Financial Data and Key Metrics Changes - The company anticipates a revenue forecast for 2024 in the range of $10 million to $15 million, with expectations of year-over-year growth despite current industry challenges [9][17] - Operating expenses decreased by approximately $750,000 from Q4 to Q1, with expectations to maintain cost efficiency in Q2 and Q3 before increasing in Q4 due to product launches [16][45] Business Line Data and Key Metrics Changes - WiSA has introduced a new product line, WiSA DS, which is expected to impact revenue positively this year, with design wins actively in progress [11][14] - The company is focusing on the launch of the Platin Rio 5.1.4 Soundbar, which is positioned at a competitive price point [14] Market Data and Key Metrics Changes - The consumer electronics industry is currently experiencing a slump, with expectations of continued price erosion and margin compression through Q2 and possibly early Q3 [16] - There is a noted soft demand in the market, leading brands to lower prices to clear inventory ahead of the holiday season [16] Company Strategy and Development Direction - The company is strategically acquiring Comhear to enhance its audio IP portfolio and expand into immersive audio technology [18][20] - The merger is expected to create synergies in market segments and strengthen the combined sales team's capabilities [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the impact of inflation on consumer spending but notes a positive response to price adjustments in their product lines [47] - There is optimism about a potential rebound in audio demand as consumers may extend their home entertainment systems [48] Other Important Information - The company is actively exploring strategic partnerships with larger firms, which could enhance its market value [50] - The acquisition of Comhear is seen as a significant opportunity to deepen the company's IP portfolio and strengthen customer relationships [38][20] Q&A Session Summary Question: Breakdown of expected revenue from legacy WiSA versus Comhear - Management estimates a revenue split of approximately $5 million to $10 million from each entity for the upcoming year [39] Question: Revenue streams for Comhear - The expectation is for a higher ratio of software licensing and IP licensing revenue compared to hardware sales in the future [40] Question: Comhear's cash burn expectations - Management believes that the merger will not impact overall cash burn due to offsetting cost reductions [41] Question: R&D team integration post-merger - Initially, both teams will focus on their respective customer launches, with potential integration occurring over a longer timeframe [42] Question: Inventory reserve details - The inventory reserve addresses component imbalances due to past supply chain issues, and management believes it is adequately reserved [44] Question: Future operating expenses outlook - Operating expenses are expected to remain stable or decrease in the near term, with an increase anticipated in Q4 due to product launches [45][46] Question: Industry headwinds and consumer refresh cycles - Management notes that while there may not be a refresh cycle for TVs, there is potential for growth in the audio segment as consumers upgrade their systems [48]
WiSA Technologies(WISA) - 2023 Q1 - Earnings Call Transcript