RESN - Earnings call transcript Q3 2019

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Operator

Greetings, and welcome to the Resonant Third 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

Please call, will the which IR of operator. presentation Events using during Resonant's today's is website. note, you, be we a page Thank accessible on

with either view download Please are If the along. to or today Events to the the phone. you page go us follow to presentation via

of XXXX. at this available that release accompanies call is Turning Earlier released results earnings afternoon, to slide website for The financial the the Investors section on Resonant www.ir.resonant.com. two. the company's third quarter this

slide to Turning three.

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

of those in not and SEC. forward-looking such subsequent or Resonant's company's from and materially could described such that guarantee statements contribute Form recent most the actual in are filings XX-K differ cause to performance differences Such contained Several with and factors are could the detail a statements. XX-Q in results

the of date of statements this the publicly of update the after the These or regarding circumstances speak only any supply no call. obligation forward-looking statements as this and forward-looking undertakes call date company to new information

Resonant's Chairman George With that, CEO, to it is turn and over my pleasure call to Holmes. the

George Holmes

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

Mike Development Product of Business is today and Eddy, CFO; Marty our me McDermut, VP and Joining our Marketing. Corporate

since the that to by like I'd achievement call our slide place last the of call. highlighting Turning to took significance this four. begin

equity largest manufacturers, and announced a million closed million the agreement. with ahead schedule. RF commercial $X $X delivered our of we agreement commercial the deal Closing First, investment filter a significantly previously world's

of larger second than combined. units third the increasing on Second, with quarter promise royalty the and first we delivered the quarter being

to going X Resonant's third-party technology published an word's independent company the attribute it teardown phone, Tier to Third, out another news. the

agreement manufacturing Teledyne, XG and solution. foundry Fourth, MEMS for with semiconductor industry-leading an we a have our signed

You can our on find foundry a list our website our under program. partners of

the All three interest related of Marty's continue strategic in been tools discussion I These to has pillars the build customer value Resonant; have the and of briefly of to news fueled shareholders. will our outstanding progress our foundational to and long-term financials. opportunity of made team, revenue are Resonant. after technology, acquisition, They we on ramp this and good expand deliver for scale drivers touch which by

five. Turning to slide

and Now, XG, on we lay you let dive believe why to technically growing the I'll take dominate of segment high-frequency the fastest me in positioned market. give are a our after technologies of our uniquely out rollout which

the worldwide. collaboration our I with time spend current Lastly, some reviewing supplier will filters of dominant

are being worldwide. XG deployed networks aggressively

However, is in any near-term the availability in wireless the the implementation as the and with new by limited technology, network. schedule actual of for the deployment infrastructure both

wave technology. will the approximately millimeter sub-X Turning XXXX, Ericsson slide predicts network by to reach gigahertz that XX% XG using new coverage and X.

deliver the wireless implementation two of XG true to available benefits XG For and becomes XG progress the available methodologies using of today. spectrum some

realized already advantages for Resonant technology, XG in developing allows of these components a XG upgrade is the for re-farming for modified XG and the filters of which to the of involves bands applications. some short-term. software First, spectrum the This requirements phone. within be

XG. mode, non-stand-alone in to what will be not will is very will drop the required so XG phones is next for provide Second, three areas role. limited to that for deployed because coverage to two XG XG available, XG coverage NSA or be backstop a will in network over called initially Hence the years, where XG be

filter filters categories innovative requirements devices XG high new XG Resonant's band. re-farm XXXX new timetable. using XG Both through in for strategy for library. to standard filter for spectrum is technology of and our overall be XG frequency will With intercept IP filters our available this made

layman's infancy on So and in be terms, is of high those like until technology performance believe XBAR filters volume its Resonant’s we ramping XXXX. meaningful XG based won't in

applications. of few to higher enable X. high bandwidth XK is video to name rich frequency a XG to streaming, slide need user Turning a for by rates just experience vehicles the High reality, are designed using exacting functionality because platform delivers Resonant's exceed data our dominated data technology. specifically filters rates the ISM and applications. of virtual autonomous requirements bandwidth XG

Resonant's delivers RF multiple developed bond needed for aluminum XG. bandwidth which competing whole nitride incumbent relative technology What the lithium XBAR by from core bandwidth XG greater for user different of requirements were at Resonant's bandwidth, have XX% is technology. bar suppliers X% maximum center Resonant's structures their compute advantages experience. to bond whereas, over ability X% the based to suppliers deliver which for solution, technology the that Incumbent utilize of are use the limited than square, to structures, which only frequency, separates a niobate, their

sub-X XXX offers incumbent Turning of the of slide technology. bandwidth end the physics Resonant's the megahertz NR of gigahertz less XXX high or to XG for of to new XG X. the over fundamental focus the than specification, compared structures the Consequently frequencies XG, radio in the megahertz

Mate and It band existing XXX through been XXXX as designation, have low X and Several refarm XG bandwidth deliver as XG XG that NR to XXX, by use now for and for measured to note Samsung FBAR new high megahertz, Resonant's for XXX all NXX NXX designs party SXX these solutions. which lab at XX NXX, call Tier insertion is XG XG launched and of line the of that phones. smartphones first outperforms Galaxy the respectively. as XG HUAWEI these band BAW important bandwidth nXX frequencies, been XG. the Teardown such phone NR show the labeled Pro the XX band such have of in

function. LTCC Qorvo filter. the filtering filter XG the from sub-X And prevent components the performance in interference. module Samsung Galaxy used gigahertz SXX But providing the inadequate components of Murata is a LTCC In LTCC teardown, long-term, XG to bands the case new

Lastly, of Resonant well agreement package front-end fab and This and announced industry-leading designed filters Resonant technology. to and our own capability high-volume support Resonant on to clients processes Resonant's foundry semiconductor other has hyper-frequency novel the a Teledyne, manufacturing standard XBAR and gives to with standard fabricate to as products. based its back-end offer library having fabless as MEMS

filter X. bit concluded subsequently closing regulatory slide world's successfully We the our stipulation to a a definitive both talk commercial I and August, signed manufacturers. and RF of one schedule. we with investment to about Turning ahead In Tier commercial agreement agreements. want little largest

an a investment. As result, we equity now have

X.X Our partner million for approximate X.X million million Tier equity at for also investment shares $X.XX $X and investors an of current our of $X at equity an shares. made approximately made one million $X.XX investment also

agreement million agreement version The a $XX of total commercial we This a XX of prepaid to for agreement, for prepaid in into has we hard entered and our Details bands commercial in finish cash royalty XX-Q. payment million with for published a $X delivered $XX of will in resulting of the four equity development a for redacted million in Resonant. can see million in commercial the the a months of total receive first found be new of royalty. $X for distinct filters total

time for deemed have say, our distinct note exclusivity the left The suffice But is The which months. agreement four bands. maximum You period here of which key allow for royalty. specifics, that is provides XX OEM for will months. The is facts. of commercial which schedule, would are is unpaid some sooner proprietary been for prepaid XX technology, solution development out. and agreement finishing are our the remaining payments XX earlier high-frequency ramp of than on the The XBAR for includes some to months, based one

Resonant the only. exclusivity XG segments XXXX to sampling IP market own the made by is deliver which automotive, are this of filter solutions in infrastructure, and all plans half CPE, Starting be to of its of for will the library XG The first available IoT. solutions, medical covered other RF Resonant the can and be mobile including can not that agreement. category

largest grows the as five greater the need And over is next to RF manufacturer year. filter share. almost market billion market partner develop $XX $XX will than they to XX% each strategic years, billion the from designs Our hundreds with new of

the devices this and this business them. that four our are beginning. initial They for in with believe expand we the great such, a agreement Resonant opportunity to only creates As partner are huge

manufacturer RF commercial the who three under of in greater software spent investment there from greatest our IP building our portfolio filter world's past years agreement We the Bottom space. platform base, we the devices RF our expanding validation out technology an manufacturing largest filter no and is customer believe the have and with platform arguably than contract. has technology line, and

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

Marty McDermut

Thank you George everyone. afternoon good and

Turning to GAAP amounts slide where I the talk about XX, noted. except are

For quarter first the just million. for second was royalties under prepaid George to XXXX the billings talked the commercial included over quarter the of which of about, XXXX billing as compared third $X agreement

administration last compared Revenues to Sales, to and development loss million operating $X.X quarter. last expenses and compared marketing an expenses of million of totaled of million comparable $X.X loss Operating quarter. $X $XX,XXX to last comparable of $X.X quarter. to last $XX,XXX quarter. million Research

a XX.X shares loss share weighted average a million or outstanding a on outstanding per shares average million to the of second $X.X XX.X of million $X.X quarter net on loss of per share-based of loss $X.XX Net of or million $X.XX for loss XXXX. compared weighted based

$X.X XX, negative million at $X.XX XXXX or EBITDA totaled June negative last negative XX, $X.X to XXXX. million negative $XX.X compared cash compared share adjusted million Cash, or of $XX.X per million September at $X.XX Non-GAAP to share per equivalents quarter.

Resonant stock prepaid quarter, private in in of XXXX received a first In common the gross not XX, earlier. transaction. include the million that of September million from The George cash mentioned third balance does sales placement $X $XX royalty proceeds

June current have of are Ph.D., our We with whom XXXX. we believe a the XX the cash, employees; XX technical in have XX of quarter ended third on the of we of whom total a part Based cash staff.

the working regarding recognition from $X diligently other as XXX agreement, X our ASC royalties and upfront royalties. the been commercial revenue Tier we've well million finally prepaid our of And as

will XXXX. QX, result, in we $XXX,XXX a revenues over in we have believe As

I'd now the to to back turn like George. call

George Holmes

Thank you, Marty.

business. a Now before pillars our of the minutes me let spend we close on few

QX last XX, pending are slide our them intellectual XBAR. our quarter, and increase of patents than high-frequency approximately property. XX% technology XX or include issued ended We an greater related to to which with Turning XXX technologies of over

needed requirements Resonant's the As dominate and for designed XG. highlighted have XG. We are and early long-term to us that is about for cutting-edge opportunities to related solutions rollouts we deal great for believe both these on optimism technology bandwidth as of uniquely high-frequency a previous wide high-frequency technology calls, creates positioned the

Marty McDermut

talk capitalize Turning to continue investments We made QX, ISN software in we've our to we tools. slide Network XX. In about platform. Synthesized our Infinite

platform dedicated a As refresher full end-to-end acoustic ISN Unlike, design. makes in the or it's filter and what use industry front-end Modeling wave we for RF any today Element unique others Finite accuracy and the lowering the iteration and and design fab of FEM costs. is design. for design the decreasing of increase both our through electromagnetic time simulations or acoustics This churn reduces ultimately integrated number

of else aware not does anyone are it. who We

quarter begun had developing our first suite. into that standard AWR with ISN we IT filter leading this platform the Last RF of integrate some have integrated product well. is design we the modules which National of We the Instruments as library platform that software announced

George Holmes

Turning to XX. Slide

SAW us allows also foundries customers foundries across for them world, and cost includes XX our our – platform and BAW partners. efficiently and for of around ISN and rapidly to which effectively vertically design solutions integrated foundry put the Our TC-SAW our

Marty McDermut

to XG development. well and being address able for of refarming forefront for requirements down of our the Utilizing as while we're establish leadership rapidly platform, at position band XG as the a the cost XG ISN driving by design

George Holmes

efficiencies Ruben's Advisory of has to rollout ended XX. We our quarter market. ISN this to about been of for Board headcount the to I'd the quarter. and we our our knowledge also third Caballero and in mobile slide develop capitalized talk team. on guiding mobile leveraging by in and expertise handset past us like XG Committee as the We started outside Technical particular platform. roughly heavily pillar the invaluable market of XG the design of Ruben Turning addition solutions the same our with to the

with ISN are vertically closing, I'd our investors. XX. the and in some including components highlight Resonant's antennas. takeaways discussions software power had with three-plus key amplifiers, and slide model force including market module OEM integrated handset a major IP for a we've In to key worldwide patents of the tools and switches like filed a our growing carriers Turning In of XXX all basis other years, disruptive in to the the of rapidly our Clearly, manufacturers over market. manufacturers, and go-to-market issued past participants, handset manufacturers, filter on and

of I has world's the provided as you value the by by renewed and look the our Resonant can tell that acknowledgment manufacturer of CEO largest disruptive fresh filter a the all. and technology RF interest

rise are continue Although, the now trend on and made three Tier the into a unit third-party to our phone. volumes we have that expect we validations technology has it X that

our XG our applications with our to ability partner our engagement high-frequency facilitate ability of Our filters to only Teledyne support Tier deliver not well. will X sample but to samples as also non-mobile

by the growth with I technology of our it Library fueled provides that position best and as choices we us are market We directly emphasize IP the power being can't the Filter of OEMs. products with the enough of our the to and partners to XG. is possible timing continue develop on capitalize market relationships Standard in

Lastly, only achievements Resonant the existing investors RF This to may the today filter with our it pure-play discussed broken new opportunity the additional of we've be the makes the bandwidth for expansion a on tremendous market. needed code great confidence the have next delivering investors. company coupled for provide to for filter

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

Operator

Hamilton. session. conducting the Thank question question. you. with your gentlemen, Ladies first will and Instructions] Please a from proceed of now Our Cody we Acree be with question-and-answer Drexel line comes [Operator

Cody Acree

different if and progress. manufacturing the give it and filter to definitely I George But maybe the start to a congratulations like partnership even want? way you've off the in although be want back-end capability you itself if the this giving questions Yeah, relationship with would didn't business on customers. guess, Teledyne where taking you can my looks for I said both thanks with front-end looking you Teledyne you your

George Holmes

away is jump this go-to-market and in little with non-vertically to might sales I bit unit walking on a Yes, or royalty-based calls, and But we Marty have the we're available our we out briefly royalty another just as noted players. to built with step latest customers. program know this But capability announcement from Cody. either and as relationship about integrated a our very you have recent several some clearly, down basis get our I'll path have of vertically significant for talk on past And integrated it the foundry technology. on most per specifically. high-volume touch Teledyne not and model make

What we support this our on this we we're very does to -- have the you creates right? path And tying talked to we're is it clearly clear really that on view revenue. very, revenue, customers today, And bit want best we've a calls when all have them to options, in about way a focused previous can.

handset efficiently As and on quickly manufacturers. a relates and OEM product are large them getting leveraging which customers, their impact it to their

is perhaps us we branded a us if our royalty this revenue. And to well have and products create it we to a because make And as solution creates top-line of so it gives branded a gives both the the opportunity to choose. available increase What clearly has tenfold pretty potential that this combination interesting great flexibility customers.

the for build we're new to to as XXX% program. really the delivering royalty the time it's had out revenue into said works work in years our been this path and technology we the current has something all model. being And foundry committed we've customer about market. opportunity our That And straightest two to ensuring to last our

Cody Acree

RF disconnect your rest filter there's prepaids royalties your do Resonant you that George and some And valuing are somebody obviously giving you. attribute what giving I sees your I maker and on. stock guess, you public Thank investment in like but good. guess between just at opinion, also, what largest equity so and the the you what disconnect? of is attribute to Very

George Holmes

smarter very than world's that largest the filter pretty there And but have very, hasn't guys are surprising we relationship us. understand dominance tremendous math and that great significant a community opportunity really for the question creates achievement valued the that is investment manufacturer, understand with it Cody. their a much It's problem me doesn't this

rest segments But is that market we've the the of filter on XX-month the Obviously, market. based of one in thing has announcement lots for of sure, have mobile. a strategic interest because RF seen in the what other we exclusive

free and right us have to in We created freedom operate and for on. segments to a tremendous all opportunity other capitalize that's

in this a to period historically, that demonstrated of specifically have opportunity. time short we deliver year then very know we on And how

to the and think we his opportunity as just think basis. for Mike we're us that team going that give create a very markets a it on are it's we be focused And hope for and great focused. tremendous go-forward We So absolutely. to us it's going financial we really the opportunity company. credit look on for

Cody Acree

Thanks, I George. to have in received, million that revenue planning remarks been of your mentioned if how you that Marty, $X account prepared for already are plus per And one more prepaids you may. this that had question Marty, recognition? for you

Marty McDermut

including time. the some as pretty I QX. stage. going the through generate said that what transfer to will over have as the at mean we call, of analysis that first quarter, I other are sure in upfronts evaluation we're we of XXX the royalties I and we're We, revenue in the that's through now of the million and value come over said to and in going the period So, the some in $XXX,XXX this $X going is revenues other

George Holmes

fourth the quarter. In

Marty McDermut

-- quarter the fourth In sorry.

George Holmes

Fourth quarter.

Marty McDermut

quarter. Fourth

Cody Acree

right. you, guys. All Thank

George Holmes

Cody. Thanks,

Operator

you. Thank

question. comes Our Needham Please line next with your of with proceed Raji from Company. Gill the question &

George Holmes

Raji Hey,

Raji Gill

good company U.S.-China the benefit Also in But the from the Murata -- think question. suppliers. of been will meantime, ultimately I congrats on away from wondering, how kind of Chinese Obviously, are I momentum my trade with the U.S. taking will war. RF that. was OEMs and evidence announcement your your there's that for was thanks Hey, reflect moving lot a

the You will then of higher in if and Murata other how going XBAR has kind take obviously from discussed the point terms your a technologies bands vantage the this how in XBAR discuss wanted you particular, have RF? from this at on in that I maybe over frequency to past -- and XG this that in I XXXX. you maybe performance of -- benefit kind we've with to agreement effect of superior But existing think could situation but you'll and ramp this the

George Holmes

Okay.

Let grab of me out XBAR couple of to for have gets we Tier months contract kick going pieces clearly look partner, it sure over kind you the to kind of our a that. technology. Raji One I'm Marty finish XXXX. on to you with up is, if XX of thing to X that at the

be If market light you will are point them see by releases look full Nikkei, in it's to speed at their clear they're at that front the you the as in that volume There they're capture of materializes. the to opportunities -- I think XG press pretty planning that in time. that that moving on probably

Obviously, think those with they happen this network outward quicker But looking going to the look latest teardown and for what more get with at to a as part it. much this devices sit module balance. the back the I of the requirements than opportunity, the as think as more it's They're we we much stringent Samsung do populated. is phone next that in Qorvo has Murata see

paid believe them XX-month boundary in will period such for can to the mobile the to deliver with we will provisions that execute is having get agreed exclusivity that put segment contract we as up aggressively really market. ultimately that against that we've only we sooner. of our that the Clearly, we And the -- requirements that we and end move

a there think do opportunity I tremendous for in. So, pull is

think fantastic I to also I dominance and on the marketplace. we that tremendous understands helps. other importantly, partner. But there that's we've More execute Clearly and one really case been they're a They're our that deliver able have, execute deliver. broaden expect extension. here. a footprint. and They're be customer -- got to Obviously is opportunity for based we've to every that the

you this course And China what if I look think happened the the over at that has year with trade of issues.

I been think big benefactor. a they've

will that total I If penetration going the the on you rolling module are particular penetration. numbers have from about module word XX%. FEM in total in, at module D There numbers and are front, latest is they look that the I increased XX% delivery their think think to module their total

in growth, the I think it's space. really XX% they're fastest-growing one the

more. technology. is think Mike, right large I’ll on you on our think with bit right the fit I for Mike, that a our little bit do touch place, touch you time in a part, to have that's we great technology good want because a But partner. why little

Mike Eddy

Thanks, XG substantial and by you been bit on little in touched I just why really because it's and the for recognized and important the And why Yeah. George. it's that which new opportunity XBAR, XG different as for it's at said why the a about requirements at a it's manufacturer filters. world. Resonant Raji we looked filter largest

megahertz there requirements those required two high available XXX, with around different The was XG. substantially needed because And bandwidth bandwidth, X.X what XG wider are is gigahertz X with filters at gigahertz from are XG narrow below XG a a fairly which little was was gigahertz. from one technology requires frequencies bandwidth. technology substantial XXX, bandwidth XG to bit a larger for type XXX gigahertz. transition no at very

technology for so develop the well the they XBAR structure to change. If change is XG transition that's to needed right you bandwidth change that moves of remember Broadcom XG had the the from XG. to when did XG, and We and XG requirements because in needed to And of block moved as It correct building kind how the transition believe filters. filters to fundamental that match XG, in in frequency. to

a filter of bandwidth at. the a of it's frequencies operating the is as percentage defined Typically,

Those at considerations larger achievable major, required is for bandwidth. bandwidth at instance, of for the XG major than XG. were X% XX% we These bandwidth, the substantially feel XX% maximum technology are without about, filters about use So, are XG X.X% bandwidth. now to

optimized and way substantial transition front hope are that designed technologies question XG and the of XG. operate RF give XBAR and I particular to answered I to operate and at your these full realize these Raji. will will benefit that Our frequencies ends into potential the

Operator

Thank you.

Please question with next comes the Tony question. Our your of proceed Craig-Hallum. from with line Stoss

Mason Anderson

for it's on that Mason signed Congrats Murata . related getting on guys, Murata and the first for Tony. Hey I've couple agreement. the agreement got to your royalties you. booking a

did payment XQ? in you contractual First, have the quarter for revenues any

George Holmes

Royalty payments?

Mason Anderson

Not that royalty, kind past for... you payments one-off the of guys have had in the

George Holmes

Well, unit the third our is revenues. prepaid the of which up the with revenue this made royalty of of now and And upfronts per addition kind royalties. agreement, category is

as royalties per prepay reasons. royalty a blended we prepaid start unit blended rate you a to against because, that for reflect obvious basis, that for XXX actual have rate, from now you'll rate discount start they delivering on see because, we'll a a royalty go-forward accounting and the doesn't significant got So, perspective, as and the look a

than significantly see -- be you'll typical royalty those even higher what But is rates blended though your will rate.

Now, the of branded here which on for when is the that category is product. could which we're like revenue, one we prepping talked the earlier, the it other question, be fourth Tony looks the asked of delivery opportunity

an would We revenue. appeal there responsibility. fabless take to do on both clearly clearly, some And there ability that in is do a have us that it's are XXx because, that have customers customers the some interested uplift to of the We our in that. OEMs, like that

thing. a pretty exciting is that So,

and last is we we us for sure have thing for get the our make working products gap that because years And to We three help qualified. the nice could close the go the been We diligently organization. the allows have We have the that know already the lab. to testing that handset marketplace. into already how us deliver to have already We products quality customers applications. already to

business. get working And a So, to that low-cost have partnerships it's change the we will other cost impact. now a we're very, there very that believe overall big on without allow the for right some in cost-effectively operating we very us

Mason Anderson

XBAR curious just then your And much is Great. kind of Thanks pipeline, for standard just of design that, current versus filters? of -- quantify you George. that can how related

George Holmes

to we position we're sample agreement be we're of half in we those doing Clearly, in the that in some Tier year. non-covered that have to then, Yes. the which And we'll we work support. parts the feverishly well categories one a as believe the working first have

So we're working down that path.

overall jump say design that you to probably activity. in want Mike, And don't know our on would this. I do represents, of I XX%

got detail on You've that. probably a greater

Mike Eddy

say I XX%. would Yeah. it's about

I think that's accurate. pretty

We haven't that about number, XG regard with filters. but amount pulled to compared type out the the traditional exact to our activity XBAR right surrounding of sounds

Mason Anderson

But prepaid have of royalties? past said, to those be to know I can And Okay. can kind payments receive relatively you then And just what how timing I the you as as don't much finally, probably some the evenly other had the you other far in Great. spaced detail of you royalty they'd give. hoping goes? Murata. timing provide on maybe clarity deliver know from then just

George Holmes

question of agreement earlier XX agreement. you roughly deliver size, it's on that four don't customer. the probably the assuming you make reaffirm The can something final they redacted we considered a could payments is term balance that the would very three agreement, Well, payments out months, the of I sense. execute that our probably the think is of we what and great is fact terms tell because of frame count of equal cover left and time that would got and the to be that that maximum equal strategic on we've But the

very the designs a the our one customer. specifics to considered So that's of but year, about proprietary

that's at So, for off save we'll that, now, okay. least about if and not talk

Mason Anderson

Thanks me it lot. a That's for All right. guys. Prefect.

George Holmes

you that. Certainly, we Thank much. said

Mason Anderson

I will.

Operator

Kevin of Renshaw. question from line the Thank Rodman comes you. Our [Operator Instructions] & next Dede with

Kevin Dede

Good guys, George, afternoon Mike.

Marty McDermut

Okay. Hi, Kevin.

Kevin Dede

Yeah, a if able question got Marty. but I too to to I Marty. get it. don't we'll Yeah, you Marty, be for know Thanks

Number George clarification what Teledyne doesn't on one, two there. does Murata? model? XG your with financial it things one is specifically it Teledyne I on that think big infringe the number to do is two developing And how

George Holmes

question. great a That's

fact the the any have call other are First of that no they different foundry them actually MEMS sets that capability and than to being foremost, work gives XBAR. capabilities, foundry on of devices them obviously, the we in our except they partners a different high-frequency

sell and us the the at are of inventories delivering look it have that back We we opportunity having in our to and to will part actually sit that or advantage top of branded the when revenue, the for not that looking business XXx to of line carry not evaluation. allow products have at partners such That's And products increase that to cost. today in we're treat burden. we with customers take doing would

created always to partners a clearly, the deliver not support back-end both OEMs. needs to What we the getting the have over team not of that of only very those allow opportunity and it our foundry and last building three effectively a customers saying and to directly front-end series we've said going non-vertically business that this and We're integrated is us we've to and vertically we the current integrated revenue of today. address companies. have that take opportunities foundries, and And to committing ability we been that And their to. course years the we're

and additional line. that if we and and capitalize cost opportunity Now looking that that and we'll arises effectively that the minimum at that costs can do top to opportunity and with that on we're back do sitting evaluating the deliver

looking today So that costs in only cost we the in to would quality the position additional some nominal business the fundamental P&L of as at as personnel the associated some don't ourselves that a expect with management. folks we're supply chain well be to and some additional additional change put

other of relationship the to and Teledyne normal. versus do foundry about pretty Mike, want we I agreements? our a signed agreement all it's talk think at little bit foundry the just you about different what's

Mike Eddy

Yes.

I new any is inventing XBAR -- does things volume, highlight we're a steps high-frequency think filters it regards or not resonators can one to that, high high of the these these high-quality process that lot produce parts. in standard foundry MEMS with bandwidth, of and

infringe also does have TC-SAW in about, have? way And have we foundries so, in another past. in any Kevin that similar your for and was not how you way the it's them very commercial question foundries which we our the But used had of that part this SAW agreement standard

again have we can of of is over And such parts XX our significant have which month things for foundries I applications as a with one or customers Teledyne for there non-mobile is period mobile-only, agreement work to we is a we're selling the interest manufactured. order the the exclusivity provide in parts those that, out pointing think parts get in

that so focused are on we're automotive. these initially as CPE applications well And as infrastructure

is Sub kinds Wi-Fi gigahertz, for that So well of this as these filters basically there is interest as applications. these in XG substantial X

Kevin Dede

of it. good, here's was other the Very you. All meat Mike. the you for Thank real right, George. one That

opened in you spent wondering they've sales for a You've time of have Japan billion facing and company right? a you? with in clearly sales. million of Komono. represent much cap how the it And $XX I'm is lot You basically $XX spent lot time a market This no

it's XXX%? I'm market? us XX%, just rely much us, can how has to them XG development. you into you Could on they're tech that on think a for XX%? get tell Resonant's Would say, much come give how say you Murata Would to you it's relying ballpark you you XG wondering on

George Holmes

that's a a it and a that's company company million and market Kevin $XX cap. you've $XX probably great got you got Well, got an And think billion question. I answered you've

of unlikely. that the what's organization likelihood we the happening know So is in balance that highly

are the they on highlighted XBAR at IUS our the Nikkei. their roadmap they press releases by They was items expect tell with millimeter And they're wave. have us. for fact an see They that in you clearly they've presented is in us working and into I made that can that working what extend technology. with public. opportunity what their to did technology covered sub-X and XBAR our on it And But they also

know That's what I today.

you these I think you partner does tell lot we'll with able be will relationships year them integrated with is I believe These things, what confidential. from good very probably I team able But get more to tell be a job, our greater because more and a of we'll nature a clearly as just to the are the opportunity less, to beast. that's now.

a they're talked we been we is a couldn't better Mobile great And anybody you at tell of date. World to companies to with. have that partner people to can XX have with. Congress. asked to I work fantastic What group for We They've partner

All were great. of them

largest excited And and us the to expand months. the get promised, and of the them to going And actually discussions doing. next as we're testing chose for relationship we and allow the we evaluation execute devices. try four the meetings is the deliver We we're course at And had happen technology. to to tremendous in go to of us deliver least to excited about several job and that manufacturer world the that. thing what to over good best they partner about know we're And how do with

Kevin Dede

million you cash in can't that you. so George, full out. Marty stuffs of It's if little $XX.X you still or royalty done have unclear. thank in on advance have the cash? payment amount what's the those raises Do straightened AOC from us may, Well the until both some you, of for in that you tell a recognize and Murata I

Marty McDermut

September at June, million balance had million from which million first, of raised, the we Well, it in it when the others. of from only was became includes September included XX. end plus $X million paid and out includes million The $X we But $X specifically the the XXth, XX, Murata $X until that as we us to so. not later October payable came on $XX prepaid,

Kevin Dede

you does on so And sheet? mean an sort the of that show have it escrow, to balance

Marty McDermut

the our deal It's use. kits. is to under them to free right It's our No. cash

So then, go receivable revenue September balance I -- deferred down goes deferred sheet And -- it's The mean, as recognize up right of revenue deferred was receivable. as XXth collected. revenue, setup the that on. will as now when the it's cash we a

Kevin Dede

it. Much Perfect. appreciate Thank very you gentlemen. much,

Marty McDermut

you. Thank

Moriah Shilton

Kevin. Thanks,

Operator

for Ladies are back at Holmes, and I the further like turn this questions. closing there to, to George gentlemen, would no floor time comments.

George Holmes

Great. closing Thank talk business we QX. a our our And about exciting filter and Tier about. were you, and phone the world's achievements technology Operator. had manufacturer call. in an want little excited ourselves putting find third Teledyne, We today. shipments, first the where those that we're wrap Clearly, I this very being one half bit fantastic to unit largest announcing with a partnership a

the be we strategic partners. We've extending we new as developing But well. I planning get that world's Obviously, looking with extending potential our involved relationship forward about opportunity to been manufacturer, as have lot largest get lots on start in and filter with to. a more excited our think there's of we're these devices,

Licensing we something horizon platform, have a us. about edge value we our on cutting partner ISN The there still both a perspective. strategic a our didn't and is licensing technology we a the believe that from we and software, quarter. But that on is this also that in for that, lot talk see of lot it's basis in

IP, And that's and the reporting going capture the not revenue, then, sense. of potential be to we that that to opportunity and on, or exciting of whether investigating value an line determine we're make as XXX% progress top makes

all a Great of about opportunities guys what you to doing. again. for you excited I Thank great thank you much. I we're hope are us, want Have day.

Operator

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

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

Resonant (RESN) 6 Nov 192019 Q3 Earnings call transcript