RESN - Earnings call transcript Q1 2019

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Operator

Greetings and welcome to Resonant First Quarter 2019 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 would now like to turn the conference over to Moriah Shilton, of LHA Investor Relations. you. Thank

begin. may You

Moriah Shilton

operator. you, Thank

that the at call CFO, financial George and of earnings Resonant's for on is the Investors today McDermut. Earlier are Section release The Marty XXXX. released Company's first CEO, this this call the available website Holmes; the quarter On accompanies www.ir.resonant.com. afternoon, results Resonant

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

George Holmes

you and today's for afternoon call. Good joining Moriah. thank Thanks

early me schools was changing real Decent royalty McDermut, shipped resonators January was But Company beating today the in for devices highlight for our for for made initial beating announced with the CFO. Joining XBAR the Marty announcements devices is that and our a the quarter we is approximately game carriers, accepted allowed invited Mobile QX appears that we at then validating began XXXX. metric. performance companies clear response quarter our me the from XBAR Further to It MWC superior in device unmatched. believe positioning included be the be in the that of demonstration demonstrated XX we've manufacturers. which successful to market. filters what OEMs, and World XG Congress, MWC,

annual the on execution have focused remain about more in-house $XX the XBAR market than of of excited XG even or total on the filters, approximately we for we successful current a of future. makes a which coming greater almost demonstration the the While our potential that the contracts our royalty of million of addresses market. market billion. would represent double size revenues filter total $XX of Building It

believe pure excited that we fact also solutions and of are IP designs, that plays are the only the by provider We we software.

So RFFE we targeted market. at the

continue to cost delivered effectively. affirmation success our foundry which quickly to library through business enabled further licensable and of support relationships adoption our standard new growth This we customers, for with existing market and quarter the all the program, The delivering contractual customers. IP the of which fabless entrance of a filter our and into the designs of expansion

to highlight adding ramping an for securing for OEM set on the royalty grow XX% year discuss represent for focusing our our XXXX XG and new Prior the customer on for The performance Let I our Marty factors Cleanly the driving our Resonant to market. handing in development breakout Major Resonant market We year-over-year. to provide base the customer to and XBAR updates demonstrating off goals a demand. market, our KPIs, XXXX the this on me we of by and with major some RF technology average and the of call driving revenues, a detailed our highlight and minutes my to the XXXX, to successes opportunity created to to to XBAR KPIs want up what remarks spend to indicators, return financial, disruption wrap anticipation. and key restating of a BAW factors year which as performance opening few XG discuss in The we a for in described has Resonant. means ourselves plan monumental beyond. ongoing transition our

market time early technologies diminished. white for and for fast X fabless half more tier example, qualification second which on top from adoption has last OEM, XG box which For customers the their efforts longer the highlighted as our Cash for market the of on causing call, is Tier demand we our of to is cycle. planned existing suppliers channel have driving Consequently, refocus to XXXX.

addition, In for is smartphones wait consumers as for phones. demand slow XG

for enhancements made be in platform. the filters anticipated massive to applications, unlike support later. particularly More XG reliable machine potential as ultra and settlement government real XXX of megahertz. game enhanced these to many with two more such have demonstrated of XG. We processing we developing platform the different around enhancement. and of the communication In massive in amounts World as changing three Congress, XBAR We segments; importantly, ISN higher prior our such the low bandwidth came together XBAR investments market, resonators leaders mobile to transition backend on video; medical have mobile our technology with broadband, significant this that XG XG in importance customers move say associated the IP XG is communication data began great platform yielded which latency for the IoT XG A and of of application frequencies our for problems distinctly our that the the believe Mobile to the unexpectedly solutions densities. is many example require which all solve impending Resonant, complex opportunities of at to and very filter Apple, Qualcomm resonators-based

in for of such as is main applications, the run This rates in video. are the require increased and indicates driver number The each XG? modem, user XG closer filters small increasing versus deployment. XG way lower tower much has nodes handset the is buildings coverage. and is and their much data to will to for XG handset more in filters providing the additional screens, typical putting over than today. nodes the new counterparts, an why the RFFE to of that it inside antennas densification This technology the to the handset handset significantly research and WiFi similar approximately high-definition demands on the conservatively adoption in So that many of than need deployed increase will of XGs complexity result such XX need towers as beyond There's Initial [indiscernible] in have cell the handset. included chips impact then requires network which RF wireless rather power and of XX%.

than handset, important. will is these requirements infrastructure-based that volumes volume more less to of RFFE the time significantly a will complex, become become and will more grow mobile Although market

solution expect handset ISN to capability capitalize important leveraging filter infrastructure-based XG deliver We for complex create coincident design on to Resonant's with will that Resonant opportunities deployment. our platform more and will become

handsets the continue XG networks various what to transition world to and technology, explain means the The Instead, will so require XG, does XG, as they transitions and to existing go XG. away. Let cause these XG XG. XG not existing operate me technology in filters to XG for this can

to dollars more to RF are will faster and existing design drop. the significant are sold technologies which Although grow XG build to research still to the demand approximately billion firm against unit nominally, utilize and prices requirements lower critical, the XG cost expected are These our the being and of opportunities billion ISN generations market, market grow billion of platform XG deployed. the only design today create in XX factors market become and units Resonant $X.X new market the approximately to transitioning expected According to is the will but market by commoditized for and modestly Yole, filter XG, and time requirements. devices have Those $XX like deliver XXXX. the a units

half? So last ramp noted performance this did and the how call, impacted key QX half. softness our the on the first As royalty QX our impact directly KPIs first indicators in or in our has in

further excited royalty of it existing continues new is and the the to hoped in by royalty as strength engagement we speak ramping to breadth inevitability our we'd XXXX. ramping along and are be securing in we our to customer revenues believe revenues, of While what

higher the from at average white longer customers remained originally to to box We on qualify these revenue the are our and is is continue handsets take was top to volumes traction while greater longer tier see solid and qualification and that handset. Tier X than in manufacturers much market potential as momentum and it than their and may we note planned, that between customers important

traction me driving with our optimism half. aggressively seeing phone and Let We're OEM. in library tell expansion marketing from increased are what's the contracted have our customers, you which to fabless in the products the our second devices, solid

Our by Filter augments of the engagement. costs. designs, eliminating deliver our to to introduced is fabless very in already solution need we market focused a degree for product upfront library the today, over rapidly development more Standard our get transition six to faster lower offering solutions and anticipate a library XX with these Library customers have XG, that attractive XG which of time to and XG entrance product customers. year to last product IP that large to of time a and is created enabling anticipation new our XG, The of months Library has and tremendous December further base customer Standard time XX% to fabless IP our faster our to This custom business on we'll opportunity much market We first to licenses. XX a Filter

customers. handset manufacturers quality our fabless customer existing the additional compared the An recent be its is existing quickly announcement average Standard of the an designs our we choice by of design handset be position impending devices. a we to fabless/foundry integrated positive on Overall, four times to Over X.X to enhance per commoditize. to Our three a is an complex cost, packaging We problem. with believe is year, transition. continues solution where Filter to expanded adding example standard industry from continues the enables outlook fabless for to for as allows Resonant design began efficiency, licenses for that company continue RF and company. our efficiency with foundry an capacity there's ISN in of the Resonant. from XXXX. real to to efficiency this team enter to become IP we as greater XG XXXX our market track designer potential KPIs of that problem. low our manufacturer increase vertically We very Library. to precision industry the high designs expand program supplying us the the five to per to this X.X XX% platform solve We greater most the support This can We market additional believe partners already believe OEMs to year-ago, on the provides relationship of which Designed

fabricator products our Filter to We IP have last Filter utilize RF in against February XG our rejection. handset XBAR pyro standard required We resonator, at and demonstrated using delivered We milestone with major introduced parameters platform added manufacturing have formers processes. bandwidth, Standard a the We which high-frequency BAW's by ISN XBAR handling Library forming Congress. and achieved World capabilities we resonator. Mobile

of megahertz bandwidth metrics For XXX any that believe XG approximately bandwidth, most we then for total on of bandwidth has the which wider Xx basis. greater The important that's we're been XG other demonstrated. is filter bandwidth, acoustic demonstrating percentage than a now

XG filter the meet the high For frequency frequency, nXX delivered first requirement. is

increased demonstrated at silvers there's For transmits to increased power and transmit handling is handling, Mobile to one distances reduced edge achieve more distance. DBM, low watt important we've loss uniform performance are band pass. because than increased, handling most Congress, and the to power is and power XX RFFE since World the Power frequency's the

of Lastly, track production to qualify choose our the and rejection, in customer allow To early partner have high foundry filter verification end We the frequency XBAR gained customer we second systems the and remain our we demonstrate performance. and of WiFi XG phone. WiFi secure for and code XBAR XBAR to engagements, interference first eliminate rejection engagement our at first quarter. on then third-party to

coexistence three current creates the XG a full this of neighboring low challenging phone. from significant XG bands our rejecting new for both coexistent not filters today nXX positioning, realize with It coexisting. for note cost filter. bands there only solutions large from and of low opportunities. allowing potential to present problem bands product themselves, and XG So no order signals loss are the the also nXX The to transmission allow to five-gigahertz interference of with a WiFi good five-gigahertz high these over integrated handset, this frequency Expert bandwidth, that video to is these in while definition enhance

the size discussion wireless XG ISN However, a a Marty? call operation without and sub a also we of leveraging manufacturers to life. our looking and critical X X a footprint and has filter. operator battery new as platform preferred like leading Gigahertz a financial. this architecture The is device solution technology, and for over simulated the design nXX-nXX been that coexisting handset provides our of will prototype architecture and by only This a smaller full the turn WiFi have XG for Marty now confirmed be WiFi and WiFi of deliver our I'd to simultaneous public solution to using nXX, a Gigahertz sacrificing XBAR diplexer to nXX all handset simulation of device. the

Martin McDermut

Thank afternoon, talk The you, amounts George, I our we're and gap about everyone. noted. good except

$X.X fourth $XX.X average loss on outstanding million outstanding compared or $XX,XXX of For XXXX. to compared first quarter. shares on $X.XX negative $XX.X $X.X shares average loss negative for million share the quarter headcount $XXX,XXX capital from share Non-GAAP compared fourth Revenues per $X.XX $X.XX a to paydown negative development for to remainder These loss and and XXXX last weighted negative million or expenditures burn last million our based per loss of development equivalent $X.X quarter. quarter. $X.XX million $X.X of loss of weighted Net partially resulted the share of EBITDA compared accrued $XXX,XXX per Research million million negative offset marketing XXXX revenues include or of of loss Operating $X.X last of totaled results were quarter and and quarter XXXX. $X.X a the $X.X as modest compared $X and of to the of quarter. of amounts quarter exercise. a the million, or $X.X liabilities. million fourth from administration was of billings, $XXX,XXX higher efforts. quarter. quarter based compared a compared with $X to increase Cash by million of a $X.X expenses the Sales, XBAR The share were adjusted last to the which million per deferred last from net EBITDA first as warrant expenses of to million million

to by the have we we to coming the exercise staff. George. we and XX paydown warrants XX, received Capital, of them of technical now that comparable cash whom quarter whom of I million subsequent $XX.X in PhD a And call million one Cash, to back Excluding $X of total of are of liabilities, $XX.X compared turn of to the XX end the quarter finally, believe at quarter. further of execution. the the XXXX. expect million December XX accrued in part Park largest for would equivalents City In our approximately of be the shareholders. first a like with the management to We employees, confidence ended investment support, and

George Holmes

X.X than bandwidth makes this current maximize Respmamt's, you, more in Marty. solutions. I'd to partnering potentially only platform Resonant's technology profits commoditization, opportunities creates not bandwidth Resonant partner that an It will Thank creates that a during be with for but designs existing wide market a nXX We time view, alone. design nXX diplexer enables were designed help to clearly solution Gigahertz with key with effectively at technologies to architectures XG wide ISN done constrained. market during like closing, today's some can continues be ideal XX, future of call. efficiency market and include require expert us as the the commoditize In new an capacity In bandwidth particularly WiFi rejection. XG and designed good cost faster from to believe takeaways is disruptor. our highlight could such up like transition.

tremendous provides in business As model leverage. this

your lot leverage protected There's light. and business model trade royalty IP a as As such a in a licensing ours. secret asset of patent

do customers first margin businesses as interest created qualify fantastic as to X to to expand of been may engaging little quarter. market tend new by not existing is customer they on period manufacturers signing these have continue has satisfaction Royalty upon Our engage opportunities the They customers manufacturers and revenue and our and much top a conversion. as Tier average disruption demonstrated predictability. agreements are the longer expanded continued validated have has volume a potential reign we largest primarily X in Customer are The direct new X, tier filter customer time. X license relationship while our longer higher substantial the for market Tier take as to from now the and expected and have Tier handsets two Tier

in confidence Our provider fit the as Filter filter we believe In increase the Standard for our front-end I'd model quarter. like designs market in a press that evidenced reiterate new we Library licenses pure-play market per in for delivers we our in unit commodity design, mentioned a we is by perfectly software closing, IP this to are the design a to release, royalty time IP afternoon's basis. and strategy threefold on solutions business first RF as a only have as library

on expected the are with market approximately positioned from Our by we our a $XX is uniquely to filter fueled confidence of technology. XXXX. $XX billion as is day XBAR capitalize grow in the billion We to RF the XG believe coming by to potential

most benefit to investment shareholders. our customers, importantly our monetizing employees, toward our moving and continue We our

operator the to for Q&A. call over Operator? like turn to the I'd Now

Operator

Craig-Hallum. Stoss Please question [Operator Instructions] first is from proceed. Our with Anthony

Anthony Stoss

can questions. Marty. a confirm through which I had and on just and XX a us then George, you XX? of frequency few already George it Quite done? Did couple just bands that and are Maybe the take XBAR follow-up? hear Hey,

George Holmes

this that Yes. with to Band the us actually or Mobile is done of watt band to bandwidth has we've It with We've subsequent over two validate World three the over times tested us testing megahertz one prove XXX performance. one the to point and and a took That's edge. XX one customers we further the at demonstrated. Congress. number out of allowed the at

Anthony Stoss

you, for the many in maybe Okay. collected And quarter? QX quantify guys how can you phones revenue then Marty, you in different

Martin McDermut

phones many I three up we're or to this we think two quarter. hit? How model on last

Anthony Stoss

Okay.

George Holmes

If it, at sit you let you Tony me and kind look back see if on I - jump of this. think I thing in the can

XX that XX you devices look beat year, royalty that we're were that and two of currently to did devices As targeted excepted, were XX those end have XX the the at of shipped the contracted milestones, different those of XX royalty those revenues, at at the that ship actually XX we number for we revenues a devices. starting we

we're royalty new you as And the right things part seeing the traction early look showed we see of the quarter nominal, one these and now are happen tremendous excited of at saw we devices. things to the shipped activity revenues. about for reason and Now while royalties that we're the units traction, that XXX,XXX of is, starting the were in of that first are seeing over we're where that kind

there of you based as things, and gives shipping. and expect in line little and converted of on our is volumes they of unit X, millions larger each early stair-step as XX,XXX customers XXX,XXX upfront function X happened also lot they aggressive so We and are our and QX completely once that Hopefully talking, use That pre-call transition and the kinds very get that tens the in some the process moving kind QX XX,XXX the instead focusing in sight volume on in And see. saw Tier were of with kind that We dried bit runs on there things of customers. the kind process how and in Tier The past, we guys. units current customers' opportunity of QX they a started of white you're one these of cycle, box X going accepted said and longer volumes forecast. a started couple we things in but after QX in market step the through up X in phones here, Tier qualification of a Tier qualification these change of as millions QX. XXX,XXX

Anthony Stoss

Okay.

millions suggesting millions QX. follow-up, have you a that that millions QX be gives in to see George, to in all tens and in you're paying What customers that Are launched of they the as are confidence of expect QX and also Just they models then many equate the the - been would customers units different going millions how units? today? that in you of

George Holmes

in a volumes I rough see, half we what starting in expect is would would in. to ramping a range numbers, to dozen say see

sit very design As know. haven't and these and to the you missed all volumes ramp year back we last that look seen pulled customer at are back we they confidence, as the as then cycle high historically customers volumes

So that And into had forecasting teardown some they had the large was their early success customers, in they those went box forecast some good that identified one our has pretty that predictable customer marketplace ABI. designs, then white were their a when and company by devices other devices. there - very they out were a in of

far. I the honest and So They QX happening get which once what feel through telling we us they're in to the were about what obviously so you indicated qualification they we predictability with with think folks. there, process, good is us pretty QX, was

Anthony Stoss

XBAR on BAW question as versus production premium into we my product the clearly hopeful quarters and of then was [indiscernible]? couple a contemplated next placing move if And of XBAR, you is last minimums

George Holmes

think there perspective. on Well, opportunity you the the hit head nail an I from

a million the were is that on technology XBAR we under we've and multiplying force as working been and is XBAR view roughly $XXX opportunity things the Our that contract going ultimately devices think technology market effect. dwarf, to historically. now We've the got

questions, questions what we're of things your I'm and if that. the jump million we out mind we've are take it on - one cash? subsequent we'll right got going advantage $XX and going Tony, now. So don't now, jump that didn't cash sure in to It's you to about in got come of We've that out I'm but clearly right doing

revenues we're focused to change sure, laser leverage believe absolutely to a XBAR but royalty that's got and we XX meow. ramping going XX.X% the got the market. are that We're filter. on It's bandwidth. for our fact revolutionize that potentially with band the we've We the is thing going cat's technology doing things with It's

in area, operators, different well, very be out what as the it. excited Asia device they simulations, band on bandwidth. market the is just a got got in big the know see that WiFi the that deliver are talked of rejection X%, of the we performance greatest of relates in this it whether and demonstrating that such I've to couple you when When X a There's especially first Our nothing the this and market Tier them, X.X we they are that next put get And and very you can markets once fact that for to means focused those XX of end-to-end. uplift that in those out about to devices together duplexer that that. there in like gigahertz thing the sure them XX% the has can performance or we're bandwidth I'm

the revenue, have I then asset the also, we ramping strategic strategic to this of back XBAR an leveraging it, asset. come things, don't key want obviously one we'd to So royalty minimize

in sure turn, get an of really design October shows have power that performance we mean, could to We bandage ability I pretty from and multiple actually now it February XXX this device I bandwidth of to get ISN, is to full such a the and that tool. design that turns subsequent megahertz and on and watt a remarkable sure, think

And make that to, we're get helps? going so we things sure we leverage to going those in need. the Hope cash that that we're here to

Anthony Stoss

luck. best Thanks and of

George Holmes

Thank you.

Operator

Markets. with Please Acree proceed. question Cody Capital Our is from next Loop

Cody Acree

capital for with maybe just Marty, a you're thanks One Where your my Park on source Maybe are if that's George, for guys, funds exercising visibility your taking thoughts to alternatives? being your that coming up what also, warrants, raises? Yes what any? cash, question. City's of then focusing, forward, your I following on What going is are guess but in and comments.

George Holmes

me, you on My don't and goodness, think Cody, just think hit you this for the so on that I a around the head fronts. nail I of why answer couple is, made the I turn

So let me kind on of circle that. back

to is I'll additional capitalizing a for Table X ability year-ago. in. additional in And call, about at assets, Bag, Cap why in bring don't we cash what leveraging ways that through about that be in. I I foremost see most out our Now to convert allowed or that mean on end. sitting those for Goody warrant is identify royalty third advantage if to which first focused cash We've our add approximately are the let been that aggressive I our on go XBAR those it here. good us whether Goody our partners. cash got ISN, important in What bring and already the revenues things and we're mean allowing that million little the those is were we in holders, two focus validate things and bring recognition able cash the investments quarters shares we've color first combined very to The Bag first. in and the and are on opportunity. our then three Marty cash was very and strategic everybody of warrants. unexercised with prepays wouldn't through be on Historically them as here in aggressive trying thing take Those us our Leveraging that what the benefit marketplace warrant. of strategic to using a over are bringing get that would there on thing two to things

bringing As short-term the at cash Marty, in but this alternatives, just all not miss there? back don't three. the that look company at and look we best alternative we it's did we those what think it, or I sit for

Martin McDermut

the to a thing end only positive about quarter. we think remarks think is going that doing by first prepared the that's XBAR back deal pretty of the on strategic area your you I are the

that's really in setting what versus going on focused So focused in a really quarter. raise. That's up second what we're and out we

Cody Acree

Great. of a figure of And update you Thank rate said of goal licensing you can guess, Obviously royalty as us visibility by you just from give transpired run can of those the you that's not the hit for George, you seven first bit by things that end the the half. first I the a end have half? giving the on What's comments. target an rate expected.

George Holmes

Well, that QX there's China and in marketplace said not good QX. All been, the one in the news flow guys major there have Mobile the China in of I talked we're market were impact process the about happening is there. the down mean the and only what's

that are be came I the they there half one I predicting think stronger. saying the was the second going guys Tier of most felt an out to the Xs noted yesterday second of uptick out in half.

eye off uncertainty and of XG. their their opportunity that guys. got been market X, They're have past out they I seeing working with in generated because we're by think are X suppliers ball moved on what white Tier a Tier creating has have Tier our little is Tier X the front. X a current Many box of bit the guys. already They customers the

I that that The XXX,XXX get creates fact opportunity QX. in roughly dollars units for shipped think So thought we us. for

by and our new moving we number. them It's going adding our them, to half. have by we're like it's working, to I big do much those do to market somewhere the that shorter going doing is a this got that think a and you're have doing seeing royalty it sure qualification is into while into there that as going continue are over production But What that convert. all to going to enough that position get of of gives be areas all to thing and those in the to we've know things opportunities confidence that our we design in cycles make some for potential happened, number, and that the is will course support that would I into marketplace two lot XX% it believe like the the volume leadership not be is our along. together us unfortunately. of a for inevitability of library that dollars million for six-month dwarfed QX between you we're the the that Sounds for timeframe. key but buy got But continue using I these products year. ramp it's accepted XBAR marketplace the what add back second [indiscernible]. $XXX And in devices things going as going those really I've not I they're the we're customers big were into customer with work and we're satisfying XX% determined. key XG. bolsters complex are in to we're know and same ahead, know for to that are very requirements to to, the got Cody players to be the got have we We are I the us start we've that said tell give confidence the enough in That XG out really

be supporting things. I going the do a we partners, think months. there in think of key some I to we're in couple next And a XX to be in here if can position really out nice front

our We're through customers business. to to continue and that hold revenue. it these testing, supporting sure how through. are to that other them adding make We're qualified help devices handset because making matching to the when we've comes to things if to they and we're We like the and way to it know going to to try sure going We're do support testing, to OEM, things fall. time So shorter post all effects. core got to products our to core these getting know on the focused going we're and we're on they dominoes going to continue to as library well continue continue business. focus multiplying going And all going do nudge by has

a these our when in they way dominos fall, favor. fall in big So

Cody Acree

more quick a ones. And Great. just then couple

maybe how an XG but or remarks, of expand XG in for opportunity commoditization mentioned favor? be the you your into range, you. plays a commoditization would positive that Can on You to that your prepared for you just

Martin McDermut

cornerstone come marketplace, companies Yes, number what ago. out we've coming almost see $X a seen they down, from absolutely. saw a quadplex mean, already we three the there, of their at this three in clearly Well, Cody. were as are and ISN down capacity the enough is ASP here the mean, I do to got here XX%. I that couple there there's doorstep we I have started which since years of years designers not designs. now and one, These the ago,

and number do two I and guys work design As three happened, do can that XG, the have can not to commoditization have I've hey, So I to to on have their back got for XG can finite say, of I best number but sit of designers, the a only XG, capability? work x and at how I do resource XG. look that on designs I maximize

design in hole, leverage to they're we it's right we is the efficiency know is gap to year digits platform, actually going sweet right and average efficiency at these to end of that to on one a spot double we leveraging we the least design getting year, Xx this major the them our getting the And players our and marketplace. guys. design believe in that the that in go designer So be deeper, with ISN is bridge at have best efficient the think hole broader, now which for alternative per X.X the alternative, support

So that's right what thinking we're now.

Cody Acree

Skyworks as you're market much you the China then by of We've of And health is lastly, And out that about seeing driven Perfect. contradicting in talk of and the what had of far versus the infrastructure the can as what statements handsets? seeing? how mobile in optimism then market? kind you just are Corvo,

George Holmes

for hairs, That cross question. great That's Cody. the Thank that. right me you a puts in

So on the guys infrastructure at covering the quantities you that are front, obviously, guys right, infrastructure are today that if there you and cover side, the look the networks course is next know are by the low, we anniversary still over pretty Yet the China the are at Xx to to in on the infrastructure going the guys do five quoting, of that October. others numbers and the intending volumes triple market years. between XG have operating XXX-year somewhere

pressed if I that going that to think they're the hard for seeing. we're indications be

would designs clearly then we places they of are I nXX on I year. on call, of for months. that are designs. aggressively work going when these see Well handsets and a the they're something mean, you that's handset - solution with meet Congress in tall a that the six, way? And I a my very markets some moving moving from the operators China eight be big World has the like it's know, for However, that's that's nXX That said, things And Mobile place the indicates don't big you're those very, Japan design see focused going subsequently, end new is is the XXXX. people nXX, well. that markets on on would that aggressively. going those been pretty do if primarily. two and last but diplexers, in market getting when is we're mean, I at you look by the like think order as kind in to sample feedback that to of think that at

Cody Acree

Thanks all the Great. for That's me. time. for it

George Holmes

Thanks.

Operator

Securities. Ilya proceed. Grozovsky from Please National is question next Our with

Ilya Grozovsky

Thanks guys.

was on warrants executed that this the On were the housekeeping price the side, month? what

George Holmes

XXX.

Ilya Grozovsky

what can very the versus terms getting you are you landscape the just just seeing talk a alternatives about XBAR. Can of obviously Like that a little Okay. bit you're you're the performance XG as it? your then about the in excited are George, And competitive partners alternative? Thanks.

George Holmes

not data seeing, much there. we're what And question. great out a as there's That's Yes.

in point. like less kind we're things seeing in about what nXX the just for at this feedback far half You paper what currently And of it filters we're that getting we're the edge some example is from type band that's should on guys. so see The bigger than of band is the information product. to with bandwidth that, seeing

a a anecdotal may solution company edge, play. another That's person know that that was We bit a is barely bandwidth our haven't one bit I've aware I edge. volumes. perspective else what oranges. product bit is from of megahertz infrastructure That's is bandwidth light targeting of of got you That's be still band X.X XXX tell, devices than more filter seen in less a devices. a they're bit little Everything which but got at time bit The only half and MicroCap than was bandwidth physically. for about the and different can so nXX And that on months little a into fourth products physical they've I it's over ago gigahertz. It recently. watt band the infrastructure we the of product, that we nXX, of little But seems couple it's a little in plots that's seen who was an just on were years it's were of lower an based a only our infrastructure point market. in that it that band much lower at discussions is We're power. anything has only but Mobile paper of a a about saw they much lower have product the they ago, wad World the of bit we X.X% a Congress, little those bandwidth still like actually which bandwidth, little different from less easier a the a have now market, at band has apples in little have acoustic and that the targeted

Ilya Grozovsky

on Are then also of given range a the terms sort Okay, commentary guidance? QX? current in you your And of feeling giving comfortable quarter thanks. revenue

Martin McDermut

were behind we What year. of quarters, meeting or came half We with I would stayed that million the to last couple first of We as right by $X trying with quarters our two ago out we're hit we say the now a that and last time. major milestone. reiterated the that is

think tens multiple that's that's we're in we up. and sit the that of and ballpark go I QX are we range unit to the and think right look QX. comfortable where of Ilya we that we'll XXXX, XXX,XXX billions unit going millions to at think the where saying millions is are as for And from units XXX,XXX, volumes and consensus the the we back of end now, at the in

market the So mercy that's Domino's of We're down that and removed to stacked we the the high make break have as today. at the kind We're are macro from of barriers step to can. a where up one as trying we licenser. as we sure we're

allow in in can to in works, other is going we to tell in us. and ISN The us So solutions other do very we're things, floodgate got a bring things. from prepaid opens, And it's royalty that good you poised news some our got is some open I strategic a for when company platform particular we've that our what leveraging a perspective. digital that will other into XBAR things perspective the the some could cash and way

in going that's and think a kicking there's lot I So ball road. good the just between to we're here in the but we keep of shape, be green down grass should the

Ilya Grozovsky

it. Got you. guys. Thanks, Thank

Martin McDermut

you. Thank

Operator

with [Operator Wainwright. Kevin proceed. comes from Dede H.C. Please next Our question Instructions]

Kevin Dede

for said call. you in number XXX,XXX quarter. taking a you Do December quarter? the George, XXX,XXX, relative guys devices for March have Thanks. the It's the Kevin Dede. Thanks

Martin McDermut

revenue perspective. see and year. Yes, started the as devices $X.X announced royalty quarter That contracted at we end a those we're last ramp of to we to down saw of the recall some December we of was the first if early the million, you of that started was they the quarter from than the in higher the devices quarter uptake that new

Kevin Dede

your in talk customers advantage perspective? cost you licensing and model Do you see perhaps about doing an royalty Okay. pull designs a it corresponds your as a library? Can Fair that enough. bit little from from Thanks. the that to

George Holmes

actually that through because and companies contract it's when doing great Well don't right pay unlike do to a devices, go custom, that work. if question and you're a foundry fabless we the absolutely full for we

to do work. pays customer Our that

on already they a So foundries processes. they very, they very if tight product, couple or Where or design controls are could there, that controlled their have how manufacturing and turns process We is it. if five buy of takes are that's to on XX could us product, done with foundry how four a efficient that their They in months for library to Depending process. and do XX them. work we've custom months work. it they turns doing on a tightly do

foundry. get to licenses they designed target and we for the goes So maintained. the to if target customer And is devices product that a are maintained. fabricated from that We turn pay our only in then

all - us then resource the team during the to that the issue the allocated But becomes into energy time for and the the have it they evaluate on technology end those So us make, they it that and qualification product pay that engage don't the to and up those custom they developments they an engineering have operations standard up spends thing, for. to don't ended take smaller having having money have take production. of then and other pay spent people a that of timeframe. products with and product foundry working to with is they the do What

remarks the So a transition prepared we a will in the that faster time market of products reason believe products as time. standard that lower part did I see I of cost, to more over custom to

didn't some there we like to out of doing evolve the that with folks were As working Got on have started engaged from through good small advice customers, build we and of no analysts library are call products. pure resources full got today. other startup actually agreements these companies a and standard the some because yourself and first all with go as our We products. go customs the

warrants the got that when having a year more April leftover. and so still conversion the the resource, bit year-ago year, in that backs a we started followed little raise had out did And about and that cash some in did the we of before raise of on last the doing and of

have six intent to be a our think production designs we quickly nice devices done. multiple we for be very production And XBAR to get our are into those very, So number under little contract of we moved grow. devices can to had and in now That's a library, And going our Warchest and that's into library so customers. products. of all of they be clearly products that moved going

So a out said or the done if the have just there's but I question yes, I'd your explanation. answer think longer way short it

Kevin Dede

Thanks George.

everybody offered quarter you royalty the the quarter? be mean, Would appreciates discuss in that. I to saw March royalty to you in Gartner able you fourth you've might you gain in were you quarters versus in range range licensing what past to that a what the the construct think able say able that versus Could you were I that. Gartner? help quantify

Martin McDermut

X% X% stayed get library And the the coming quarter, because we've of differences at XX% Well, a for Yes. the on the contracts XX% We range, but couple The a to of to to same. the today. higher fill in the royalty tend majority a X.XX% of of have nominal we work. done little them the the are products fourth quarter, average, range. We majority in expect lot a bit outliers it that first out to do for continue. of generally XX% range QX. It's is our the about

the think compete internal So when you sense. get want your is, makes start to good I news engagement. the And that design products, tend get And library with we paid. don't with resource to - you

which time per that a component, our I happen stay doing is will on IP, on such XX% software, we come. services, the in to continue for lower. design think I that plus licensing going where to until year, we the we're unit could royalties be to would the software that that next software each I our think the I start to plus once years But So stuff software expect think solid and license

Kevin Dede

Okay.

you an how characterizing you entirely You and of Could you a on infrastructure facing I'm suppliers? time the lot that's think to that see well I'd in imagine set talk fight. infrastructure to do different know versus how spend little customers a they'll call handset. your curious

Martin McDermut

going platform very, of very That's to is well and having us question. I And an bode think a Standard for where product Library ISN us. great an IP it's design one

quickly. with very, You products get in very can literally those and their manufacturers Tier hands engage X

us, For nothing it's new.

Fortunately our one very that devices, those guys durability, got Wi-Fi key to in for power which look CPE types whatnot. tend and good the i.e. we've applications is of things routers

it may But wouldn't additive it's them It's as to incremental. you platform tweet and small all here today. us can a device, them it's through expense off. it long go not just think byproduct as ISN to bets as coming for I future we've or product after we look today just that that's to it, asked some a The for look devices. do have sit as those us take that five thing done to a for the to back we a at been and go go challenge four already guys, an And work we've didn't those unless Why because a a leveraging a get do us I at get the so of library in it? wants make our of customer the of it sense are

customer a our are from most to relates it acquisition with of standpoint, these guys As customers already. dealing

Kevin Dede

They are.

having Okay. One that? on thing software time that ISN update if much an the - you'd on offer you development spend on was wondering the was didn't I available platform web, your

George Holmes

you. Hang tight I is tell what It's coming. would

some at ISN sit our customers. clearly we two to we different back look As and modules We year moves. made platform, last major introduced

real to to our marketplace made PMTx devices our modular. get the in you platform to comparing I take manufacturing to very, tool on wouldn't that that against two they others internal us there Our you evaluation of time tool there. see capability mean be compare how based then is I if a we actually process saw people tools into the are could want very architecting marketplace ISN out already your ISN that do and allows that available. we're powerful surprised

would out and a ISN. new take You haven't just would expect not tool realistic. you And other hey, proven. the not that never and we or doing to expect That's realistic thing customer a forced everything never that's lift is go they're having into say,

EDA companies tools long it and sit and the as their customers that tool the do time delivered if them how at prove got big got that as took using, into marketplace, to internal a good they could their So the solution. into business you were back look

get that We IP custom trying Standard are we're devices to and doing through on development through Library. that our of these validation basis the actually a

can use, are XX two the simulate we done are we've So we that parts in that XXX three say yes, that can actually quadplexer Band three. demonstrate here's one, parts one, we part, a that that we've and done

more the clearly that a leveraged already that. on already we broader go But said, are we'll So have that the in to That's have products work that points when to products come standard that is do are validation the in marketplace, something future. them but through modules by two to out already other marketplace the be footprint, wouldn't getting. designed That surprised you I if leveraging able we have those so currently be if customers we're will we've leveraging saw those be mindful royalties and to there. so get the basically devices we're seamless the of they partner we of can unit to validation toolset API we and per and that because into fact, some done. API. want adder interfaces, points our that a be to elevate have that of

Kevin Dede

you that nXX you've were standard brought foundry XBAR people So process impressed. and pretty World mentioned Congress work in Mobile XBAR

foundry foundry on timeline with that's working that process, it's you same same combining if still the expecting? and if a wondering more the Now were a you're still the XX. partner granularity maybe all on I'm little

George Holmes

partners or it's of which to two able a potential that the quarters. to that the today I foundries, Mobile that with customers. think We I and World move the demonstration foundry not about seamlessly we two from process between standard we're Well, talked solutions use deliver two but parts think move Congress, we third-party we last delivered, very indicative and couple between foundries only customers is for

anything and expect in I speaks one our noted of that we engaging to in days pretty quarter, well not think lock grade the this the - of prepared remarks I we fact that as that lock with of the foundries we're exotic. foundries production think customer. load first We're currently to first well our I as in doing production that So process and

that So inch wafers for on I that's I point. have what can doing granularity and is that four you inch, coming we it and you on stuff today about at wise all four doing tell we'll But this that's be six quarter. were this

Kevin Dede

Okay. on I'm going to bit. for a little pick Marty

pull take of Marty, lease assets operating balance their wondering starting to these sheet? break, rights use I why everybody separately on George. was a You can

Martin McDermut

There's out fast we came it accounting change January and the made a mandatory X. effective

straight So from we still up it. of a impact to balance There's gross followed the It's The impact to line sides the amortization. was P&L no both sheet. basically change. the

your You see clients. should that all on

Kevin Dede

I No, why for very my response, much have, appreciated. questions. entertaining Thanks I'd I your Much trust I gentlemen Yes. ask Marty. figured that's you.

George Holmes

Thanks.

Operator

Company. next proceed. question is Please with Our and from Rajiv Gill Needham

Rajvindra Gill

Yes. taking Thanks my questions. for

one this for Library. You quarter them touched about and bit you new kind expecting I of we Last How this a customers, but sense potential from both these the licensee additional to you with your in about revenue stated little do had to expressing convert Standard coming a about wanted great that quarters. George, existing get traction IP interest and product customers? think the opportunity the in

George Holmes

great Well, it's question. a

library the hit got first. two total that and leases We've it with first And thing now highlighted one me happened under haven't that X.X in contract. impressive we Let the our contract customers only which six noted said devices, QX QX. in on quad. this juncture the actually is we've today that's is at is the in website, the device we What is

broader can them tested our that's [indiscernible] with start their their nickel back, hold and team obvious sometime like to get will of internal One, quarter already a adding under happen there's spin set We own to they they And devices get having out the ours Library website customers on take They development come IP is marketing underneath aren't devices done. against all part custom been expect done. in testing take go to reliability they'd age they well internal all don't apart soon basically and tall, for match the is Standard other cases. done handset IP qualification. devices through the to as as a the which from be have all we'll testing seeing this and have we're We've way development. their in Library. most They the then do no Standard just reasons. the their to What the as

very very, happened them. it So for quickly

XX-month months. So all instead of timeframe, XX-month the to they get this is short revenues can maybe royalty way as into ramping six

thing see trajectory about around fiscal we're mean, actually that's only them, library we opportunity but is real a I to excitement for the a also year. potentially opportunity is So this seeing why exciting not a which us real the within products. changed this current for it,

from I now which a the going market that here customs have first in we're full contracted this for where years of first we're released royalties market today, that why a when You got if of full play, half in things ago. you is X.X see doing two bring to can we actually I come seeing design impact opportunity custom years the the year into ramping happened in and to the an year that actually signed you're you

a they're it's So And better we'd fortunately of with XBAR like we going our going but and for year as Tier and and instead it's set white market good Xs, with stronger guys, after not of boxes, company company technology Xs hasn't the there. out make as coming a the lucky because ourselves helped after it got our all happening that every for box, hot going Xs. to got things and working invention a us, the that think we Xs and I much, fast Tier last milestone happen we hitting and to and

and two XBAR will the those be we library. things combined pushing So into

end of another the before the that be hits will the And so library year. that private

Rajvindra Gill

had this to in filter, the lead had I you lead for a stayed And did Thank but XQ. your band past, you supporting in customers Who Okay. on that. partner congratulate for partner? XBAR select you selected for the MWC. demoing you the the nXX at think filter

George Holmes

contracted We quarter. said to one expect we in have second

some good evaluated mean of such work finished that a I we who's the not number just to clearly large process, that - candidates still of can we're a little big means technology one you one the we're there a go that potential have is best out big kind tell which and parts. can have is with the contractual which trying of have go figure the yourself. either a work And you is ISN of going bit to go I around to the already hopes as the or you this, We on And to the would you what you that is of doing broad, partner. do have right we're We've now. working platform a more lots list with do. we're seeing get up the while through with, news But evaluating trying well. got right yet. kind everybody technology as we're that and that and We're our educated activity

For all the the stated reasons on I prepared call. in remarks the

Rajvindra Gill

to but lot step conceptually understand And of of want to detail, intend a long-term. concentration how about I customer you near back take you a broaden just also great the of and Okay, great. try with just touched to this and kind kind the in

that's contraction small I by number royalty that, issue. significant customers think to composed the expanding by a going derisk of that revenue in near-term, there's of

get of on of want and your concentration that? thoughts Just customer kind to expansion

George Holmes

And software developing unit own IP a be guys and because Yes, licensing you years a I licensing options that you there clearly ago, here only a back what Okay. on customers we your at if potential dozen least basis, company, question. thought really or foundry the a opportunity. with when design got had per it's their only royalty great to two for was are started working is have

there guys XX%, market. that of really XX% up So the only dozen a was made

took companies with that do so when is semiconductor that business segment something building we licensing were started packaging there partners to of we model business and wanted guys that there and and out we and companies the group really engage IP into modeled there went them team of foundries there against. Unfortunately, that. companies packaging wanted to model EDA was to partners, this out our and the of Fortunately, of after that of advantage get a wanted the fabless foundry and out

the to business to do companies, consider we've And guys XX we're a have we what customers. we manufacturers, XX that opened of in us. of for mobile the switch contract couple supply had like we would reference with got about today. when that XX that handset, And the designs of that market for with went the potentially. already tracking those they stay companies out that they can designs, We and up with these contracted in a they manufacturers density wanted So to were today the companies guys to box chain who PA companies is high that go to still

good that that's news intimately we've customers think continued I perspective to got side new on write that know the that us well, one checks. from us

us fact we're bodes develop these Today have the I'd But the least contracted Standard at six think when into we as that reach well and devices of the the handful, well. in those fact have that's but things and and looking in half, get at much small IP over also I their was belief the that out paid like because - of And we belief belief are today. then. breadth better roughly have back to will Library. feel breadth think only customers in that we for they that I the if fabless marketplace our revenues XX I a go technology or our money the is important. didn't half have royalty the inevitably we

X have capture entrant as very, think an go on news good marketplace. if whole that a continue a start very quickly. a get I of guy that it's footprint some not If out want smaller the deliver and this part after get we're next-generation new going having well, Library, to next faster found that's IP the we're to a enable commoditization think mean will can working don't because And building that the of They're higher from and package, they band new it able specs quickly, three. and we the going for these because in excited thing building they're to really about we're and opportunity a into And can piece to really a market the actually of and really the going So the into can to think move our about they in very, after ASP, about cool I that's solution. and we're can. share. the perspective, going market efficiency I through Standard entrants design Well, into to can to bunch talked I combination the plays in library I I of about very Library money time Standard they them nice parts. that as foothold Tier is, think a to lower it, market growth

for us I creating just these the be play us be together think the and best transition going us by opportunities is well we market back inevitability board for it. combined the XG do position opportunity all of the to driven things the got we prepared to and for sit that's for can we of to across and market as for ourselves the

Rajvindra Gill

for thanks that all Appreciate and Great, excellent it. color.

George Holmes

Yep, no worries.

Operator

you. Thank

question-and-answer like to reached George back the turn have for end closing call to over our of We the I remarks. would session. Holmes

George Holmes

key a delivered operator. Great. Thank you, This of number fronts. first has on quarter

We handling the our deliver Standard leverage even at the market power cost continue band Resonant as basis. year technology new quickly designs market testing during anticipation, and meet XBARf XBAR to with XG that of of faster an the that on into and technology resonator have megahertz specifications filters nXX ISN platform can from these greater has commoditizes ISN to Library we one any and for filters. get demonstrated the Our than XXX further XG both we new this demanding of validated our quickly other using effectively will greater or bandwidth, with new water heard performance deliver third-party supplier to and than edge, conducted critical IP of specifications products

we basis, of create the for on customers, what provider today's play is unit revenues are our you solution the based pure shareholders. employees, As for royalty only believe per value of most importantly, and we royalty inevitability ramping confident in joining solutions and software Thank call. to IP a a our everyone

Operator

conference. Thank you. today's concludes This

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

Resonant (RESN) 8 May 192019 Q1 Earnings call transcript