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Resonant schedules 1Q19 plus CUI and macro ?3
08:41 25-Apr-19
Resonant has scheduled its first quarter report for Wednesday, May 8th, after market close. 5 analysts are covering the company and the average of their estimates comes to a loss of 19 cents per share on revenue of $338K, which is expected to almost double to $640K in the current quarter.
Yesterday's MACOM JV affirms that China is 1-2 years ahead of the
west in 5G deployment. That's good for Resonant in principle, but
the stock was already more on the knife's edge than any other
GRoDT, which means there probably won't be any effect on RESN
pricing. The company cuts a deal or dilutes; either way it's the
terms that matter, and the possibilities are not exclusive. In
situations like this, time is the enemy and that can make it hard
to capitalize. Resonant management clearly can't/won't go to the
lengths that CUI's has to avoid dilution, so ramping revenue
becomes all the more important. We learned this morning that
CUI's sales relationship SAMSON is finally beginning to bear unquantified
fruit toward that same goal, but we need numbers from both
companies.
With negotiators heading back to Beijing on Tuesday, Resonant's
fate may come down to whether the west really wants to catch up,
or just continue to issue delusional sound bytes and expensive
spectrum auctions. Network operators like Vodafone are doing a
good job optimizing
other costs in preparation for 5G, but to the extent
they are forced to cut Huawei out of their supply chains, even if
for good reason,
progress will be slower and more expensive. So far the soap
opera is not helping western companies like Nokia,
and what will matter for the long term is how much other countries
like Taiwan,
Japan, Korea,
and India
are pushed toward greater cooperation with either Europe or
China. Right now, it's looking like things come to a head by
June, both in Resonant's balance sheet and the broader world. The
latter depends on the U.S., U.K. and E.U. ceasing their delays,
though. They're not helping anyone by bickering.