|By Business Wire||
|August 13, 2014 04:15 PM EDT||
Resonant Inc. (NASDAQ: RESN), a late-stage development stage company that is creating innovative filter designs for radio frequency, or RF, front-ends for the mobile device industry, today announced financial results for the second quarter ended June 30, 2014 and provided a business update.
Highlights for the Second Quarter 2014
- Successfully closed an initial public offering (IPO) of 3.1 million shares of common stock (including the exercise in full by the underwriter of its over-allotment option) on June 3 at a price of $6.00 per share listed on the NASDAQ Capital Market under the symbol “RESN”
- Generated $16.2 million in net proceeds from the IPO
- Completed the second of four milestones on the duplexer design under the Company’s existing development agreement
- Expanded the Company’s patent portfolio to 38 issued and pending patents at June 30, 2014, up from 35 at the time of the IPO
- Was added to the Russell Microcap® Index in early July
- Appointed John Philpott, CPA, MBA, as Chief Financial Officer. Mr. Philpott has more than 20 years’ financial and accounting management experience including serving as Chief Financial Officer for 3 other public, early stage companies. For his full bio, visit: management bios.
“The funds from our successful IPO will enable us to aggressively pursue Resonant’s long-term vision to transform the field of RF front-ends for mobile devices,” said Chief Executive Officer, Co-Founder and Chairman Terry Lingren. “This is a market that was $2.7 billion in 2013 and is forecasted to reach $5.2 billion by 2017, according to market research firm Navian. Using our proprietary Infinite Synthesized NetworksTM technology coupled with our highly experienced design team and a substantial technology lead, we expect to disrupt the status quo and deliver next-generation designs that are not available with the current technology. This becomes especially important as we move into the Internet of Things and wireless connectivity becomes ubiquitous.”
Financial Results for the Second Quarter and YTD1
- Ended the Second Quarter with $16.7 million of working capital. Working capital improved by $25.5 million from $8.8 million of negative working capital at December 31, 2013.
- Converted $9.4 million of outstanding notes into 2.8 million common shares as a result of the IPO, eliminating the debt and future interest expense.
- Research and development expenses increased $861,000 to $989,000 in the Second Quarter. The increase reflected accelerated activity on a duplexer design under development for a potential customer.
- General and administrative expenses declined $308,000 in the Second Quarter to $455,000. The decline was a result of a non-cash accounting charge of $716,000 in the same period last year for the fair value of warrants issued for business consulting services. Excluding the effect of the accounting charge, G&A expenses increased by $420,000 in the Second Quarter.
- Operating loss increased by $610,000 to $1.5 million for the Second Quarter. The increased loss primarily reflected increased R&D activities and G&A expenses consistent with planned growth.
- Interest expense increased $1.8 million in the Second Quarter to $2.1 million. The increase was primarily the result of the conversion of all outstanding notes into common stock in the IPO. The conversion triggered the full write-off of related debt discounts and issuance costs. The increase also included, to a lesser degree, interest paid on the notes. The prior periods included minimal interest because the notes were issued late in the second quarter of 2013.
- The net loss increased by $1.8 million to $3.3 million, or $0.81 per fully diluted share, for the Second Quarter.
1 Financial data is for the second quarter (Second Quarter) and year-to-date (YTD) ended June 30, 2014. Comparisons are to the comparable periods in 2013.
Commenting on the Company’s outlook, Terry Lingren stated, “Our primary activity in the near term will be to continue work on the duplexer design under our existing development agreement. We are actively working on the third milestone and expect to complete work on the duplexer design before the end of 2014. We also plan to start work on a tunable design before year end. We are hiring additional technical personnel to support product development and are forecasting increasing levels of cash expenditures. Even assuming no revenues, we believe our cash resources will provide sufficient funds for planned operations into 2016.”
Resonant will host a conference call today at 5:00 p.m. Eastern (2:00 p.m. Pacific). Investors interested in participating in the live call can dial 1-877-407-3982 from the U.S. and international callers can dial 1-201-493-6780. A telephone replay will be available approximately two hours after the call concludes through October 13 by dialing 1-877-870-5176 from the U.S., or 1-858-384-5517 from international locations, and entering Replay Pin Number 13586870.
There also will be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at www.resonant.com. The webcast will be available for replay for 60 days.
About Resonant Inc.
Resonant is a late-stage development company creating innovative filter designs for radio frequency, or RF, front-ends for the mobile device industry. Resonant uses a fundamentally new technology called Infinite Synthesized Networks™, or ISN™, to configure and connect acoustic resonators, the building blocks of RF filters. Filters are a critical component of the RF front-end used to select desired signals and reject unwanted signals. ISN is a systematic process that employs a comprehensive suite of patented and proprietary circuit design methods and tools to create filters. Resonant is using ISN to develop new classes of filter designs. For information, please visit www.resonant.com.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include the following subjects, among others: the status of filter designs under development, the prospects for licensing filter designs upon completion of development, plans for other filter designs not currently in development, potential customers for our designs, the timing and amount of future royalty streams, the expected duration of our capital resources, our hiring plans, our cash flow forecast, the impact of our designs on the mobile device market, and our business strategy. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: our limited operating history (particularly as a new public company); management of R&D efforts; the acceptance of our filter designs by potential customers; the ability of our customers (or their manufacturers) to fabricate our designs in commercial quantities; the risk that the intense competition and rapid technological change in our industry renders our designs less useful or obsolete; our ability to find, recruit and retain the highly skilled personnel required for our design process in sufficient numbers to support our growth; our ability to manage growth; and general market, economic and business conditions. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus dated May 28, 2014, and our most recent Quarterly Report (Form 10-Q), both filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.
Condensed Consolidated Statements of Operations
Ended June 30,
Ended June 30,
Ended June 30,
Ended June 30,
|Depreciation and amortization||62,003||75,344||2,575||4,905|
|TOTAL OPERATING EXPENSES||1,485,442||2,455,557||874,460||1,116,655|
|OTHER INCOME (EXPENSE)|
|Fair value adjustments to warrant and derivative liabilities||(928,021||)||(3,195,387||)||-||-|
|Bridge warrant expense||-||-||(312,486||)||(560,155||)|
|TOTAL OTHER EXPENSE||(1,861,441||)||(4,837,284||)||(626,549||)||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|Provision for income taxes||-||(800||)||(800||)||(800||)|
NET LOSS PER SHARE — BASIC AND DILUTED*
Weighted average shares outstanding — basic and diluted*
*Loss per share is not presented for the 2013 periods because the Company was accounted for as a limited liability company prior to June 17, 2013.
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||17,353,866||$||3,338,979|
|TOTAL CURRENT ASSETS||17,434,965||4,266,948|
|PROPERTY AND EQUIPMENT, NET||698,226||223,760|
|TOTAL NONCURRENT ASSETS||447,178||391,485|
|LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)|
|TOTAL CURRENT LIABILITIES||$||762,617||$||13,066,198|
|TOTAL LONG-TERM LIABILITIES||4,905,982||3,279,960|
|Additional paid-in capital||31,664,479||1,000|
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||18,580,369||$||4,882,193|
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Feb. 27, 2017 01:15 PM EST Reads: 3,209
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
Feb. 27, 2017 01:15 PM EST Reads: 6,681
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
Feb. 27, 2017 01:15 PM EST Reads: 312
Column Technologies exhibited at SYS-CON's @DevOpsSummit at Cloud Expo, which took place at the Javits Center in New York City, NY, in June 2016. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principals and help our customers meet today’s DevOps and Dig...
Feb. 27, 2017 01:00 PM EST Reads: 1,353
Feb. 27, 2017 12:47 PM EST
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Feb. 27, 2017 12:45 PM EST Reads: 2,081
Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infrastructure through automation. Ayehu solutions have been deployed by major enterprises worldwide, and currently, support thousands of IT processes across the globe. The company has offices in New York, California, and Isr...
Feb. 27, 2017 12:45 PM EST Reads: 423
LogMeIn has completed its previously disclosed merger with Citrix Systems, Inc.’s GetGo, Inc. subsidiary, a wholly owned subsidiary consisting of Citrix’s GoTo family of service offerings. The merger officially closed after market hours on January 31, 2017. Effected through a Reverse Morris Trust transaction, the merger brings together two of the preeminent players in cloud connectivity to instantly create one of the world’s top 10 public SaaS companies, and a market leader with the scale, resou...
Feb. 27, 2017 12:41 PM EST Reads: 128
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Feb. 27, 2017 12:30 PM EST Reads: 483
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Feb. 27, 2017 12:30 PM EST Reads: 6,782
Addteq is one of the top 10 Platinum Atlassian Experts who specialize in DevOps, custom and continuous integration, automation, plugin development, and consulting for midsize and global firms. Addteq firmly believes that automation is essential for successful software releases. Addteq centers its products and services around this fundamentally unique approach to delivering complete software release management solutions. With a combination of Addteq's services and our extensive list of partners,...
Feb. 27, 2017 12:00 PM EST Reads: 1,203
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of C...
Feb. 27, 2017 11:45 AM EST Reads: 7,141
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
Feb. 27, 2017 11:45 AM EST Reads: 2,510
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 27, 2017 11:30 AM EST Reads: 2,518
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 27, 2017 11:15 AM EST Reads: 2,823