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Fitbit+Google, Resonant 1Q18 schedule and more +4

09:33 30-Apr-18


Resonant has scheduled its first quarter report for Wednesday, May 9th, after the bell.  The stock is now covered by 5 analysts and the average of their estimates comes to a loss of 20 cents per share on $296K of revenue.  Current quarter revenue estimates average out to $526K, not that management is in the habit of giving quarterly guidance yet.

Now that some dilution and the proxy contest are out of the way, I hope escalating revenue will buoy RESN somewhat.  I'll be most interested in the state of the balance sheet, and whether or not expenses and revenues are staying within and keeping up with (respectively) managements expectations.  As a reminder, those were $5M quarterly and at least $1M annually.  That, and the nearly 5% rebate rate might be enough to push RESN back towards $5 but I still would not chase it near that level unless we hear something about non-linear income growth.

There is that possibility, though, as the communications market is heating up.  Sprint and T-mobile (amongst others) merging looks like a sentimental positive for CTL, but the ever clearer trend towards all types of cord cutting is a more fundamental positive.  The reasons for that give me hope that CenturyLink's Price-for-Life sales initiative will start showing real traction next week.  Over time, the trend should definitely be towards short-distance wireless with MUCH more high-speed back-haul, often to centralized data centers. 

That's the idea behind Fitbit's collaboration with Google.  As usual, I'm not inclined to buy the news, but it does look like a good match.  I'll be looking for commentary on that when Fitbit reports Wednesday evening, and for steady progress from IDT, which is powering both the whole communications process, both to and inside the datacenter, tonight.  Welcome to earnings season everyone!