Resonant Inc. (NASDAQ: RESN), a provider of radio frequency (RF)
filter solutions developed on a robust intellectual property
platform, designed to connect People and Things, has provided
financial results for the fourth quarter and fiscal year ended
December 31, 2020.
Management Commentary “Our
revenue growth of over 330% to a record $3.2 million in 2020 is a
direct result of our technology gaining traction within the
smartphone, Wi-Fi, and automotive markets,” said George B. Holmes,
Chairman and CEO of Resonant. “Most importantly, our flagship XBAR®
RF filter technology, which is ideally suited to meet the complex
challenges of next-generation, ultra-fast 5G networks, continues to
be validated by our strategic partner – the world’s largest RF
filter manufacturer. After achieving the second milestone ahead of
expectations, which confirmed target performance, packaging, and
initial reliability for use in mobile devices, together we are
moving towards mass scale commercialization of XBAR®-based RF
filters for 5G mobile networks.
“We also focused on bolstering our intellectual
property portfolio, specifically focusing on our XBAR® technology,
to strategically position Resonant as a leader in the
much-anticipated performance of next-generation networks, as well
as the unique applications the networks unlock with these next
generation RF filters. The recent demonstration of a high
performance, full-band 6GHz XBAR-based filter covering the entire
1200 MHz Wi-Fi bandwidth of up to 7215MHz, while rejecting
potential interferers by more than 50dB without the need for
material doping or ancillary components, is further proof that
XBAR® should be the technology of choice for future wireless filter
applications. While the imminent transition to 5G and high
frequency Wi-Fi bands presents complex challenges, we believe
Resonant remains the only company in the world that can provide RF
filter solutions that, by design, natively meet the increasingly
complex RF performance requirements for mobile and non-mobile
applications.”
Holmes concluded: “As we move through 2021, we
expect to continue to see ramping unit shipment volumes with our
existing customers as well as continued migration to agreements
including significant prepaid royalties that deliver greater
predictability to the ramping revenue stream. We are aggressively
engaging new partners to expand the footprint of XBAR® for
non-mobile applications and will begin sampling XBAR® Wi-Fi devices
to non-mobile customers later this month. More than ever before, we
stand in an extraordinary position to capitalize on the
multi-billion-dollar 5G market and drive value for
shareholders.”
Recent Company Highlights
- Achieved the
second 5G Mobile XBAR® RF filter milestone with the world’s largest
RF filter manufacturer, which confirmed target performance,
packaging, and initial reliability, approving the move to the next
phase of the Agreement, which focuses on building a commercial
platform & high-volume manufacturing.
- Resonant’s
customers have shipped over 53 million units designed with the
company’s technology to-date. Over 6.9 million units utilizing
Resonant’s technology were shipped in the fourth quarter of 2020,
representing an increase of over 200% from the same year-ago
quarter, and a sequential increase of over 65%.
- Successfully
manufactured RF filters for 5G with two additional foundry partners
using a standard SAW front-end process, an industry first. This
brings the total to 6 foundries capable of delivering XBAR®-based
filters today. The Resonant 5G RF filter was designed for the
non-mobile n79 5G band, which pertains to applications such as
infrastructure and automotive, among others.
- The Company’s
patent portfolio has continued to grow to over 300 patents filed
and issued, 150 of which are related to Resonant’s proprietary 5G
XBAR® technology.
- Secured a
high-volume 2.4 GHz Wi-Fi socket with a Tier-1 Handset OEM through
our oldest customer.
- Announced
existing Tier-1 filter customer commenced shipments of high-value
band designs into the lucrative automotive market, which
facilitated immediate billings.
- Appointed Dr.
Peter Gammel, a global semiconductor industry thought leader with
over 40 years of experience, to the Company’s Advisory Board.
- Appointed
technical thought leaders Larry Larson, PhD, Jianming Jin, PhD,
Gabriel Rebeiz, PhD, and Raafat Mansour, PhD, to Advisory Board and
formed Technical Committee.
- Released a new
extension to its Process Monitoring Tool (PMTx), which models and
measures the fabrication processes of Temperature-Compensated
Surface Acoustic Wave (TC-SAW) filter technologies for both Thick
SiO2 and Bonded Wafers.
- Joined the Wi-Fi
Alliance, a global non-profit industry association of companies who
share a vision of seamless connectivity.
Fourth Quarter and Full Year 2020
Financial Summary
- Revenue in the
fourth quarter of 2020 increased 32% to $0.6 million, compared to
$0.5 million in the same quarter a year-ago. Revenues in 2020
increased to a record $3.2 million, an increase of over 330%
compared to revenues of $0.7 million in 2019.
- At the end of
the fourth quarter of 2020, deferred revenues totaled $1.8
million.
- Research and
development expenses decreased 9% to $4.8 million in the fourth
quarter of 2020, compared to $5.2 million in the same quarter a
year-ago. Research and development expenses were $19.5 million in
2020, compared to $18.9 million in 2019.
- Sales, marketing
and administration expenses decreased 4% to $3.0 million in the
fourth quarter of 2020, compared to $3.1 million in the same
quarter a year-ago. Sales, marketing and administration expenses
were $12.2 million in 2020, compared to $12.0 million in 2019.
- Net loss
improved to $7.1 million, or $(0.13) per share, in the fourth
quarter of 2020, compared to a net loss of $7.8 million, or $(0.24)
per share, in the same quarter a year-ago. Net loss improved to
$28.4 million, or $(0.55) per share, in 2020, compared to a net
loss of $29.9 million, or $(1.02) per share, in 2019.
- Non-GAAP,
adjusted EBITDA improved to $(5.5) million, or $(0.10) per share in
the fourth quarter of 2020, compared to $(6.0) million or $(0.18)
per share in the same quarter a year-ago. Non-GAAP, adjusted EBITDA
improved to $(21.7) million, or $(0.42) per share in 2020, compared
to $(23.4) million or $(0.80) per share in 2019.
- As of December
31, 2020, Resonant had cash and cash equivalents of approximately
$25.0 million, which included $11.0 million of net proceeds from
sales of equity under the Company’s at-the-market (ATM)
program.
Conference Call and
WebcastDate: Monday, March 15, 2021Time: 5:30 a.m. Pacific
standard time (8:30 a.m. Eastern standard time)U.S. Dial-In:
1-877-423-9813International Dial-In: 1-201-689-8573Conference ID:
13716710Webcast: RESN Q4 2020 Webcast
Please dial in at least 10 minutes before the
start of the call to ensure timely participation.
A playback of the call will be available through
April 15, 2021. To listen, call 1-844-512-2921 within the United
States or 1-412-317-6671 when calling internationally and enter
replay pin number 13716710. A webcast will also be available for 30
days on the IR section of the Resonant website or by clicking here:
RESN Q4 2020 Webcast
Note about Non-GAAP Financial
MeasuresA non-GAAP financial measure is a numerical
measure of a company’s performance, financial position, or cash
flows that either excludes or includes amounts that are not
normally excluded or included in the most directly comparable
measure calculated and presented in accordance with generally
accepted accounting principles, or GAAP. Non-GAAP measures are not
in accordance with, nor are they a substitute for, GAAP measures.
Other companies may use different non-GAAP measures and
presentation of results.
In addition to financial results presented in
accordance with GAAP, this press release presents adjusted EBITDA,
which is a non-GAAP measure. Adjusted EBITDA is determined by
taking net loss and adding interest, taxes, depreciation,
amortization and stock-based compensation expenses. The
company believes that this non-GAAP measure, viewed in addition to
and not in lieu of net loss, provides useful information to
investors by providing a more focused measure of operating
results. This metric is an integral part of the Company’s
internal reporting to evaluate its operations and the performance
of senior management. A reconciliation of adjusted EBITDA to net
loss, the most comparable GAAP measure, is available in the
accompanying financial tables below. The non-GAAP measure
presented herein may not be comparable to similarly titled measures
presented by other companies.
About Resonant Inc.Resonant
(NASDAQ: RESN) is transforming the market for RF front-ends (RFFE)
by disrupting the RFFE supply chain through the delivery of
solutions that leverage our Infinite Synthesized Network (ISN)
design software tools platform, capitalize on the breadth of our IP
portfolio, and are delivered through our services offerings. In a
market that is critically constrained by limited designers, tools
and capacity, Resonant addresses these critical problems by
providing customers with ever increasing design efficiency, reduced
time to market and lower unit costs. Customers leverage Resonant’s
disruptive capabilities to design cutting edge filters and modules,
while capitalizing on the added stability of a diverse supply chain
through Resonant’s fabless ecosystem-the first of its kind. Working
with Resonant, customers enhance the connectivity of current mobile
devices, while preparing for the demands of emerging 5G
applications.
To learn more about Resonant, view the series of
videos published on its website that explain Resonant's
technologies and market positioning:
-
Resonant Corporate Video
-
ISN and XBAR: Speeding the Transition to 5G
-
Infinite Synthesized Networks, ISN Explained
-
What is an RF Filter?
-
RF Filter Innovation
-
Transforming the Mobile Filter Supply Chain
For more information, please
visit www.resonant.com.
Resonant uses its website
(https://www.resonant.com) and LinkedIn page
(https://www.linkedin.com/company/resonant-inc-/) as channels of
distribution of information about its products, its planned
financial and other announcements, its attendance at upcoming
investor and industry conferences, and other matters. Such
information may be deemed material information, and Resonant may
use these channels to comply with its disclosure obligations under
Regulation FD. Therefore, investors should monitor the company’s
website and its social media accounts in addition to following the
company’s press releases, SEC filings, public conference
calls, and webcasts.
About Resonant’s ISN®
Design TechnologyResonant can create designs for
difficult bands, modules and other complex RF Front End
requirements that we believe have the potential to be manufactured
for half the cost and developed in half the time of traditional
approaches. ISN is a suite of proprietary mathematical methods,
software design tools and network synthesis techniques that enable
us to explore a much larger set of possible design solutions that
regularly incorporate our proprietary technology. We then quickly
deliver design simulations to our customers, which they manufacture
or have manufactured by one of our foundry partners. These improved
solutions still use Surface Acoustic Wave (SAW) or Temperature
Compensated Surface Acoustic Wave (TC-SAW) manufacturing methods
and perform as well as those using higher cost manufacturing
methods such as Bulk Acoustic Wave (BAW). Resonant's method
delivers excellent predictability, enabling achievement of the
desired product performance in roughly half as many turns through
the fab. In addition, because Resonant's models are fundamental,
integration with its foundry and fab customers is seamless because
its models speak the "fab language" of basic material properties
and dimensions.
Safe Harbor / Forward-Looking
StatementsThis press release contains forward-looking
statements, which include the following subjects, among others: the
status of filter designs under development, the capabilities of our
filter designs and software tools and the markets they serve, the
timing and amount of future unit shipments and revenues, the
increased use of agreements with prepaid royalties, and our views
on future financial performance and market share. Forward-looking
statements are made as of the date of this document and are
inherently subject to risks and uncertainties which could cause
actual results to differ materially from those in the
forward-looking statements, including, without limitation, the
following: our limited operating history; our ability to complete
designs that meet customer specifications; the ability of our
customers (or their manufacturers) to fabricate our designs in
commercial quantities; our customers’ ability to sell products
incorporating our designs to their OEM customers; changes in our
expenditures and other uses of cash; the ability of our designs to
significantly lower costs compared to other designs and solutions;
the risk that the intense competition and rapid technological
change in our industry renders our designs less useful or obsolete;
our ability to find, recruit and retain the highly skilled
personnel required for our design process in sufficient numbers to
support our growth; our ability to manage growth; and general
market, economic and business conditions. Additional factors that
could cause actual results to differ materially from those
anticipated by our forward-looking statements are under the
captions “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” in our most
recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q)
filed with the Securities and Exchange Commission. Forward-looking
statements are made as of the date of this release, and we
expressly disclaim any obligation or undertaking to update
forward-looking statements.
Investor Relations Contact:Greg Falesnik or
Brooks HamiltonMZ Group - MZ North America
(949)
546-6326 RESN@mzgroup.us
Resonant Inc.Condensed Consolidated
Balance Sheets(in thousands)
|
December 31, 2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
24,968 |
|
|
|
$ |
10,688 |
|
|
Other current assets |
719 |
|
|
|
453 |
|
|
TOTAL CURRENT ASSETS |
25,687 |
|
|
|
11,141 |
|
|
PROPERTY AND EQUIPMENT,
NET |
1,583 |
|
|
|
1,885 |
|
|
TOTAL NONCURRENT ASSETS |
5,460 |
|
|
|
5,121 |
|
|
TOTAL
ASSETS |
$ |
32,730 |
|
|
|
$ |
18,147 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued
expenses |
$ |
3,401 |
|
|
|
$ |
3,989 |
|
|
Other current liabilities |
2,450 |
|
|
|
2,343 |
|
|
TOTAL CURRENT LIABILITIES |
5,851 |
|
|
|
6,332 |
|
|
TOTAL LONG-TERM
LIABILITIES |
1,826 |
|
|
|
2,059 |
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
Common stock |
59 |
|
|
|
33 |
|
|
Additional paid-in capital |
175,813 |
|
|
|
132,214 |
|
|
Accumulated other comprehensive income |
87 |
|
|
|
1 |
|
|
Accumulated deficit |
(150,906 |
) |
|
|
(122,492 |
) |
|
TOTAL STOCKHOLDERS’
EQUITY |
25,053 |
|
|
|
9,756 |
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
32,730 |
|
|
|
$ |
18,147 |
|
|
Resonant Inc.Condensed Consolidated
Statements of Operations(in thousands, except per
share data)
|
Three Months Ended (Unaudited) |
|
Year Ended (Audited) |
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
REVENUE |
$ |
607 |
|
|
|
$ |
1,405 |
|
|
|
$ |
459 |
|
|
|
$ |
3,160 |
|
|
|
$ |
735 |
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
|
|
Research and development |
4,757 |
|
|
|
4,413 |
|
|
|
5,226 |
|
|
|
19,477 |
|
|
|
18,854 |
|
|
Sales, marketing and administration |
2,980 |
|
|
|
3,055 |
|
|
|
3,109 |
|
|
|
12,150 |
|
|
|
12,040 |
|
|
TOTAL OPERATING EXPENSES |
7,737 |
|
|
|
7,468 |
|
|
|
8,335 |
|
|
|
31,627 |
|
|
|
30,894 |
|
|
OPERATING
LOSS |
(7,130 |
) |
|
|
(6,063 |
) |
|
|
(7,876 |
) |
|
|
(28,467 |
) |
|
|
(30,159 |
) |
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest and investment
income |
1 |
|
|
|
1 |
|
|
|
33 |
|
|
|
66 |
|
|
|
253 |
|
|
Other expense |
(2 |
) |
|
|
(1 |
) |
|
|
(5 |
) |
|
|
(12 |
) |
|
|
(21 |
) |
|
TOTAL OTHER INCOME
(EXPENSE) |
(1 |
) |
|
|
— |
|
|
|
28 |
|
|
|
54 |
|
|
|
232 |
|
|
LOSS BEFORE INCOME
TAXES |
(7,131 |
) |
|
|
(6,063 |
) |
|
|
(7,848 |
) |
|
|
(28,413 |
) |
|
|
(29,927 |
) |
|
Provision for income
taxes |
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
NET LOSS |
$ |
(7,131 |
) |
|
|
$ |
(6,063 |
) |
|
|
$ |
(7,848 |
) |
|
|
$ |
(28,414 |
) |
|
|
$ |
(29,928 |
) |
|
NET LOSS PER SHARE – BASIC AND
DILUTED |
$ |
(0.13 |
) |
|
|
$ |
(0.11 |
) |
|
|
$ |
(0.24 |
) |
|
|
$ |
(0.55 |
) |
|
|
$ |
(1.02 |
) |
|
Weighted average shares
outstanding — basic and diluted |
54,976,249 |
|
|
|
53,243,854 |
|
|
|
32,747,090 |
|
|
|
51,254,329 |
|
|
|
29,409,776 |
|
|
Resonant Inc.Reconciliation of Non-GAAP
Information(Unaudited)(in
thousands, except per share data)
|
Three Months Ended (Unaudited) |
|
Year Ended (Audited) |
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP) |
$ |
(7,131 |
) |
|
|
$ |
(6,063 |
) |
|
|
$ |
(7,848 |
) |
|
|
$ |
(28,414 |
) |
|
|
$ |
(29,928 |
) |
|
Adjust for the following
items: |
|
|
|
|
|
|
|
|
|
Interest, net |
— |
|
|
|
(1 |
) |
|
|
(33 |
) |
|
|
(65 |
) |
|
|
(253 |
) |
|
R&D Stock Compensation |
590 |
|
|
|
645 |
|
|
|
797 |
|
|
|
2,753 |
|
|
|
2,823 |
|
|
SM&A Stock Compensation |
771 |
|
|
|
828 |
|
|
|
809 |
|
|
|
3,071 |
|
|
|
2,983 |
|
|
R&D Depreciation and amortization |
208 |
|
|
|
193 |
|
|
|
199 |
|
|
|
811 |
|
|
|
788 |
|
|
SM&A Depreciation and amortization |
47 |
|
|
|
45 |
|
|
|
51 |
|
|
|
189 |
|
|
|
197 |
|
|
Income taxes |
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
Adjusted EBITDA
(non-GAAP) |
$ |
(5,515 |
) |
|
|
$ |
(4,353 |
) |
|
|
$ |
(6,025 |
) |
|
|
$ |
(21,654 |
) |
|
|
$ |
(23,389 |
) |
|
NET EBITDA PER SHARE – BASIC
AND DILUTED (non-GAAP) |
$ |
(0.10 |
) |
|
|
$ |
(0.08 |
) |
|
|
$ |
(0.18 |
) |
|
|
$ |
(0.42 |
) |
|
|
$ |
(0.80 |
) |
|
Weighted average shares
outstanding — basic and diluted |
54,976,249 |
|
|
|
53,243,854 |
|
|
|
32,747,090 |
|
|
|
51,254,329 |
|
|
|
29,409,776 |
|
|
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