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Resonant 1Q17 results ?2

18:43 10-May-17


Resonant has announced a loss of 30 cents per share on revenue of $156K for the first quarter.  The conference call has just finished and the only significant item was the increase of the revenue potential for current filters to $255-260M. The four customers receiving pre-production parts are all white-box and are getting them in a roughly even distribution.

On one hand, that means that Resonant has a long way to go in terms of climbing the food chain in the filter market.  However, the company may not be disclosing all customers due to contractual obligations which would be typical for the industry.  It was only able to announce the pre-production parts because these are coming from a fab that is new to this segment of the industry and management noted that we may only find out about other products via tear-downs. 

What we do know is that Resonant is now up to at least 30 products in development at 6 customers, with at least 5 quadplexers using SAW & TC-SAW.  The company is realizing some designs in as few as 3 turns, and has been able to sample in just 1.  Management says it more typically benchmarks at 7-10 turns vs 15-20 for competitors like Qorvo and Avago.  More white papers describing Resonant's approach and intellectual property may be forthcoming.

The other side of the investment equation is that 3 mainstream analysts participated in this call, which represents increasing interest.  One of those was not understanding the business by trying to relate it to IoT, which would not be applicable except perhaps via licensing design software a very long way down the road.  The others seem to have a handle on what Resonant does and plans, though.  RESN will continue to require plenty of patience and risk tolerance, but my outlook remains unchanged from the prior call.