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


Resonant 1Q19 results -2

17:41 08-May-19


The Resonant conference call has just concluded.  Management claims that XBAR is unique and outperforms state of the art technology by a factor of 2 or 3, in-line with my initial comparisons.  This is supported by the technical stats quoted for the n79 and now n77 band filters, which may be able to be combined.  Consequently, it projects doing a strategic deal on the technology by the end of this quarter. 

Current designs are supposed to ship millions of units in the current quarter and tens of millions in the third quarter.  Management declined to provide revenue guidance, though.  It did reply that the royalty rate for the quarter was fairly steady at 9.25%.

All of this depends on a rebound in the Chinese telecom market, but new products based on library designs should also materialize more quickly than usual.  The latest statements coming out of D.C. and China indicate that deal should be cut this week, or else $200b in tariffs will go into effect.  Economic conditions in China are providing leverage, but I don't give either side much credibility.  Parts revenue should be followed by software licensing next year.  Promises aren't enough though, and shares are down over 8% after market.  With an 11% net rebate, I'm not sure that dip will last, but RESN remains a gamble on management's projections coming true in the next two quarters.

On 5/8/19 4:35 PM, Esekla wrote:

Resonant has reported its results for the first quarter:

  • a loss of 20 cents per share, which misses by a penny
  • on $134K revenue, which misses by $204K

Resonant went through just over $6M for the quarter and has just over $16M left including the $1M from warrant exercise received this quarter.  Management says it will secure its first XBAR customer engagement this quarter, after choosing and qualifying with its first foundry partner.

The conference call is beginning, but there may not be anything more to report.  Dilution looks progressively more likely and it is the terms that will matter for its pricing.