AKTS - Earnings call 1 2024 | Akoustis Technologies, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Akoustis Technologies Fiscal 2024 First Quarter Conference Call.As a reminder, this conference call is being recorded.At the conclusion of the company 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. Thank you.

Kenneth Boller

Thank you, operator, and good morning to everyone on the call. Welcome to Akoustis'Â first quarter fiscal 2024 conference call. presentation our EVP CEO, Aichele.Before of please that by Ken Shealy; we today about note and statements Boller; Business today's joined Founder outlook. Jeff and CFO, begin, our We're business forward-looking includes Development, Dave matters, statements strategies design partnering All our development includedÂ in forward-looking this expectations operations, and expected of wins, product including or the and customer historical conference statements of litigation operating facts, and such possible and call, collaborative results relationships, other statements. as prospects orders than and regarding financial timing and are the Such subject forward-looking statements company's uncertainties. are expectations risks numerous of predictions are based and on today and as to The forward-looking and to management on obligation no update statements company any team today's our assume made call.

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

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

Jeffrey Shealy

and in XX% everyone sequentially. Thank the you, our Ken, firstÂ quarter range Revenue fiscal down of welcome, September to within conference call. our guided quarter was

XX% of of customers XBAW customers. September the X the had revenue. that made we our quarter, XX During than sales greater top one out the accounted up related X and top for customer

of XX XX% revenue. our XX% customers up customers XX up made top top revenue, Our made of

of came region. in in customers. up the of North atÂ our sales of Asian from and this inventory, year, those followed we sales on channel customers the our American Earlier came Asia build-up revenue, from commented top XX XX% In terms calendar European of particularly XX% XX% of sales customers WiFi regional customers our came by which customers from make sales our XX% from

As and for burn reduce business.Consistent on transition last call, we slowdown on to platforms, company to will upcoming quarter's our we million quarters our a transition to the with expected implemented be slowdown quarter's and ramp call, December WiFi quarter infrastructure $X last detail savings we during a flat of investor meaningful comments. we contract his revenue expect or reducing cost cash portion AP and In to X on forward. activity as defense segment, of the through new moving expense rounds stated market, guidance burn new in the of cash slowdown Ken impact to sequentially. our our and significantly the X plans reaction in the activities work

March at RF delivering We're However, multiple products are the lower-cost we receiving content channel AP with are and looking around new quarter, the more platforms inventory in presently clearing. RF calendar of XXXX. design new in early wins signals seeing WiFi corner, filter filter new

of quarter XX% of to As return to $X.X increase $X.X a or the record we million revenue million in to March expect for the aÂ first look, range sequential quarterly XX%. to

XXXX. quarter's would to related update company's will CHIPS take call.I to during Science now We the moment quarter and to the activity updates the next Act a March involving discuss guidance investor of like

RegardingÂ CHIPSÂ Act funding, there are with X updates to investors. share

by U.S. of majority universities According hub announcement to made not the the First, the across was government, the Microelectronics X tech DoD awards September went focused XX selected the EW in our the by tech to mid-September, on hub Commons'Â proposal major DoD.

materials, under estimate or York.Third, supply Commerce for were our expansion first of from boost investments the tax Senator includes Department at our our Department to program, service New in domestic with CHIPS York pre-application Schumer XX% discuss investment of residing have and applicable campus raised step refundable semiconductor the the process in packaging advanced a in ITC we October $X.X revisedÂ pre-application New to America CHIPS credit strategic manufacture the after Akoustis with York to manufacturing footprint, manufacturing primary a Greater on federal consortium next critical on Commerce, the amount Program chains our semiconductors We markets, with including finally, CHIPS as both selected by the was next we'll to addressing has Akoustis with $X CHIPS Rochester in Upstate XX, application. hub our original New that placed to recommends equipment for in the of Technologies, proposed potential and announced once partner hub submit refundable we a who opening partners member pre-application file a pursue received aÂ tech over a questions campus.Next, tech the semiconductors, months. updates or a our I beginning to DOC. pre-application significant submitted like facilities packaging ofÂ the would backyard and/or XXXX. provision semiconductor move that December And in XXXX CPO meaningful million the The region XX our XX, is DOC credit manufacturing forward opportunities Hence, a our target require WiFi. tech wafers of of a or Upstate that semiconductor the tax Act review Second, be regarding is prestigious in Office fourth million we on revised Inc. funds complete and the and the to manufacture Akoustis hub New in York. The completed of a that several our CPO

high-band March production MIMO the XxX spectrum. utilizing in ramp quarter was program milestone We all design MIMO consumer with delivered third first Wi-Fi September calendar in OEM. XxX of on the wins planned next-generation consumer-focused begin recently are bandwidth currently for front a and all XXXX. a to is wide RF a XBAW the to total X for win filter programs with design solutions released X Two architectures of programs Our architecture, the our receive quarter a the

second that launch will milestone with we win milestone order was We with secure on milestone. our moved a to quarter our Tier-X the design filters next-generation carrier but a remain validate carrier. Wi-Fi to in see this to have for U.S.-based their X to volume this platform, a Our shipments solution December confident

to third RF Our was Tier-X wins routers secure filter and points. design X milestone of multiple Wi-Fi suite for customers' our access enterprise-class

design months, we the and our introduction this to have aggressively qualifying to December parts and to design piezoelectric expect of past customer, X announce quarter, enterprise flexibility the have win Wi-Fi and to which These shipments an slated quarter.Also design their single-crystal our customer upcoming in in and margin latest advanced developing doped ramp product, We with materials a announced the over into are been system. customer. for our utilized these customer materials key greater few September of the the to the made is during allow

XX has existing overall the XXXX. been inventory with WiFi the past months volume programs, post-COVID, new signs over demand of AP impacted by the platforms and channels reduced WiFi inventory While market launching slowing early for along in excess we see in

I win for we we plan a in and Looking enterprise-class Wi-Fi expect design ahead in the recent secure suite to U.S.-based would for to with December routers, our mobile Further, X market. next-generation Wi-Fi Tier-X solution the a with developments of our a design secure a like X we solution to XG win to plan for wins announce a X OEM.Next, discuss multiple enterprise-class carrier. a Tier-X Wi-Fi Tier-X quarter, customers, design

customers' marketing market slowdown During no is in to design a in inability slowdown other the due September made the headwinds. component a production our shipments new Tier-X we quarter, well RF a the to the Tier-X as to in of slot program our and in shipments new product customer. market market, secure The China as on adoption

XBAW evaluation XXXX.With the to X.X have for received and half the segment. gigahertz we foundry customer customer but we opportunities headwinds band, mobile selected design focusing WiFi bands. expected release quarter, for final for slowdown receive September calendar in in added in This XG down and the customer. on previous WiFi design filter been near-term additional resources WiFi, order Tier-X infrastructure, only X.X module has the XG order market, year the the in has for our first the of automotive not completed X high-frequency the We RF an gigahertz also During our front-end a an

our include: offering their in to network milestones quarter mobile expect Tier-X our discuss making to discrete front-end deliver filters the and business. process will module now WiFi engage foundry X our for partner progress customer. for to we and However, XG we module December product fifth the expect the anticipated our XBAW mobile infrastructure our finally, first RF needs.I of And a

the filter During the shipments to our quarter, market. strong experienced CBRS U.S. XBAW we customers targeting September

cell are the the East, to seeing market begin slow December We XG U.S., improve operators throughout carriers and of in filters RAN shipments and However, do take Europe, expect in September RF and the to XG the continue gigahertz deployments. quarter. in the networks. as March Africa we XXXX deploy small our in we cell Overall, Middle calendar throughout minimal as sub-X existing market to quarter small ORAN the quarter inventory experienced the

and ramping infrastructure station. the sample Altogether, path. that with businesses XX WiFi U.S. an redesign of December and update The our path pushed Band in and of filters business.Finally, our priorities Tier-X near-term business. are with radio Regarding XX MIMO in of September XXXX.For XBAW our in in includes XX The the a a XG production I improved for of transmit defense we base expect and the X network milestones would begin customers from new to quarter milestone complete like to into quarter. December the the markets' solutions. filter on other And receive in to I noteworthy the infrastructure related redesign an begin published from engineering the RF radio before a off OEM our filters gigahertz we paths received defense update expect provide second Ken, September we for to design will given X.X out filter quarter, quarter handing filters quarter, the one is our XXX calendar category. filter X of other have for TRX win in network our call It massive and our the these design to top on the unit and XG content

battery wireless progress milestone and design, used the we automotive in for to management we quarter. a a win IC out system in on made steady an reference close Tier-X solution First, expect December wBMS or design this securing

key Second, to the received complete December a and from control which this quarter. started already qualification resonator timing of the qualification our plan we the market. XBAW specification for a of point, in delayed we At qualification the this start change customer, product product second the

XX XBAW December the $X.X to Projects the end to The a biggest new Research to success options. or were milestones, gigahertz. DARPA, in X other the other this that Beyond Defense new our technology, our our Phase mentioned scale of quarter, DARPA of the funding new and introduction up option, At new the to base revolutionary defense achieved patented technology we our XXXX. and published extends in the quarter the piezoelectric nanomaterial awarded was multilayer we the contract Agency, our through which material. funding multimillion-dollar a milestones contract This X during from million, with program frequencies past, segment the including single-crystal for the developed extends exercise September current nanomaterial segment.As incorporates Advanced was Phase in contract market XPXF incorporates COFFEE which notable of

quarter, supplier completed to New York quarters. our control our September for COFFEE expect during new as we a contract high-performance the shipments over initial wafer which we we contract, unrelated DARPA fab During requires and timing DARPA applications.Further, purchase the from shipments resonators next the a few current quarter, foundry received a additional September supporting custom order

company for In design we purchase than products pieces year win an electric and application, delivery an fiscal orders now technology of at into engineering we XXXX. meter addition, and QX XXX,XXX scheduled more for a have initial international volumes received achieved timing supplying with

reference the and/or defense timing hand in of an to to And at of control used in management band X resonator achieve qualification I filter for and optimized we SAW key would the Tier-X go over advanced a other customer.And XBAW market. market utilizing the one customer solution plan to quarter, of Also, crystal to we complete Akoustis' XPXF to in a financial filter December expecting filter an call expect IC oscillator BAW the our system used the the BAW following: automotive a the design For segments, highlights. least in deliver win wireless Tier-X design. now, technology a defense to Ken to battery are we through second like

Kenneth Boller

you, Thank Jeff.

basis, quarter which XX% represents XX% amortization of September revenue other of XX, is million by over operational million, year-over-year. For quarter, a GAAP the of by XXXX, $X a labor first for operating $XX.X $X.X of quarter June $XX.X reported On the company revenue an costs of but prior $X loss depreciation September decrease and of the still million, driven $X.X the ended XXXX, totaling increase was costs million, and million. XX, million, ended offset

capacity GAAP million result, On included $X.XX. approximately a in with operating million, QX December correction. processing $X.X net.In enhance $XX.X tool broader associated complete given million capabilities share filters to XXX loss to $X.X for prior our non-GAAP As net market our share year. million primarily was we New million in spending back-end and be loss as was and indicated was was expected year-end Cash per revenue flat basis, net for loss activities $X.XX. call, to non-GAAP the fab along a CapEx per operating the York inventory which used million, quarter, weakness expenses $X.X of $XX.X per the was our

We but expect this products, record we next quarterly XX%. new design of up wins XX% the quarterly March and quarter call. to investor to in introduce return update our revenue continue to We'll during guidance receive a

undertaken reduce front, million quarter. measures expense our we estimate significant $X rate past months, the have burn below cash will over flow reductions cost-saving for the and On operating that several December the expense we

company we the currently breakeven call closing away.The to $XX.X than his $XX.X with for the cash September quarter, equivalents the million and operating in quarter cost over million the versus operating less end CHIPS the to exited Given below burn flow back quarter.I March be expect full $X the turn of million year with quarter of of cash refund, would projections, at savings, a and top-line previous cash the cash ITC comments. Jeff X now

Jeffrey Shealy

Thank you, Ken.

opportunity and is the continue market for our XBAW substantial. We patented high-frequency believe to XPXF filters

around As approximately representing of we have moat XXX pending, technology. a issued our XX, and September XXXX, patents IP patents substantial

to to while to steps the to lower cash We challenges achieve on to I provide revenue continue of stated navigating to our work and top-line our objectives have believe our execution operating forward. year, our been against want each emphasize going first expenses and continue diligently of our aggressively during we updates to these that to we objectives, will achieve investors We the the reduce savings continue also fiscal half our cost economic the like operating like to burn. we have on I the products we taken Operator, this our that first is who quarters passion, call thank together wish go prudent the the would ahead our environment their our in ahead. are company.And I that, investment to I working with question. with company from community. support for shareholders to open to the facing.Finally, growth questions the thank dedication position in for to to would work, for in and employees opportunity take hard please

Operator

with question Our the Anthony line is you. [Operator Stoss of Craig-Hallum. from Instructions] Thank first

Anthony Stoss

me let then revenue to each? Can then maybe you. you just that with than year, in your of reach breakeven breakeven would for about SG&A March and new expectedÂ to Ken, R&D December OpEx start less be? for comment and reach a quarter per And what the kind outline

Kenneth Boller

some dive you. I'll into those for of answers Yes,

and earlier of essence, undertaken, until measures full were won't our cost-saving those March reductions in expense So a that the We cut of quarter quarter see about in we've of some XX% with QX. as that expense. undertaken the we've operating

And see we The are operating still in December some to during XX OpEx $XX overall. XX% be depends projecting on months. to of within that cash to Still -- mix. next March, million question then within the breakeven, in up on period. XX% that revenue $XX of start we'll flow that and So savings XX% to in million to that time

quarters, the back-end those have over -- production factor and are a laminate next We form during and processing And costs products of costs. X lower are lower into are coming our new a number of a dozen. products

overall the to that we'll turn cost, negative, lower then we we new this cash by savings those positive. reduction year, from a project did, in next an operating breakeven. now be our not plan see introduction are cost parts the and So also but in margins -- we'll are of cost only time start we're that And back-end to flow

Anthony Stoss

as then a for And follow-up Jeff. maybe

calendar then your again, to Just million there you million get would to March? again, in $X.X ramping And then what million you kind Jeff $X.X or gives confidence Ken, to expect exit of in $XX $XX to million? where XXXX? gross And from margins the to

Jeffrey Shealy

Jeff here.

from I the what WiFi some our that. in think the comments the what inventories, we're with seen We seeing coming the prepared WiFi made We've some is about the market, firsthand discussion Asia evidence clearing. particularly we're segment and seeing. channel confidence in in of of

and have in course. importantly most is is year, of which that think focused ramping our the I calendar are multiple we've March that QX which more been on, programs maybe we importantly, quarter,

confidence So it's in transition programs in of WiFi. some the

We and certain of the were We in had wrapping transition year other also with in headwinds -- segment. our really, first of some a the -- in contracts. mention fiscal defense up of perfect this with we storm market the made some half had we

the inventory well So that's, buildup of slowdown as as channel. some in the in the

have other up.And has So in, in segments for that confidence programs some WiFi, well head an in as seen recovery and segment March infrastructure are of signs year. the high little ongoing the that it's we've as really the as new into picking But lumpy. which quarter, a all we defense next about been we

Kenneth Boller

margin. gross on comment I'll Tony, And

to will margins. margin. next exit period time above projecting of XX% then the XX% our year XX% And come breakeven to quarter March, time gross or operating positive cash year, we're this turn and we then margin. when of next flow we fiscal positive to be the in So by X

just of to, of some products. more station base our product to mix. We're interest our infrastructure in starting that, of And see some some is and as alluded Jeff also

good and recall, if those, very ASP you very margins. So high have a

So that those is into future. we're a talking piece the we're mix of in when going time periods the that about

Operator

with of Securities. from line Our B. Ellis is question Craig next the Riley

Craig Ellis

understand to questions March. just on better wanted in dynamics to earlier follow SoÂ I up the the

by like part sequentially going it WiFi followed looks enterprise market gains about Within part the defense. in you consumer million incremental can led the of be the is versus quarter? revenue up of the market WiFi, March by for characterize So to the the $X.X

Jeffrey Shealy

Dave pull kind me some Let on see what the comments WiFi.Â Maybe thereafter. I'll in he of give you and can add mix we in

David Aichele

Yes.

consumer So and the seeing. X side enterprise it's side. There's split between that the we're evenly dynamics

done XE It's So we've got gone going with we've good with this traction That back start slowdown. through programs that market. is picking to up. WiFi carrier inventory

months we announcement So is Tier-X who up. we our up. launched design the probably Plus POs had months. seen we've going to enterprise this recent one probably further previous picking X back their Wi-Fi expect platform that that pick win then They've in slowdown we've new that today customer X X call made And other And products is is about got consumer we X for substantial past to a X, is got that ago. the for start also, already ramping. programs back on we've

of announced customers going also the have be to of these and in a system. content ramp.And amount enterprise Plus customer coming have together. filter revised another we significant we of today per to So call that's those both both planning

very system. the dollar though still good of ASP carrier are total also even per the less the side, and you on content get So shipping system volume

on second probably between XXXX. So any We're X them. contribution side. balance big-box expect going growth That still I don't the the real it's of we year until focusing half think retail the calendar of a be to

I the So an and enterprise emphasis mainly carrier put side. on the

Craig Ellis

half 'XX to going to And follow-up first getting the of at somewhat then year. breakeven our for second fiscal question flow mid-teens we're half 'XX, the are is cash through similar. guidance. revenues of revenues, basically then the But If double calendar

contribution mobile's that WiFi, it is So to beyond half exists, understand 'XX. bit et defense, And assumptions can how that the are around of first a ramping extent that little relative Tier-X your versus you ramp? of just much Tier-X out of cetera. mobile, contributions calendar help to just And in then the what that's us the the customers

Jeffrey Shealy

transition half in we calendar So WiFi. of continued second XXXX, see increase in

that it's with had products some of to Ken to continued filters in be from touched moving Dave some these what new more programs driver emphasize with terms outline to did I profile. XE WiFi. XX in gave gross some our that in of of X going of WiFi may think mix. favorable on programs WiFi these That's to certainly towards that flow looks cash the of margin I But like where type a programs, a in we want have we're programs. ramp a breakeven. some

the have than multiple up products box. and more XX of filters We to in content

a infrastructure. in part there. that. announced infrastructure is WiFi design to recovery in seeing in us, the you're -- has core go particular defense significant we're continuedÂ strength see We segment, XXXX. MIMO with big key a and And in win network about and a XXX design others which of morning content part talking do So the we of that is win, that second massive of that is filters That half as first in this that story.The other we

a about new automotive, as support CVXX. not that did the as in we've been We've only the management, of a program been have the in but second announce as automotive. well ramp active also been asked We product well.You very XG active some mobile. in programs -- second DARPA marketing there battery We in bidding. the that We've in

activity Tier-X primarily there Our the is markets. in

add? in the want you is Anything segment, supporting, to market. the Tier-X our been there it's in the that So China primarily I this think activity headwinds documented that's well but have else

David Aichele

just No. to going I was comment.

that customers we're right still market. got a handful very the that mobile excited about of are just active. think encountering certain we're now. I dynamics We've It's

the to that is of that agree Tier-X Tier-X XXXX-XXXX. push the with see that's with second the But 'XX got We continue to in comment the to with be of activity going increase our revenue engaged we've we'll Tier-X customers half with opportunities hope that with. the in we're we'll I market. most with Jeff's see in back is So something

Craig Ellis

get timing I before the for the my was lastly talked $X what about to me then ITC expect you Ken, of in refund. And realize back When you believe was up I connection a breaking million queue, that? as do

Kenneth Boller

So yes, with period, we next will million. of an million our be when to year actually so we then that's -- XX-month get over return from $X.X this That projection tax filed year. be a return $X the expect And long may and a we to the that it's our time And refund a to tax upcoming that that, the But million about period. of million to first half expect how expect of in that take. March $X $X.X roughly little XXXX. quarter, occur March of tranche for we would over to IRS, this

Operator

MKM. ROTH the Our with Desilva of Suji is line from final question

Sujeeva De Silva

so in What of be target The and talked product to of cost breakeven? about terms to as improved will go the the margins we at that improvements the XX X getting out months you improving cost mix in forth. laminate structure to products

Jeffrey Shealy

Dave the from numbers, One product, the from financial. We'll obviously, Ken that. on on get one both so and

David Aichele

point is by say older be A the and I good have getting quarter, legacy now lot the smaller that targeting. of are ship. we're X, next the But a the then the with platform, the that that take or products. the, that I I is move see continue X yes, that be we're for half expect the So of XX-month at will that out more start going see new a programs the that it to you of X to products transition new there's products factor. form you'll and quarters -- products as would higher we majority get guess, chunk to through profiles some it quarter customers of period, shipping the right a products percentage. the a the even We'll the least XE ramp replaced with going probably mix will would And new to and

enterprise Some years They'll these to are X products older for the be X utilizing customers. generation out.

Ken's that So transition models, as it's too, That's well period. can touch on. a bakedÂ into you

Kenneth Boller

Yes.

the we're So be dozen there's they And as market funnel. is like new more said, a base the to products then lower slowly be we next cost and new a -- products. have introducing mentioned to after as into X that and Dave those And there follow I mentioned, by months. over higher about over well. the earlier, And brought a will sales our I station ASP accepted X that. And as also have

see the quarter. So And time margin that this we'll more. when to start to to funneling get get then next we in that XX% range gross in year December

Jeffrey Shealy

me And Suji, let is Jeff. this --

the lower-cost laminates going yield has criteria. gross team certainly X I as forward. that's that really selection the laminate -- do yields -- size that, touched of is emphasize so of to category. to driving product, by the want the to that's as laminate That those on well laminate The add in a be selection it's me margin going going work to dynamics Let on margin And Dave improvement. size. our on the

Sujeeva De Silva

My want calendar the months, the CapEx phase 'XX? What's the time on to question Whatever the expected budget financial capital to is other next side. understand intense maybe how next XX use, frame is. in you just

Kenneth Boller

Yes.

year our back-end this capacity per just XXX we've also capacity quarter. million some capabilities in XXX filters up expansion completed So processing of and our -- million beefed

$X financials, is look million left. about that see stating a of you spend our at If footnote disclosure you'll

those, well a at you it angle little we're also at XX for over if that cost as $X what would we're or expenses looking next it's -- and footnote, do that But as I our looking for the from to further However, program. seeing reduction into tell not million months. we you can look defer

Jeffrey Shealy

are what installed we've me on Ken's deferred savings component goods. pushed of that's of in tools let that referencing add of yields. of that the labor as that And of predominantly in and the Suji, that, those capacity some And that's driving some to running. of the some some had strides cost of We terms out. some expansion, That's And to able programs. tool part put been make of labor that's

can bring speaking, X that So the and to up, got in tool the we've generally trend labor capacity add and quarters. X

Operator

Thank you. remarks. floor now for question-and-answer And This back to concludes our management closing the hand will I session.

Jeffrey Shealy

and We for during everybody next against as to the our your wish again, look milestones time update you our Thank execution you, discuss speaking operator, against Thank you you call future you. quarter and all today. expectations. to with well I current week. thank as Thank a forward wonderful

Operator

conclude today's will conference. This

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

Akoustis (AKTSQ) 13 Nov 232024 Q1 Earnings call transcript