Resonant Inc. Reports First Quarter 2018 Financial Results and Provides Business Update and Financial Outlook

Resonant Inc (NASDAQ:RESN), a leader in transforming the way radio frequency or RF front-ends are being designed and delivered for wireless devices announced financial results for the first quarter ended March 31, 2018.

The company said that it had revenues of $157,000 in Q1 2018 while its customer unit volume shipments ramped significantly.

As quoted in the press release:

“In Q1, we completed a public offering that injected significant capital into the company, and shortly after, we reached an agreement with one of our largest investors to expand the size of our board and avoid a proxy contest at this year’s stockholders’ meeting,” said George B. Holmes, CEO of Resonant. “These events have positioned us to capitalize on the momentum we have established since early 2016, which we believe has made Resonant a significantly more valuable company.

“Today, Resonant is in the strongest position in its history. Our balance sheet is healthier than ever, ending the first quarter with approximately $33 million in cash, which we expect to take us to cash flow break-even territory. From a capability standpoint, we’ve continued to invest in our ISN Platform, IP and team to ensure we continue to grow and execute on the promise of delivering designs faster, better and cheaper for our customers. We have more customers, with stronger relationships than ever before, with over 50 designs contracted of increasing complexity that total a potential value of over $450 million in end product revenues for our customers. We also enabled two completely new segments of the market—fabless filter companies and pure play foundries/packaging companies—and have continued to expand that footprint in 2018.”

Financial Results for the First Quarter 2018

Revenue for the first quarter of 2018 was $157,000 using the new revenue recognition standard which became effective for Resonant on January 1, 2018. This compared to revenue of $171,000 for the fourth quarter of 2017 using the previous guidance. Royalty revenue for the first quarter of 2018 totaled $50,000 and was the highest quarter to-date.

Research and development expenses for the first quarter of 2018 were $3.3 million, compared with $3.1 million for the same quarter of 2017.

General and administrative expenses were $2.7 million for both the first quarter of 2018 and the fourth quarter of 2017.

Operating loss in the first quarter of 2018 totaled $5.8 million, compared to an operating loss of $5.6 million in the fourth quarter of 2017.

The net loss in the first quarter of 2018 was $5.7 million, or $(0.28) per share, based on 20.2 million shares outstanding and was a net loss of $8.3 million, or $(0.48) per share, based on 17.3 million shares outstanding, for the fourth quarter of 2017. There were $2.7 million dollars of non-cash warrant inducement expense included in the net loss for the fourth quarter of 2017 that did not re-occur or impact the first quarter of 2018.

Non-GAAP basis, adjusted EBITDA in the first quarter of 2018 was $(4.6) million, or $(0.23) per fully diluted share, compared to $(3.4) million, or $(0.19) per fully diluted share for the same quarter in 2017.

Click here for the text release.