Akoustis Technologies(US:AKTS)2023-09-06 15:23Financial Data and Key Metrics Changes - For Q4 2023, the company reported revenue of $8.3 million, a 13% increase from the previous quarter and a 60% year-over-year increase [21] - The GAAP operating loss was $17.9 million, with a GAAP net loss per share of $0.25 [22] - Cash used in operating activities was $8.7 million, showing a 12% improvement from the prior quarter [22] - The company exited Q4 with $43.1 million in cash and cash equivalents, down from $52.7 million in the previous quarter [22] Business Line Data and Key Metrics Changes - Filter product revenue grew by 41% sequentially, driven by Wi-Fi 6E demand and shipments to a tier-1 5G mobile RF component customer [5] - The top 10 customers accounted for 63% of revenue, with the top two customers increasing their sequential revenue by 18% and 3% respectively [6] Market Data and Key Metrics Changes - The company is experiencing challenges in the consumer electronics market due to high component inventory levels and weak demand, particularly in mobile handsets [7] - Revenue for the September quarter is expected to decline by approximately 15% due to broader market weakness [23] Company Strategy and Development Direction - The company is focusing on expanding its domestic manufacturing footprint under the CHIPS Act, with plans to file a final application by the end of the calendar year [9] - New product introductions and design wins are expected to drive substantial revenue growth over the next 24 months [7][26] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging macro environment but remains optimistic about new design wins and product introductions [7][25] - The company expects to see a rebound in revenue as inventory levels normalize in 2024 [12] Other Important Information - The company is actively involved in litigation with Qorvo, with ongoing developments in both lawsuits [24][25] - The introduction of new XP3F technology is expected to create significant opportunities in defense and commercial markets [20] Q&A Session Summary Question: Wi-Fi 7 volume revenue expectations - Management expects Wi-Fi 7 activity to pick up in Q2 of next year, with engagements in both carrier and enterprise sectors [31] Question: Smartphone tablet customer audit - The successful audit is a significant milestone, and management will provide better guidance as traction with the customer develops [32] Question: Gross margins and cash flow breakeven - Management is implementing initiatives to improve gross margins and expects to reach cash flow breakeven in Q4 2024 with revenue of $15 million to $18 million per quarter [36][37] Question: September quarter revenue decline - Management anticipates a 15% decline in revenue for the September quarter, with some softness expected to continue into the December quarter [40][42] Question: Mobile market production ramp - Management indicated that visibility into the China mobile market is limited, and they will provide updates as trends improve [46] Question: Updates on CHIPS Act funding - Management will provide updates on potential funding in early November, as contract negotiations are ongoing [50]