RESN - Earnings call transcript Q3 2021

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

Operator

Good day, and welcome to Resonant's Third Quarter 2021 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. At this time, I'd like to turn the conference over to Greg Falesnik from MZ Group, the company's Investor Relations firm.

Greg Falesnik

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

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

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

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

George Holmes

results everyone conference third And on XXXX Greg. financial our you thank us joining you, Thank for call. quarter

will session. joining Kelly, our CFO, us our is for Marty COO well as Joining Q&A McDermut, as me the Dylan be who today

the was for two year begin quarter goal acceleration by in quarter a SlideX, third of term we Resonant's our technologies, Resonant XBAR almost growth. sustainable milestones highlighted to by continued Turning and end highlighting once quarter. again, long outperforming I'll third by the achieved its positioning of XXXX

our First, with has delivered devices manufacturer, for exclusive the shortly. this number combined the dominated XXXX, commercial customer by This customer to million that of the at the rights agreement months. revenue value $XX to XX, in less control technology doubling largest increasing million with between ranging be our value mind; XX% on which and valued the is of this $XX Resonant in market, world's for March XX% RF bands alone. million $X this initially than current on a represents mobile we to expanded companies the filter in customer of and XBAR Keep ends more which filter five of seven market, is contract

filters million customers third devices the been a represents with RF platform. to a quarter of shipped This to for roadmap beginning provide expired. record these customer Resonant, Resonant's and technology, XXXX for shipments continued to to WaveX leverage portfolio At when we in differentiation massive capitalize date. designed shipped XX over have Second, customers. has our which sequential million alone, exclusivity expect of WaveX unit create quarterly XBAR OEMs our In to to the we year-over-year a April by our on And increase accelerating customer XXX%. approximately our software XX%. XXX our approximately increase required mobile IP continue a

us to be IDM. and OEMs. as are fabulous $XXX inventory to customers XX% million to up royalty million depending vertically $XX historical $XX to noted a equivalent company, don't by the result, value a integrated a Resonant, for XBAR filter handset base is licensing even contract of designs million their strategic to filters remains bands as we $XXX our significant which based a more especially in the RF I point this of with world's validation on expanding It RF the of expect the agreement are commercial ranging million in have partner, from given complexity is for very of October And we operating the largest duplexer mobile our on development for manufacturer These the As the to for XXXX noted, upfront with signed the margins. attractive sales There operating should to partnership from the rates costs to a market. our chosen. million $X dominant actual of have payments X% high also filter share and potential

next meet to simple. SlideX, XBAR high is is only able demands frequency Resonant's of generation networks. We believe Turning the natively competitive the solution to advantage filter

root very of well on with the wide networks. proximity traffic. Since bands, significant very different data between But when will coexistence demands exactly networks the significant technologies the devices Let both to likelihood data as filters, At bands of transition close high the me problems XG the signal and what XG performance early as Unless frequency and a bands cause are. problems challenge Wi-Fi. the using extremely a is XG, coexistence Wi-Fi compared creates themselves. those and as bands, increases, challenge individual to these for performance bandwidth will to data between across little interference coexist this XGg restrict much creating speeds Wi-Fi XG which still of expand in been we the mitigated generations and more with are previous need significant there's XG

and interference recognized a technology the advances its solve by the increasingly the network both technology can demand XBAR filter effective for validated full and is XG is that bandwidth accomplishing the market. towards most As and We believe potential, wide being will problems. mature this this and

today's demands RF are meet based consumer able experiences technology. if only XG. deliver technology advanced problems, providers the devices in all these been have more meet bandwidth the is parts for filters the good the enough the solve OEMs that the solution begs by and question, that and XBAR This promised existing new until to demands legacy to parts interference on deemed are initially become transitions, of introduced technologies. parts available it the Those standards As the

to still our still so able is with rollout XG the get of Turning performance technologies. today data extend filter strategies very we're been legacy traffic Again, X. manufacturers early to have low away XG using of Slide since into to XG,

One is primary scandium of filter strategy, term which them to has filters solution for scandium the doping doping the to and short capabilities. employed add that components a external as allow filters Using extend legacy being bandwidth methods legacy filters, were designed XG. the manufacturers

this However, signal loss. with added increased complexity, costs, the namely, for size, consequences, and additional comes potential

not method, Wi-Fi sufficiently Additionally, the bandwidth XG. can will only be and cover or to so far with requirements this for able be XE extended the

XBAR several our limitations becomes devices. the our sampling begin of to more further technologies the highlight become we which technology. for we new clearer assembling Increase Over quarters, performance, and legacy revolutionary expected to Customers by the prolific the non-mobile next largest demand XBAR will expect customers will sample increase

mix is XG And And and spectral we at an without push XG. legacy be based degrade beginning challenges with of filters these resulting of method data wideband is deployed the bands Clearly, to boundaries a nitride solutions. match would for network acoustic efficiency, as filters cost of of used increasingly the in viable US requirements Using are other inefficiency that The bar base being the billions legacy technology. believe bands on for number satellite of believe specifically filter coverage increased The associated speeds. would size the the currently the filters developed wave dollars acoustic and throughout these deliver a same would new stations with neither to repurposed trying which resonators cost. that and XBAR We the only are wider and higher industry that XG would approach in this Wi-Fi to XG long-term the The ripple with bandwidth. of world in amplified are wireless of technologies need wireless associated would infrastructure. new with components aluminum problems add XG Ultra alone. legacy additional and frequencies bands and exist our be for

natively at next the ultra work frequency to for the technology is high advance not the based applications next generation Those generation volume are capability future that power technology six, the believe value Resonant's of the networks. use will RF It a meeting of only low high and RF Turning a manufacturer toward in bandwidth, unlock are we and XBAR as forefront platform the working filters filter will differentiated highly for I technology six and mentioned applications. we wideband. of the technology, five leverage as requirements continues that world's largest loss true networks but as to capitalizing manufacturing industry to these Slide our Wi-Fi wireless building expert high only earlier, with capable continue of also the the wide of is well gigahertz that XG as

unique revenue this relationships second also combined. considerable duplexer key design world's agreement accelerating for a validation for handset RF the penetrate of for largest ability that portion more Apple filter could leading and partnership players by as are of increase a high initiated established position additional we a while when to the such XBAR's the the opportunities large This OEMs with Well, product largest If and Wi-Fi improve share is their $XXX about filter reach this manufacturers market. Samsung. margin. to technologies XG from market specific, believe market. be control filter deliver the our our next than third leading partner a annual Resonant was partnership only holds supply these products Our XBAR market, To the X market to market By mobile scale number continue company expand by ability control handset the with vertical adding of potentially they to a share we generation contracts, clearly XX% next is the RF partners leveraging and small dramatically OEMs and after million the and relatively tremendous networks, connectivity. that to we There generation performance demonstrating deployments. full of wireless performance is market, XX% to this expect which

includes is the ultra Our segment. ideally also access and wideband, for mobile This frequency applications. XBAR Wi-Fi technology high infrastructure, points, suited mobile IoT non

us As our XBAR technology mobile, and for mobile, the with we strategic doing. exclusivity are our our I XBAR earlier, mentioned to partner only technologies allowing market leveraging which currently non for

expect non the XBAR to already part. mobile we a signed to develop a of sampled non and devices before fact, end In have customer Tier Wi-Fi X XXXX deal mobile with successfully a

handsets execute model. with mobile our non and the the highlights expand business effectiveness and agreement partner to our ability Our for while pursuing of partnerships on segment mobile

earlier, designed ahead milestone this for of our customers XXX million strategy. As our with our Resonant's over I of further applications, sub schedule concurrent units focused go-to-market surpassing shipped gigahertz have mentioned XBAR legacy effort, three validate

to model. market us the pure our rather various high a in them. market, enable As while licensing uniquely business, players This we are asset with to multiple allows light angles, innovation margin compete filter business driving play industry support maintaining the manufacturers positioned than from in

Turning designed Using between related are they of and this These cars, and extended future generation legacy networks X, bandwidths. to applications outlined at requirements wideband various the on me Slide coexistence growth filters opportunity XG. on to networks will XG and Wi-Fi cities, non and networks, operate XBAR significant The challenges Smart mobile connected complement also next to cost let Wi-Fi earlier. next XE would to segment. generation technologies, high are in issues the unlock for performance similar as expand similar ultra and create XG including next rely ultra for networks frequencies those band. the of generation reality IoT wide

while billion otherwise grow year However, overwhelm next of meet the overload, than can ensure XE expected technology The which the requirements greater Resonant's from complex XG in leveraging over would generation networks, million network. experience data across is a to devices of X.X consumers systems range preventing ability seamless XXXX. for proprietary to to XBAR by in XXX Wi-Fi innate number market this the

non X Given devices Tier securing customer of of growth year of high the for a with a deal market, XXXX before remains rate XBAR a mobile expected for priority. end this filters the design

dimensional RF the Ultimately, our filters industry. proprietary to WaveX by an disrupt wireless design simulate advanced of tremendous to our for to is chain a driven The the and innovative performance believe deliver based ability acoustic across we multiple which WaveX, platform RF by The three filters and full generation capabilities otherwise resulting is networks. using with customers. possible significantly is a chain market next tools. software flexibility requirements tool or as resonators are taking our used design design bar filter platform design X, effective with Resonant's and bulk in in XBAR and is accurately the supply today's superior unmatched available featuring that our platform Slide time such to reduced enables of software not complex commercially enables cloud foundries, Turning to RF are approach WaveX filters than XBAR technology while us modeling meeting supply filters providing to wave manufacturing more significantly performance approaches, cost compared our that processes for traditional simulations

Turning the maintain. that around we robust rooted to in Slide our our advantages property technology X, competitive portfolio intellectual

than Our a to for XX our patents Resonant review We and XBAR and Worth highly our are proprietary, drove Financial of year. property related results the designs structures, With issued to to applications and licensed third filed I'll Marty over the XXXX currently our which are processes pass quarter that, or in of Officer, XXX Marty? designs for retains of this what and have filter the XXX than McDermut internationally. customers. them. more it Resonant Chief financial intellectual patents we technology. filed US noting these were greater

Marty McDermut

George. you, Thank

Turning we provide as the against revenues third to increase largest signed received $X same now were year to to in were of commercial band quarter. which we in our SlideXX. revenues the execution Revenues quarter in the world's the $X.X third an results. XX% large million payment agreement manufacturer, our compared the September where non-GAAP XX, expanded XXXX. contract of $XXX,XXX I'll deferred about $X.X milestone The compared released to was a during will first our quarter, Subsequent new except on a I expanded million end noting the or for GAAP amounts Billings, measure quarter, the ago the the with of million. filter financial our quarter, year in also prepayment. noted. of with talk agreement $X of which million the ago strategic Worth timing our partner same the million, third $X.X billed overview by

contracts. While having for estimate third the on quarter, the no the and that recognized such the revenue remainder amounts impact quarter, impact revenues revenue it At $X.X as forward. of We Please be over recognition upcoming positive on revenues recognition. for that the in are million agreements compared complex cause as these quarter. $XXX,XXX have of prior a to for as development note quarterly quarters XBAR going will will those deferred the revenue end uneven total

increase As $X.X smooth Development the out to with result total development of quarter, total a costs primarily WaveX prepaid increased compensation is compensation of these is patent for marketing quarter. third as will to compared third they quarter compared in associated expenses increase our ramp expenses more The in primarily in Research year our technologies. result the the Increases $X.X as administrative consultants this we and and to royalty agreements quarter. costs XBAR prior increased support add expanding a up. the increased revenues components, increased with of to to portfolio. as efforts. the headcount same expenses and Sales, million year and employees relating expenses prior million and million in $X.X in $X.X million related The as

last weighted net of was third loss operating a end $X.XX loss prior in $X loss $X.X Net to compared stock the from an of prior the based as compared million total a quarter to September Non-GAAP Cash cash loss the of to $X.X a EBITDA the third share prior payments Subsequent outstanding the XX, September a an million loss or million XX million a whom are $XX.X share of $X.XX million shares $X whom the of next year of have of compared receive cash equivalents to quarter, the in upfront average million, the and expect was of we operating adjusted XXXX. million $X.X this million in of receive $X.XX on $X.X million outstanding for the $X expanded was weighted loss and per million XX.X the in loss the EBITDA average adjusted per year sale $XX.X of $X.XX XX in share $X.X we or to share third loss on on common a of quarter, per loss have debt, year Our PhD, of quarter. a and of technical the XXXX agreement. in quarter. per under or commercial Remember, total million had combined employees based we quarter staff. shares on part days XX, of as no few part loss quarter. of or XX

topic growth our the begin mobile the recognize significant turning strategic to expanded Slide revenue as revenues contracts designs forward on newly XX, from non Finally, applications. as for we guidance, expect well as partner, of to anticipated we moving on with

to in $X approximately are in turn to George? now remarks. George I'd fourth call revenue quarter We forecasting like $XXX,XXX back expect with deferred end the for year XXXX to million closing and the revenue. of the

George Holmes

Thanks Marty.

XX. Slide to turn let's Now

For track into fourth quarter what in to the XXXX. and

expect stated, in we Marty As continue accelerating significantly XXXX. our grow business

Our provide foothold to XBAR continue the legacy customer initial grow expansion will based value and programs relationships. and for into

in high will with largest manufacturer. As filter world's of expanded meet that partnership our will expected, the the building Together, for based the demands manufacturing export the exacting we we filters volume world. mobile continue a handset platform OEMs largest

XG, X wideband We expect practical continued a the of only breakout even and XBAR but driving based only XG wave for Wi-Fi year also ongoing technology. and solutions meet are the market validation XBAR X, ultra demands from solution to and the millimeter and potentially that not

forward today, could XBAR providing continue people Things, strategy on things. the for and we and execute toward With vehicles, to expect and a by joining operational autonomous I'll you non the mission on operator Xpartner our revolutionize of to connection the question-and-answer for and all to applications. the mobile contract us secure as like Operator? I'd a infrastructure end it thank in coming with electric of focus that, which look applications, and session. to between to our include Tier work over We Internet hand quarters updates to our begin now XXXX

Operator

first is Svanberg Our with Instructions] Stifel. the of from line [Operator question Tore

ToreSvanberg

George, you, and Dylan. Marty thank Yes,

that not Murata not the was year, Murata did exclusivity? question on I know have Or And is that did asking ends ways the you question different I First next program. just to why of wondering, perhaps exclusivity? exclusivity want want them extension

GeorgeHolmes

other think negotiating access to Clearly, these that opportunity tremendous Well, a have it. I is you deals, imagine months have handset the companies for allow benefit we give a other want Tier when XX an mean, the you that believe having based extend such that customer think to OEMs handset to opportunity. market if be possible, they you're the competitive would exclusivity has can do exclusivity, technology to X we're long-term marketplace IDMs you IDMs. surely a to us want the why want technology agreement not technology do Tier technology into allowing success. and under to I XBAR you advantage. many lived transformational to That's for this reason to XBAR as We've the manufacturers would to be key this do it delivering and to the would as to X market under is we wouldn't didn't going that And our your

next of this we would of job, that, generation to give agreement revenue up able and fantastic the exclusivity. to kind without extension for to having I say adding clearly, company, so we're So $XX renegotiate able million away were of actually additional do the hey, to

ToreSvanberg

clarifying Great that. for now, thanks

working be the partner largest your on just that Obviously, said work go with able filters, that as on to little manufacturing then things on could the Second going to volume on was -- is platform a ends, will bit and XBAR potential you exclusivity highest the track actual be that. hoping one the I elaborate for foundries question, but you're platform. you of to -- you with high

GeorgeHolmes

the XBAR foundries Well, that their on previously platform we actually have with or have built based foundries other we already filters we working noted seven are XBAR components. as

great a customers. give So we flexibility other into deal that already experience putting the to technology allow foundries us of potential to great have

them. think are I what target can does for companies that technology and port focused handsets, we specifically this is mobile to this to want end; us those exclusively

ToreSvanberg

pretty one when $X in this sense, million know P&L to could Make feel the do question deferred And just XXXX, last Marty. potentially for revenues. Marty, XXXX? add again, is it's difficult. I difficult, the from Any you I really that but recognize

MartyMcDermut

That is have mobile. expect question. non a that's XXXX running I that's other over important most think or demand I for we getting come a other, to technology, Yes, exclusivity expect that, the mean, and the to in XXXX. with going to And to we thing we pent-up add will the there. reasonable people off, the

So the to base. bring got years. add to to there the it. over the And couple We're that's We it of we're next in going bag. in that welcome

GeorgeHolmes

Yes, I little like technology be to brought of creates take deals, ability at bad as runway, of next today. up look -- manufacturer going do advantage per gives But cash, and immediate from we think forward. over we the likely Clearly, of prepaid have, customers. these additional they not royalties be of royalties, and million, some new which deals to the flexibility and $X big really us we worth opportunity we the thing that royalties, on generation it is and whether tremendous upside having are million here Tore contract It's lots will which in based announced have in largest this thing. bring fully combination unit with we prepaid the is filter $XX a creative, we continue shipments, a paid world's

Operator

Our from Stoss Craig-Hallum. with next is question Anthony

AnthonyStoss

Any for many your Marty, the it's component more would quarter? -- Thank be did from revs George, maybe different paying would your you assume George some probably helpful. guidance. just in on prior shy your charges for thoughts I how you. for then customers And of that customers. in have Hey, and of Marty, came

MartyMcDermut

stable pretty customers the been of number between the think I quarters.

cashed are manufacturer And the the recently smaller talked that five whose -- have just of at in. bringing that cash from contributing volumes, also we've to we the importance billings talked about, customers and largest We we added we've unit some got level. much bringing money, other a then in world's that have about

GeorgeHolmes

the question, Tony? And half what second was that of

AnthonyStoss

and If that's you of some guide? come shortages, your below kind you component what heard had guys just if from of in customers on slightly your

GeorgeHolmes

No, our had, noted of unit we received. that ago, of quarters is largest the automotive what hoping bands us, the of we or to either I to get just relatively even five, group were recognition we which think of were it quarter a had follow a and us inconsequential came or driven close volume until one legacy trajectory business. we really overall component the five have customer, we at only from in The legacy for it kind more early, of shy that early kind That's a -- that around of that perhaps thing see than converting any which runway the on we several wouldn't change any given is application, bit currently months volume we on that deal early, would we is we done, the juncture. forecasted part more the low though four some this of year, in the the for that on little revenue end shortages really runner, was an this our big new really appreciable haven't customers

Operator

and question is with Gill Company. from next Our Rashi Needham

RashiGill

it are Murata. congrats you? partnership questions. appreciate taking for how I and on my the with Thanks guys, Hey, expanded

think I interesting. really that's

up think Marty, So the million George from increasing $X to mentioned this $XX million, about from million. was are up and $XX you partnership expected from I you revenue expanded

how up, that of maybe, moving it kind how that bands Obviously, sizeable you're about the you're because so four revenue expansion versus how more thinking that baking buildup of the is you're the revenue rest the bands, is you but new number now possibility. obviously, assumptions developing number, range filter eight filter curious what thinking revenue to of are So about, wondering getting is you're opportunity? a

GeorgeHolmes

Okay, great.

$X then a chunk follow existing upfront on just follow but that we get at this on lowest component is higher happened was devices. So provided a as million time additional done little original reminder, were the of each, of that that's we more range got It's ASW in complexity was these on what of the it's And agreement, for done new four the XX% And the of there's a the is of four of that -- then million payment. let's, $X payment $X device allows took the least at is million, a $ first based before, for we it that you a to the would a that time complicated. $X.XX gets the ASP initial the that's both announced kind way had and made to those different the the million, that is more million XX:XX or that per of And already a $X XX% four be a have up in that charge that defined to be agreement imagine you to addendum an And devices ASP, bands million and band, well band, we've us million the it, ASPs payment million $X completion. million something probably the to complex less, bands then top works would the $X on from these complexity to that at based $X signing, that buckets. signing, on today, of complex devices. would can

one $X a device, So so that $X of plus million million $X the obviously prepayments is quarter million device.

make could to what will this would uptick great. we they go $X four in bands So not be suggesting bands, million of devices million but all to that have kind currently we're will $XX looking a at. That of it each that the that be be would

a top $X million you gives I think agreement. first on pretty million looking chunk good what for this $XX at of we're that

one really of middle we some look one get As the of there. first have end or and trying at nine view on get for all $X range down, imagine, right mission we this really customer. the value that down tend --as a million we're there'll new on only this it the devices the will that be four at the I already heads But bottom, today, then band described that's we thereafter. one, buckle a in to first be up you most we couple visibility production, fifth these the blended have to now. which recently range this we're obviously, complement I is will top in that's to complex just into XX volume with equates falling release shortly out signed, minus hard can to you'll visibility think And plus

So it's good do. good end got the And of that's year. for between to And it's run. we're what now hard But the we and more running start. a a work

RashiGill

WaveX, the proprietary that's simulation no, of brings the you helping Can helpful walk that great. performance filter market. Yes, through. in customers the to to Very filter George, your software faster allows you customers? talk incorporating how approach of you you're new you back? about to guys about in curious kind thinking this How how gain way this go-to-market I'm are your strategy? software leveraging are proprietary

GeorgeHolmes

we means to of truly from that let Dylan, little One, a competitive WaveX combined very to an two What is things. what to two perspective. what makes because this capability that that give things what truly from processing him means. overview solution. do hand rebranded a when me transition bit those And means ISN it going let I'm and of over you more a Well,

here bit. So, talk about jump don't in a hey, that and why little Dylan, you

DylanKelly

we of as extending of Resonant it full the Let's has last in the We else truly that's And our unique don't believe focus the marketplace. at is the XD anyone was to if capability. the simulation say of really building look it that entire something block year filters.

customers it's the a way help? licensing it's this than access was And up think we're And treat this XBAR able of point it able at in market bring don't to predictable export to rather to so on a us allowing be go to to designs. really that fashion very it win it, else mimic providing that Is crown would that basis it's to quickly. as jewels, and we anyone something

RashiGill

similar component, as wideband you Wi-Fi and mobile a non the are operated talked XG. frequencies on ultra tier XE question about and for at this And does. one it to non Yes, bandwidth mobile,

biggest So of whole will the mobile communication the non mobile standards equal with and Are that non customer? markets focused were and mobile elaborate And quite XG. bunch you markets? talked deployed X your of little about as or they you is you you where XBAR play connected non for kind end a market filters? be kind markets mentioned bit it's being this if why? these of of filters maybe end the And so, do Whether a the see could The on a these opportunity seeing further? market, of specific are size big, in this of kind meet well. potentially are for on. When definitely the cars, mobile different you XBAR IoT to needs Tier Can is XBAR

GeorgeHolmes

the the that end do between concurrently, business I I and first, that would on hopes Xs. with, now pursuing minimally, we've first current committed the on in that, And of you those year, rejection right because one deliver customer, and interesting that a manufacturers the we're to is marketplace with say filter probably though which one doing first. opportunities. is we on obviously particular, the where things heavily Wi-Fi active CPE from on Well, most that the where go and their other say that routers, side, tell you XE devices for focused market of the And to I very Wi-Fi that's is the can of track the these as deployment great space, all volume it would have would one multiple EWB clearly, Tier that fit. of high have EWB think customers engaged I high in deliver, Obviously, don't three devices were we're aggressively the

or on direction think I have that a really a XBAR our devices and good So high sub hybrid full good low banded a filter. -- and or really band, rejection the the not side,

greater think less of routers I to these number is it. that key going needed Because in for applications. So a play throughput, to now see be you're going the

So you view? to it's go, do think I would have where to that's going Dylan, a tend

DylanKelly

in that up up. nitride of with on exact these first is as the frequency sort goes just say he comment application, we a working generally -- differentiation go I'd But, speaking, against customers. bar XBAR aluminum well, is of

the emerging be PGPP, the gigahertz sweet is George and of need. would as next, released, this looking a at lot and going up been spot. XE what is focus for of spot are But is range, in I has on think that So it which sweet to XX really year markets a the to work be saying interesting really bands in next seven there's

RashiGill

first just still for 'XX? breakeven the Marty, the P&L? these calendar into from case I in squeezes last as my kinds of Murata you that have will expansion, I'll And think cash help that you the rolls Is in the disagreement flow, reach said past, in one question

MartyMcDermut

the of talked remarks, it Absolutely, will ending was we and mobile about. and right on million step, we're -- with we're us contract. about is big it which continue to the about adds is thereof just in George's coming we've this which the backlog. combinations prepaids direction, $X in we improvement. is talked And major get adding talk in expect the exclusivity, brought we'll from starting This to a the build non We've on which the

GeorgeHolmes

are these plus breakeven manufacturer, things and, cash more lot see million number as high get if going filter time, or margin a right, fully in dollars to very, be start one we a that breakeven our to $XX they flow look point beyond number, were minus reminder, you are fabulous when up, us a seeing that everything drops filter closer integrated where at at it a Rashi, bottom, that as and Yes, business this range. back very going probably ladder manufacturer, million, $XXX approaching step even closely sit of i you the is would a to all

north of that drops bottom there's of we lot when million. the So operating to $XX margin get a

And And latest expansion. this on our deal So run it got with we've first big getting deal. we're a but the is in cash a deal, pretty about good think I excited it. obviously, not signing only

Operator

from is question next Dede Kevin HCW. with Our

KevinDede

sure Yes, $X sort Thank in of a is at the I Marty just you, old my could think million tried Thanks the just old to last the sort afternoon, in the that for got gentlemen. contract contract, straight. the want I I a in job how out one, right $X the says from this through I on you I me through hoping on to million taking that good be $X of walk million that $X probably deferred, the what's did and going there's the new you old payment million flows. going old the but was great to payment I make question. from last mean deal, left contract

GeorgeHolmes

call cash the last half well, specifically we Okay, in. we've it has didn't as this of got noted on contract the call, call, come we out, original is,

a is portion in go that deferred, there's but there. there So small to of $X.X million still left still

Okay.

concurrent thereafter, And obviously, And in come couple those as we timeframe. next one believe. we payment So with will come next we move the will the last to we've year, exclusivity at of least then the to that that of obviously, shortly milestones. that expect highlighted happen

on And $X.X there And release, left million we've original released is. million. the now on they've So range what said release. $X this the

and work the range. just these got with end that at first hard some we'll good go do Now, share we hard drive help try capture And top of to devices. them five and the

KevinDede

finish for that have recognize production. think up? move release $X.X well, on from, that actual you're or to things last million. mean, to George, stage It's to you exactly be able to that you me So, full do Correct? help they track recall I

GeorgeHolmes

is the that last said No, we of due. actually when never payment specifics

course development, four to And it beginning, we their we on over the the keep of is is they're on three to end is the of the side what now after shortly to the payment said which first only If that working speaks project making recall, quarterly to produce were hard, devices we're that highlighted happen over right calls last pretty referred the importance and I you these them. And with be team of guys schedules. we've on to release in, expect both said and four in working the obviously a major investments all of their next people to that that the payments. annual on. high recall, volume, shared, if shareholder exclusivity. quarters. this working we there lofty you of they've an the we our they're these are the couple schedule payments, able which there's announced And And of and mean at

can't future think it's give out the these. far and we I it's, date sorry, But given future end the the are. where I too definitive So I'm in not for in you it's

KevinDede

but exclusivity, understanding question power. It think certainly it begs they Okay. would of that thus you're how sort far, some can I it's know add there. mobile And they you other what Resonant's could sensitive I these the with in if technology, the non pricing would customers, progress on a valued negotiating and help don't color, topic, how add know But be as you helpful. your especially how value I really they me valued

GeorgeHolmes

sensitive ASP, million, we first $X at massive were next worth we a highlighted maximum of that maximum a devices four are did mean, all, the the not expansion it's $XX topic four million. Well, devices I a of worth the

is value this is the and for not think significant That's only pretty million on, a device. ASP my going important most but as think see speaks first great probably the $X.XX they frankly, work a in these a they the pretty significant from really in initial value of lot of done they customer going I what I up. that's to when us, contract. that shareholders, mover sign come they've more because feels to they're is exclusivity. the first happened, we've is that I that the uplift see advantage, uplift moreover, that have we clearly, had deal, and But to validations major mean our thing person high a now, technology. a our we as million the importantly, have extend in that's a $X these And did the here about devices, not and did had component per book. And to

So position technology. fact further with of that better with that's new a only existing to with the customer, negotiate speaks our but to power not And in are validation clearly. really the the we this customers also much

KevinDede

complexity. George, in you. the function see here, color, variable You out thank was I can't said that appreciate details. we're But And sitting the other we those

GeorgeHolmes

different a hey, follow a talk Well, of gear and he's of looking bounds mean that band Kevin for talk pass for complexity. speak the Dylan have the -- a little And give CPE on those piece device, diplexer right? the let's that to about Clearly color for. a in different in about what, the bit complexity versus devices, kind types duplexer difference I a is a filter, I'll are of a what simple handset.

DylanKelly

lot new major two are filter further competing against is up and any design, of bandwidth, we're challenging a higher which applications bandwidth One technologies. increases seeing factors. filter, value the as really to in considerations a brings where There the versus the differentiates the is receiving market operating

as George in and as application. value lectures amount the things well is essentially together. that other a designing So one then that's move the There's more effort and and more where to great them like is mentioned combining two filters, you're involved,

Operator

Mr. back to the call Holmes, you. I'll return

closing may with presentation or remarks. your You continue

George Holmes

quarter, Well, customers, thank year want achievements the behalf strong quarter. operator. shareholders. again, our and this and of looking our to our deliver again forward employees joining today. and us really you to on significant for finishing I are everybody We had Lots thank to you, up we everyone. great a Thank of

Operator

a conclude call kindly your that all for does today. you participation. you great And the conference Have ask that evening. We for And please lines. thank disconnect your

Greg Falesnik	Investor Relations
George Holmes	Chairman and Chief Executive Officer
Marty McDermut	Chief Financial Officer
Dylan Kelly	Chief Operating Officer
Tore Svanberg	Stifel Financial Corp
Anthony Stoss	Craig Hallum Capital Group
Rashi Gill	Needham
Kevin Dede	H.C. Wainwright & Co

Resonant (RESN) 11 Nov 212021 Q3 Earnings call transcript