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Akoustis 4Q22 results +3

08:54 12-Sep-22


Akoustis has reported results for its fiscal fourth quarter:
I have just finished listening to the conference call.  Management cites supply chain problems with its customers, but says it is only indirectly impacted.  Even so, I wonder if the EPS miss is related to it being loose on costs due to expansion plans.  It also named Aruba Networks as a recent customer, which is prestigious.  Regardless the revenue ramp and projections for new design wins are most important.  Management expects costs to moderate, and also says the supply chain issues should improve in 6-12 months.  This may coincide with expansion of chip making bans on China. 

I'm not sure the market will take immediate notice of any of this, though, as it waits for tomorrow's CPI numbers, but I remain very positive on the company's prospects.  Rather, next year looks like the truly transformative period for the stock price, barring acquisition.  Even in advance of CHIPS funding, I'm particularly bullish on wins for CBRS as introduced with DOX and recently supported by 70 of 90 of Nokia's field router customers using the spectrum.  I expect such devices to be high margin and well within the limited volume capabilities for Akoustis.  Such business should also be a significant positive for Lumen's edge business.