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Resonant 1Q21 results ?3

17:42 12-May-21

The Resonant conference call has just concluded.  Management commented that it "absolutely" thinks the Murata deal will be expanded before completion of the last two milestones.  According to management, Murata is focused on ramping the first four devices and sampling them.  It also says it intends to continue focusing on prepaid royalties.

I think management are slick talkers, but that doesn't preclude success.  Most likely a deal expansion would follow that, probably in the second half, as we are now 7 months into the 3rd milestone work for volume manufacturing, but there will be no warning.  Other deals in the non-mobile space would likely be more significant to earnings and the balance sheet, but that may have to wait until next year.

What I can say for now is that there is $21.6M in cash on the balance sheet, representing a $3.35M sequential reduction, and the share count seems to have stabilized.  So Resonant should be able to make it through the year without further dilution.  We'll see what happens.  It continues to be a tough market for GRoDT stocks, but reduced pricing around $2.50 seem worth considering for investors who can be patient and handle the volatility.

Resonant has published its first quarter results:

• a loss of 15 cents per share misses original estimates by 5 cents
  
• from $610K of revenue, which beats by $10K
  

Management continues to expect to expand its relationship with Murata this year, but there are no material comments on the next milestone.  Expenses ramped by $1M YoY, which is probably payroll.  The conference call is underway, and I will follow up if there is anything interesting to say.

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