Energous(US:WATT)2022-11-04 02:05Financial Data and Key Metrics Changes - In Q3 2022, the company reported revenue of approximately $223,000, a decrease of 4% compared to the prior quarter but an 11% increase year-over-year from approximately $201,000 [19] - The net loss for Q3 was $6 million, or $0.08 loss per share, compared to a $7 million net loss in Q2 and a $12.5 million net loss in Q3 2021 [23] - Year-to-date total GAAP cost and expenses were $21 million, approximately $11.5 million lower than the $32.5 million in Q3 year-to-date GAAP expense in fiscal 2021, a decrease of just under 36% [22] Business Line Data and Key Metrics Changes - The company achieved over 10% year-over-year quarterly revenue growth, driven by demand for WattUp PowerBridges [6] - Cost of revenue for Q3 was approximately $420,000, an increase of $149,000 over the prior quarter due to product sales and an inventory write-down [20] Market Data and Key Metrics Changes - The company has received certifications in multiple regions including the U.S., EU, UK, India, China, Canada, New Zealand, and Australia, with significant deployments in Australia [31] - The 900 megahertz band for wireless power transfer was approved by the ITU, which supports the company's technology development [9][15] Company Strategy and Development Direction - The company is focused on forming strategic partnerships to ensure successful market deployment, with recent partnerships aimed at various applications including IoT, industrial, retail, and medical [10] - Long-term goals include supporting the development of a wireless power transfer standard and leading the ITU recommendation for the 900-megahertz spectrum [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increasing demand for wireless power solutions and the successful deployment of technology in retail environments [6][12] - The company anticipates continued year-over-year revenue growth and plans to detail objectives for 2023 in the next quarterly call [47] Other Important Information - The company ended Q3 with $30.4 million in cash and remains debt-free, expecting cash operating expenses to trend within the current range [28] - The company has made substantial progress in regulatory certifications and technology deployments, positioning itself as a leader in the IoT wireless power market [12] Q&A Session Summary Question: What are the best near-term opportunities geographically? - Management highlighted the U.S. and UK as large markets with significant interest, alongside recent deployments in Australia [31] Question: What might be the dollar content per store for Energous? - Management did not disclose specific costs but indicated that the pricing is comparable to existing WiFi access points [32] Question: Can you elaborate on the inventory write-down? - The CFO clarified that the write-down was related to the products currently being sold, specifically transmitters [33] Question: What is the sustainable level for R&D expenses? - The CFO noted that the current quarter's R&D expenses were lower due to fluctuations in activity and headcount [34] Question: What are the gating factors for market development? - Management indicated that the process involves proof of concept engagements, with potential for expansion over time as customers evaluate the technology [40]