RESN - Earnings call transcript Q2 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Resonant Second 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'd now like to turn the conference over to Moriah Shilton, Senior Vice President of LHA Investor Relations, Resonant’s investor relations firm. you. Thank

begin. may You

Moriah Shilton

operator. you Thank

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

with difficult and Additionally, absence current intend, reflecting uncertainties and risks, that statements that some of involve as expression the well the as statements expect, but mean similar of information that prospects, this identify to are words conference optimism, believe, their Words forward-looking statements, not satisfaction call anticipate contains forward-looking as variations predict. assumptions not are does such and plan, forward-looking.

guarantee results the and Form Company's and described contained differences a of in could from factors those such call. obligation XX-K no as information circumstances in call Such performance date could undertakes recent such materially and Company or supply Resonant's subsequent filings forward-looking statements any actual XX-Q and statements. Several cause the or this of after SEC. These are detail the forward-looking in that are the date of of new the statements differ to statements contribute publicly this update not most only to regarding speak forward-looking the with

George. With that, it to the pleasure to over is my call turn

George Holmes

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

of and begin continue revenue our I’d team. interest related to value and of that to CFO. to Joining the technology, our to pillars long-term shareholders. our royalty foundational ramp for in this build by opportunity are me three Resonant: discussing These acquisition, strategic today Marty is scale expand outstanding Resonant drivers our deliver like call and the progress McDermut, customer tools

refer the I'll to For announcement this issued call, you major morning. we of this the purposes

be greater of XXXX. attributed X% XX of patents issue, over than can know half pending them Currently technology. XBAR You XXX an end year first was to the our an increase

As and of a we previous handset great XBAR our technology potential noted its dominate calls, XG deal on have to optimism surrounding applications.

significant regulatory of a today, As to confirmation one is received execution which of and subject Tier commercial successful pending announced of a filter agreement. we've of technology earlier approval our manufacturer, the investment through a validation by value

for our current to we engaged of and new devices foundry based program. U.S. frequency with products, support received quarter, to customers high both performance also investors We we two volume resonators, and for prepaid of high our technology, development and expect Commercial agreement around additional the royalties XXth. made in investments commitments the support close In on volume over additional advancements fabulous develop the began we from on million. technologies. exchanged of high fixed targeted fabulous library their of current a foundry maximum a process second for to Europe, partners $X August significant to a of future the months, of XX our with support high working In multiple devices foundries and high contemplates number our or an quality the we've manufacturing

and have design other and position ISN which Through substantial in to improve commercial demonstrates which platform, be filters. for XG for The the progress validation their in help speed very factors to believe and Tier on puts tool. precision ISN of to capabilities in ISN ISN and solutions, as we XG, accuracy our this frequency the ongoing Infinite significance success. our be half the going contemplated they key the high continued will Networks, strive or commoditized designed Resonant XXXX, the been to where our Based companies X and an of of XG good platform, of solutions environment compete resulted we us filter continue are frequency in first of high Synthesized speed agreement using

to filter Filter broader standard automation available Second ISN Tier design X capabilities a range make and software, a Resonant’s RF design making a with IP products quarter, of accessible of to Standard worked Resonant's we company customers. in Library their products

I'd a team. about to little Now, like talking spend time our

continue and team multiple focused build end on front filter end We and designs differentiated technologies: to to developing our complex applications. back support tools the IP for and

with in our expanding students. and their focused aggressively acoustics universities through research are specific We targeted RF modeling, have with collaborations that key design and relationships faculty

We new most needed RF smartphones. his our Rubén the practical recently, what's member a include Apple. Board. today for great VP addition strengths Engineering knowledge and Board, in into a recently makes Caballero, to extensive future to Rubén’s It added of our at front-ends

leaders the added to from services handset team. advisory have also our semiconductor sector financial and key We

Now time let talking about balance XXXX. me the spend of little a

poised filter we anticipation the we the to on We the focuses have Resonant? believe the in market what which for is XBAR market the last executed with era an that look like discussed effectively With As our progress year compete made we XXXX XG first transition the RF the quarterly planned call, half, market. as to of in is filter capitalized does full believe and in XXXX as technology, XG. our RF we

our resonator to are significant with develop IP platform. and We enhancements aggressively ancillary structures moving novel also ISN to additional, combined

is from these enables designing customers have than ISN to effective the by simulation, advancements As designed – more we is the iteration, our ability RF through to companies which more new RF filters by markets most enable and for cost design today. we've quicker It that shared our design before, standard solutions.

solutions desperate center the markets market like example, in For such of are need ISN. as

to of the filters We Library of companies XG XG, ISN anticipate as profitably the customer relationships current operate by in and delivered the expansion by platform. partnerships strive IP Resonant’s position XG and commoditization speed Standard upcoming our our and new leveraging many and

our spend me talking about minutes few Let a KPIs.

securing mainly stated, our for key technology royalty customer new focusing in year-over-year, and the on OEM goal and XX% As a adding an revenues, KPIs our ramping for previously customer on grow of XBAR is our to our demonstrating base. XXXX indicators, we XG to performance of performance average

quarter the XXXX the by fourth Our half softness royalty in revenue XXXX. in was of impacted of and the first

are still developed our there new deployed However, being and front most component. end requiring phones

existing all volumes reduced for of are being continuing XG, drastically to create are cases in ASPs to and opportunities XG Resonant. modestly, expected XG devices grow While new for

the volume units We goal progress significantly than volumes quarter million with have seen towards expected grow solid half X.X over of July. the our XXX,XXX shipped to XXXX. is of units in first with more in third in This

five traction entering gain of of by our shareholders. to long-term encouraged deliver half up a approximately We’re more today, traction high second the level value inevitability to to revenue five ramp, with devices quarter. getting We're our confidence, expected customers’ our the outlook ability to this

on the platform. the dominant We in minutes plan with second on partners X, technology our our to fronts. call Now been market let spend me secure May a both began validate a our we’ve fashion. XBAR into quarter earnings to a drive XBAR the quarter on last performance few successful Since and held

greater of acoustic parameters filter is other demonstrate demonstrated performance First, basis, multiple performance trips than approximately a is to total main the third which more has today. that XXX we matters times so than metric quarter continuing for which that been a claims. to XBAR facility the our XG two began party bandwidth bandwidth, to expectations with test beat while XG we of two wider Tier to believe Results on performance percentage any in megahertz X validate

demonstrated more The loss rejection, band Wi-Fi measured to power And we and have the handling, DBM. to greater at filters’ eliminate than Wi-Fi XG rejection low demonstrated the phone. handling frequency watt, power with This edge and we increased performance pass than is performance. uniform in to interference band allow high XX coexist and one for

make investment multiyear X in exclusive us Resonant Second, agreed has today's agreement press as to release. we noted secured licensing upon a an who a in with Tier customer signing

customers. OEMs are offered platform. We've our Lastly, time interested ongoing low to networks in efficiency adding existing design had OEM an our to with discussion to support faster by phone who ISM list cost, the market, of

our meet to end year milestone this expect customer traction. We by given current

of hand our Now, financials. it Marty? let for Marty a over to discussion me

Marty McDermut

everyone. good are except I and George talk amounts you, noted. where The Thank afternoon GAAP about

the as revenues include For the totaled last as last Revenues $XXX,XXX quarter. first second of of billings, compared $XX,XXX to $XX,XXX deferred to quarter. to which quarter compared quarter were compared $XX,XXX XXXX XXXX,

of the $X.XX of on million share share XX.X shares of outstanding weighted outstanding, compared XX.X XXXX. loss per million first a or million comparable of Research $X.X $X of $X.X expenses $X.X a to net average based average operating Operating $X.XX to per for expenses loss loss loss on last million of to compared last million and development and of last $X.X of administration million $X.X of million quarter. quarter. loss to quarter. loss marketing an quarter based Sales, weighted or Net $X.X compared million a million shares

$X.XX $X.XX XXXX. warrants of $X shareholders. Cash, expenditures, adjusted Non-GAAP $X.X from our capital of partially liabilities share offset compared $X.X share negative million per and compared higher a from investments at negative adjusted to The the negative negative million and March by million decrease Capital, of resulted last City million $XXX,XXX $X.X exercise to one cash largest from XX, per million equivalents of EBITDA $XX.X negative and EBITDA $XXX,XXX from the $XX.X quarter. or million or Park

the we quarters. expect coming comparable the to be in Excluding amounts higher liabilities,

$XX his George expect to in As raise noted opening we remarks, million.

XX. or The first closing on is August expected around

that to remind want we I Additionally, everyone have

exercise are Ph.D. price which average the have with XX of a of additional the could over we of of quarter generate part of technical second $X.XX, of total million staff. funds ended exercise. outstanding $X.X whom at warrants finally, And XX $XX employees, an XX an whom and million a

now back the I’d call George. like turn George? to to

George Holmes

some execution takeaways company. in. I’d Thank we’re quarters our closing, like we That position In key Marty. ever Great. been for believe of – in of we’ve the the our XX strongest solid investors. highlight They to building you,

model seen and validation, business tremendous strategic key unchanged have we Our is customers.

relationships great contracts, take our ultimately OEMs, designs and signed write have royalties with to checks, us. build and them delivering to customers. us They sell We real

a of provide revenue. and more a designs control more – and yen control is create business, options well, customers do fabulous choices to We our designs to contracted Number don’t products. new with foundry the current As our date royalty in conversion library partners our getting we for customers.

technologies. are Tier multiple delivering on X engaged partners

is with and designer double-digits. capabilities We added verification developing of are efficiency, year design ISN approaching to allow even structures development We’ve greater design possibilities. new even precision resonator platform set, per during greater the per expanded, designs process. is design new the the aggressively tool The

broader the We’re X create firm, reach. partnering design Tier with automation customer

get be The agreement investment its Tier to first of to the what kind, of with expect model. mature validation of business we and we many as continues our our a continued in commercial just X business

an pending patent leverage there IP patents our secret our light, great issue. IP portfolio protected and in than is contains asset greater And model. trade licensing Our XXX

and We revenues monetizing our are investments, ramping engagements. strategic

Our expanded strong team team recently outstanding by corporate and advisory a in guided board.

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

Operator

from We’ll The now Instructions] first Needham session. go Please begin question-and-answer Company. comes the from and Rajiv Gill ahead. question [Operator

Rajiv Gill

Yes. Thank taking questions. you appreciate for I it. my

George Holmes

No worries, you? Rajiv. are How

Rajiv Gill

in you. Thank library. about Wanted bit good. I’m discuss your your standard IP a to little traction

stated, for kind them of expect of like customers last of great couple both and interest. kind and expressing quarters. the product to think to quarters are convert I coming additional this you you new you in see had existing And

revenue Standard wanting sense kind the a about kind – IP and from the of you traction get to see opportunity I Just of a there of think Library? what’s

George Holmes

we the market question. for our in whether that the second depressed, it’d are the the somewhat things time IP even the saw with or even sort of coming on get that Library of first what the this quarter, I’d – during Library, sure. say starting fourth about quarter Hey be to our even to what shorter that, If a traction. Standard Rajiv, past some macro Standard IP out we’re where quarter, is And market in We – markets. we of gain going time saw the quarter great the

July, to month and real products good we what as in things a that fact strong the a feel started coming are of fruition. As around saw Library which good happened very look we Standard portion we are that

to look one things at business the be So over it’s I of think we that time. as going the

to going a We’re transition see today.

and IP very balance a Our will significant was be for but the the customs where business Standard this business is year. for opportunity of us, or Library the where

other around about sense, to existence. on it’s to of see because over work XX% is, us Standard we the is our we that in front of just years two a that opportunity think where the that Library have way in have macro that, about products. transitions the and could the you the I business first hope XX% customs, near-term the we Today, contracts executing had virtually well,

So the opportunity is great.

traction, move wanting I the seeing very great guys that to think seeing very, quickly. we’re getting we’re we’re

touch of integrate in our be customers. the bigger X you more something additional into it’s see allows to Tier going It’s And that their by think long third-party, our piece points to run. now I that IP validation a think EVA Library wanting Standard many to offerings. us business companies I

Tier tools designs. and that X those going So and a much It’s footprint their companies drop to Tier their X, into can right drag actually make greater. using designs our reach our

So we forward on to going question. that basis. opportunity see your it’s go That a tremendous answers be a

Rajiv Gill

about you. a wondering kind And as with on both this you How the insight sounds like commercial maybe the that. on agreement helpful. an That partner rationale of nature Murata, I’m if a do of congrats of thank That think Murata on arrangement. it’s utilizing technology. kind Any you was kind investment, Yes, very what could this on agreement, for that your strategic multi-year was forward? elaborate great going of parties.

George Holmes

Okay. Fabulous question.

I if bunch touch see topics. Let’s can on of those a

Tier I want of that work they of longstanding everybody that covers long goes kind customer get the get come about lots started of on customers they that the thing And maturity, fruition. past a here fantastic don’t talk to in one three keep to with long a end had develop. we Resonant, announcements We’ve that, in goes like ago. up take there’s talked about until to So our relationships at mind, or takes of maybe very they that lot the that how in to lots time deals Relationships about we to talk a think We in don’t advance. on. X, underneath engaged work kinds as first We the two it today. of don’t We about of talk years engagements. these

it, We’d don’t nature about we engagements the list on the very like those forward of frankly, customer talking because to and quite basis. close those And about tight names. keep like things go a of

the we make some us in very out customer we plus you of That long So had companies on on want to actively edge making. But strategic here to about in came not you mean, of one had as technology engagement and were XG talk and gain then from of XX us. this what some everybody can front of to engaged wanted time after will about said, and Mobile them X engaged, Xs these Tier since about access our but Tier wanting very that our lots us, to All sign Congress. I in talk specifics Clearly, itself. of we the visit with understand agreement choices. cutting World see to to focused lots hear technology, are have obviously some specifically, we that to met an wanting with. us opportunity or a agreement this do. are

to market our opportunity market them They as on an is, technology the way be depending some That some clearly modules, a good the X with at the with cases it. share fortune than They notice. on a with share to you clearly take marketplace. XX% this Tier makes provide key. partner and is as to opportunity have trajectory of this greater us have greater large deal But the be to have understand look is and in a having you than on and here’s when going major into I OEM. stand XX% And duplexers up somebody that on OEMs

very I’ve for I as sales been a remember, – mean, long time. I’ve guy a may been you

the use develop one do that work them OEMs, as is when I worked to and do to thing Hardest things here we is And is team relationships get of our with to encouraged these I really order. first we so engage foundational. to them

to to said engagement, we’ve us. We to capitalize, to we’ve helped? a with for going opportunity an sales licensed I we have what going be We’ve is deliver, got hunt to all do or what got got that to do. the like got tremendous Is we think as here. do licensed we’re we’ve of those But work this say, a speak to things, we

Rajiv Gill

Yes. Very good. Thank you.

Operator

from The Capital. next Cody with Loop Please comes go Acree question ahead.

George Holmes

Cody. Hey,

Cody Acree

for elaborate can Thanks more you and questions if little afternoon. last George, on just good bit taking my point. a that

maybe the talk you about more could If economics. of specifics the

any be I think what an to of mentioned associated engagement, just timing of Can revenue kind you additional be $X up of tied licensing to fee royalty this this? possibility might you streams about million. that would of kind talk with

George Holmes

that you questions I'll it. ones good to the but give try the do to all best details today, all my Oh, answer I of want don't and the to

Cody, until work can As do little our I guidance And predictable, But do we know left way have a tell underneath of yet we're incredible a bit about not to giving you here's got today. the to performance agreement of long-term we've kind belt. there. you what

two is a to obviously on good expect letter defined fortune the close commercial we had commercial sign agreement. parts, that the that as a as a also in terms well We agreements. investment strategic It to side the

I a royalty licensing typically So fees, that because think that IP payment nature. of we that the gives are all ownership hard, us things terms, of very things and pre-negotiated structures, lot confidence

new in royalties devices good. volumes think the we the to contract. companies, There that able know satisfactorily those do prepaid associated we of is so be that the to and agreement marketplace. that devices to that a what for the commercial under were technology attached are this is million is with Obviously component I was And both don't $X going very to are

to hard kinds these you that's an company advance would reasonable exchange to But really if the going to royalty might in a do. some expect on And money you payment rate is a of expect, upfront. prepay, what deals. really, for it's usually discounts, giving get discount So a give you is as

in We every we a to has which agreement. we get We start milestones, those do four get don't other on signing have hit the have this contract the of successful we to the to wait milestones And until marketplace, we hit milestones have. check. when and they're that with that equal

a for us. that fantastic So is opportunity

the the royalty do that XX% talked at, by rate is range we're average opportunity have calls the bit still one of give last in opportunities of I've looking a business things can a little that perspective, about in level the massive and to the prepaid. you a because at up when an from One you rates X% average have several we taking

we and deals what I that's think and know we you biggest this the knows, be in successful, work customer then to is wait these do everybody have to. And challenge you have royalty to your the don't for business, all

Cody Acree

like to now to foot minimal you a past your early years paid with to very you of us and where similar needed getting customers. time the then those of topics feels that George. Thank trying to the for of of you've that just hardest different for revenue you or for maybe and number needed you're to But it to bringing that Great. to give with were fees. like one stream Obviously number we're it those understand when be on the is, yourself, your work it's helped that we're and investors upfront the set get have but customers. in not will small your discounts for explain the this things engagements it customers, days few from your still very I moral of you coming engagements door, and like, proven on sounds sounds of in, yet beginning in grown, engagement some benefit And level

George Holmes

you a it to And an talked I these the plus months unsuccessful. great question, shipping that develop start designs things a our back early you last very but it's because this. the to agreement that half to tried to marketplace. XX into the of takes point one previous pull about XX sign clearly, you it the as qualification, customer’s we would we are calls, early of some actually were plus this we've That's and expect end-OEMs to and qualification year months first Those in we get in in, we in year, know engaged to product,

a We're those we ramp being volumes see it's but macroeconomic not environment, starting now, are is increase. by to and see it starting helped ramping to the

are think do. We to of get We more royalty have quarter traction that'll we in that start with we're really validation great five that that out already start it there and converting is that kind momentum. the gaining traction will five we'll ongoing this and what believe of on stream trying be devices building

not we here. like it make to to contributed we upfront of can how we to relates the wait, actually As is clearly, that that new one sure of them and we've want do our the and all level done to do agreements things have prepays

years I prepay, think design. we able pretty do to been significant have single couldn't never we'd it's secure when ago three that that done a

Now to this for designs be tremendous and looks for is can we can do potentially. that a us. going opportunity it We new like

into the we'll of parts business set We trajectory. standard will that pop that to shorten heavily revenue the to things taking need IP fronts, one the parts centric guys as be to won't a more we will to those because and are marketplace go, ready up products. ready be that those think and library those transition of I time

for I very think to us. good going very, that's be

negotiate the that you I because a higher to customs come to to more have but we little futuristic more take a think once going the tag price those do with ask guys us time. a longer time, will tend for bit on that money, It's we likely basis. take

take it. think that I So answer Does it? we'll

Cody Acree

It George. does. Thank you

George Holmes

Yes, no worries.

Operator

ahead. go The next Wainwright. with comes Kevin [Operator from Dede H.C. Instructions] question Please

Marty McDermut

you? are how Kevin

Kevin Dede

Hey, I'm call. good. taking for my I'm Hey George, thanks Marty. good.

Marty McDermut

What's worries. on? going No

Kevin Dede

you dragging for back. Apologies

cut out on me. in and you Sometimes

but on try bit might sorry. on sorry. connection I I'm to me my So with a bear be lousy this, little a end,

volume attachments think them four ticking your when milestones, to back there. you you offer, us might hope sort Murata you start of I Can off? give the don't Just on obviously want guess, you to

George Holmes

clear already said that I I I And enough. mean, I wasn't Kevin. if think apologize we've Yes,

goal our to think I very the order. short done have commercial is agreement in

back would look we ahead the of at to regulatory requirements the typical us, able be we and As this to deal. need be knock down sit for things that

work our We've line Tier on of because customer. of I great converting think good sight both that of done we've got X we've that got already, sight line and a that. ourselves the on

I cleared. think handful it's until get that for bang we to the to going get be complete we here XX to can three negotiation in that we be in them. And commercial developing Once the days-ish off agreement. two the that of down. cleared, And will races of months parts we'll have we

at So estimate I plays duration got And out. how think noted, for this on payment. by how milestones. of of That's starts XX-month And, play rough that that's get out. I whole development how get thing to And you thing that and as divide on you duration going four kind is kind on you're it's to a XX-month milestones.

Kevin Dede

a customers. there without couldn't Or clear helpful really other guidance, math you're to are That's able to George. Can exclusivity parameters parameters? to be – potential to the what attached those do be to you market XBAR offer how some it. I apologies. Okay. seems seems your There so it's an

George Holmes

is – there's things a have period. the XX-month There attributed a we So exclusivity agreement. to couple

is with it reliability. of goes a new all XX-month imagine, is have We might what development there. about way qualify will basis, a to completion it. There continue you qualification because a you to lot you technology it's as take XBAR, do Part part on to have of that work to the developing of

agreement. to our first sit I market our with as and play, X back look this think at which into intent the how the clearly will technology, this Tier you be was comes by partner

have them the do in everything us. opportunity with So, faith make can devices, access and them is they we them greater because the to to good the these we're we for to as the think the And are give we as with to successful going put early. possible more successful negotiated them technology

about their greater last ultimately on they billion years has said five is, the back plus billion at to share. XX company they market market next be And XX share. deliver me in mind units, There like and market I billion, when them the of the they look in than market you keep want that have from I XX quarter and today. this as mean, market XX% market the units. has number anecdotally almost XXX number deliver XX today sit talk companies billion have that a XX% XX% over have you of the keep billion billion growing units And share that, that heard that and growing is units, to market now today course them entire devices the going from to greater to having in number basically to a They're still of taking units to XX

it. us that I with think that fact they creates the to on a work tremendous amount in them of opportunity tapped

I huge. think it’s

best going it's on leverage given tapped to a and has and the marketplace pulse, thereof. Clearly and what's of look the touching lot out they this They're get They the to the market. dominate with us know derivative on. a they're this the devices at everything have we're of to the into And our finger help going going their hopefully segment that's or in planet we’re them. some SAW, expertise. on going back opportunity, of to look and created clearly, And expertise. the leverage this there at is at sit some looked every They single X you – BAW technology if TC-SAW, whether you’ve this Tier marketplace,

opportunity with customer. for opportunity if expand it us I that's think it's real this a as tremendous us. a is as to is, going I tremendous them hope, And to for a be because opportunity well, for them that a footprint

help? that Does

Kevin Dede

around the with in great. Yes. very view, I given development of technology Kind One that's Asia for the No, George. your world, elsewhere you question team's your touch and last close me. was Thank much hoping out of foot your going for and see sort where are compliant and rollout you handsets? me give XX,XXX you could just view, demand the when infrastructure of we XG view

George Holmes

just so that you a answers you Kevin, you've to it. asked what you – Well, almost the that’s know got close one question –

RF device you – to Let it He give of planet devices the in mid-XXXXs. a think it. building a experience in the from historically, touch worked market, answer He's to devices company the let started arguably the almost team handset this the member what premier me created and worked what's add marketplace. on the that got with mean, into has thousand associated the the for we've built Board, the what's in in hasn't to infrastructure give I to the tremendous – what's good anchor that had the fortune both very I people delivers our me and zero on on future. going marketplace. is. going what with those tenant actually the and depth the manufacturer Caballero. happen He Ruben this He to that Ruben back

an he a has he our – view, think I has that And view. augment

is You a now space get got tremendous that knowledge. somebody of

the but American macro market and Just in validating all in are sense, in Europe it what's the I'm macro, the trends whether happening and not at Asia. concerned be what that macro company particular, about what's at happening, North in

anybody got has that his come closer he pulse, we've across. much finger clearly than I ever on think the

including that's with. of OEMs the work that And we big some

tremendous come-in and helping the are we’ll that marketplace things the And opportunity so our thinking And of be off guys successful, and the segments as we're think we bounce be is where about a him invaluable. focus of this us ways having challenges done think on can us. with I for how right I ideas such and

navigate talk something companies advisory are interesting and happen we’ve they're mean, where we there to multibillion that when going out them of going we're the helping done or where doing dollar lot, us future. today, We've tremendous very great whole this added Board already. several the industry the tomorrow. out only Board isn't that's not are but very in they team. comes next things roll things don't It's got over to are And to that's years. a guys at XG, it interesting but I something to going a about We have a

we're the in guidance I largest I got fact in the the got that that outside one we've players right the mean the make You us inside. fortunate got We've people on we're to helping choices; from perspective think to. at those planet think of I Tier we're labs a technology we've a together, a in do. putting two that technology core ourselves dominate does validated with that what we already basically said position X And coming between to would third-party supplying it

there for are not there important. we're think – we're most people XX% XX% the beating what there, specs We're cases things in actually

think we're that to the than filters when be and doing more right our supporting work market So are going guys work, that devices, is as start XG else I think putting and anybody think – people going I be the evolves doing that that the there to partner. real into market we person as

Kevin Dede

insight additional on on Georgia. It for and the Thanks, you congrats like sounds very adding I your to appreciate to color, some Okay. Board. outlook. great your promising be

George Holmes

Yes.

about We’re very it. excited Kevin. Thank you,

Operator

next The Oppenheimer. question go Huston with from Please ahead. Greg comes

Greg Huston

George. Hey

George Holmes

Greg. Hey,

Greg Huston

your extremely and new comforting, between progress well the the so done. all engagement Board strategic is That validation on member. Congratulation

George Holmes

Thank you.

Greg Huston

if kind to My these Is we then the now about customer. that of to And the but the others other that have you breakeven. raising suggest to flow you that see the when said the that on a perhaps with you cash to cash see contact his response take this pathway obviously I I have now on say, mean caller can engagement that time second – you will first put road the point? that actually things now clear one to no things so time it, questions, ask want question we to but is you that talked in you part, and Tier having going a you anticipate have on went cash of you that taking you years you you're were I royalties, I to know but know hand, at that from prepaid you're And time. can not can, our

George Holmes

let been this want hasn't to in first, but because case answer been Marty you and closed It end things this of at to the there I'm chime that your there's Well, a on things up race But into point, done. yet, couple have clear we're a is touch couple question. of I done. kind we going in haven't and

XX of to ten couple part by in as the we’re that was came wanted seven that took of alongside of down the taken long-term our Murata raising, million a announcement today the million million supportive of company. and that very balance investors the participate

Tier commercial the won't that'll in it's that turn commercial of days, five close will – take off excited in X’s signed it agreement, XXth. done, said with another will the get happen second And the And four, that us pretty So the is to think we've once that that come we're when crank first the payment anticipated of to next comes close chunk, give will first about money happen the that another have the stream. complete the we'll prepaid we of And – the significant. royalty coming we I table. out stuff agreement, then the so the once

that to Additionally, in are have in focused opportunities we make that we're we front capitalize of we couple on position said to areas a sure a of us. the in

opportunity One converting of historically touched give a Marty it of will the that is about which to presents presents supporting table in our we the an the have convert. things itself and cleaning remaining advantage have warrants today, opportunity we've fairly opportunity them take that shareholders and us cap on been up that significant talked

company, some today, say, about the and piece very might when companies, and up more to Tier at was buy new work on number with just show don't talking we've I Additionally, process. customers, talking about Tier the you we are about is process, looking deals years. works sales what at Xs the These X other you're greatest a about, you're talking this had even technology strategic when in and of that Tier it's for Sales X taking to I Startup if you have sit it, time. it you but product the you when sample you get starts. takes that planet into a a that's them the back good very, feel and look hey, want technology OEM, of

we’d a a sample my products work months starts devices that's These that actually order. take OEM some of that months when works, to work take, or position sample order I I've I’ve requirements. things to first an that own get Tier already our license year a work, even fortunate you a go through was qualification. have got Purchasing through got doing that actually We're to actually been because in got take have real start-up you've into own X can X OEMs in going GPO production to to qualifications hate having know my six Organizations, Tier audit Tier hard the Global OEMS, think factory order, you've going and X, and then X through that actually to once you cases before a year a all be six really before if to get you're because my to that

that to and got are You've through go hard. purchasing those global audit things

and Xs And misstep you to to if you'd the And these have calendar. then that audit, a can months restarts during talk re-audit that about six go an take year. easily Tier a you through

I the in a full we've say are in think position much So we had it walked a than I door. time, since better funnel I've does, takes it when

on up to kind different OEMs about to was are kind find these under that actually manufacturer really, and that's where stages talking What to of different get Tier We and about out of and customers a before when with the OEM a Tier in and X I start point handset converts trying trying it component actually was don't I X whether look it's ourselves. their talk surface. of an time. not stages done so we engagement, whether forefront it every directly, ahead it it's of the bring happens. – engagement. them, Cody, things We're or manufacturer, make And trying kind it give different day the we're are going get to But of lead to

resonator and got we've our to and there hard on the things in of it high deliver from on is funnel, mean a and a our you, team isn't in tell frequency our people �� promise. I'll where a that going mean, about a currently I I of sales lot stops. work technology you engineering of we where that's that tell the team there's development. can by talk think in it lot perspective, XBAR devices other lot stops, marketing I that's

the have several doing well. last devices performance frequency that We quarters. on some we've provides presented papers over that greater as significant some some very And in we're of also work lower the area

what have break I'll on to end up cast to even? point a do over me hand the would regulatory very let last I line your through tell nice will is commercial finish the of nice we completing once the to flow get we a table, get we now So What agreement us have question cash sight – that we've getting and position got requirements have cash off Marty is it at to you in and to register time. we'll at

on more opportunities cash. working think that we're We can have that we generate some

do we We've currently the under cash agreement have have generate we still help we But and get revenue from we and just have from to think take the contract. do at the it's and us to know think work more We devices will what do. this point, that warrants this a Marty? going coming perspective, from we there to to work I going got to my get there stream

Marty McDermut

Well, the last progress in is the quarter very impressive.

George Holmes

real want question? you that briefly Greg's off last to touch of just do to Marty, the finish – on kind bit on

Marty McDermut

Yes.

strategic additional doesn't a to that the that other if with any warrants work other price things George the could XXXXm, all possibly the deals that about, get we're agreement think investment and that I going doesn't count that growth cash. the things current in some the on cash, cash into revenues, of us what some include on, X talked generate like and other that execution if exercise, know where stock to half the moves that from we Tier commercial were second have

we're there. we're to in going last job good we're off. shape, picking good quarter we we're think were executing, said do doing we doing really this and it we're a think it, And pretty I at I getting

Greg Huston

Thank Super. both. you

Operator

and remarks. Chairman George turn for session. Holmes, concludes This any conference the would to back the like to CEO Instructions] over [Operator I question-and-answer closing

George Holmes

to operator. Great. in strategic a quarter filter By Well, our hopefully manufacturer done business everybody today, we've agreement see you'll tremendous on commercial past provides X validation the here Clearly get the to work of model. to million, us, but do it million. $X done coming of have has Tier and investment we on Thank all to for that we executed you, short $X work get of a this call out the we next in line, in to believe get those months. we'll done have front those know timeframe what the it's and over get a some the several we

volumes into providing integrating access company of Library to products, get third-party ramping easy EDA Standard OEMs our technology of devices, X unit Tier their IP designs. to our A

First of shipped. over half royalty X.X back for. million units that looking stage shipped ramp revenue XXX,XXX we're see that getting this first kind in July, to the and of We as

very much. Let by Have for for and me their validation support. thanking Murata of our a their day. shareholders competence to you Thank close technology the and ongoing great

Operator

call. conference This concludes today's

lines. day. your have pleasant participating for disconnect and may You a Thank you

Resonant (RESN) 7 Aug 192019 Q2 Earnings call transcript