Akoustis Technologies(US:AKTS)2022-01-31 16:34Financial Data and Key Metrics Changes - The company reported record revenue of $3.7 million for the second quarter, representing a 96% increase compared to the previous quarter [23] - GAAP operating loss was $15.2 million, with a net loss per share of $0.29, while non-GAAP operating loss was $12.3 million, with a non-GAAP net loss per share of $0.21 [23] - Cash used in operating activities decreased to $10.8 million from $12.7 million in the prior quarter, and the company exited the quarter with $67.5 million in cash and cash equivalents [24] Business Line Data and Key Metrics Changes - The WiFi business saw significant growth, with the number of customers in production increasing fivefold and new design wins announced [8][12] - In the 5G mobile segment, the number of customers doubled from two to four, including a multibillion-dollar tier-1 module maker [13][17] - The infrastructure business is set to enter production with its first Citizens Broadband Radio Service (CBRS) customer [18][20] Market Data and Key Metrics Changes - The company expects revenue growth of more than 25% for the third fiscal quarter ending March 31, 2022, driven by increased customer activity in WiFi and 5G markets [9][24] - The WiFi 6E market is anticipated to see a significant increase in demand, with the company having 12 commercialized XBAW WiFi filters [12][48] Company Strategy and Development Direction - The company aims to ramp production from five customers to more than eight by the end of the current quarter, with additional design wins expected [26] - There is a focus on integrating multiple filters into a single module to enhance product offerings and profitability [42][51] - The company is also bringing wafer-level packaging (WLP) in-house to improve quality and cost control [16][74] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued sequential revenue growth despite ongoing semiconductor supply chain challenges [8][26] - The company is optimistic about the market opportunities for its patented high-frequency XBAW filters, with a substantial IP portfolio [29] - Management highlighted the importance of customer relationships and the potential for repeat business and additional design wins [40][59] Other Important Information - The company raised $13.4 million through additional at-the-market equity financing during the December quarter [24] - The company has 56 issued patents and 93 patents pending, indicating a strong focus on innovation and technology development [29] Q&A Session Summary Question: Impact of supply chain shortages on revenue - Management acknowledged that supply chain shortages have caused delays in ordering times and may impact revenue guidance for the March quarter [32][38] Question: Customer engagement and repeat design wins - Management confirmed strong relationships with customers, with multiple programs ongoing and a high likelihood of repeat business [40][42] Question: Financial differences between WiFi 6 and 6E - Management indicated that WiFi 6E filters typically command a price premium of over 25% compared to WiFi 6 filters, with higher content per system expected [48][51] Question: Mobile market strategy and partnerships - Management emphasized the importance of partnerships in the mobile market, indicating ongoing discussions with potential partners to scale production capacity [55][57] Question: Sales pipeline and product opportunities - Management reported a healthy sales pipeline, with a focus on WiFi 6E products and ongoing development efforts in Asia [78]