Resonant Inc., a creator of innovative filter designs for radio frequency front-ends (RFFE) for the mobile device industry, announced financial results for the third quarter ended September 30, 2015 and provided a business update.
Chief Executive Officer Terry Lingren stated, "During the quarter, we advanced the development of on-going projects and initiated new projects, thus increasing the potential for having multiple revenue streams from a diverse customer base. We now have five projects underway, three of which are for new prospective customers, in addition to our tunable prototype. The ability of Resonant to address this number of complex projects is a validation of the advancement of our design tools and capabilities and speaks to the confidence our customers have in Resonant's design expertise. Of late, we have allocated many of our resources to these new projects in anticipation of one or more advancing to formal commitments with new customers over the course of the coming months.
"With respect to our longer-term tunable project, which will be the first of its kind in the world, we have made good progress toward completing this filter design and have our first working hardware of a two-band design. We are now targeting to complete the prototype in the first half of 2016 versus the end of 2015 as originally planned. This is due not only to the steep learning curve of the project but also because we chose to prioritize resources among those five projects that provide the potential to generate revenue in the next 12 months, while tunable is a longer term, albeit larger, opportunity. We have had several parties express interest in our tunable filter capabilities, and immediately upon completion of our prototype, we look forward to demonstrating this novel solution to those potential customers," concluded Mr. Lingren.
Other key areas of progress during the quarter included:
- Product 1: The second generation of the Product 1 filter design continues to be in the qualification process with the filter manufacturer, or fab, which is a required step prior to design acceptance by its customer.
- Product 2: Resonant is on track to complete the design under development during the first quarter of 2016. This design is intended to replace a BAW with a SAW filter for another hard band which, similar to Band 3, is one of the high-volume worldwide bands. The filter is being designed with a different fab from Product 1, and the fab has indicated its intent to sell the Resonant-designed filter directly into its existing channel of RFFE manufacturers and mobile device OEMs utilizing its existing manufacturing processes. Terms for a licensing deal have not yet been finalized.
- Tunable Filter: This first-of-its-kind tunable filter will be electronically programmed in real time for different filtering states so that one filter can do the work of many and therefore replace multiple filters. Resonant started this program with a two-state (or two-band) filter and is moving toward ultimately designing a tunable filter reconfigurable between three bands. Working hardware of the two-state filter is now being optimized in the lab.
- Formed an Advisory Board to aid Resonant in commercializing its designs and appointed three industry veterans as members, each of whom possesses expertise in business development, marketing and strategic partnerships for the wireless industry.
Financial Results for the Third Quarter1 and Year to Date
- Ended the Third Quarter with $7.9 million in cash and investments compared with $13.8 million in cash and investments at December 31, 2014. Management believes it has sufficient cash to support planned operations through the first half of 2016.
- Research and development (R&D) expenses totaled approximately $1.2 million in the Third Quarter compared with $623,000 a year ago, due to increased costs associated with increased headcount and a greater number of projects in development. Year to date, R&D expense totaled $3.3 million, up from $2.0 million a year ago.
- General and administrative (G&A) expenses totaled approximately $1.6 million in the Third Quarter, compared with $760,000 a year ago, which was the first full quarter of operations as a public company. Year to date, G&A expenses were $3.7 million, compared with $1.7 million in the first nine months of 2014.
- Operating loss increased to $2.9 million for the Third Quarter, from $1.4 million a year ago. The increased loss primarily reflected increased R&D activities and G&A expenses consistent with planned growth and being a public company. Year to date, the operating loss totaled approximately $7.3 million, up from $3.9 million a year ago.
- The net loss totaled approximately $2.9 million, or $0.40 per fully diluted share, for the Third Quarter, based on 7.2 million shares outstanding. This compared with a net loss in the same quarter last year of $1.4 million, or $0.21 per fully diluted share, based on 6.9 million shares outstanding. Year to date, the net loss totaled $7.2 million, or $1.01 per share, on 7.1 million shares outstanding, compared with a net loss of $7.6 million, or $2.04 per share, on 3.7 million shares outstanding, for the 2014 nine month period.
1Financial data is for the third quarter (Third Quarter) and year to date ended September 30, 2015. Comparisons are to the comparable periods in 2014.
For more information, please visit www.resonant.com.