Energous(US:WATT)2019-02-27 17:01Financial Data and Key Metrics Changes - For fiscal 2018, the company recognized approximately $0.5 million in revenues, a decrease from $1.2 million in the prior year, primarily from engineering services [29] - Fourth quarter revenue was $56,000 compared to $29,000 in the same quarter last year [29] - GAAP expenses for 2018 were $51.4 million, slightly up from $50.5 million in the prior year [30] - Net loss on a GAAP basis for 2018 was $50.8 million, equating to a loss of $1.99 per share [31] - For the fourth quarter, the net loss was $12.5 million or $0.48 per share, compared to a loss of $12.6 million or $0.49 per share in the third quarter [31] Business Line Data and Key Metrics Changes - The company experienced delays in revenue from two major customers due to internal changes within those companies, impacting expected engineering services payments [8][11] - The first fully commercialized WattUp-enabled product became available to consumers, marking a transition from development to commercial stage [15] - The company anticipates launching multiple WattUp-enabled products in 2019 across various markets, including wearables and medical sensors [16] Market Data and Key Metrics Changes - The company is focusing on five key markets: wearables, hearables, hearing aids, smart glasses, and medical sensors, which collectively exceeded 1.25 billion devices in 2018 [16] - The company aims to achieve a minimum 20% market share in each of these markets over the next two to three years [16] - Strong interest in the technology is noted, particularly in distance charging for Bluetooth speakers and hearables [22] Company Strategy and Development Direction - The company is focused on accelerating revenues to achieve self-sustainability and increasing shareholder value [24] - The company is expanding its intellectual property portfolio, currently holding 202 patents, which is seen as a significant competitive advantage [24] - The company is engaging with experienced ODMs to support presales integration for selected opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future despite delays, emphasizing the quality of customer relationships and the potential of WattUp technology [11][25] - The company is prioritizing near-term revenue opportunities to achieve profitability [44] - Management acknowledged the frustration of investors due to delays but remains optimistic about future revenue growth [60] Other Important Information - The company raised $25 million through a financing transaction, which is expected to fund operations for the foreseeable future [12] - The company has received regulatory approvals in the EU for its products, allowing for sales in Europe [16] Q&A Session Summary Question: Status of the delay in strategic partner's R&D offset payment - Management confirmed that the review cycle has been delayed due to internal changes within the partner company, and they are continuing to work with the partner [38] Question: Status of foreign regulatory approvals - Management indicated that while some approvals have been obtained, major markets like China, Japan, and Korea are still pending, and they are focusing efforts on these jurisdictions [43] Question: Availability of wireless charging products - Management clarified that while they have FCC approval for distance charging, they do not currently have products available for consumer use that charge wirelessly at a distance [51] Question: Update on tier 1 customers - Management reiterated that they are working with two top-tier consumer electronic companies, both of which have delayed their schedules for internal reasons [56][58]