--- the subscriber area has no ads and those above are not selected or endorsed by this site ---


Resonant 4Q devices and estimates ?3

12:19 03-Jan-18


Resonant has announced that over 7.5M devices have shipped to date using its designs.  Of those, over 80% were in 4Q17 meaning that over 6M devices shipped last quarter.  However, these parts were from the simple designs discussed here, which have relatively low margins.  Even so, we can expect Resonant's revenue to at least double sequentially, to over $200K.  That will barely make dent in the EPS losses, but reporting this way is a good sign.  What we'll look for going forward is for revenue to keep multiplying and margins to increase as new and more complex designs enter production. 

Reaching break-even is looking like an early 2019 event and, with $13.5M on the balance sheet, don't be surprised to see another capital raise before then.  I've been highly critical of management for doing this through share sales, and especially warrants.  The longer another such action can be put off, the greater the chance that increasing revenue will make other options viable.

The other thing that's happened is that monthly options have been introduced on RESN, and that should be slightly positive for the shares in the meantime.  Shares have been falling steadily and are down 8% so far.  I don't think that drop is enough to make RESN worth more than a nibble, but with a rebate rate still above 6%, I also expect it to remain above historical levels, barring a market crash.