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Resonant 3Q19 results ?3

17:26 05-Nov-19


The Resonant conference call has just concluded, and management updated guidance:

Management reminds us that the 30 month exclusive agreement with Murata is for mobile only.  It says it plans to sample components to automotive, medical, and other segments for IoT starting in 2020.  On the mobile side, Ericsson predicts 45% 5G penetration by 2024, and thus Resonant predicts its associated ramp in 2022.  In the meantime, it currently has cash to June 2020.

This reaffirms my take that time is going to be the gating factor on valuing the stock.  The Teledyne agreement will help with providing flexibility in producing and sampling designs, but any delays have the potential to be very harmful.  That said, the big question is whether or not Resonant will move toward using Teledyne to actually sell (non-mobile) RF filters, rather than just designs.  Management says this would increase the potential revenue by a factor of ten, but it would have do so with an arrangement that would limit its financial outlay, which is good to hear.

RESN shares are down about 3% so far.  Expect volatility to continue, but I see the technology as compelling.

On 11/5/19 4:25 PM, Esekla wrote:

Resonant has reported its third quarter results:

  • a loss of 26 cents per share misses by 6 cents
  • from $79K of revenue, which misses by $255K
  • confirms the teardown results discussed over the weekend

As anticipated, the headline numbers are awful, but the outlook is better.  Resonant had $14.7M of cash and equivalents at the end of the quarter, and received another $2M in royalty prepayments after that.  This confirms my projection that the company could make it to profitability without further dilution, if there are no production delays.  In the meantime, the share count is only up to 29.2M, which is good to see.  The conference call is at 4:30pm.  More after that.