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Resonant 2Q19 results -3

17:18 06-Aug-19


The Resonant conference call is still underway, but I wanted to update with what I've heard so far.  This morning's exclusive licensing is for 30 months and is expected to be finalized before October.  It contains a $9M prepayment, which is spread over 4 equal milestones with payments expected every 9 months or so.  The amount of the prepayment is not so impressive, but getting one at all is a step forward.  What's more significant is that this is using XBAR for 5G with Murata, which took $7M of the $10M placement, and who has greater than 30% market share. 

The moving parts are that XBAR is still being developed, and the pace of 5G roll out.  So what I see here is that this deal potentially represents the end of dilution, but any delay could be deadly.  A partnership is possible, but anyone who remember the years of ERII coverage will recognize that risk is far from eliminated at this point.

I may or may not circle back again later with other details, but I think that covers what's most important at this point.

On 8/6/19 4:49 PM, Esekla wrote:

Resonant's second quarter results have been made available:

  • a loss of 27 cents per share misses by 8 cents
  • from revenue of $63K, which misses by $367K

These figures are with the current share count.  Hopefully this morning's 14% dilution, will simply make all outstanding shares floating.  The call is underway, but management's touting of XBAR and implication that this morning's deal will use it is unlikely to be enough to boost the stock in the short term.