RESN - Earnings call transcript Q4 2019

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Operator

Greetings, and welcome to the Resonant Fourth Quarter and Full-Year 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

Investors and company's this call earnings The release at accompanies this Turning Earlier released results XXXX. afternoon, to Slide the for full-year financial available section on www.ir.resonant.com. the is Resonant website X. the of fourth quarter that

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

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

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

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

George Holmes

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

today McDermut, Joining is CFO. Marty me our

XXXX achievements call, and discuss for from expectations X. Slide Turning In Resonant’s today's will to beyond. XXXX, I

working who Officer. joined investment Kelly last since sincerely our your Dylan Operating Also, update. welcome to and new Chief with Before and I the number us you in notable team future. of do, as welcome let Resonant forward the our interest have me appreciate to look We executive investors in to like I'd

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X, Resonant performance, design do novel and times as are the Infinite resulting how revolutionary Slide in we faster proprietary Synthesized many much the development and five and low We to or A in so designs, exacting cases, bulk Most XG cost of or XBAR three to high this? enables of believe notably, our Wi-Fi resonator software X. do acoustic structures targeting and Turning unparalleled ISN requirements wave disruptive has innovative Network as development. BAW platform and developed technology.

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XG detail call. includes later in more I'll in future which high-frequency products other Our discuss enabled the

rapidly new address China needs directly foundry Our program enables to market. the entrants the of changing

based XXXX discuss Turning stage on model. set technology let's X, which successes now business to Slide and the our with huge

XG front, XXXX. high-power XBAR we first demonstrated and World Mobile technology XX% the filters the Congress working bandwidth at On handling in with

timeframe. first license royalties. half first non-mobile XBAR the agreements year. will million, on samples agreement filters we with commercial what We're targeting a expect largest be was the This XXXX totaling of filter targeting based deliver $XX strategic investment first the many to and manufacturer, in RF in prepaid world's with phone XXXX production of of signed the We mobile and agreement this

On And units. X.XX our quarter million just with units quarter, million shipped over million the to-date million half of X.X shipped we XXXX. front, units, our over units over the since customers in first third XX expectation in X.X the fourth total of in the units. to XXXX, met In XXXX, over started the business they again we bringing shipped

In offering million net proceeds. strengthened addition, significantly in in cash through February, position our public we a $XX.X yielding

the As overall it's our and already Coronavirus more their lowered many commonly the of impact clear we a XXXX, known COVID-XX had customers partners market half or as have entered has where first forecast. on

One forecast as as of reduced much peers quarterly their XX%. our even

company resources with on customers, new pre-payments, lower in as as more to to transitioning our from well expect China foundry on companies to grow those evaluate our including continue that on We're to partners of quarter-over-quarter uncertainty Marty. with our existing market them help them from to see Tier-X QX strongest the focusing make revenues we competitive. time our foundry XXXX using Resonant, customers At QX customers, to later XXXX more this costs

to like Turning to growth. cornerstone little opportunities on that a X, time in the our spend fuels I'd Slide

software Synthesized Network or ISN platform. Our Infinite

platform filter capability as to with end-to-end faster market. To quickly in the delivers designers to and low that our As time only electromagnetic ISN the is an innovate real allows knowledge, acoustic best and earlier integrated enables virtually revolutionizes performance I it modeling superior RF time. multi-dimensional filter and design mentioned that of fabrication cost design filter

We turns, iteration time. extends Most the and do the versus and this by to process ISN and disruptive process the importantly, costly that wireless which does across delivers, is development spectrum. manufacturing multiple simulation take standard designs can entire industry

is with MEMS meeting structure, that game be platform on the leverages technology future, for property these which manufacturing standard building our highlight deliver processes and novel was resonator SAW will XBAR X, requirements. our a which low bulk means approach for the cost processes which structure, revolutionary to it and intellectual new engagement or a Slide using learnings designed produced from standard is the our manufacturing ISN BAW and that wave is past. is it to changing technology Turning me acoustic XBAR let BAW

bandwidth cellular the in It mitigate was is shown to to demand and allow interference in specifically frequency that particular, the ability meet to issues. used important coexistence to down and has past standards me highlight we've coexistence illustrate to designed for and the of problems. exacting high-power. to the in XBAR Wi-Fi Allow the XBAR an present networks It's Wi-Fi bands adjacent highway. analogy like the driving XG

not path. even path a Filters causing right sometimes collision. lane, your as lane the or simply even new XX Wi-Fi adjacent Resonant’s that keep are in built focused and lanes XG. next lanes are crowding right challenges in cars or barriers the signals supposed cars patents data be. what highway, foundational better where the XBAR between our on neighboring of your creates intellectual And cars was greater on right filters over the crash entering specifically let's keeping is to i.e. or or you property than XXX with XBAR XG forget to those patents they're or stopping your signals

foundry we library unit offering designs. shorten Turning diversified time-to-market. and to to XG. markets multiple high include IP to per X, standard licensing based custom revenue We began on for growth targeting streams We a our expanded filter program of revenue generating basis our have available Slide through first filter designs both XG

we added existing and included China agreements XG minimum market In our prepaid are added volumes royalties, targeting exceeded. license to additional pre-pay for XBAR in once cutting XXXX, we that applications XXXX, royalties the And unit edge royalties technologies.

we sales in white could our XXXX. get supply label that later foundry Finally, through as expect start to soon from engagements chain as

XG's focused than XX everyone on what Turning currently is X, complex frequencies. more high of are filters, about require filters. more XG, to required let's whereas expected to for discuss are filters, Slide phones increased number XG require XXX phones XG an filters

XBAR resonator contracted world's by in filter has technology our enables the manufacturer of for family solutions. XBAR already IDT-membrane mobile. proprietary largest use RF Our been

high for power industries with variety CPE other a such applications and of we’re XG wide leaders outside Additionally, of industry Wi-Fi, for engaged as bandwidth, mobile infrastructure. high

targeting non-mobile this technology first of the year. half XBAR We’re on of delivery our first samples in based these

gigahertz filter in drive starting higher which focus agreement data carriers deployment Turning of is poised X.X in the down delivery, in globally, move enter the mid-band, to to the to with five The to and market in bandwidth of X.X largest as a up cost technology is leveraging XG they and puts XX, XXXX. wave Slide manufacturer our frequency here. the timing our world's takes with gigahertz This initial to off. right is the first with sweet of market to are the U.S. higher spot, as the XG reformed

with our positioned are to Wi-Fi gigahertz recently engagements. the of And and Band-Pass gigahertz round filters, six Tier-X deliver we next announced five

further be paper detail to learn more, we found you our published website. on of goes want those that a can that into For who white have

XG away talk will filter XG let's today. the and market XG soon, anytime XX, provide filters network backstop for as about not It's Slide Turning to XG reformed XG holes. is the technology, which going coverage market, for a dominant the will be

market the ways more we partners and at continues commoditize, As further improve compete effectively. to look to help our time-to-market

timely specifically have ISN IP on to and manner, Tier-X partnered a our effective targeting and a leveraging we deliver recently result, standard in cost with library foundry, a China As filter Chinese market. solutions the our services tools capitalizing and

be complemented royalty Prepaid XXXX existing revenue in contracts. volumes royalties expected dominant our for to unit are from stream by

our rapidly, us for initiation filter for agreements since is remain designs, challenging. have specifications Slide to noted, of with to as ASPs XX, continue XG Turning get expected many to declined years, more the and of many

products been customer be design As that shift between in standard of library more filter standard platform ability to foundries. there our strength our on based to the a and interest IP ISN result, rapid easily that ported our has capitalize on products can

XXXX component see customers trajectory continue market which signed XXXX. optimistic in had solid that initial throughout have we we’re while state already contract demand the throughout global player, cautiously will We XXXX given to Tier-X of include the foundry prepaid this current royalties, and a in a our growth with

our customers will get we the ensure out to continue on of to We investments. performing focus value

and further Since scale existing the suppliers, the Turning at to signed existing RF foundry compete of chain Chinese of front-end XXXX, potential with a partner to costs for current XG January the customers Chinese Slide supply We fabless to XX, to access to market. foundries participants provides our stable experienced relationships. Tier-X in enable potential foundry the for dominant reduce a our our complementing alternative the foundry have program have technologies. and the market today's

XX, clearly momentum. and Slide to highlight two the in to show I'd Turning traction that our achievements noticeable market accelerating like

commercial XXXX, technology us. entered million into the signing world's filter multiple develop $X largest XBAR designs in agreement, commercial for made manufacturer a the the Upon our targeting million in First mobile market. $X also a agreement with the using us they investment RF to strategic rights

the with January occurred XXXX payments in exceeded. or license agreements when potential were prepaid Tier-X additional or manufacturing also multiple Process a achievement royalties sign for volumes customer and in its second Tool to royalties This foundry licensed PMTX The of processes. minimum our Chinese Monitoring for aid upfront

Marketing wireless measurement infrastructure I’d and Resonant before to semiconductor the Chief He created for expanded responsible In Kelly His broad is for XXXX, role. XX, and across over Operating Slide December like network call expertise I areas fit to Turning to professional a Product test newly management and we turn business discuss and extensive natural operations team. smartphones, range Officer announced and Dylan that Marty, of are a of our this functions. new joined Engineering, role. including

for to like deliver and shareholders. how is capitalized for a to over Now call our financials positioned discussion I'd Marty? and of Resonant Marty turn to the

Marty McDermut

everyone. afternoon Thank you, good and George

Turning to amounts most investors are two important where Slide GAAP format of which customer cash metrics, with a our talk and our to is track except The XX, keeping I about of noted. using new progress. assist

compared totaled the as compared billings XXXX, quarter of quarter. For the XXXX $XXX,XXX $X compared $XX,XXX fourth to were last to as Revenues of to third last $XXX,XXX quarter quarter. million

$X.X amount end million. deferred that be as will the of quarter, the recognized fourth totaled revenues estimate At We

coming from ISN in technology. the expenses development three million is last to our XBAR Research quarter platform revenue $X.X design of activities and due on up million quarters. and $X.X expanded

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

Non-GAAP or million share $X adjusted $X.XX per $X.XX negative negative share negative last million EBITDA to or compared of $X.X quarter. negative per a

our development expenses compared and technology XXXX. on filter $XXX,XXX design to as expanded in XXXX. Research platform, revenues $XX.X totaled $XX.X XBAR design million, For the in primarily full-year from of activities XXXX to million to XXXX, compared and ISN $XXX,XXX due It's up development.

due loss administration $XX.X XXXX. public company loss expenses net $X.XX a operating outstanding, or million, of higher and or loss expenses. million an on and marketing of based per weighted outstanding of XX.X shares in average XXXX. million, to net in average $XX.X from million of up weighted $XX.X is based million Sales, of million share expenses to XXXX Operating shares loss million a $XX.X loss XX.X Net $XX compared compensation related loss of of per to million on share $XX.X $X.XX for compared

approximately at end raised negative million per to $X.XX EBITDA or share negative Non-GAAP share, $XX.X had million million the or We cash of per $XX.X million, XXXX. XXXX $X.XX of $XX.X negative adjusted and for compared in negative $XX.X

proceeds gross offering in proceeds, net a XXXX. in million February public from $XX.X

With well of flow quarter ended part to whom of a XX on end basis technical XXXX. positions breakeven believe of cash We and staff. a PH.D. the whom be are opportunities with a we by us XX have the of this total XX quarterly see, of employees, the XXXX we the fourth

like in I'd XXXX. George George. But will quarter fourth headwinds. back we call GAAP XXXX XXXX revenues for that Coronavirus of in fourth expenses revenues even of the the XXXX. to will of of from operating consideration of causing the to mentioned, is turn comparable first as the Finally, exceed quarter quarter be first quarter now believe to the the

George Holmes

Marty. Thank you,

customers, Slide Turning Resonant been to has and for XX, in better its position deliver a never employees growth shareholders. to

by rapidly nearly $XX segment XXXX. growing balance by our largest which to have offering. We to RF the public from are targeting of double sheet market a buoyed strong proceeds XXXX expected recent the filters, February the billion We're

we've issued more base the robust and designs, RF a the XX filters with of other proven than filter customers IP XXX strong for manufacturer that with XG And patents RF validation high demonstrated technology. of our the bandwidth have can our over or high contracted partnership We first frequency XBAR targeted and portfolio technology filed largest devices. meet existing our with from requirements world's and XG, filter are traction

expand further cost. by component will program of low foundry at our our ease base customer And suppliers entry allowing

to the Leaving for turn all is call this over now to our questions. the I'd proven Operator? team. like operator management

Operator

a now conducting you. question-and-answer Thank [Operator Instructions] We’re session.

are COO. George from [Operator CEO, Joining Kelly, CFO first question us is Our Dylan Hamilton. Marty today for McDermut, questions Cody Instructions] today Holmes, and coming Acree from Drexel

line now live. Your is

Cody Acree

for taking guys Thanks, my question.

George Holmes

Hi, Cody.

Cody Acree

it. appreciate Thanks, Good.

the expecting revenue? about you be for is your just deferred is have what be? that So from transition how that thanks Marty, of How a bit to prepaid that QX. to going variability into Can that unit from much little volume royalties are from talk there, prepaids? to is And much visibility then you you visibility guidance the your

Marty McDermut

all really Cody, Yes, revenue our from is licensing.

the group, at one from we're it's royalty looking it coming So as

we that current there we that on have contracts prepaid in-house. have contracts the out getting model for and we're

than got months we So contracts deferred we in the visibility did because brought don't our revenue. three better ago want we on yes, China, we’ve

you things I'm to go for So are out. easier more me farther guidance, a little not going but it's looking, to bit give

Cody Acree

down And I George your just personnel Sure. designers projects your material maybe customers. on? that's changes partner's slowing just working having, with are or guess you you Are in availability, seeing conversations in you're

George Holmes

what's in market, overall Given happening the right?

Cody Acree

Corona? what’s given with happening Yes, just

George Holmes

I I don't video now right -- I way. doing think what seeing we is business our conferences, run mean we're that more right.

Asia already. customers our Fortunately, most of we're are used to in

have and But a change think unnecessary travel as conference I So up got go video the us activity that are go big put calls been continue well. the them. pretty leverage majors up did kind to all going daily of to announcement and now I would Clearly, hey activity on bit, and the trips companies haven’t big since regularly. continued But quarter-over-quarter see to hold making to, deal to conferencing. Tier-X and we has we're with one with very seen that all the of up much used they having new customer we've let’s

Cody Acree

Understood, much. very thank you

Operator

Thank you.

question is Our from Svanberg from next coming Tore Stifel.

line now is live. Your

Tore Svanberg

and Yes, thank you congratulations.

George Holmes

Hey, Tore.

Tore Svanberg

all and like with on here manufacturer start it the is Page on filter congratulations I last in slide hi the based to different of be Maybe their on critical your large the XXXX looks kind milestones can XXXX in recent contract Yes, months. XX, timeframe. your with mass XG in few going to the

different eight seven, could all if with you're wondering we're you on I'm working the XXXX? about only little that bit them because months So right just a on now from designs clearly comment

George Holmes

we've to I'm that chime announced, we of of you we obviously, couple But were a XX a going a XX great to after. ask and want here have announced get I to a second. question. level? when we couple identified Yes, kind quick more in we mean, give contract where And Dylan working clearly, had with we that’s the them. bands on, a in mean, on that only macro update got I to

Dylan Kelly

back continue it in deck have on focus wave gigahertz be already urgency think delivering the of definitely XXXX the XXXX, I be goes to addressed around to That in And time of range. slide five second I to the to a to frequency time. lot in watch three those the bands Yes, think our timeframe XG with want Definitely windows. there's the them. to this see them the continues those and

George Holmes

to going time with right is so the hitting be we at the designs timely. They're that for Yes, them here, volumes year our ramp. those next those and we year will as we're coming would right timeframes. start And that to happening call we be very, this and those I in expect, other very thing phones think engagement see is noted with the out stride

Tore Svanberg

of specifically. some a to of outside moving XBAR just there that on traction? very here year elaborate seeing the specific bit that or the you in or Wi-Fi, helpful. you a some little And application talked That's possible mobile, X region on in half engagements first you're Could about Wi-Fi Is that? of

George Holmes

questions this that My to triple these what highlighting technologies new goodness, all to one on And kind me do you weeks allowed happening marketplace? webinar expand to they We webinar because, know, Hi, a we've we developed in six we at that ago over Tore, were Barcelona in you two traveled the there no as Dylan. against about is year. see and where we of with gigahertz specifically and we’re fit for both competitively the those five Wi-Fi to of the want where Dylan, range. in did out kind what's

Dylan Kelly

five announced Yes, the really encroachment which acoustic six support NXX, filter need coming from the we mandating the And high-performance up for recently against the filtering. need into gigahertz Broadcom that's saw gigahertz band following again Wi-Fi, also band going for for technology. the

Wi-Fi around So that then both more filters really our of XX%. urgency bandwidth of six we've create latest of result gigahertz those well. And or demonstrated as a with things measured in an Wi-Fi webinar, than gigahertz

So the samples, with better that we there throughout Tier-Xs we're year. already this engaged great we half in have position a think we’re as the of first

Tore Svanberg

helpful. Really

foundry Just one last recent question engagement. on partnership your

half know assume some uncertain you some that unit those about obviously very in year? get get the meet milestones we unit milestones. I of as getting you as these talked You certain should sometime second this met but times, maybe royalties are additional

George Holmes

to met get expect wouldn’t year. those we this Yes,

take prepays this expect year. We effect

Marty revenues. hit So revenue for those does his will to allow we the those as magic see to And this line. recognize we'll to affecting us overall see starting year prepays, the prepays

We're seeing expect that's to the out. market. a this China, these exciting we actually think the of giving you'll that happening light everything I go opportunity things volume partner, in minimum on what things their you is hurdles in be for in happen think everything that I of pull-in those of which foundry through tell can is going the see one the you activity that's with that to XXXX, would pushed major in to

Tore Svanberg

Congratulations good. Sounds again.

George Holmes

thank Okay, much. you very

Operator

coming Thank Instructions] Company. question you. & Raji from from is Gill next [Operator Needham Our

is live. now line Your

Raji Gill

Yes, thanks.

the you do could motivation in Just and foundry you of bringing What you're elaborate on wondering throughout the the table that the deal kind a to question ramping further China, on see you. how foundry value if do with of what to year? of the Tier-X kind the was

George Holmes

design right. great China can It products to capabilities supplying that we actually focused than way. ability And their out question. in faster, from core Inc. couple very very That's with else. them prop, obviously enable their that we cheaper to market a go fact actually own our broad better the is I have And anyone manufacturers. a the all it's indigenously is mean value on about the to

have the we Chinese an already of a to And the big marketplace number very even aggressively manufacturers. China larger partners into This supply get moving foundry in and foundry all handset is foundry about. very we're and light And today. at probably they're part large excited they're funded one moving China It's because speed in at best speed moving in the relationship. light large they're

Year So than They we're shut had, we them. early I moving are, New the that's total down about in six, they seven down shut very They're about anticipated. ahead. the Chinese weeks. that said Coronavirus even faster about and lasted which excited a as after And quarter

this opportunity this for I they’re excited excited to tremendous going a So us. moving to And see prioritizing as we're be think that their to investments. we’re see really ahead,

partner to is directly and capture to us some this focused -- gigahertz to three the well area, thing working share. got them market in and I make relationship keep the very the with is products you've other positioned segment that having into think commoditized take the focus a to mind that's going in we're foundry the that is on marketplace of of

could kicking of start if expect in easily XX% Time supplier what be with we it's hit out a market. the China. in market and the you into the XX% tremendous And XX%, blow market, hurdle is royalty, future. share. rate per It's share we then our opportunity. market a tell, had agreement And there unit the overall about look Chinese in these easily guys XX%, XX% will based is They the as X% a to paying at back the on and model through

for So that's a really significant opportunity us.

Raji Gill

about Marty, be you on that and going other quarter-by-quarter Can is kind a of of talked talk of does that kind prepaid revenue things. prepaid about How about we to the flow And, basis. revenue the revenue year, cadence think this through? driven by

George Holmes

try, on giving basis. can guidance tell What it going I aren’t a we It's quarter-to-quarter you to is happen. great a

not there We’re too predict far going future. to to out try in the it

pretty Marty said, There's the to but prepays build stay As overall too in he's to that. uncertainly the of going us much gives assurance. close a market, on fact deal that we've got great

the thing no and look help we're what our not what's XG, to Inc. happening on crazy. the us. is solutions, the that happens is executing real enablement China, focusing Raji focusing having into on next. for sit what's on all just It's longer We we're we're hard happening And our going with doing we're really customers focused get at We’re XBAR paid there on get about in work. that actually for But we market. know to our

see you next energy. be for where really a long-haul lot part money under The is the over to us going that's to XX is spend so the And the XX years. and will large time of

Raji Gill

you. Thank

Operator

Thank you.

from Your is next Cody Drexel Acree from a Hamilton. question follow-up

live. now is line Your

Cody Acree

Yes, you. thank

George Holmes

Cody. Thanks

Cody Acree

benchmarks going to Hey, know to get those Marty, recognized some help you to able you around had will have revenue, thanks parameters for in able firm that forward? you've time going prepaids back a set setting things getting to how clarify here. the I to be difficult been

Marty McDermut

mean, wasn't it easy I was after think, looking was. now complex. how at It it’s I yes -- it it Yes,

some we and I what's momentum some top I other the model there's at roll as more indications will And now of it's get like think layer of revenue those what our it there's where first them you've not, become look that's think royalty to quarter huge more variations. or in, on got was, smoother. backlog, how things not some is

think will worth ours because will prepaid be moved. of I the be model

Cody Acree

what guidance? And your on R&D for spending Great. year and the are expectations SG&A

Marty McDermut

quarter the The expect the We've on Contract it things given some up, we're for fourth, talked spending about it quarter. We to bit. little it other the down first keep the then haven't at that really to the year. same the done XBAR, definitely looking has push that for cost efforts expenses, be and we've the or I driven the first looking, a we're stable some ought XBAR software

George Holmes

mindful to we time think did say, we're goal safe it's and make I we out to case the with this to that last the the that to spend of when go though, financing scenario Cody, set marketplace.

to very, on So a in on bonuses some spend we we're pay basis. bit going focused we quarter. additional And quarter-to-quarter first our a is the little have be up always annual QX because very payroll mindful happen that expenses in here. really the going are out work the we're we we doing of of good customers. kind is look where But as really, sit and the we're back future, news with

are it trajectory fashion, makes to generating herd a good As I be focused predictable a got where culling revenues when really and on putting back-end. we've our customers that money we're good, sense in noted on know on work we going the call, on the focused to the

Cody Acree

you guys. thank Great,

Operator

Thank you.

from Dede Your next question Wainwright. from is Kevin H.C. coming

live. now is line Your

Kevin Dede

me, Well, I thinking… was thanks. George. Thanks for taking

George Holmes

you? are How

Kevin Dede

thought for I times great. me was I'm I'm here your I don't know punch out. I one great, taking how thank many now, But cutting in. I'm me. team you. star Thanks

George Holmes

Yes, no end. I towards hear worries. we No (inaudible) absolutely. you it. did worries, Actually when about you forgotten queue, thought didn’t the

here. you're do for glad I'm got you So What us, Kevin?

Kevin Dede

What George. was sorry, that? I'm

George Holmes

you question do for today? said I what have

Kevin Dede

you on going what the guys on back in What I've do was think foundry more you are I’ve bit little Murata are I the your what's a got telling One, the onion a you, peel hoping couple, a market. couple. could and you? China got guys telling

George Holmes

Dylan here I on stage and will question, follow my friend then look That's his Kevin. the a I great give to end. at you

Dylan Kelly

To-date, right. their in cellular largely quarter. mean, domestically. is what's that, in Murata the has Apple the deals, last I motivation everything answered in we've doubling biggest year to prior market to question, of Chinese been to And market and maybe China enjoy and there's share say device your pressures, I That's enormous the in gains the even continued of let's bet, these of as detriment the trade now represents trade to lot the there's U.S. market. long-term nearly the a the first big then beyond over beyond business Kevin? done know here build from resulted XX% to a China. We And All trend players. Samsung, in-sourcing.

Kevin Dede

helps. That Yes, COVID-XX? that more little was helps. Dylan wondering had vis-à-vis something if you But a granular, I

George Holmes

on our a business. thing points the to ahead. a say having mean, on down. of not think gas getting, how we knows things putting part in can couple eyes like. Well, anything, ahead getting it are design having touched to and our haven't Kevin just been We're guy business That's moving The got in the who to I touch move we clearly, they're face the If mean We've months to about face. our particular are call. scale as that them indications the all on would I and a the slowing that I've a we're put already one are we looks what move thing daily as you've team, component But nice development is process. I of we aggressively. expect customers of foot Dylan

we've And we fashion across a super down, you four at three the how past. makes customers. than this, design looking about in very design we're And we're an design or different than where was deliver just able we've were in the every done fashion or now did done, to those more custom, predictable predictable, designs we even and them we're we where setting historically these past. so back even costs sit in better that superset than do think And that go in taking

coming down. standpoint, from some what the back costs cost a So that question asked, that we're to Cody of drives doing

look which level a allowed we're you if this And QX. for from standpoint, an some neck is and see see for are guide at we of from slowing moving opportunity blank juncture confidence his obviously at down out our did it speed. predictability why there he still set, as to Marty seeing customers, opportunities moving ahead ahead, that don't at least stick then We at the

Kevin Dede

XG, beyond rapidly. Japanese after as XG I partners to to reconcile most happening me help what moves in though get he's think I'm is whereas more happens you you me once rudimentary looks Can technology my your see your the your your market targeting wondering George. China enough, fair relationships? understanding, okay, leveraging XG. manufacturer Chinese Okay, What to large to foundry

George Holmes

mean, I relationship footprint executed fundamentally it relate to we've at we're delivered doing. it upon, we've I will that designs believe of expand expand. seen the least every and

to work a business better a much clearly with on we're differentiated model and have that product strength us technology that better a for of Resonant the deal based shareholders. XBAR We our its allows command the doing, really

being that So I opportunity. a tremendous see

But I on mean a there's causing a lot of in of disruption. stuff marketplace here great deal going the

we $XX setting actually in if is of build the market kind I little both the sweet interesting very value talk that you a deploy effectively there spot have our million grown on look the sides. to as good business it in can bit to you what work of offload which I'll go technology, will and both But on clearly. is XBAR nice about very, that very, If million. folks they're about the other $XX are SAW market me, enterprise to overall $XX value nice at indulge a marketplace, with call, you'll and any the at the a very little the value look this hope They Broadcom doing billion they their front a you're is for $XXX we kind that us. holes company creating on big based talking with filter technology disruption to, billion think be of enterprise

and on to enabling dominant by XG. And think to going be is products XX a technologies opportunity if of do to XX% with with for XG. XX% of ISN a in years This tremendous look that has focusing on to performance have design, that that, us, about then going the can't share family to you at The at that you market as of you about what's Resonant do platform XBAR these unprecedented for be look we're marketplace. gotten enabled historically, if relying old XX XG, it, companies our

As got you our the largest off manufacturer, view with know, our XX% we’ve filter jumping is point share. world's

mind with companies just tremendous. be it’s enabled up What XBAR, of that increase going technology. this we by the share like others call, the opportunity XBAR kind Resonant, of with have XX% market that Wi-Fi, the about to CP our for applications the size going boggling pursuing infrastructure, us? us to we on It's there of and mobile like allow and end on can enabled over going is talked out value of mean aggressively that's to to enabled for for We're we

to focus for our is execution, execution, XXXX. So execution be going

Kevin Dede

hole make to fill China of that that my exclusivity you straight pocket pretty time there's sort technology expired have Okay, urgency Can Dylan I sounds where right? me other within customers develop large it partner time your your talking George, lot was good. present have to in Well XG as market? a me to that about sure to lines, addressing with products head that that little to developing seems these help Japanese in of XBAR a

George Holmes

at market for mean, the manufacturers, largest Absolutely, and the in Kevin, still we sit And back right. ones China the part, XG. discrete large and than major I it, in is other look today today. it's Chinese

so feedback a that that some we that We're disrupter, what going very impacting be these relationships And already is enabled. with they excited market it from that able be We're it. And folks to doing. getting to we that's satisfy think see about we're to they're that we've want

for thing good a us. that's

manufacturer, we're one cycle phone the March expires we not world's technology go. exclusivity that market, there enabling largest can When good that keep you're while we comes segment filter in XG for obviously, tomorrow, It's developing, out in us. the corner big being to away in everybody. and it the a high develop them we from contract, products when technology into XXXX. mind to the licensed way to ready creates have And development. like which to believe is that but is comes technology XBAR It XBAR that That's opportunity the only around it our we've frequency market of can't

program, things the XBAR it other So some our the get white into development to doing that of we're marketplace. facilitate label and

It's come exclusivity to out positioned that very well we to to able period. us just opportunities going as of put capture be

Kevin Dede

George, got I Marty, actually, one lot. thanks. two. for Okay, helps That a

to heard expect you June What that March quarter? the of Marty of deal average does do And what quarter? So end in be share the at here. then the done count the share count the February end the go to

Marty McDermut

We million we shares that -- about planning little stable, XX million XX XX share did increase. million, stay we're just another should after that not off, one right count the think XX million, is now that and

Kevin Dede

was But only right. it into that Right, of deal half it had middle it right, the so is falls quarter that the done? March about quarter of

Marty McDermut

weighted You’re average, yes. talking the about

Kevin Dede

Yes, yes, yes. yes,

Marty McDermut

The total will million XX be at outstanding level. that

Kevin Dede

that's what June we'll for see the All right, quarter? so in

George Holmes

of Yes, be around it done. talking going Two-thirds XX you’re in, it’s to so fall will million.

Kevin Dede

Okay, okay. All right.

time devices Will get be I be little So Cody's recognize here. of the trying any to myself shipped. in in to point have try payments Will there there actually it? accounting prepayments, recognition. brush in a you dig time payment deeper when any just sort you on to allow to rules want point on over to will royalty once you'll when

George Holmes

obviously. it's of part to of the doing single I've devices. because look it He lot bucket it. No, spent Marty the he to reason revenues work educate that's this. about back look me I a of attributed sit the as been is and talking doesn't of we're licensing like mean, all it, going time lot a and at on a on And it,

don't where have today, doing label devices. business the And component white we we're a so

of fact label in to revenue triple got revenues, prepays break is about but day, to the will we we where which bucket, the at until have only different that have another rate are two I got net, the single end the thing variety. makes that a at a us, we’ll think but that so we've varieties, come time of And we out, we’ve royalty which At revenues, Marty? are higher talk then, sense white point in

Marty McDermut

to for think I that deliver short-term. think, you take have happening you're I nothing I model some of Kevin don't the our and referring see is that sort business what in else money to

of So recognized period be time. it'll over some

Kevin Dede

is PMTX licensed Okay, how the the foundry too? use, of about dump of royalty is bucket that your the the modeling that to use tool sort process that into

Marty McDermut

Not out. at data, we ownership from intentionally we're to would time, point going we're obviously tools software ISN put a for in in of the gathering licensing important get to we dollars model, data called a decided perspective, licensing solution perspective, Kevin, they access this that learning we licensing rights a that's us that at at this we point an of take lot a to from the That's not have gathered. more chosen retain software those because set, into such that be time to time,

as we're using we're today additional learnings But that, that using again for platform us.

a us allowed six for five exciting do XBAR very, very of have. single what And what As us power arena. a to we to that to period designs allowed our to kind develop It's is talked the every allowed do virtually the quickly, the we it sauce these long what allowed secret we've for of and very it's Wi-Fi design us of tool know, iterate time about coexistence ISN to gigahertz in the of is us what enabled we time Tier-X. in short very win with that business

for. aren't but to how and probably that we So want soon, we going be anytime what licensing to that's we're that to learn using

Kevin Dede

for the Okay, gentlemen. fair questions. Thanks thanks me I on indulging it. appreciate letting guys, my call and enough for

George Holmes

thank worries, No very much. you

Operator

the We for comments. further Instructions] session, [Operator end I'd floor you. Thank have turn to closing over of or question-and-answer to any like the our back reached management

George Holmes

and Chinese our Great, with China highlight partnership with and a and have partners great We manufacturer put the Have in with Tier-X an largest yield XG business thank our recent our handset partnering strategic foundry market targeting thank plan shareholders. to which me for our customers, the world's the should on support. event, you day. ongoing our company let these your a the Combined, focus again position dividends financing. you strategy, on filter closing, for operator. execute recent XG, excellent for In significant

Operator

does Thank today's you. That teleconference. conclude

may You your thank time, have for and today. your lines We disconnect this at wonderful participation a you day.

Resonant (RESN) 10 Mar 202019 Q4 Earnings call transcript