WISA - Earnings call transcript Q1 2020

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Operator

Greetings and welcome to the Summit Wireless Technologies' First Quarter 2020 Update Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host Ms. Kirsten Chapman, LHA Investor Relations. Please go ahead.

Kirsten Chapman

Claudia. you, Thank and morning everyone the to pardon call. - Wireless Good I'd I'd like good update XXXX everyone, first to to me, Technologies morning, quarter like welcome Summit you Summit us as Wireless Oliva; Tony Speaker Wireless, With Audio as are CEO President, CFO, well of Brett President the Association. and Ostrom, and George Moyer; WiSA, today

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

of risks business, of the ongoing the refer various to SEC detailed some you more and discussion a company's the company's For filings. I'll of uncertainties

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

Brett Moyer

to welcome And Kirsten. everybody Technology the Wireless you, Summit Thank call.

story. or new orient the investors we have potential I to know Just some everybody, investors to

four on and quick talk WiSA through up, do COVID, finances. season. go overview will going we're and I'll going catch some Georgia the products the Certified them selling how positioning with fall then team slides on brief So activity a to And I'll about do WiSA exciting for to pretty we're

or from has think or the If but developing onto into wireless that if made wireless about there chips We've and WiSA they we're to add WiSA user is Certified $X - on get AV that you product. means that module been Summit, companies and it That into build Summit. has that We've or $XX business Ready implemented a of those receiver couple is speaker we in companies, have interface. purchased provided dongles, IP. product bucks a that the module means sell somebody those into custom a

it WiSA make than the interoperability that So - it's bit. growing run consumer experience a more experience. brands that, can is standard enhance the and Certified the exclusively quite consumer by support WiSA products Ostrom. recognize in There Tony involved XX is We

stream steady install get resolution, high added, wireless by out X, performance, will reported brands company, of you so reliable high is higher, that be simple highly substantially a technology. think multi-channel, QX will time we numbers September see that but I to the to being in wireless

the input into signals run anything it it. audio/video that mission, HDMI and right. today to speakers, sure to WiSA on WiSA That's, standard cable connects WiSA TV that any a For AV on TV is see box, know receiver WiSA's PC, a logo role a cables members HDMI have organization will in that's much know you as this HDMI Certified like and that consumers through can again an connect consumer that that a and cable ultimately are with the on most needs right, make goes to

So we only is shipping. because story are if signal with to and new designs or range they're broad brands, active be the lot but these about resolution or projects, to There want you're wireless for high valuations talk a WiSA of the primary multi-channel. that these, we a ones

And so that year. these most you'll ones see you'll are hear the this about

or Now third our call, weeks through heard line TV to we year-end ago, just picked you're those to all call. want the that we again, the I eight X-K expanded have we up brand. a had don't go new if but you so story, if

Christmas working So Summit three expect to brands that we and with season, fall for see for are selling this Christmas.

products HDMI and particularly there's about WiSA WiSA hub We until devices, yet passed broad and most a and them not named. have excited to not emails named they broad is have been about marketed completed good will transmitting to number Certified certification. I'm certification Ostrom rollout starting a of those as very and speakers, find being list investors from Tony until they completed have WiSA, the going talk names them they a they announce are of getting today and be membership find that but our of is that to have policy as

at us So so be are have many may in certification membership but see four not as right. why two, out if the heard brands announce as you that that's still are them, WiSA, process, they there, least I know marketing there you

a huge the topic had retail certainly drop. Universally, for companies. big COVID most So

house. and that improve I out saw if you the think sit more but out stores, do, in Depot, Home Target a home, Lowe's stores, you take survival where XX% nothing the yesterday, drop, if Walmart stores was people they've severe and grocery but type their take I to

consumer Variety are big X,XXX said in what They hub. because media from of couch, by survey that a There now which magazine, or is processor people, surveyed first Now general COVID. run the for out mean those of watching a products. electronics most WiSA people is likely movie a XX% does in they

much they weeks structure, be believe during evaluating haven't just are we recently home physical as holiday this they is to season, spend as fall that the to the are a and their house, last home as want finish to week how there XX process that So out X, have the is opportunity spend at their in to coming starting entertainment, XX, surveys indicating happen. will good that people money. Certainly improvement how that lockdown

on the supply three The March launches. chain and production will we've but the have and if PPP you're are, $XXX,XXX, did few wage We thankful your XX, we downstream slips. into fortunate China, team, months impact any of new have orders as wage two now senior certainly money We or the will of currently. line or we will the half original is, we a From see supply we designing run receive to we're that you in through concession QX, myself, are back base, bring work. so we back September What any in seen talked week saw ramp management see part the restructured, be government. up move will be don't PPP are engineering a cut core the your indicated teams to that from with product $XXX,XXX for that, call concessions in We issues. and you're money, there if currently, about in last with factories back will under have been been April for

product for QX come We are new around POS those seeing in launches.

you freight and for we Basically, us. that air you're consumable good still or is business speakers, TVs if anticipating So electronic you shipping can't are QX really quarter those. are a

have support you running to decide June, to to of So latest production have have Christmas forecast, in you right. end your QX your

are a entry guys, TAM, is our opportunity think big points, is soundbar differentiation. to I'm price going around mid-tier level what's market focused highly the term opportunity size. about a sales There TVs, year guys, our products. the Now there It's premium we to around what's WiSA talked all Certified on the - the this we've long a converting but we

million as year alone. theater revenue $XXX and million should type this So type an XX XX in Certified to X% box soundbar the solutions that to XX our be we going theater for the is sold see million, soundbar converting U.S. million to market home and into be WiSA year soundbars opportunity There to this right. grow about just of a in home worldwide products,

Tony get through revenue and us I'd our soundbar around and So they to like WiSA some call competitive over that, products to Certified our in leg turn And going. a walk where to up, positioning, fit going focus this WiSA do to with analysis is the you. is how get the for Tony.

Tony Ostrom

Brett. Thanks everyone. Thanks

we're been great any and addressing the So good with the thinner, what our time diminished to really of soundbar they've and Brett for them gotten issue industry. same reasons thinner at and with screens are access but has how theaters install. now and content bigger, years, home couple TVs said, decent they considerably sound to in the extremely these bigger has is now it respect has They've for ability big produce what are sound really gotten for over and that than a risen they and happened soundbars it. have easy most control better much are centerpiece the now because sound small the aggregate they several of the so last The popularity we TV and to have consumer

And as So soundbars, forward not these leverage with as TV big at we're as now small two - we what customer the we TVs move if sometimes needs looking those right with WiSA. we're even very want wide to is, itself. we

is looking at what call a providing. what move of we we're So we're if wall sound on we here,

we're create that realistic very provided the it taking soundbar immersive a experience. audio So much to narrow by and widening where like soundstage more considerably we're cinema

what of for run made XX% of providing to their set experience them and with biggest in sound as is as separating that easy in install much putting stage of first So people to center soundbars. we're them a home. provide. people make difference opportunity ease and the We right, black can not all really We're top price and movies people create it we want actually some like one mentioned just the cinema Brett out audio to left, plastic because the do, point same that now sound those want front tier up wall right that that's tube. as watch great to of small spread The

to can that us know and we a creating go the are great what us add the w to in stage, speakers - they're cinema, Additionally, do us, make behind beside easy. just allow developing in consumer them and sound professional and of in sound speakers is that again, if, front really we we back but behind if

of not or had to be upgrade you of we doesn't want far center what's very still that basic the the frequency at marginally the and where people you the soundbar if you channels. possible we doesn't sound. start give stage, now for look is want kind ourselves market you making right with so frequency eight up just really us that sound, response, listener still a surrounding the and as And Obviously up depth of but progression sub-woofer as amazing to at a we're left, wall response a room speakers, is you subwoofer give that speakers and still five a seven showing soundbar volume, width, and just better, creating doesn't consumer, and the sometimes, entire output a sound pro-cinema. plus and of TV with but quite with to not So to by increases to a when comparing give separating sounds

the a at do And at and of less than it and you're really you're a some They just subwoofer the partners same than there soundbar and soundbar green truly the but Dolby what subwoofer. we than our better if with experience, it out all the that a setup setting to we're are top, digital immersive wall, You there on plugging do because a still, we're that - mounting in the improve the a behind slightly effects, products and of the and there full out installation. actually trying do right, XX allowing can the level create with left, them take to experience quite trying minutes. you of of is do they we audio could soundbar actually in Atmos TV, job simulated soundbars want out points do installation those we're consumers speaker to price to front our and system easier same take be frankly in surround the

speakers with to up. whatever opportunity Now, before if at attachment you sold, could TV the an WiSA wiring many volume were TVs that look cost look you what's the sell, are that's like, dealing audio annual AVR, we being how right. How the connectivity traditionally looking an many previously but of systems complicated at that was,

media. want And or to that somebody it grade go cost the the Certified typically was could system a actually the be end Then TV, on have higher you those and souls, a to do component more. that are hub or was top was WiSA of If $XXX. it on for one do those you then higher WiSA yourself the a it and you primarily and of end weekend, it of hired procure could soundbar, of transmitted the price $XXX we of to introduce were take and WiSA points $X,XXX price which around component a you'd the north audio, of points a brave that

So OLED again, as more tying probably TV that to well. the

side connect the to point came the single were million million range, so about that can huge with dealing although Ready Ready to the $XXX just transmitter we probably XX million the WiSA at to. out still was connect to WiSA but of any Ready, connector it with entry, TVs looking so we're So USB of we TV, was XX lowered TV, far in wasn't WiSA $XXX Then a number and opportunity. TVs, in that of connect price way we which a TV, a a simpler TV XX

Now number now can HDMI, it was to WiSA talking any to what to HDMI get transmitter, and with but on to even $XX WiSA with about them connect down TV the relying price not low be we that just maintain Brett connected we're to $XXX point Ready. one,

reside the components not just the TV. WiSA transmitter, the of all So in

TV new and because million on an year basis, we're not HDMI just that -- this be TVs million HDMI for return XXX those that any we're estimated have been TV's has global about standards audio somewhere talking around which about now channel, years. to So now and will XXX just and ARC talking a

TV in go homes, being and consumers. back legacy we can attach so that people's have rely new are purchases we TVs installed to those actually just people an don't So to to already on our

it's WiSA have we can and plug transmitter greater a now trends connection. ever we power called with branded. connected HDMI and an that lower just The - SoundSend. easy a product far as Dolby It's the audio still price it is and Atmos that's of to point So via TVs the it HDMI, WiSA field decodes as was connect is wireless and

are XXX coming there TV's we WiSA our and and smart device out connect people million brand this speakers. So are now a we connecting are getting allowing year out to Certified to to approximately that TVs installed those any WiSA

to at speaker quite of any do. leverage busking our guys move this without time to same the creating So product those lot distribution want their on products of transmitter, to to frankly of take and process the speaker own which having brands have a can don't in a

the customer We to price to are lowering again the $XX that $XXX.

to to distribute in coming allows you retail we is in up available QX speakers eight that So the immersive this. instead and is connects this now AVR TV, surround your audio, an and of contents for expensive which all will where new AVR, in new your your to

training. we our that retail, speaker to So we their distribute on speaker know we're we retail, going at aligned it use language, WiSA about at that is will WiSA distribute systems everybody our members the we're and it to along will we know rely the that trained, we're so thinking how merchandise with

care consistent at consumer the is for will story service. the points So and of all the we take touch customer

this and what direct is how feedback where home we'll into connecting using it get users all using get that and they're from will their using it, lead using, we it. we're feedback. their to So who We'll it, direct know a loop taking product

intelligence internally, and be one our and to this and speaker number to that it association pass that an on - process better want So brands that all we we share brands the members make that in with and group future, of effort a also we'll it's other similar ourselves we it's gathering to membership. our something are can create want

So growing. to and The growing will looking if market. market set landscape, at this soundbar right. been high-end mid competitive in you We're where at soundbar has a that look

build are systems look as ranging type in just in middle a theater four right it a if This multi-channel We not we of to it. lot price systems leading the at home WiSA that above audio are plot $XXX to that shows step-up point, group, you are a in the systems point we're price $X,XXX right and in middle where in from $XXX this the hovering of as $X,XXX.

the we from ones product that not end point if stats, say you the are a perspective, the at We X.X. look price are highest but

the speakers THX. front wide We discrete are are nice and that's rear one we that that included, stage are the say we're associated that say the for ones speakers ones with

have by solutions. the THX speakers nice get because stage certified win has wide working we our of to with with So THX certified to and do tuned THX them, create been discrete our creating hit when but THX very better - tuned difficult a those their It's and with and with are by membership frequency soundbar, sound members. we we're or a for we're either them, criteria response honor great badge we're it's we

with connectivity the velocity are price in going. same can where ease some So we of and we performances, far and really now get points playing is this same superior the

talk we we discrete can lot cinema about pretty can has simple about dialog quality we of with Amazon can and is talk connectivity, has coming it. been and about about of can in experience, because they what content smart do we talk WiSA We and Netflix, different and in everybody talk the there better we a really Some can the can a of channels, about about it and can of customer that can components everybody different talk channel. digging with the lot talk Hulu we market everybody and audio, number of lot of much talk a and people absorbing like things. talk used coming about to our research We about been that fact understanding, toward, content a you experience the we've things a of who to hear into they're gravitate We've doing. center now now that different because the TV has because is can

in that theater key interested are is we're potentially building market our to a hitting home So in but want good sure we most we're system. make targets really doing huge, the what

creating immersive benefits at sound coming gravitating So are set to top, spatial we're that messages fidelity towards. to around lead looking targeting and attributes simplicity the those consumer the key affordability, those and people most profiles in up high are as

sure best product to homepage a those through less message we purchase. how buy buy $X, for another a making are opportunities right can We and and going through and been and our do podcast scope recently, continue on We've podcast now and driving interview what both a power click we that cycling with they're responding generate in seeing industry getting opportunities are potentially cases looking them many been and sound, ads. and responses we've testing to the consumer click, for and on web and to direct this then at around in that and and and interviews. lead a we're now Most for testing will people is to and with been and those driving awareness and we've dealer we're reviews users $X than those QX

about $XXX marketing attention to to budget. talking systems get low you're to when that to a pay pretty $X $XXX So is somebody $X

refine and to who to we're aware know the can we that. out. and really message able systems talking some think with excited in where really what homes. that of transmitter really to, we're product we're point get we them the great the get HDMI sending get people's So them we're to continue We We

only product space and ads locations, just we whatever, few those of mean so fair speaker different all brands process their branding with share we immersive realize could We this brands not type do or make audio sell visual from create of It's to and years, towards them you One X gaming They're set stuff. opportunities in types we're them of been to connect to are many creating with so, years in of help an audio a and in we the slightly - want Xbox kind what homes, member the this we're is create of the certified of of They Xbox, wireless be doing. and it world's room Xbox all certified love and have to with help our like by entertainment easily future video One, this sure Certified have amazing them different industrial them tests are joined was just either market what level multi-person example bring WiSA. WiSA, many and as possible of both a to to working and experience entities been but of are are and Outside this their to - speaker link to dealing to whole environments One down their our THX some latest in retail guys membership with in system, Xbox wanting people and that's work working create maybe in our THX convenience experiences many company or big have to is certified with I couple called design are at with it the certified. Xbox shown is perspective, are Xbox and THX, THX several gaming, they I building center a their different that earlier, really that with stuff, we of hotels, with category units of mentioned systems, by of understand and which S then they blend feature Xbox reality really this we A was products, different the for home these anything our of or room learn pretty guys other - LINK - can you and Axiim always what the home transmitters that atmospheres also we're as that then immersive audio take tuned Broomx, Axiim of somebody's is to gravitate also feedback only speakers. technology has members Spain approach good road. with later certified Axiim past, part they LINK. can't with because product virtual now theater connect work is WiSA that you which very businesses, our various that were interest want good reality for anyway virtual information Xbox they several will going want market of while joint and used that want all THX giving technology both sonic to an in for with. the that the a product that, doing, bring technology of system the have create of be The they continue work is and to cases product to in transmitter, in can these reason efforts. we all quality are different you and them and from can our experiences people actually WiSA these product an experiences as learning what in this good out help to And immersive experiences. we to actually Xbox for time the because that amazing - we're and from can those to doing company. market Broomx because immersive do of that. product because systems shows the which these with that a a spent have own exciting more us last us excited mind what The to and is the leaders to a Barcelona, that this our the from they And because

as audio. to there difficulty] do So with the and share there those brand to well opportunities [technical our and out seek can what get get we out continue experience immersive to we out

Brett Moyer

mute? on we Are

Tony Ostrom

I was start We'll on mute. over. it

Brett Moyer

Good right. call Tony. Thank you. All

lot gigahertz pricing Tony going that we're with received. cell smart your on your From about a all speakers. X.X We've opens tablets, of well walk and to game perspective, matrix, the you your when your progress. solutions are your phones, technology We market perspective, an think to go showed up through substantially the on So a at preliminary CES, IP was update WiSA we the competitive development. made where marketing lowers From consoles IoT cost devices, smart a TVs, direct this that just through modules. the this

$XXX X.X enough the Now, system think it marketplace. we there is about up will WiSA in some line good drive the $XXX performance ultimately to give, but it above is and certainly Certified

slide that up can very touches think bit speaker, for speaker you or that points, XX there We a we up, up back where intuitive on front if soundbar, you're the however consumer is to quite it and set think channels. that's Tony to demonstrated analysis, get We and is put you'll be. configured simply to button the your fast a that you're button changes see around the when you center touch ConexUs price you landscape. how the So the doing competitive the sequentially room, go set walk we

step made up multi-channel the not Tony speaker, QX, version, with build but the a have certified that progress next design to what - is cost is brand the that think we've we in design really this members you sequence. patents technology like walking and starting WiSA have and to We this activity HDMI set reduced. through, allows the around be And IP will we is substantially WiSA we enough establish you you the WiSA, filed brand partners. the on market, move to of solution solution solution which products And the

you call Now who'll turn the briefly updates. to financial George, over give to I'd some like

George Oliva

Thanks Brett.

run caused be opens quarter and anticipating or historical rate we see of orders and has quarter. we're So in will as revenue line ramp. retail a in QX over was as shelter the we'll the closed resume place with QX, be lifted retailers in soft started XXX-K that

So quarter. QX is the main holiday production

So we to resume there. ramp are expecting a

operating on of we cut cutting mission expenses of here shelter eliminated was outside tightening Travel QX on terms possibly we a and been place. all because we expenses, expenses cost and In the could services, payroll in that we mentioned have belt reduce. reduce since

the QX cost see will the cutting, we million spending you QX, to $X from impact QX. of full So reduced have where will

able raised $X clean up of and lot In vendors long-term balance plan. million of very terms on a a the of from XXX-K $X the got financing, lead off environment. orders loan prepaid. money sheet. the are protection quite And we we've been over that payroll all We paid raised items we investors million, from We've caught to in up. bridge We've difficult

So we're about. half position going all year in of been talking we've second into the the pretty good launching in products these

the that on that shareholders' stock share price with to also raised and the split we did. money and able NASDAQ, on equity compliance with we We minimum reverse were minimum both regain the the

with the optimistic So second feeling pretty half I'm here.

Brett Moyer

Thanks, Okay. George.

the that, call we're up to So operator. going to with open questions,

Operator

question from Our is [Operator Please Ascendiant Woo go Capital. Ed ahead. with first Instructions]

Ed Woo

versus At U.S. market? rollout markets. on be or question mainly focusing be same both focusing is international we'd domestic My on you the Will domestic. time on the

Brett Moyer

a From focusing part it design-in the Ed you on sales business. - perspective depends and we're perspective, So worldwide. which of if

- speaker and activity quite was premium the a Harman. bit of with brands is initially in there you're by there led Europe, which If -

you and and than a stronger - that come between So will Asia brands has brand U.S., a see September, a European there the are now of Harman brands. number is stronger brand in Europe but as in in out brand

that are have From or You've we already ecosystem. is marketing couple it and seen a testing big for U.S. this messaging response effectiveness are a year. because that one the we announced direct certified primarily, test

take expect Europe, it, would Now, marketing the it how gets data our WiSA and from members across well. as I use used test

Ed Woo

could go how and real spot broader But that That sounds for price see do to question product? you into lower next point a it's great. market. great come And then know, your what think down much you sweet is, it's your the pretty my much

Brett Moyer

of - of continue you're chip is at when So but the showed the has soundbars mid-tier matrix, the price, are marketing X.X tube. current certainly that out is list and coming there on about away we you competitive there at to LG soundbars talking and all soundbar room premium just I look think set X.X.X certainly modules, you, X.X, the to

We We're are end. sweet lower the the at in spot.

$XXX a And module $X started think $X.XX, our $X, ASPs that depending knocks a you're you I not in or $X.XX that's is next the in $XXX. module that's because that that starts in not the modules truly designs QX, the step system or So six off what price Gen-X right. to multiply in $X, have big drop four, of on, times eight around - knocking

and a that's So then have a are tomorrow, decision brand others build I really away Gen-X would [indiscernible] argue big spot. but for brand to is hopefully, there. help and ecosystem, that a sweet and we're mid-tier premium there in brands a to we've presentation then whole audio count little the I we WiSA is need We farther level right third now several drops of pricing. more a at There another think is making, their

Ed Woo

sounds you out year? said is next Gen-X coming And That great.

Brett Moyer

the X through. channels CES talk Yes. that We but get gigahertz, showed X.X first - space, just more can we round with and experience we the at in theater get walked modules you gigahertz

to that customers So we - designs be will start QX. with expect in

Ed Woo

very that have guys you to is system, at, you bring question in want TV last are a left broad brands still WiSA my our the into WiSA the companies would association? then obviously of what And network

Brett Moyer

talking hemisphere, brands Western and the Sony Asia you're commonly if the Well be there Samsung, you're And half recognized and two. top based talking is about in in would Primarily brands. a if and China WiSA association, dozen. Asia the about China

Ed Woo

great. is all obviously your board? goal some to on That's And get

Brett Moyer

get So is form them on in board our one goal another, right. to all or

for as solution have in a as is HDMI Ready, simplest But just easiest, an walked the we you consumer. treating cheapest, not are product dongle, the through, Tony exclusive that you can WiSA So which way. the

sourcing TVs so know will any XXX and WiSA smart to they it's to into million the other that there, sure can one while, from in So Tonewinter market. it There so of two problem and go make out connect is speaker the no retail sell companies that it themselves. one brands developed TV one these is any OEMs Hansen branding is dongles, those with of and have

with it at look TV, we with when the engaging So hardware. can be internal

guys you own almost HDMI audio did brands, all as their or speaker can engaged with brands TV be of it have know, done terms As hub. LG can and be with WiSA Ready have interface in user Sharp

Operator

is Carlson Research. [Operator Tailwinds ahead. Daniel question Our Instructions] Please from next go with

Daniel Carlson

soundbar penetration Tony, level? get Do in that you to about question and you any of the have how know the target long take X%. it a to will you sense you for market

Tony Ostrom

more and to Well, get into brands of the coming working towards are ranges products be distribution to out right those couple that price these in that are step now. is going more one of

So tough it's gauge. to

already they launching they're be like a will first some fall working fall this this products good of think into launched. really and distribution step out are because are they're I - these getting on

And so now that training of distribution doing there they're kind right various getting the out then and through matriculating process.

goal next know And can more a able that to we'll I we Brett lot year. of to that would this hopefully hopefully of that it's in, hope chunk gauge. capture to QX, kind mid to after tough maybe get market goal So of be then so get year. would sometime but good and that a kind chime

Brett Moyer

brands so goal next yes Yes, more to a X% stick into year in what matrix. expect in forecast. a that to our the we competitive get now get and X%, of chunk let's the coming showed that we point idea good - prepared X%, not We'll whether X%, X%, price with fall we're better that we just

Daniel Carlson

talking the was don't I guys cetera. external And that. TVs of about exact you high-end et sound around a slide the then you like had And high-end I in remember similar surround think But XX% past, |numbers attach had systems it on said sound for TVs. rates

progressing wondering you and you impediments getting? how it some do the I'm mean penetration reaching still not - so sort yet, do maybe what are market And you rate been at just towards towards see getting hurdles biggest could you're of point. I talk we those been accepting there that the about and potentials and how know but just see you've

changed as around you the still targeting? is or you're though As market change it something technologies

Brett Moyer

think, Well if look slides. I so you go the back to

if We of out, a right. you XX% XXX but the have million said, to TV's take XX% is XX or there the attach half TVs low-end million two-thirds rate ex-terminal your TVs And is you soundbars on right about audio think worldwide. there rate, attach

last And call, If this you game executing now a think designs. of out. briefly there we're talked I'll lot rollout speaker what it’s technology about doing, strictly this at call out is not and we a is covered it's designs

I think that for to solidify things two let's speaker the market TVs. the of plug of two designs So and any speakers into is share the biggest any HDMI hub the WiSA one, that

Daniel Carlson

Tony, do on by is the total products? related you partners have what any on budget sense WiSA advertising your

Tony Ostrom

category website expansion I Facebook look shifted is going people, into as to money the you type have is lot members drive on more there's some of it's because done products and of sales. this put budget, sites. of people that guess, way the there if towards awareness kind of our advertise know a to this well they direct advertising total lot that trainings. type I some that want of and soundbar on wouldn't at the retailer The work more customer on The continue they see that and as natural of to I of the trying and a of know

see really increased have So I don't number I activity. a just

Brett Moyer

to there showed site. visitor’s QX X,XXX This unique XXXX a last two to almost in visitors almost and association. XX,XXX there voice I the for we was unique QX association. XXXX call on spend the I on to they is - minutes WiSA mean the Dan the association website. data WiSA unique visitors mean QX

So, through brands our it. money the that that that activity has are driven into put

LG show WiSA enormous perspective up So homepages and have from page. traffic. if section the its think or exposure one down that's go them the to the you starting see to website that I Ready that them And TV in the rotate right. and four but go cost is to why you you're anything, of NanoCell. web OLED They don't

Daniel Carlson

have And mean then maybe, systems be look guidance in of of unit could WiSA dramatic must I system is assuming looking you what QX QX of out any done sense just COVID on have you but in do know I do year at like? - you shops any growth am looking just but volumes sold And sales unit sort allotted terms actually that there, of the year-over-year you ship I seeing here, in this for and people again, sense. just number

Brett Moyer

stage. traditionally, is certainly brands we we to is look CE Obviously going the June there value number Well of that’s think COVID the is think the but indicate the out to cycle October. a proposition, wildcard, that build

think the as will be I for And brands think that PO think they of I will - November. QX put I maybe well are October, want. place will there be will as production in what slide XX% into that push

QX think QX I be good. and So should

COVID from the by to - sheer $X.XX or and share a to from fall. together If to the it's audio either about - of online But and just $XX.XX. like water premium go the determined for got you speaker by all at for is look But brands buy anybody's for of be market you system. thinking the Now when you great just this much the it's fabulous right. a value just around level it one, the systems count price is us how that look audio position enclave enclave system everybody way brand coming

Daniel Carlson

it. have I love system know and you enclave the well Yes,

question with Brett. but am last I So convert, one

to Just people this quantify did are R&D talking technology developing million strategic because and get sort seems of just total any The like around, of so. to cap bargain. sort the it if like market invested in ridiculous, can of coming you and value $X at wondering - there I'd a player’s I looking or what's to-date. that you the is I'm

just I’m understand the there? trying discount So to

Brett Moyer

is perspective. that's R&D From is if so The prefer et about valuation sales is I were unless those fall that this the out reflective discuss discussions Optimally, valuation about - talking I to effort, technology there right, we something think that business would probably valuation the strategic announce, $XX not OpEx. on and of from generally don't half strategic of going marketing the R&D to were cetera and if of perspective, anyway. not a our this company in is definitively clearly zone. to there a engineering you're the is have valuation the anything in assuming into the in account just about and million

So always the things value. that related and your is challenge of being right. and is There is discussions public lots in of stock up drive down, and valuation business those to the of of IP type evaluation

Daniel Carlson

taking for [indiscernible]? thanks my and Yes, questions

Brett Moyer

about No fall yes. comment to strategic think the through on prefer seeing valuation, we're

Daniel Carlson

for from taking inflection thanks and at guys Well my me. like a question point feels we're

excited. I'm So

thank very So you much.

Brett Moyer

welcome. Thanks, You're Dan.

Operator

would There are time. Brett I the registered this at to any conference back to like Moyer questions further remarks. over closing no turn for

Brett Moyer

the to webcast for over Well people morning next and thank the on like listening couple this I'd attending days.

here update of in WiSA in we - information good really it’s multi-channel standard doing August. questions, free late the an of lot the currently what a Feel or early you. out, have thank there's phase if you And we terms to July at think retail. giving to look in establishing more mind as forward reach wireless I next consumers' in to and you

Operator

call. This concludes today's conference

at time. and participating this have a lines disconnect You day. pleasant your you Thank may for

WiSA (WISA) 27 May 202020 Q1 Earnings call transcript