AKTS - Earnings call transcript Q2 2022 | Akoustis Technologies, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Akoustis Technologies Fiscal 2022 Second Quarter Conference Call.

As a reminder, this conference call is being recorded. At the conclusion of the company’s presentation, Akoustis management will take questions. [Operator Instructions] A replay of the call will be available on the Investor Relations section of the Akoustis website.

Tom Sepenzis

Thank you, operator, and good morning to everyone on the call. quarter conference second Akoustis to fiscal call. XXXX Welcome

our CEO, and Jeff are of joined Interim and by today Aichele. Boller; We Shealy; Founder CFO, Development, Dave Business EVP Ken

for prospects the company presentation we and subject our assume and costs, includes quarters, risks statements are and outlook. Before strategies, statements COVID-XX the of statements as wins this expectations operations, statements included of of expectations than fiscal pandemic, integration current any update historical other and regarding today’s note current product matters, as and predictions impacts timing conference and the forward-looking today, objectives, made plans please the our design business statements. The that call, expected our including All forward-looking about customer such into Such litigation our the forward-looking milestones partnering customers, operations begin, regarding revenue, future expectations statements and are forward-looking on achieving based entering acquired call. business regarding collaborative from the and facts orders, in of of today’s expectations relationships, development regarding future to possibility numerous company’s or of obligations to and guidance product and are management on uncertainties. no orders team potential

cause XX-K a to differ those results get to Form of and that materially. actual SEC latest XX-Q and Form Our risks could SEC filed factors understanding mention filings refer our with better important uncertainties. to Please the

turn directly the of highlight call and these our financial over Akoustis. Jeff also measures CEO Founder certain release is presented call of to of in measures. to the akoustis.com. now reconciliation presentation available comparable our In measure today non-GAAP will to like would section in GAAP addition, to Shealy, I Investors the most earnings A refer

Jeff Shealy

our December during made call. the accomplish were and to second Thank sequentially. chain quarter production the number environment by supply and fiscal associated XXXX ongoing revenue conference grew progress you, driven welcome Tom, increased tremendous quarter semiconductor in as of the We in the over despite headwinds everyone Akoustis macro the we and COVID-XX XX% this customers our to able delivered infrastructure million and remain expect XX, March third we given confident XXXX, $X.X our will in current continued increase record growing the than WiFi, Currently, revenue see We future. and XX%. we our revenues more revenue markets, shortages. will of quarter ending growth other for in mobile, we customer the XG that by quarter sequential XG activity foreseeable for fiscal that fivefold

WiFi business X continues WiFi both new Our WiFi we in and as to traction, customers adding XE. are gain

gigahertz with X December WiFi Our first the our X.X second and gigahertz quarter. we tandem solution, a leading and filter customer in coexistence entered is leveraging production customer X WiFi X.X

X production released March four into design to moving enter fully production during also December additional current production we additional XBAW morning, also forward. we as that qualification X and were wins, into qualified which qualified for products announce in We current WiFi half production We quarter WiFi wins announce the be are ramped filter additional entering and the the production coexistence this full excited filter our XBAW are the quarter and of year, with our stages release. of of the first first final expected and I’m in to to WiFi in most expect solutions and to WiFi X.X XE released XE design gigahertz XE and will the calendar expect quarter. in pleased customers June be our gigahertz products X.X filter of be

PC currently the chipset developing progress to are the largest diplexer, which the continue one we makers of WiFi world. advance in XE we our of Additionally, for

X technical The this customer initial of feedback diplexer the December, that and to received and positive the providing BAW was wide high filter we extremely this first operation delivered summarize exciting enabled remain that recent market performance portfolio WiFi design. frequency XE XBAW enormous extensive shipped the WiFi for wins filters, the commercialization on design for commercialized BAW gigahertz We to for XXX more X. the characterize and XE on of next first activity, feedback have attribute XX to X satisfy design and fact design to now XE schedule to Fortune surge X WiFi bandwidth for of in WiFi valuable within their iteration. and customer filter to most the we our the To The WiFi diplexer than WiFi new product. in X our recent system, this of we We performed spectrum. well in have solution challenges

calendar quarter. announced total current we X end As wins last have up enter of XX market, volume us design filter our in PC Furthermore, year. would a WiFi both and additional to revenue. another And expect throughout of well into we to the diplexer, the today, allow see we of substantial design the very lastly, of which wins unit XBAW development at are opportunity the wins, first from market

for that in well was to multibillion-dollar initiatives. tier-X maker a quarter, December customers of on four Asian on Moving module mobile maker doubled handset a on the quarter is to as number XG focused adding market. including exceptional We fronts the tier-X XG our another the module two from mobile. numerous as

above in using cutting-edge customer mobile mobile plans to challenging XG and best-in-class Our tier-X and bands new use filters to smartphones other technology devices. for XG designing multiple gigahertz XBAW XG our multiple X is modules deliver

helping filter in the XXXX. we we customer filter and of the performance a to the samples arrangement customer quarter. with to initial of the ramp the filter expect in targeting currently deliver develop expect the half samples meets are expectations, of customer We If next the foundry production establish calendar second the

XG XG Asian market customer RF modules mobile to use has grows great plans design XG, XG as rapidly XBAW our tier-X sell and handsets is worldwide. a success the that maker new module other filters to XG targeting Our and growing in RF had

initial filter We for the that design multiple have over could year. designs developing successful lead started customer and to a expect next additional this filter an

The the additional a received filter, expect module foundry feedback samples end During we existing quarter, last tier-X customer as customer on customer for in decided component current two calendar filter ramp the during ready our involve of RF our of year. And deliver of second expect XG mobile continued end finally, with front-end the the XBAW to changes qualified XXXX. does by calendar by the year, to changes are happen that this will calendar by first parts favorable remain remain the to designing by first XXXX. to the is the we customer the the filters December track and customer from end technology. half to in redesign RF production quarter. of first after production current We expect has of move ramp for We previously redesign ship agreement feedback filter customers driven to first forward our our received but of which well. specifications first we and signing we not the technical This from on two

WiFi expect wish customer multiple we applications. expand design that agreement our may filters to other and this fact, for In new

the have We to that subject tell near in you on term. more expect to

last call, or are wafer-level of the we WLP, As on we update in-house. mentioned bringing our production quarterly packages,

characteristics have outside from We we alternative that New cost than an better can produce with sourced products York supplier. determined can superior in facility our be

later lock this design our process towards the of with work We year. continue calendar to WLP full advanced to packages expected follow new qualification

While activity, ability doubled the will the of To in in-house for the control believe of previously calendar enhance second summarize XG customization from is mobile our packages. process half the of of later is current and March, two substantially quarter. year. bit targeted a December our to mobile in We our initial engagements our of our quality, the cost than delivery number four to we this products the XG target customer bringing in advanced WLP it time

design. in multiple XBAW have We customer-funded filters

the X component for a development maker mobile developing module We RF which module maker, with the second foundry front-end that has currently X Tier module engagement customer company our a filter, filter for, we a signed a a to samples X XG of two additional we RF one handsets, XG with customers’ Tier mobile maker our Tier one XBAW resonators developing December. agreement is expectation first component include the Our filters X front-end that front-end for, RF filters RF first for accepted. in that of are shipped second X developing XG Tier us XBAW XBAW and are with if Tier XG, is for

we term. expect finally, and initial Our front news to filters number on customer is its will signed migrating with redesigning supply and of I And wants are filter now, it the design, in us expected foundry highlights. expand the expect the fab, like qualified near currently design manufacture, it that discuss New we available chain into our WLP infrastructure York locked XXXX. which be And our have in will business would production we calendar manufacturing for to of

production last our with in of recently current Radio completed quarter. announced in second enter Citizens customer quarter, customer and plan Service, quarter, or As CBRS CBRS the with to our at we December first we end the the Broadband

of of the our product, CBRS enter March quarter June current to in qualified next or expect end customers by the We production quarter with the XXXX. XX, both early ending either fully with

power introduction require samples cover of for offers that both other wide power. filter micro breakthrough continue well ability material stations applications towards handling macro leading the base the to of the to as BAW capability, as work and that first new We high a bandwidths

get new filters, further We introducing closer innovative are technology. excited about as we extremely we’ll update and science, you to material leveraging this this

to gigahertz the of spectrum at last the auctioned develop XBAW new end new continue we a that X.X filter U.S. for was year. Lastly, XG

and have design on network XBAW have XG CBRS. our infrastructure in samples wins our To development expect X to for and small current design Tier announced base provide small one complete date, completed cell, four customer second cell of quarter. summarize three infrastructure network the for three we significant and first from filters, customer. activity, have by our with We this end a XG To filter we made XG the the one stations of and iteration progress

network our timing over segment, CBRS infrastructure received market market entering for have of we purchase we XBAW orders. And customer the design wins leading two with have RF leading we ten recently Additionally, OEMs. placed frequency resonators. which from announced already engagements, and finally, other five three In our

of XBAW opportunity Akoustis for working leading in timing resonators components RF for are develop RF revenue. and devices. a in a unit finished maker both the use to significant timing The with customers’ ultra represents We high-frequency market volume

market, components noise RF developing products analog to is jitter looking be disruptive customer in timing and Our could devices. ultra-low phase with displace that older the technologies

We of that are XBAW progress continued to contract defense extremely DARPA leading contract our part excited with XBAW R&D our our on enhance this groundbreaking our we to during QX existing In a can be further resonators PDK. business, opportunity.

range proposal operating submitted up RF we materials with addition, to using of a device In XX the our extend gigahertz novel XBAW DARPA and manufacturing. multimillion-dollar contract to filters

a and successful contract assuming quarter, We negotiations. defense negotiation have for for our solutions this summarize, is been award, potential filter completed the selected which we XBAW market civilian had To and segments for seven activity, timely markets. other expected later

being XBAW to broader the timing control are communications now used industry. ultra products disruptive high-frequency and resonators to deliver digital Our

of direct-to-phase terms and we new the we which gigahertz. for the We total placed XBAW Ken to have by over XX through NRE DARPA, I have And with that engagements, refine purchase now provided multiyear, with have to revenue. our two selected DARPA to notification financial driven of contract to XBAW our to contract highlights. four been hand improve a continue would multimillion-dollar go to to a scale negotiate orders II technology and up already like or call customer we have our received PDK

Ken Boller

Jeff. Thank you,

basis, December For over September driven million which $X.X depreciation of $XX.X labor $X.X other by an On quarter by the costs of XXXX, quarter, was XXXX. for $X XX% is million. the loss ending costs XX, offset X million, second quarter prior totaling operational December a the ended of $X.X million $X. XX, operating revenue million, increase company mainly GAAP revenue of and of reported million,

to quarter. in is and issued the was basis, of the measures website. quarter, our prior morning available this million expansion QX $XX.X New $XX.X million GAAP the operating CapEx a quarter, equipment for redundancy prior fab. mostly in per year-end share end loss in certain $X.X with result, of million, loss and GAAP the payments in million amounts related $XX. exited was used at the equivalents the to cash company’s due per million and compared operating the $XX.X mainly net in activities million quarter available On December capacity in of loss QX $X.XX. The from X share the on in section Cash York $X.XX. million press corporate $X.X the a versus was non-GAAP quarter. non-GAAP to previous prior corresponding cash the company continued the spend net down Reconciliation Investors was release $XX.X these was to of As

record and in Based WiFi more share. line expect December up continue now than growth wins, equity quarter future our the anticipate that of price to March performance backlog I our In June to we the and design XE over financing milestones. the revenue, upon quarter. $X.XX cash multiple in XX% back call average will quarter, we the and will of Jeff see at-the-market and million fiscal quarter growing turn through December top the at sequentially During discuss infrastructure second network we ramp to additional to beyond. raised production, per company $XX.X expect customers therefore, new quarter, approximately an the from

Jeff Shealy

view Thank that remains broader supply of the I’m to shortages supply issues you, industry. are the despite our pleased chain impacting Ken. March semiconductor that report ongoing the and positive quarter

WiFi XG XG markets. momentum grow, X, our infrastructure WiFi Our continues and driven to XE, other by mobile,

additional customers customer mobile, more to across XG of including by wins of In our expect XG to as expect calendar infrastructure production March design the current our segment. all other our with customers from markets from the expected WiFi, We quarter, ramp eight XXXX quarter, progresses. revenue market network end to business and we the five segments, than each generate

our our to and to of we’ll progress. you towards informed executing on continue continue targeted strive We milestones keep

WiFi, Our first, to anticipated expect in WiFi multiple we X March XXXX WiFi customers. milestones and include: ramp XE

WiFi Tier X exit we design chipset XE second four XE with quarter iterate qualified expect fully to We WiFi our the new a our expect to to filters and of PC diplexer customer.

XG filter to utilizing initial And For component their our and first mobile X second we filter RF Tier we the for for And currently front-end our to our two additional first module expect we for deliver filters RF original customer new WLP samples spec deliver our new Tier expect purchase a supporting to in design in of filters design ship process filter, plan X first iterate mobile, and filter to and X customer. our order receive are Tier development. the XBAW customer developing samples next quarter. we

our to defense order new filter for U.S. complete the Next, Tier Other market in in began expect a potential production our on and ramp to deliver X.XX new new base receive ship X and In from on DARPA. our multiyear, expect award AAS filter to gigahertz with customer expect X.X to proposal finally, we and XG to gigahertz product multimillion-dollar multiple CBRS and small with a our conclusion, customers segment, design for and volume negotiations existing a we a we our moat expect both technology. believe market sample design XG patents XBAW We as issued and to XBAW Network to for our for expect the XX patents IP pending XX equipment. Market two a C-band patented cell And DAS segment, X.X station around we have build we opportunity release substantial filter substantial. to filters we high-frequency continue Infrastructure customers, the is now production and a

work execution objectives updates objectives, diligently on our to going achieve continue against we stated to these each to continue forward. and We provide our of will

which employees throughout the and to work, like team multiple as dedication would to markets. XG going the thank the this passion particularly calendar WiFi, hard our kept past Finally, infrastructure for across R&D, year, ongoing their wins defense led on momentum pandemic, during I our has has and network design our

the XG capabilities. exceptional who the question. go that, gigahertz above mobile with experienced would Operator, filters packaging and company. also leadership our continue to X wish call driven in questions I new community. to our And also like open ahead with the expanding please I first and our the from shareholders operate by investment support that momentum have We for in market, to thank wafer-level the

Operator

Stoss line first Instructions] [Operator you. Craig-Hallum with Anthony Capital proceed comes Our Thank question from with of Group. the Please question. your

Anthony Stoss

Good you morning, guys. the Jeff, Ken, on continued Congrats or maybe progress. of two. one

you a Can And many the you’ll XXXX with December? think have to much end will talked On impact venture shortages, the five you quantify about can March? designs. it the year, same how how impact the Jeff, designs supply guess, many thing, this of – for in And in in chain exiting volume production? production you you, then you at revs how

Jeff Shealy

morning, your comments. Tony, appreciate Good and Okay. I

of on many – with this over I’m one in exiting first Dave to we terms the how in For to that expect what the terms going in start. of to kick calendar production, year,

Dave Aichele

that question. morning, commented the or strong, more towards production, last over year, Tony. I months. in weighted is this next that customers we’re is sitting WiFi activity out five percentage Thanks very, increase still into this so to exiting Good going for the XX XE going on XE. they’re to WiFi continue Okay. We very year think The year

a So say that. And to I something reasonable to doubling goal. would to XX continue we’re that beyond in push that is that’s customers production going

customer. It the I production from thing cycle months an activity XX somewhere to timing enterprise if nine just for to the consumer customer start in range – of is or depending it’s design main the typically retail on on these customers. think a of time is release

two chain. been lead from is at on the suppliers, extended time, the obviously, and dependent guys. we’ve What seeing supply also, least depending with SoC major that it’s So on

belief have positive will XX year. boundaries, So be than a within by end the working of the those we’re greater that but

Jeff Shealy

was And we being just out over Tony, into the in on that – we and eight put prepared comments, find what that the quarter. March

Anthony Stoss

charge, Okay. And the much on how it component impacted for then, Ken? revs

Ken Boller

Yes.

the the such ordering equipment, now particular, delays delays in front, both a months shortages, times supply So in certain on we’re headwinds and COVID operating instances. laminates. given the to over CapEx on also, XX both chain for items we’re as But seeing certain up some macro seeing in year, for in expense

review when be more redundant to need and items our planning certainly, those more, it timing invest in in need the matters. part, when long to fully on line capacity to certainly time So and we lead But and more takes us of and causes earlier. bring it CapEx we our more

Jeff Shealy

Yes. Jeff. And is Tony, this

to follow-up on that. Just

units. has As WiFi you the been chips these of of know, silicon those we those sell a units chip silicon take and Each into availability challenging.

in not tended the that December to going of for I capacity the – but a we we terms we suppliers impact to And I’m some general see we would in to ship speak – that don’t quarter. the headwind can did forward. those, Again, has what of of that ship only we impact control call need. and we have going what control So

something to if there in look at terms you that’s March that of up silicon availability set the However, sequential, our chips. guidance we And conservatism when of investors. XX% that guidance in we the those the to have quarter, wait some is of for

Anthony Stoss

be experience with When and Any at Thanks, – kind a actively are kind you of for of, of customers, be And you then helpful. would for quickly on Any design Jeff. your additional color, ask their kind solution, How or I more engaged? repeat color they are look appreciated. WiFi your back just would customer wins? they design land Dave. expand one Okay. you first how if coming could

Dave Aichele

involved say, The now. and obviously that’s customer, goal. were want a And with maintain distributed We and is of XE And the Yes. WiFi more the we’re and new Again, enterprise and would that their all I carrier develop requirements satisfy architecture – is some back. pretty that strong good acquisition systems, that to notes you actually multiple that come as to very we question, our early with well thinking spectrum. the coexist the the designs or XXX% thing Tony. relationships is how is for that particularly now customer they’re on across additional the secure client are these five that filter in becoming of customers, utilization about can do customer. backhaul is, there connect But and consumer, good It’s them of they difficult they devices. it what of it’s obviously, use really programs, will solutions

So I to and satisfy Even technology. market lead at customers our the maintaining expect we’re and now, main into recognize solutions thing us and brought first are that were and we that XXX% that develop continue these leading architecture we think board, that programs. the the getting new customer right And with early on looking acquisition on. we the been working to customer that future we’ve to designs they will is

Jeff Shealy

is this Tony, And Jeff.

have add what more by these may multiple that Dave It me have color uncommon it’s They a Let on said. multiple customers going not certainly programs. customer, to designs in sites. varies just but for little

multiple there’s So that running to months. parallel. are Cycle XX development nine in of the typically times in in are programs these

which I on the we some we we like in point of prepared of from an in the terms diplexers. comments theme going in touched market. overall And this to So overall on that have in think, terms time of vantage activity market

the One to integrated example we think than of able is ongoing. of And more that that’s features the a technology first integrate module. our an I in being diplexer key filter have one

module, it in you filter have of cost these similar developing, these more allows put able So we’re export or with to Then a could in – the module, it. with map single at road more roughly is for of whether us our been opportunities the looking fixed and in we which content, filters multiple the more one it. advanced us allows which features in for put to do on get where more content integration also we’ve customers have we relationships that

to is continued road from think trend continue integration going the And a go where we’ll that opportunities I to we’re single-band us. be the certainly supporting expect investors line. our going and integration product should but to take maps our solutions, So certainly, see something customer

Anthony Stoss

for Thanks guys. detail the

Jeff Shealy

Thanks Anthony.

Ken Boller

Thanks Anthony.

Operator

you. Thank

Our comes line Kumar the Piper Sandler. question. from with proceed next with question your Please Harsh of

Harsh Kumar

of sounds at your like on Hey company. first tremendous exciting guys, It this and going all, is congratulations. things

future. I the may Jeff, about a But if or excited ask question We’re two.

XE You talked filters from lot like to wins, the a versus lot ASP mentioned? one the Do and filters a you you the developing about your an margin scenario? come standpoint a rest about think – can versus a like And you ahead PC a X the maybe, you either design that seem from product Is design-ins. even a XE difference of I rest out XXX be do or working that talk Fortune there financial you’re – of in your it’s angle? company getting between with, of other the WiFi a you

Jeff Shealy

Yes. your Well, I comments, and first, appreciate you. thank Harsh,

color it. to on dive here I’ll and pricing, the he’s in the me, in to Dave let of going I’m add let customers. to that, But some So certainly terms closest the

So start. let him

Dave Aichele

into with as can morning, than Good technology, you’d we the see typically There’s what position. that WiFi where is the XE, engage the price The and leadership want than XE it’s this that. we some WiFi that difficult One and X WiFi for utilize higher incumbent XX% you get of WiFi X. over two in greater to maintain Harsh. is market see advantages

LTCC DR and of type filters guys. us even mention the some heard You’ve monoblock the

segments We be do competitive. in don’t et price, based premium have the have a to the So both as on we performance, size, premium cetera. market

multi-user The MIMO. other the advantage MIMO is and

average X the has the of utilized So system you is what higher see content XE filter WiFi dollar per the a number in of than increased. on in typically

system. expect per off we this see the more rate year. take And revenue start with in also, we really market take to obviously, XE So the WiFi

got market regard we’ve before. high for customer PC mentioned segment. this Jeff the that So and the to With expectations diplexer

when handset an taking respectable. position first be we customers some PC, think, so high-performance requirements. is high and good, to acoustic of involved I volumes filters And technology call developing besides X utilized one other mobile at acoustic in as that BAW, low rejecting This like not loss, with you which applications what and a we these leadership mobile acoustic are We’re, the Things multi-link bulk WiFi upcoming, that diplexer can only isolation in unique battery-held very a they’re in non-handset you’re and are they do in, of a looking would there’s get these using wave the unique here. other that our allows you also, also, its operation technology. WiFi can’t particularly devices, that XE develop good has the with insertion wave for position

not So to multiple customer, into is but with of on little something production take just that it’s bit going a this us this, to this time for get one it’s with customers.

Jeff Shealy

add a to color that. So Harsh, going little it’s Jeff. I to more just am

You had and margin. ASP mentioned

is From driven that’s XE end. product to from a the margin yield. the mentioned, the by profile, end-to-end largely Dave as going our think, premium be I product

size we driven can be margin that the the logistics on driven product. by can driven those And yield. be things, of the laminate It by call by the can costs. So be that It specification.

of do this I from, they savings that want to that think, the of builds drive So is cost utilization fab, aware perspective that customer. everybody customer down need make everybody’s on. And have go with we end, the program the is I going sure we product of very cost quantities to forward. and that get just the But it’s as to here the And going their cognitive also wafers also, which support credibility are the cost as need well. the we for savings initiatives to we on important

just a at earlier, and going as allow we mentioned I to So yields, we bring get do that then, It’s cost and lower integration us functionality point. of laminate cost, module. the ASPs size within product, higher amount the to of can can

on the one to profitability. a have them their is paths is touched the of the as planned. making product. I customer, that We and development and wanted as performance end meet we with reviews to of recently integration And One requirements. series front yield proceeding thing certainly sure on as last with had working So Dave add, PC well design expectations that we’re the diplexer on

continue customer, content, have then, good able module. add of to functionality switch very just mentioned, being to the interaction to going final and And point So as that. terms just we’re with that I’ll in you previously as make, a adding

more up So the can profile content that we that drive products margin there’s going and the to believe improve will of we add certainly ASPs forward.

Harsh Kumar

a the I’m so things for to thank for mobile while, that Jeff, switching color. guys maintain much mean, side – always you Hey now. I you

always some you you ultimately while, that call. in the you the – mobile a you way, call. the of quarters, kind mention maintain a would get the couple that for time do in on when to it it took meaningful always last on And But mention didn’t today, partnership. You into a of

I feel So activity, how your you this, you arrangement. on customer talk about this again, that maybe Could mentioned enough of perhaps? activity thinking and assume kind got you good about going about that X you’re ahead went you Tier some foundry

Jeff Shealy

the Yes. Well, for Certainly, thanks. question. thanks

size clearly overall as well terms in the the by of opportunity mobile TAM is In of terms both as of largest market, market. that volume unit

mentioned. from the comments, movement we So as we last to four moving moved significant a in from put that we’re quarter – customers prepared two we

I in think X. expand capacity XXX would billions terms filters for to a overall of about. after we emerge beyond phases the the really just the see the of – earlier market, current certainly we to we’re that of that But terms conversations be in that need plant Tier can go the those million in with about of would require talked the talk to stage, not fab. posture, mobile ready At opportunity customers filters that continue to into the in we terms additional may

that’s we produce some which feel from view think U.S. their that I certainly about also want opportunity you X that option. opportunity as any us Act an a certainly certainly we pretty bill, line. but to up opportunities capacity margin product. margin be profile size, we – six-inch ongoing. back provide Congress that I is CHIPS front would center would certainly scale we are good the of or to expand I the version can’t as and say an whichever scale the lead to contemplating USICA, wafer of Tier have, would for we the bill ability – go certainly one conference could would that add, to on would currently in certainly on the higher to about improvement on while And wafer comment would conversations to that talk eight-inch, mobile and products the scaling partnership to

we we’ve with those multiple We’ve that’s talked in redesign very feedback. mentioned So is, the cycles. on. about prepared In mobile. the engagements gotten going We’ve important got comments, positive thing is customers some

terms the lead of in the we’re we’re the and So module that deliver that got us of conversations I lead. there to manufacturers that will I thing going would process certainly think where mention the compelling we there first suppliers. we’ve – activity over doing. original which in important aren’t in partner. the now that for mobile an is for various we thinking right engagement and believe on And in think filter more robust engagements being But And performance, to looking can with

by that I think And opportunities thesis talking also that still is in high-end for also, engagement we’re we’re just seeing have very for as the mobile of require customers filter products. intact, requirements saying that some to WiFi. partners

start those support to in the have terms requirements. a product jump already portfolio customer we of So

is model thing be as model and best added support the completely the convinced we’ve appropriate we this our we design engagements continue to the so portfolio. are to these the capacity forward. to can do go market. is continue got successful and business We we And And in can that expand manufacturing

kind So of mobile summary our strategy. would of a be that just

Harsh Kumar

Thank the you guys. all much. so appreciate color I

Jeff Shealy

Thank you, Harsh.

Operator

Thank you.

Capital comes from Suji question. your line of Partners. with the Desilva Please ROTH next Our question proceed with

Suji Desilva

Hi, on Jeff. Good morning here. Dave. and the Congrats momentum

there Just material relative the to you wins two of design Are Is differences worth maybe those three? on opportunities for the customers announced. the ask you any about sizes? talk the size WiFi, to mentioning? the Can announced they that previously similar new

Jeff Shealy

on – Good the your I’ll Dave thanks morning, for touch Suji. I’ll let opportunities. comments, Dave let first, and

Dave Aichele

Good morning, Suji.

first from some customers have some the new will as similar to Jeff there got our earlier, we’ve size multiple that of the – programs. that engagements in these it’s So mentioned customer. with are And customers, are

same customers we’re to So possibly there the derivatives year, if well. will our be be the not first that I talking bigger new also And size, then smaller as this customer. to expect

is by year. a of So it the spread end the

manufacturing, programs. going will go of all size then at that be look into same we As the smaller and that first wins are customer a smattering or the have a at to handful design going as to you’re probably of the programs applications

So many range, a without too it’s it’s substantial. healthy specifics, broad and but giving

Suji Desilva

Okay.

redesigned, just stream diversification foundry Sounds mobile you about of positive you they sort the and maybe of talk click positive talk you gives you then, Can good Jeff, if about in that one go like maybe redesigned, revenue a there that potential on indicated there. what that? that outlook could deeper customer the And had implications. but

Jeff Shealy

here. Yes. closest the Again, the but he’s sort on not here, to Dave pile to of customer

let I’ll lead So least at with the... him

Dave Aichele

Jeff building this good earlier. the And of going access also, Yes. – competitive market. LTCC’s got engaged coexist mentioned with going for on in in with. technology. on all the dynamics then technology I can’t the be are the are the And thing customers is, the is leading also favor, too, that these to there and mean capacity that able need the that added have don’t four difficulties service our just service. to what some our in-house. they market if coming got And we’ve be on WLP is we’re to We’ve that We’ve

So those all played favor. are in our

that we customers mentioned believe year. by go end into the we two that of the will So the production

worked of And design. feedback they’re And design. is or design them basically redesigning done fan actually system design the their basically, it of well. of based first on One their in

that So we need deliver. to delivered we everything

at and FEM So performance. they’re looking full the architecture their

make tweaks some in So to had the substrate. they active devices based interaction the on the with

very them and the based to X with to actually, first by spend next they’ll their final with that had have target that the component success manufacturer them to as the Tier to design the planning success with fourth design, Also, well. with another believe be able do quarter. we ramp finalize good the is design, on results and with design, the So first

the into So pointing something both guys, see we’ll the But the other into of going strategics, one. their those we’re the in production. integration now, of are is Hopefully, continue we’re nurture just that one, but then to timing-wise, pretty direction. those to both And everything right going assessing maybe to and that bullish a right technology developments with to FEMs. point really get potential

Jeff Shealy

Dave which we’re I – them just XXX% said. – to filters into filters. if add those a to effectively me They’re platform, module their is just clarity, producing we are The We’ve platform, and could delivering let getting Suji, these have for what feedback. we So – been been integrating customers.

I translate knowledge the have that you you’re that certainly, certainly to enough, redesign, ability hearing the to performance. our ability module, to the filter as turn you’re have a knobs tweak. if have but from if like performance So would you have And designs, they doing on of to

finally, customer cycle the they the confirmation That’s Harsh the And question that they so in – because thing – about redesign short And conversation view to these but relatively they’re we’ve from the then earlier customers. on the – it with and is the want performance is partnerships. thing mentioned a its their they final positive – benchmarks like new a interested, and time just from and need a optimize Dave our in about platform. got

get and the as make capacity an capacity. add, we demonstrate get are. that those out over have performance, conversation we look what capacity a planning have that’s of partnerships just then into that where the XX-month very and platforms. capacity. would cashed say good as the once the to that’s sure well requirements model you think our about I little That’s and where the over production a liberty I We at a So take when horizon you tend discussion is

also – very to of much are the very – pretty on that top We’re needed lead times we’re of capacity. expand equipment that

we’ve is planning on very the of so team got us planning. And operations keeping that good a top

what So the we – provide, the when. we partners to that capacity sure understand mobile to can they can conversation with bring bring make we and

Suji Desilva

– perhaps I’m helpful And one then, outlook? Bringing impact not very That’s Thanks. in-house, WLP a really, material for Ken. your insight, that question, to but guessing Jeff. a CapEx bringing last quick is

Ken Boller

Thanks, no. Suji. in I say would general,

when of As those that a we’re – and million a need more the $XXX project, capacity far part CapEx much bit expansion much looking lot a spend. redundancy, is less quite were quite at as for WLP project.

Jeff Shealy

we fab is the this years one need those would to to that, we little the spaces renew installed area multiple several that occupying fab. space, WLP not fab this X the in color. where it Because were in at of tenant is a least knew that had process we we the we add the leases tenants facility had being in had chose different – Suji just And more mentioned ago. WLP areas If two And being When it. we facility. we acquired installed that areas me two previously the call let is

existing that of certification fab from to area, that new area. having but cry that’s So want did facility, emphasize I capitalize an far fab more it’s to just restart we less do a or some the

of So we there, team use we there’s and efficient a as got and – knows a facilities we to as facilities these need. the we’ve knows need of start facility inch very up lot the how expand and every that it square them

Suji Desilva

Thanks Okay. everyone.

Jeff Shealy

Thank Suji. Okay. you

Operator

you. Thank

question Please your next question. with Oppenheimer Rick from the Our comes & Co. line Schafer with proceed

Wei Mok

the Wei Hi. Good a on This is ask for letting win your morning. announcements. me Thanks question and Mok Rick. for congrats design on call

in expand and So continue sales from you mobile. recent announcements your Wi-Fi guys to pipeline

overall do And any So you this the products share the pipeline? sales what Thanks. wondering I leading large on can pipeline. How color you pipeline? see if was is

Jeff Shealy

morning, your I I’ll comments. Jeff. start Dave sales is Good question. appreciate let This pipeline Wei. the kind with

Dave Aichele

those basically Wi-Fi we’ve of the that from XE. eight are really we and of X, product products four announcement, indicated portfolio are in Wi-Fi XX a Yes, got them

going at on the do but percentage, Wi-Fi into to We effort of and development most products, to continue X will eventually a and go the Wi-Fi XE is the X. Wi-Fi smaller

bandwidth sales and standpoint, really going with requirements. transitions we’re Asia from coexist to XE in continue far to are So requirements, pipeline that the From channel. you top as Wi-Fi see investing right a in we with as a invest now with these and the there

adding from: regions, with engagements of There’s with original OEM OEMs, multiple China that of the there support work and to accelerated programs. the they Taiwan, and lot manufacturers seeing the which and this Korea activity is continue we’re So new and OEMs, Japan. to all heads are design support coming out that a also the

China also So locations. are regions of we out in Taiwan designed and in those have Europe good supported and of America North that activity also

I or to work production. pipeline will this and So Not continue obviously that continue of at of that increase. per design we’re will customers. wins main to into all and product established talk just We goals design The to XX wins got those We’ve go it now, quarter. about wins increase. to expect we design right get with every platform thing XX is a on

release to optimal lot have so customer to engineering We performance of production. a product get and them really the intimacy into that application its that support they to through want that

XE on to continue Wi-Fi Wi-Fi a we’ll So primarily, at and focus percentage. smaller X

Jeff Shealy

is this Jeff. Wei, And

Let me points. of a just couple add

done a think good really the sales of any gaps. the done I – We’re of we’ve – job acquisition team aligning recent filling RFMi; with channels, has

– you to pipeline, product about, have of just be I And sequentially RFMi the So XBAW up looking but revenue expansion the in we’re the talked to just Asia, with look if then some emphasize, being path, filter at down core over increase XX%. extremely of know that in we guided some the XX% well is we you’re quarter-over-quarter, ongoing, terms at so Dave that’s flat sequential of the clearing business going up important. a to in the

continued that that design QX, but of we’ve we think see support a growth wins got really pipeline we for we see into – QX. only that So and continuing not – that

wins, leading funnel think to and getting that’s channels nice the – in we I good design on in the with we’re the what sales XBAW leading and So very we’re growth that the channel, have, doing business. to pipeline sales sequential sales feedback

Wei Mok

that. for Thanks Great.

markets RFMi you So out from? come Thanks. What to frame products quarter? the to could contribute RFMi, December in and regards how do did in revenues they

Jeff Shealy

Yes.

that. on touch me let So

above for when So December we the it, of XX% They ownership gave we acquired – previously we business came majority in expectations the or the RFMi quarter. guidance.

as and us tells We’ve suppliers, – for priority. picked be well – certainly expect of traction that OSAT very is down our quarter. in traction and quarter that’s here. complementary the them. sales think emphasis to overseas the as sales with assembly is channel good what think is channel, And I we more new then was acquisition and additional the made signs to markets, one initial additional then, some our up a test, and do flat new also We March sequential them fourth with have growth I there

So that’s up. how that plays

In the look at X, terms RFMi. we you additional queue, on Note analysis of some color, – additional can in the did if Number you get

in pretty analysis filing. there’s detailed a provided think I the

the appreciate question. I Thank you. So

Wei Mok

you. Thank

Operator

Shealy gentlemen, back Mr. for final to question-and-answer turn floor comments. I’ll our and any the session. Thank Ladies you. that concludes

Jeff Shealy

and We Thank operator, happy the thank as and you our next Monday time I speaking today, as quarter everyone call milestones discuss well time we during look everybody attention. update safe we future with to forward for you, execution to wish against outlined you today. and your thank the set. and that current expectations for a you, your

Operator

Thank concludes This you. today’s conference.

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

Akoustis (AKTSQ) 31 Jan 222022 Q2 Earnings call transcript