Filter start-up Resonant has secured a second license agreement for three, single band surface acoustic wave (SAW) duplexer designs for high volume cellular bands. The agreement is with a second existing customer and follows a development agreement with this same customer that was announced in March (2016). Milestone payments and royalty terms were not disclosed.
"We believe we are gaining momentum with another licensing agreement that demonstrates our customer's intentions to commercialize the filters we are designing for them," said Terry Lingren, CEO and co-founder of Resonant. "This customer has excellent process capability, is an up-and-coming competitor in this market with a customer base that is complementary to that of our other customer. We believe our designs will help make our customer even more competitive and accelerate their growth."
Resonant now has secured two development contracts and two licensing agreements with two separate customers. On April 27, 2016, Resonant announced a licensing agreement with their first customer, a "tier one" company, that followed a development agreement announced in February.
Resonant is entering the fast growing mobile market for high performance filters, yet a market where they face firmly entrenched competitors such as Broadcom Ltd. and Qorvo. Resonant claims its design process — "proprietary mathematical methods, software design tools and network synthesis techniques" — enables the company to develop SAW filter designs that would normally require bulk acoustic wave (BAW) technology. The company also claims its products can be developed in half the time and manufactured for half the cost of competitors' filters. Resonant does not intend to manufacture the filters it designs. It will license the designs to companies with SAW production capabilities.
For the most recent fiscal quarter that ended March 31, Resonant reported $27,000 in revenue from their two development contracts, with an additional $53,000 to complete development that is forecast to be recognized in the June quarter. The company's burn rate in the March quarter was $3.1 million, leaving the company with just under $3.1 million in cash. To extend their funding horizon, in April, Resonant raised a net of $5.2 million in a private placement.