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Resonant passes 50M unit mark and more ?3
Xebec issued a press release for the first of the two additional acquisitions that it signaled previously. Inmatec will become Xebec's German sales and service arm, and will also offer entry into Medical Oxygen, which has been a growth market during the pandemic. I don't see any specific terms for this deal, but the overall financing was already detailed with the Hygear purchase.
Google also got official E.U. approval to buy Fitbit. It's starting to look like this may be one of the early ways in which America will begin following the Europe instead of the other way around. Otherwise, this was expected with no FIT premium left anyway, and Google has other things to worry about lately.
Also of note, but not market moving, today was BGC's kACE win with Sparrow Tech. I've never heard of Sparrow, but I'm again glad to see BGC expanding its client base in Asia. Even so, this might not normally even be worth a mention, except that Sparrow will apparently deal in crypto currencies, which of course have once again become the rage in this runaway market. I understand the importance of a good FX infrastructure for supporting such operations, but still see only minor fundamental benefit for BGC. Nonetheless, investors should be aware of the potential for something like this go viral in this environment. Anyone who wants more examples on just how stupid the market has become can feel free to email. Good night and good luck!
On 12/17/20 9:30 AM, Esekla wrote:
I'll also note that America has reported record new pandemic cases and increased weekly jobless claims. Neither of these are affecting the market in the near term, but that doesn't mean they don't matter.
On 12/17/20 9:21 AM, Esekla wrote:
Resonant has announced that its customers have shipped devices containing more than 50M RF filters covering 9 cellular and Wi-Fi bands to date. While the market may take this positively, I see it as mixed news. It actually means that customer shipments have leveled off for the time being, since the company noted in its last report that its customers had shipped over 46 million RF filters to-date, and a total of 4.1 million RF filters in 3Q20. Going forward, we'll have to be careful of such numbers, because Murata parts won't add to revenue until they expand beyond the original 4 designs. The interesting part of today's PR is this:
our oldest customer indicated that they recently secured a high-volume Wi-Fi socket with a Tier 1 Chinese handset OEM, which has already started shipping. In addition, our technology has also been identified by third-party teardown companies in multiple Tier 1 phone models.Earlier that same day, Resonant documented that the same customer was shipping filters for connected cars. Broader acceptance and non-mobile use cases such as WiFi filters are going to be key to the near term revenue ramp, and this gives some hope of seeing that resume in the 2021. Thus, I'll be looking at deferred revenue in the March and subsequent reports for a heads up on when we'll start to see that on the bottom line. However, the terms of the latest Dish convertibles show that the market is willing to finance anything and everything related to 5G, and Resonant continues to exhibit the most compelling technology that I know of in the industry. So, it could be bought before there is clear evidence in the financials. Investors will have to continue weighing the risks of potentially delayed rollouts and dilution against that of missing out.
Also of minor note this morning is Nokia naming an Ericsson veteran as CTO to help determine its new strategy, and MagnaChip catching up with a power management product for UHD laptops.