted, state-of-the-art and

Finally, our team.

We have continued expand development team. our core to

We Engineering. team Dan ISN of our expand focused our have hiring to led Software VP by a Nenov, effort development

customers our a in requirements. total XX the and critical continue to part the with this time handset expand with technical to of OEM royalty applications as and people, quarter been also XX by resources We are and a revenue Ph.D.s helping who of XX We testing staff. shortening the total reliability ended second of testing our has

to ramp. bring will quality selectively We our support in employees

qualification; it ramp. Lastly, buckets, timelines finished I third that designs our Resonant’s and are model to the OEM's there and everyone first, time put, bucket, to want takes Simply our second, the royalty remind filter and of and convert test of into development customers’ qualification revenue. handset development; three

design. time contract from depending signed months development range XX the on can months the of qualification than Our greater nine from design to to complexity

signing big phone and in typically ranges XX phones six ranges end on consumers is in identified than test customers’ of handset three months to of less from from The to using typically months. totals six from Our to our XX the months. and going XX combined the X Tier high qualification to months. range The That the contracts time three the designs shelf months. technology qualification set available to by low end OEM’s from records time takeaway

to we made launch which represents working breakneck Resonate, the of our time typical industry. we design market power speed into product I’d financials. as believe we market times the While designs the our a the it that typical like proud with of we see to and in contracted expect in demonstrated are with more model, now fraction the line very of discuss to

deferred XXXX, include up for and quarter-over-quarter. which down was were XXXX quarter XX% revenues Revenue and year-over-year XX% year-over-year Second of $XXX,XXX second billings $XXX,XXX, XX% quarter quarter-over-quarter. the XX.X% of down

cumulative recorded XXXX XX-Qs ASC our modified, of to Standard purposes. the Consequently, adoption X, further on new retrospective Please financial the As competitive as Revenue adopted Recognition details. restated been of for we adjustments results earnings. we for refer impact XXX January approach not have retained whereby the to a

to our however, value transitioned first devices quarter were XX% and proof-of-concept for that we quarter-over-quarter, as X.X% royalty increased half. in Our revenues second the flat second average from the royalty over X.X% will average devices higher growth in from drive by to XXXX basically doubled rates shipped prices devices sale of royalty

due stock cash primarily count per end $X.XX was fully XXXX to share in related XXXX. XXXX $X.X capital increases of low million $X.X a from and in Non-GAAP which were March and $X.X the The diluted loss EBITDA QX the a in In outstanding. diluted fully or of second April expect million raise towards $X.X and $XX.X equivalents the million, allotment for second the both of head share loss expenses or mid to $X.XX quarter net in was second at seven-digit. of expenses for of of capital. and the XX.X adjusted Research share, by administrative million, XXXX due of per quarter to million over $X We a quarter $X.X million investments at improvement fully of $X.XX General our partially shares of in loss was QX on from million revenues providing offset totaled to of million. of were June up quarter-on-quarter of funded based first loss XXXX per loss XXXX compared XXXX XX, diluted lower loss million $XX.X annual March a expenses based XXXX XXXX. to or Cash, XX, expenses. trend compensation. increased million development compared were XXXX primarily EBITDA The and a was in $X.X the

Excluding the to I $X.X dollars from second back million over XXXX $X.X from now raising activities in down we use capital quarter the proceeds QX of like of in the George. turn to million XXXX. call

George Holmes

Thank you, Jeff.

inevitability few and growth a on focusing feels long-term the our success. spend and our confidence our what Let’s minutes opportunity in of excitement

and we've filter is size sheer market staggering. discussed growth past, the in As the the in

driving in times billion XXXX, For grow billion example, Navigate than will XXXX CAGR estimate representing $X filter will market. of you and more $XX factors a about it the or experts initial some XX%, growth. from mobile over to identified by six

are supported bands currently, to high-end filters. First, up by more smartphones, band proliferation, XX which requires

which Resonant. the by XX five includes predicted note which to cost And to more equates running for include filters. proliferation projected means data lead increased XG driving minimal to shipped government speed rate. data video payments, to business carriers Second, that rate carrier Much XXXX. require up segments such the this then any of carrier which enable if requires XG good filters, will of includes for need as streaming, RF are requires and reliable by to XG. these RF complexity, that high IoT important have aggregation we macroeconomic aggregated be current network more To devices path, elsewhere. billion you secured at trade which networks customer increase, the requires aggregation, mobile over engagements growth With mobile discussions. which applications paths exposure manufactures. Chinese more which medical finally, fueled the RF more to wireless increased which believe Further, multiplexers, this more and and model applications us dramatically our of a and is to MIMO and mobile filters. downlink complexity more time is are This It's networking

I fact, future suggest our could China had with shift I [ph] when that field actually a number Resonant. events discussions ago, of was In in weeks few towards business customers a

and of prolific confidence acquisition bolstered, devices. overall Our customer the is model our the of continued to our but contracted validation technology expansion and business

another good This quarter just was example.

with we highlight a both As on program. to new also of XX in fronts. quarter exited second highs comments, want opening shared foundry devices and my contracted, customers total the XX over record I I a

royalties quarter. the We fabulous generating have which in continued customers, engagements believe start with fourth we will

second our with heightened handset the program engagements by new has expand expanding directing future. the already fabs enabled opportunity our with are could in them program half. footprint We in the robust and Market expect engagements with to to OEMs, company, which foundry the foundry lead [indiscernible] packaging

Let some me ramp and specifics our on royalty provide potential.

devices and end. previously contracted, XXXX annually, XX expect we $XXX our in have quadplexer roughly are and market. seven our in quarterly As XX XXX of and/or At as by qualification today. shipping sale or year current we'll basis. noted, year XX on represent XX the end over forecast filter, over of in and approaching many With revenue customer for These share potential on had Product sales devices annual we based which in delivering suggest of that sampling qualified And available this duplexer value. million XX QX, devices end be represents a our approximately customer to digits as of share XX% million devices, devices by contracted current market sales

to conservative said royalty been hundred and historically of in revenue. convert we have expect these don't We one percent

have conversions. We on focused design from range models to XX% that XX% of

further for they production. X.X news new devices A [indiscernible] We our fabs last single program, expect that foundry by tail even to developed sockets a significance spend. passed of qualified into manufacturing generate continue long have a there were after greater very to once royalty were reach revenues the to both qualification, two years customer go production, will and of

to to As revolutionary share the a opportunity, some we we've the our this like business transformative and industry. significant in what is risk. company take also comes capitalize doing ahead. is our With minute noted, market. mitigate also on best great are to risk unique and believe you technology I’d to opportunity we model to but our our Admittedly, with that

their to help our leverage technology, our customers cost we manufacture products more ISM our effectively. with First, platform

which additional three, comment. noted, milestones this significant some As quarter, deserves Jeff very

is an to their specifically increase now designed have our customer deployed one of locations help yield. ISN that at We

test and components. validate to solution dependency successfully develop enhance we designed We tool aren’t patent have a wafers to that for bio filed effort in applications. to And ISN RF of our want development reduce have third-party to add-ins on launched our specifically the modeling SEM

aggressive are nimble, is We're vertically trying licensing model our we shortest companies on that a royalty by to filter reduce model filter a whether are segment model, unit time companies revenue, that enter market. those new predictability business have combined, for it that elements to being enable more capture The our These more share per Our the more to an risk leveraging companies and fabulous to quickly business foundry integrated and by or filter believe to want entirely, market. focused enhance be on the basis. move create opportunities tremendous of Resonant.

to asked say few support I'd retirement with role though, later his announce his Jeff into I more that his words. Before like just like Q&A my from has as inform plans we to year. CFO for a you to this jump

Jeff and joined has his advisory and board. I with him best the the company, then involved are since in friend will company he luck my Jeff leading friendship. been very business consultant remain and his We a and will in retirement. of first miss advice pleased all XXXX. We well as partner our wish much daily

a the to we met this the to suitable and number extremely We search have process identify and in expect replacement candidates. a retained of qualified with firm quarter, have identified as third conclude

Now let the it Operator? for me Q&A. hand operator over

Operator

please [Operator and we’ll Ladies you. One while we questions. a moment be conducting question-and-answer for pole session. gentlemen Thank now Instructions]

your line Craig-Hallum. Our with Please with of Anthony first from comes proceed questions. question Stoss the

Anthony Stoss

on testing side? for launches the then what's you customer Thanks. smartphone is have that longer them? George. Can been ultimate a that you X of the underway the in Tier or Congrats or customers. will guys on where you are innovative us that's secondly, with better have maybe cycle the you your if they taking And the customer two-part I and the delay side how might timing the two when maker, million you filter maybe a product and question understand new long help is think bit

George Holmes

you. and thank questions Great Tony

talk Tier let's the first, X So about customer.

point many take know you your take about XX much and last This we since first period time an times middle you development then engagement of We as technology time we part JDA been to point ramp the think a to part could you know that involved doing get and and months been got or next, to a their evaluate get and in as as customers Tony two start less I engaged And duplexer, you them a agreement Tier what opportunity And we simulation customer through relatively X and Tier perspective year. hope for capabilities. a from your very LA, X successful in of talking from they that over first for time a from long has we've than know of transition JDA the the start down course can and short can of then that to before. think, that things develop I time. probably at look the own JDA the that in will many quickly process, I we months Typically this where as as delivering which JDA parts is against which we of actually the their time. a first engagement be for that is either meet those provide LA. XX internal them as with it's customer

Anthony Stoss

QX, you're the a did statement it revenues of what And digit $X say wanted just lower And bit because a might full end to to releases talked math year a about tending that retire. trending the be to Jeff, hit in George revenues if XXXX I clear press QX. only it’s the nonetheless, going you fall then million your you towards like was in guide in to less towards I’m where like mid-range? is revenues, the seems see for then be But for little seven million clarify the sad

Jeff Killian

Great a multi-part question.

the tackle first my one me for let retirement. thanks And about So asking.

that spend a So support supporting role. me some to And him up supporting help home for me changes is he's to the help I support he's there’s transition And has mode perspective CFO up in also and and some and need advisory there. That in replacement never more me balance George the company, process. been family requirements transition with to Portland. in recruiting sheet continue personal being to said, and stronger. believe at allowed and participate I boards that our search reasons consulting from the in a And allowed time

designs can our continuing we've socket. into quarters been $XX for to agreements. into and strategy in for market placement in, I'm customers’ with two over You to last And more the getting see million license our and the qualifications execute of

thanks early that's retirement. So my support with the behind your what's and on going George for scenes

And thanks asking. so again for

question the as of and about of with The your I think, information there in in comments a the has trying second figures. as press our the prepared comments where George part focus seven-digit of to mid-to-low, out put some was, really that well his on are type and we release

to jump one that And so George in with do want background? on you the of the color

George Holmes

Yes.

Let on bit made the that give of quarters. a me statement in background we've you previous little

minimum Our year guidance reach would a seven on quarterly a thought of February by we basis said in back end. we digit original

reemphasized we talk previously when into believe up mid-seven digits says and trend right have we get QX as that annual In We the there we're trend moving our said obviously we that we're noted. about the And range. on revenue middle get that we to call, into basis. hoping towards will we'd guidance,

we me touch by we we as today we're When going started XX where on qualified and me. sampling through which think back customer are that been have are in currently look process. and devices we costumers at if qualifications the question our qualification we your you where it and our ourselves is to have the I look are come at find allows for second as where process are,

filters testing, where that's have from the and the with done get the testing qualification process And customers when back lot We've call, to in handset time. and us OEM the helping time actually temperature, drop that them them to which sure set a test method a process those And performance the OEMs. get to reliability actual have they handset, try they're to they make to do what the they of over we takes they in to match they is to a devices that need. actually into in of they half actually shorten parts requires test bench sampling on think the do a a our whether individual over software and we in what several old fashioned are, test what week the guy I timeframe. in and our by is to with of that that that they're way sit a front have

We’re doing that in less than our a day ASM to day platform. leveraging

late year I is the contract end end the our majority that beyond. quarter, we've that kind – of part customer, earlier, So to a with on fourth think we there about up the quarter products sell worth of talked and which now towards represent will timing about right the our put timing available into product in stacking and really that $XXX number ramping qualification of at million the that fourth and of into revenue us qualification because in third is actually is be our customer under out marketplace customers of the XXXX for to their

Anthony Stoss

on customers. the again million two Understood,

George Holmes

Thank you.

Operator

Thank you.

the Our with your Needham Company. a questions next Please and Quinn it's Bolton question. question from of proceed and with comes line

Quinn Bolton

customers. traction guys that number the follow-up of number contract in increase congratulations question the under Hey And wanted sort the of last the customer nice to just the revenue just growing on of ramp. on designs and about the

the designs that a seems second shipping, be you in or for that us behind Can lite that level the revenue these a prior perhaps a expected. color it more and little why have And then of qualified those just to bit came of at in lower Do like die bit tracking Street the looks look function I get bit really in the at to to designs little a on expectations? quarter royalty consensus. especially come it of some the at Thanks. at least more just is that’s phone follow-up side think you royalty it longer volumes a question. than phones You taking OEM ramp, relative in kind give little the to

George Holmes

two things there touch got I’ll additional there some let and add on then we’ve well. Jeff color Okay, I’ll that as

in had things quarter, that the a saw the the I are clearly doubling So contract second of We under a rate. ASPs couple in saw the uplift positive. of Obviously, extremely happen XX% devices. and royalty we we think

milestones second quarter. we in two So of the the got major hit to

about that The a of being pretty done of application. that in volume, last our we that the shipped And was designs one had East and that high uptake, that a into that those in a of talked very last being third was that second filters drove markets ramping shipped the of was – low and promotion that tailing were stiff hit saw went was that lot should one volume quarter. did of a Eastern market had what is or the away that in that high value one year done a Middle first It early was being Middle three volume stiff we one volume the of in high a made – a happen that was we year quarter. off designs design up

trail don't seeing XXXX. into for Not So started big they overall off next a get the that think bit didn't we and perspective. phone volumes of from deal generation I an

is getting As we and we're indicators of second to be and based a company the work. would in we've get a them The OEMs. a is put big you’re the that high you said challenge a as excited ones until does for have half there year. backend when you're a those the so to the of call we’re on things royalty key Jeff into think can what you value got first actually these on doing but process, nominal. kind We rates. device, and talked about design good good margins, are only wait this we of I us traction shape that's previous to that we're that? the is we're real – tying half the you're call We guy manufacturers kind higher device that sell royalty being higher we think optionality previously – do of but much when missed have going that selling actually we’ve moniker have you and thought The not that to the have on collapse about that lot

Jeff Killian

then think well you're put talked of digits in is also on and out we press handed that you've we’re the I mouth, is low a words from confident Quinn recapped figures. think too to about will Tony digit the seven achieve that quarterly your not ramping that seven asking what to I XXXX that we’ve and that’s but mid And release in and the that basis kind

And is we agreement designs number we And license against extensively. ever decided we've our we in we We've generate what conservative focused XX don't that that so have have currently forward on contract. look scenarios assumed plan those the get do that. from in of a what over another

hit. hit consensus that rate consensus And planning – the said could it’s the there it's world from talked splits modeling say does so that for looking is one XXXX success it’s that in at or analyst going XX% and about – XXXX to that you that’s conversion about within XX% out and that in to scenario going not to hit, George clearly we've again

digits plus from be about could So to million. to XXXX the could closely a and looking seven watching does that if talking you in moving we we're at a how talking that XXXX or million in annual It we're what ramp. at And something want building minus low talk be to framework the so X.X align X as look digit we X million midpoint And in and to around mean? a mid XXXX. about quarter we're with seven that – that about out quarter

Quinn Bolton

then it. missed And did. Got got have and apologize it, I I if might this I

the shipping the the first had update in royalty us Did give you think four or number the I end in you of the on production production quarter? which three, for revenue royalty second shipping devices very designs. for volume quarter, early devices an guys and were of

George Holmes

shipping ten expect as what in an the We to give volume update qualification. by if that that year the many end go as the through have didn’t of would We as on be. we said we number

is now I put the sockets revenue we think now in continue are qualification. go And those that we've QX. four got devices royalty through see we making expansion what more today into and devices an multiple find in you'd to as up

We pick in second expect that see up half. the to

Quinn Bolton

Got it.

your bit It and process and revenue BAW that terms then the of currently further foundry a have to modeled performance mostly undertaking. relative BAW I or been Okay, little but you what’s question there competitors. I is pretty sounds the is guess like out manufacturers. you're my talked you design out the partners guys believe from TC-SAW you've in SAW about impact, impressive for historically

to partnerships? you BAW technology gigahertz And us that process to you in new address manufacturing gigahertz signed give you foundries so, any BAW your insight Thanks. Have that on can X that band X the bring the to future?

George Holmes

Quinn, and on great. teeing I'm excited great about. something you’re mean, I off Okay, question that very

past partners doing going be to actually was a answer equal on this effort. in better work aggressively be have that you a as far website very already like to at moved bit type out done we news capability have very we're these quarter your this us approaches than position to look trying because We're have or this we if we structures. semiconductor be program, to creation cost isn't of ask identified use our to earlier gone have number novel actually BAW structure. is build that actually leverage is already type can a very has performance actually. Obviously, team filed over the significantly tell with wheel. successfully. but today skis have and this question? novel I my is this thought process that effective devices. the are very approach reinvent before a the The good is of some getting provisional we trying foundry have what of the of straight is. too now of not do both today The QX can to without Does that partners This doing The that already guys this and we're a you little how are foundry I of we're patents you BAW test XXXX know What thought wafers. to more probably We’re would

Quinn Bolton

thank Great, you.

George Holmes

Okay, great.

Operator

Thank you.

proceed Our questions. Dede next your HCW. the of with question with Kevin comes Please line from

Kevin Dede

George, Jeff…

George Holmes

Kevin. are Hi, you? How

Kevin Dede

Good good. again. am to guys I catch-up am I good. you with

pleasure. news, a It’s the miss real you. to definitely Sorry been Jeff. away me I though. will not far Portland is

So stay in touch.

Jeff Killian

Great.

You will the words. kind be in touch. Thank for you. Thanks

Kevin Dede

quarter? us come are you insight Can through they you data guys through up any the you offered? how and Anything did sure, give you've this Yeah, think that? and treating George, tear some your customers sure, work sure. you confirm past downs

Jeff Killian

point the into to front that get do are quarter and I next would two but and moving us today the us. This more a were to these things and backend business they're move it is base, to in aggressively we've me started and at parts. so. we about do working made very we Chinese customer activities X very, that statement support It happen the Well, into new one the comer or ago. company to a to is Tier packaging that. Kevin. that this past are that customers. years let a position can they excited already to already very with if that capability time address in clearly very particular of These see lean market. both aggressively in they've with is got done that the our folks got a going The be one quarter, expanding we in of work see that probably we up space the undertook place whether in customers to here lot we're don't So end And overnight, where which get They with continue a going

for us aggressively time that customer and into market. exciting very So – is moving China be for going to a that new

extend make going our software them of to our it, them. pretty with a It’s you'd to refine does, I allow us sockets move. it with help in after significant that see what our fact our understand continuing Clearly of having the work with better their them one get think piece manufacturing software and also that parts. tweak to relationships We're customers. into a new we're is current and what largest deploy is process and customers

suite significant to is It's for them. revenue. for it platform, is a because our the significant it's us importantly for it will first us market, end decide that. to shortens a time And software for it the end EDA think allows be its clearly front more roadmap which the what of if we to which an obviously item I type have us future end to having to ability validate RF enabled really commercialize software

deal. software They're products platforms $XXX,XXX a variety the to $XXX,XXX a noted a our we're The are that hand. from work thing that on customers is of other different inputs electromagnetic obviously we problem and big generic. sell computational typically companies. very large done very, to by modeling have designed have they're at embarked and at Street, have from we getting designed Jeff is they very that to that for They but on It's tend specifically

biggest It we what a faster, for one will trying specific filters that the make market. I value is efficient in heard to the of solution only of this you've us in a I allow design past we’re specific us efficiency the about us designing designing think times We’re to we three better, our where job than players it solution as We for help. is to think we're talk which propositions. going parts a problem, believe because better do. we're think will the do mean designing and design problem at on the key least

Kevin Dede

bit. just of you if had customers’ people customers’ wondering little actually down – I your of Yeah, a had your some was tear some product.

George Holmes

the share do Unfortunately, regular in that Well, can't we a yeah, basis. data. that on past Kevin we as we've talked

Kevin Dede

Yeah, just… I

George Holmes

guess you for… when guess I

Kevin Dede

guess past whether to is quarter wondering I I was or popped not your and you’re up stuck if is anything in interesting what this that investigations.

George Holmes

in on do regularly a with identify big it’s but as We We something It's they share basis. that they looking we're those interesting we and something products going were and continual this new we can doesn't turn out start that that that teardown that on going continue for find it's interesting mean the our basis. a devices, in they for I with validate believe us. customers. And to marketplace. thing regular to are that wouldn't episodic. as find are in us. we the doing It that that happens working do go in and identify is the say we an market companies devices marketplace ongoing That's there so into something that it's the we're do, as

Kevin Dede

I – using Or So there? CM modeling – specific your mean with are BAW, – on approach now the progress process? and you standard using great are

George Holmes

That well. compositional levers some the modeling as electromagnetic

Kevin Dede

with Okay given F you the what's BAW. plan then progress are the and there? in bar How doing

George Holmes

structures Well BAW as know. and similar F you are

And process both internally more actually larger technology many currently be we more we've process are cost down are so effectively. that high to best-in-class, against frequency of technologies one of those would we resonators of that for believe applications working done will technologies best-in-class much players actual the do other have be there one those that able where the performance on with BAW. proprietary or and standard hands players the that the the simulations has process have best-in-class We that them

Kevin Dede

me that key How work well, question have their a on actually Last deal? too, still that but royalty? and for your guys does for one Okay. helps site. other workout monitor on module some business of perspective? I one customers it process Or Is George, did from Jeff standard you the improve

George Holmes

platform. mean licensing to basis unit an Now I per we them royalty not Kevin. on that’s that a question, a are evaluation today. That's great

your now forward can now leaned data over kind phase with began get about process we that I be that to and the going a as we hey the in evaluation validating. discussion, of get this through we several we've it mean see think to then that try a the will we've them the validated We’re gathering to of that premature we're it it but course months. we talk get data that's that and next at time. After we're commercial

Kevin Dede

year-end. balance if great might given you was suggesting where the what to vis-à-vis to think might just Or could Jeff the Can your speak enough. burn quarter? you fall out top-line? you usage, you point I this what you fair you cash think Okay, about at in you're wondering

Jeff Killian

basis cash million $X.X in on for a million our thanks asking burnt was Well Sure. which so from we QX burn QX. down from $X.X perspective actually, in

sometimes this take the so as start we're fill find for against often, rate the be that continue to and if and you and but ramp will I mentioned right just they hard be the like we million to think forward, due $X.X up go that that QX point will quarter-on-quarter leverage increased And not them XXXX year, a critical a candidate, to eight, mid-XX and employees inside, and with that support we hires, we our headcount can on to in call key see at going so by role. last the of from end it's to sets training we're finding bumping the to skill it's very shy, in numbers you the the

quarter range six we're existing in moving investment, forward. hundred some beyond that been establish take new we you and in as the not additional the in we our to a be thousand, in to It’s talking our your that and has just into being cash for more QX us but note next and we've and bit it’s So going can will continue next headcounts to hovering it this see hires significant over a and to our seats base. move lease we in a that and the going modestly invest as there's expired get the forward. there key few facility we growing facility, facility releases, up, the said, Also four, about continue with inching moving be third in

Kevin Dede

think your move you will do complete, Jeff? When be

Jeff Killian

best to drive the that our complete with be cash third we we have continue the is you quarter, the will. schedule we if will in landlords into do to will current quarter. Well out fourth the And

that's So things roll. these how

Kevin Dede

Right, right.

gentleman. you Thank Okay.

Jeff Killian

Kevin. Thanks

George Holmes

Thanks Kevin.

Operator

Our next [ph] National the comes Gresoski question. Leo with with Please your proceed from question Securities. line of

Unidentified Analyst

were I you units My if late, but question what guys quarter? Jeff said I shipped sorry go. And see you thanks. it, also apologize Hi, the jumped the to and on in

George Holmes

were the highlight units didn't this quarter number that We shipped of earlier. in

Unidentified Analyst

is that just disclosing an number you Are guys or Okay. no longer that omission?

George Holmes

dwindled there into quarter we're what the And we about the talking our let execute continue And kind paraphrase of a in the were is on That filter is royalty executing with XXXX, and again, said, the increasing we we value get script second royalty has rates. were and Whitebox we the higher value in ASP talked and from rates also primarily that higher we filter the in was and of low doubled value than higher bump. it to they the quarter are bump mix ASP XX% we're agreements me early quarter. to just life off. agreements about in so the the the the we Whitebox percentage and went quarter volume that, relegated No, proof-of-concept had went average through to away values is and in average The what short first continue it a being up as in more quarter move we signed call higher to in have. XXXX with higher low that

out there our next did we think, be quarterly the milestones on, for forecast we our continue get talking we'll inflection point we’ll bump our I and that to volume, So break those reach and sure into calls. of when as keep milestones about volume to on

Unidentified Analyst

great. Okay, you Thank guys.

Operator

Capital. from of Loop your you. with question Thank proceed gentlemen, question. and comes Acree our Cody with the Please next line Ladies

Cody Acree

on where targets that royalty the guys rates next What increase of ASP for kind me your the the ASPs, at trend you to the it either give rates year. and maybe and or just the revenue for or royalty the expectations of Jeff, get to the my can in of thanks Yes, stabilize? are to those what doubling your into takes And end expectations taking entail? would start what George, questions. year

Jeff Killian

month this or license great the moves. And this scenario based And month with question. waiting until our it that’s upon next hitting, a agreement planning again

XX%, being are we've been saying and modeling to very at we we've said, call agreements to is agreements your coming from George announced rate, scenario planning you our the with X% And have know was were now out license royalty. trend. often of question, XX%. a with can in have talking XX% in course royalty that agreements into about low, as a lot being XX the and XXXX the moved remarks ones these the average strong back That appreciate to in the this a we different actually on So up right hand, we and prepared developed specific that and but in strategic range very you how get in proof-of-concept, that that,

average right. announced has being my up So was prepared that X.X% X.X%. up the royalty that to in And the said, as you saw the we and remarks. of QX average rate moved The has into jumped section

So the the move throughout to support world. we consensus XX% of range. that primer see XXXX. you'll that, mix below with even slightly of weighted in get the And Revenue rates kicks rest the began penetration up XXXX, portfolio, our the to to as our up into into the average in of there

in big ones get The success the are mean place term all that which the we're to that to will for ASP I the some from of help fourth about near move where color talking quarter-on-quarter you $X.XX nearly our XX% a into $X to over so XXXX. that that moved driver those we're at. range up. of a little They the up continue And sequentially and give kind in is us quarter over

George Holmes

I getting are a And so typically license range pretty I as technology big times X.X% mean their you us to in having players Cody, is companies the think royalty for a rate significant. as know that X% six

that of us this that hard I start think gets and the kind We there. driving really first milestone are working to is

Cody Acree

are plus focus in for with more shifting contract, that. to have George, you And thanks sockets from the of focusing designs you now hand? your any of monetization on XX acquisition And under customer

George Holmes

Today, right. we mean had beat and we have X Anybody have No, in no look XXXX, this Tier that’s customers, really but customers got that heart of got in we not are the we program. started year of absolutely But about unusual. more we have very in a selective great customers, we Cody we I group on out the partners versus of mean today. a were with we much as at foundry got acquire our lucky we you'll clearly see, are as group been XXXX I great then a box we selective feel where customer back good the XXXX when time, customers may we the in

as as these we they go think we on the I noted of cycles our that you applications you that qualification qualified hit that data. extended when into gather a help head are on X more making and understand a And the that to devices get the of In the data amount is come all and do have one we're in we're sure testing, so you What it's handset around for the to doing, part spending of time do nail Tier engineering. are is of we’re large what about of fair a areas two that OEMs backend, happens guys on the being selective, building calls. lot previous lot out out fab? we time spending team and quickly, them life qualified can customer

like qualify the doing lot to the a In more if them areas about, a that matching we've is month a in it's and where week the because in a in and device a of really of somewhere middle. to what as addition, quadplexer week to takes like a a handset, spending talked one duplexers it's it a historically time helping month, match more takes if actually understand device, it's simple are we're we're lot filter,

very, we and doing able we a hours, duplexers now, do all couple match compared and to characterization quadplexers software. in a the in in to day, characterize are quick. we're it board, of of filters doing then are We the we in the very filter we're because go And software

in accelerate to life it's that us hoping lot the trajectory And a believe of our making be half. second easier. the we we’ll So

Cody Acree

And your for dollars other than just lastly couple the lease thousand thoughts of that. hundred OpEx more What the Thank you for half? gave in moves. second you are few hundred the Jeff,

Jeff Killian

non-GAAP and I cash GAAP our to don’t that quarterly and upon basis, and But in think, cash our some think a are or guidance let very XX based we we me give we revenue headcount. I up ramps. trending shows burn, start inch either. with it cash add We deploying our OpEx on conscientious that don't support using

from a So I’ll on build perspective. cash model start XX and with the

Cody Acree

Alright, great thank you.

Operator

Ladies would like this Thank turn the conference to gentlemen, Holmes. over you. and time George I at to

George Holmes

And I work all the employees before want and in you. company. of thank old, to close meet thank thank to to our I we support continue to Great, continue at investors the we also ensure want both family, they and Resonant to milestones. that new tirelessly the believe they and our do

excitement I years. progress have in closing, in last Now the want we’ve with I made the highlight the to X.X that

should to high, highlighted and doubling set and that electromagnetic available shipping the significant approach the everything developed of software pass to Cutting gigahertz and continue injection rates which the be will XX cost levels reduce another developments number market. XX that end qualification, designs devices handling, us ASPs indicates our we for insertion the design industry. value successful, increasing perceive the and grow XX And believe designs and by total currently available are in we downs further the value development year-end for customers’ transform help if to of fact ISN in increasingly enable to in specifically and up the market many sampling that will platform. the being filter our should of in speed Resonant’s of that in in and with expect ISM our will royalty created sale. yield opportunities power wider significant us We We lines, the Resonant. year. edge by will platform we fuel that advancements three IP to better as design advancement that by to help range five in Notably, view continue our believe view cases the enhance higher and expect modeling which techniques

Conference in again. a H.C. XXXX. the in Our designs, to continue And to to by your achievement September. everybody New deliver and I deliver the team the on want you we year. than on edge revenues quarterly seeing in thank in will Thanks Again, put better remain track upcoming at early end market. the a us start faster, should great And of basis cheaper seven-digit This York for position forward today's to to Wainwright participation look we call. cutting

Operator

you. concludes Thank Ladies gentlemen and today's teleconference. this

at participation. your your You time. may Thank lines disconnect you for this

Resonant (RESN) 9 Aug 182018 Q1 Earnings call transcript