WISA - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the Summit Wireless Technologies First Quarter 2019 Update Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Mary Magnani with LHA. Please go ahead ma'am.

Mary Magnani

Operator. you, Thank everyone. Good morning, to quarter welcome Wireless like to you conference call. first XXXX Technologies I'd Summit With is Gary Williams, us Wireless; CFO. Summit today Brett Moyer, of CEO and

and remind facts to during Section Before upon statements, in referenced certain the provides The Reform other implied Act expectations contained I'd forward-looking call reflect available opportunities Company materially These made the a turn information statements Litigation forward-looking historical filings. forward-looking Act herein current the prospects the based over Securities of are I are like not Harbor the Section SEC and and meaning its to of those of forward-looking the to Act today's and a about forward-looking XXXX on the could number performance XXXX. statements. Exchange Statements statements everyone Private actual including these nature course statement the statements call. performance, Safe of and that Company's or within or expressed of Safe constitute Company's XXE that currently operating Securities to XXA for the future Brett, XXXX are from results, the based factors in opportunities. statements Securities of forward-looking uncertainties results, to of and are of in differ Harbor Such of subject risks, cause

filings ongoing the of and you Company's some a of the the I'll risk to SEC. more with of detailed various For refer business, uncertainties Company's the

Moyer. Please Brett. turn the call Now, to it's CEO, over to ahead, my Brett Summit's go pleasure

Brett Moyer

it would time few since And remarks to keep thank our questions. for QX more Since has just been a I Mary. weeks take allow Thank my short call, to joining us you, today.

of availability we review steps for we WiSA to wireless that are progress. broader We retail achieve the in establishing substantial as devices. global half industry goal for the of that smart towards quarter, made I’ll our are brand year. several sound standard second a the In progress towards making first expecting the

our a the $XXX line last representing First for call. guidance increase in mentioned year the the first quarter quarter revenue, over revenue of I and QX in with same was the XX%

In to expected LG that rollout, began very has excitement Turning them in the industry to OLED wireless some begun in working the launches about Televisions are the WiSA the we the the LG and Ready retail actively marketing more and U.S. NanoCell product Europe. and And WiSA our LG they're and retailers excited spread now. the show feature in educate to leading shipping QX partners with up both is sounds. enabling and recently, U.S., speaker starting immersive

demo by WiSA In the Europe, trade May event our the show off we in point. their Citation reviewed Munich kicked members. in store, fact, on beautiful where press, a in in WiSA the CX X at line rolling Citation are week Certified END and Harman's New they when began the is we with of Last March. out In its feature feature Ready standout OLED America Ready held speaker Harman of launch the HIGH North WiSA York's TVs XXXX an speakers. several

AVS Best next certification Reference in Certified Best HiFi we of standing Audio's week. XXXX HIGH speaker wirelessly in from just WiSA used XX speakers that This show launch of END retail Today can the HiFi Wireless active awarded a Digest. magazine speakers, Legend announced or presents and Legend last loudspeakers are a The Silverback or Award XX set SA Klipsch in USB speakers of was from Forum, WiSA with of WiSA the CES of Munich the hub Klipsch, which to Germany's a to family Transmitter trade the won line Trends, Hi-Def For days. System Digital connected be unique preamplifier. at Silverback

up partners is to the that a are in release develop our forthcoming key to the to certifications step and THX approved modules This we by initiative customers and teamed with for gaming team quarter, expand esports. partners. Summit Regarding market and during THX and

discussed we certified Division, Microsoft of this the As members products later brands and membership year. to Samsung; call, a launch others. in Overall, Olufsen including our last division & TCL; WiSA key XX Bang exceeds Xbox expect with Harman,

and to we third quarter the forward, TVs, year storefronts speakers end. reach X,XXX shelves WiSA WiSA to this expect Looking be receivers Transmitters retail in of year. Certified in and WiSA representing the retail product by expected Ready AV USB With

second We a are for well strong positioned half XXXX. of

the call open Riley us and LD at May to in will Invitational the call at will questions. note in On I Hills; B. questions, Beverly conferences like at I weeks. Conference on Micro the several June the Bel-Air. up and now you XXnd like Before Xth be I'd see investor I few for be XXrd, next and will that to the Xth, Operator, open I to can in

Operator

Capital. We’ll take Instructions] with Ed from question [Operator our Woo first Ascendiant

Ed Woo

taking the of membership looks going on done forward? you've a like look Yeah. Association. question the very good WiSA What does your increasing my outlook questions for getting in My and members. this It Thank congratulations for more job progress. you terms is quarter on

Brett Moyer

we’ll another we'd member would new I least in there There's September as June, at by joined to probably well XX expect that say members joining. So it. who's see year be announce announcement will as a end,

Ed Woo

faster a rollout is of my next you originally little little LG? you rollout with of been it question terms Great. as expected, And then bit particularly slower a the Has is your it than products. in expected, bit or

Brett Moyer

on LG plus has a what out shelves it timing. of about we And through make year the rolled rolled ecosystem up on shaking later months Axon flawlessly to what depends was we shows just TVs put and five have product time. -- a on baking is ago. that plus anticipated than with depends or testing and The the expected sure out But consumer. as speakers LG it link frankly the TV So on the the

Ed Woo

Great. Well, wish for my you and thanks luck. I answering good guy’s question

Brett Moyer

Thanks, Ed.

Operator

Tailwinds to Research. [Operator Carlson We'll Daniel Instructions] go with next

Daniel Carlson

I'm you of regards in going year, how just if that to sense shipped for trend of LG, have any for of Question sort the there? well to and you are sort TV that Brett. looks be that Hey, enabled next the are this number and WiSA on as wondering year

Brett Moyer

year, So which their publicly have publicly X year forecast, They NanoCell -- next their LG disclosed volumes. year. this this has OLED X.X not disclosed and is model million million model

ratio, as one So we've which estimated is believe one to conservative. we

LG the above OLEDs price XX that's $XXX up $X,XXX and the think million. Nano So, are are we the cells conservative because again. points. ratio TV and to -- generally The million a just And X of gone are the

Daniel Carlson

retailers Okay. about they are in And external can audio attach when rates higher seeing the of these you that terms of TVs? sales to make talk sort end the

Brett Moyer

Yes.

of have what $XX there our we is theater audio rate have TVs, shown sold now on creates higher gaming or attach investor We've and a our we of partners validation numbers $XX,XXX a the quality poor quite system and audio bar believe thin independent partners, around various modeled a attach that in to terms quality these We them the audio of more, decks slides, some poor of their of our rate broad audio, in number. XX% of range super of particularly but is a is XX% external opportunity. there's good external can sound from with some home for but So, that from gotten bit the right.

Daniel Carlson

time? company of right. this capital in on I'm just terms wondering And for additional Right, then the what's going

Brett Moyer

filed we Well, anybody look have an can at S-X, that. so

our it if Just shareholder. can Gary that don't with jump that an to a prior we share file, know, preferred but did was we agreement we I in, did reached file largest S-X.

that. need they out can Capital, any draw on down reach Jonathan if Gazdak. And anybody has further to So, to Alexander we questions,

Daniel Carlson

Okay, great. up Keep Brett. progress. good the Thanks

Brett Moyer

Sam. Thanks

Operator

[ph]. Instructions] go next Joe to [Operator We'll Michael

Unidentified Analyst

a you Thank for simple question. I question. the Brett. taking have Hi more

announced the in you electronics WiSA with company with to leading potential consumer a So, products? brands. revenues membership WiSA core the number its of does the translate in How membership

Brett Moyer

requires our a it also summit requirements is manuals, in go on of the is as websites, product where with logos packaging, on resources. consumer. that membership but for WiSA right, flow development. The Again interoperability engage products, before the organization as prospect requirements member or back the on critical engineering WiSA the for launch does So, product what we team of marketing generally that mandates functionality, the on equally mandates standard the

are will design both perspective engage So from from guys what road product until the rules a not its clear all somebody communication the and a interoperability Summit's the the marketing of to consumer. and WiSA and perspective generally joined has

Unidentified Analyst

just there's passive an it cycle? is first no the It's involvement of that to role? membership in or step -- sort membership say of Is that sort to revenue observer the fair not

Jack Dorsey

there's There of is any at there WiSA I'm could for out sitting have founding development, at there investigation. not But since years generally timing, been figuring though if member, doing have the least members not yet, points aren't of stage interest aware the there's etcetera. that But nothing. somebody be. WiSA the products this just launched that members that price a

Unidentified Analyst

York just -- to where see, And it. in are that? can in this at if and retailers then I Got touch feel last of and to sort wanted go point and if product question, the you do I live wanted New the I

Brett Moyer

depends about. which We talking number retailers of are in a products you're

the of script, of store [technical the likes So as the I products. in great setup mentioned difficulty] Harman

think Harman that don't is, older know to the but into mentioned, they're -- that's the T in. be clips minus the know starting B&H line. have newer display the you if have I I think I the Enclave they stores one as photo, pick is XX should days. up not And I on I can system, some There go version come

TV's TVs LG into into and see you go Now XXXX any is. and sound on go floored option that out where the WiSA menu has the can retailer

Unidentified Analyst

you Thank Got very it. much.

Operator

with David to Lavigne Next Trickle Research.

David Lavigne

How Hi, you Brett. are doing?

Brett Moyer

How you? are Dave. Hi,

David Lavigne

of, more might bit, can some you address retail involved if LG of side. in of you component may of, the makes on wondering ground you little a be or some the if, And on how process involved kind of the sort be I'm how, that just as in that this, well, the of sell-through being kind So sense.

Brett Moyer

there retail train leverage amount going right the on, both as what now, believe seen, point work been in, to buyers, roll Magnolia like the these this. of we've print have to say, from content tremendous retail are that products sales out. the solution a There creating for background and high interest video We looking people a train HiFi salesperson, typically is at is From the is the salesperson.

we're POP how that'll focused that's show on will it. in launch. up the think There I retail be So some

by be partners. disclosed think and should I that speaker LG they're best the

David Lavigne

I mean, side. sort new know, the in fair money be people kind is the of there make that it of first But on as you or first on television willing they that. money? this people some thing. say So to a being think spending -- all then this is and spend that? LG, kind do I to sure And is to a they are Or early technology -- do perceive advantage of, some and do mover sees really that they plan to know advertise to to some the

Brett Moyer

Every So, days did release. key TV CES WiSA review when all The WiSA press feature in had look, every briefings private two a feature. has as before CX demos. entire mentioned seen, I a LG press that as their have release press not key -- the show CX

TV right the I with think, high was mover very is So, advantage. this yes, guys activity now. first The

we are. expected that LG technology and to trendsetter As opportunity the they happen be would its

David Lavigne

Thanks. Great.

Brett Moyer

Yes.

Operator

We'll Instructions] question Alexander Domino from Giovanni take Capital. next [Operator with our

Unidentified Analyst

Thank Good Hello. morning, Domino. It's much. so you Brad. John

Brett Moyer

Hey John.

Unidentified Analyst

question. I quick just a have

development addressable could that believe of please a and the software the licensable has regards provide potential the color And into? in tap market your little a you to If also regards an rollout? timeline to you in company then embedded to

Brett Moyer

questions, five John. Okay. That's quick like

Unidentified Analyst

Sorry today. about that

Brett Moyer

two ever I IP and Give for to we're think is enough best IP the Okay. penetrate we'll developed sweet and hit current that licensing things, market. of It we under demo about version it challenge is of broad good anything do that don't wiser to spot the showed class. though companies designed the NDA. is XX the the version

we So cell the your broad is tablets. define market phones, it as smart your

smart So TV, et there's right. cetera, there's X.X million XXX tablets million billion XXX smartphones,

have secure alpha where launch we them. in with So said this is and we customer launch of it is cycle will a a year terms publicly

Unidentified Analyst

Okay. that. Thanks appreciate so much,

Brett Moyer

Yeah.

Operator

Mr. to no additional questions like further with in Moyer over turn I'd remarks. queue, to And back or any for it closing

Brett Moyer

like to out. as thank excited We're Yeah, in about joining. you the for I'd next the XX extremely We're products company. roll days

Europe the awards here. terrific has and both speaker As set out you know to in it. TVs to guys support responded with industry of great LG the has a coming

reach anybody phone email the forward are questions, next So retail this the there. cell can all And Internet, if Thank over rollout my has over XX days. so me we're to looking and you you.

Operator

this Ladies conclude for We thank does and your conference. you participation. gentlemen, today's

now may You disconnect.

Mary Magnani	Investor Relations, LHA
Brett Moyer	Chief Executive Officer
Gary Williams	Chief Financial Officer
Ed Woo	Ascendiant Capital
Daniel Carlson	Tailwinds Research
David Lavigne	Trickle Research

WiSA (WISA) 15 May 192019 Q1 Earnings call transcript