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NASDAQ: RESN
Second Quarter 2015 Financial Results & Business Update
August 11, 2015
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Safe Harbor Statement
This document contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements may address 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, 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); our ability to complete designs that meet customer specifications; the ability of our customers (or their manufacturers) to fabricate our designs in commercial quantities; our dependence on a small number of customers; the ability of our designs to significantly lower costs as compared to other designs and solutions; 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 most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this document, and we expressly disclaim any obligation or undertaking to update forward-looking statements.
We may refer to information regarding potential markets for products and other industry data. We believe that all such information has been obtained from reliable sources that are customarily relied upon by companies in our industry. However, we have not independently verified any such information.
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Resonant is Reinventing the RF Front End
• The RF front-end industry is undergoing dramatic increases in growth and complexity
• Band proliferation
• Carrier Aggregation (CA)
• Multiple-Input, Multiple-Output (MIMO)
• Resonant is attacking these challenges with its Infinite Synthesized Networks™, or ISN™, technology, a fundamentally new way to configure and connect acoustic resonators
• ISN, along with the team Resonant is assembling, allows not only improved single-band filters but highly novel and efficient solutions to the complexity problems
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Resonant® Platform: A Multi-Year Technology Lead
Team
ISN (Tools & Methods)
Technology 15 technical staff members with ~20 years average experience:
• 8 PhDs on staff • Comprised of physicists & engineers
More than 70 patents pending or issued
Invested more than 50,000 man hours to-date
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Product 1, Band 3 Duplexer, Has Best in Class Metrics
• Completed the 1st generation (1.8x1.4mm) and 2nd generation (1.7x1.3mm) designs of TC-SAW duplexer for Band 3
• Performance, size and cost are competitive with best-in-class parts
• Commenced work on third-generation product measuring 1.6x1.2mm which will provide a further cost reduction of this Band 3 filter
• Currently formalizing a business relationship with the fab to license this product for sale to module and phone market
More than 400 million Band 3 duplexers shipped
in 2014*
*Navian
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Our Band 3 Duplexer: State of the Art Performance Against Leading Product
• Completed in 18 months while expanding ISN capabilities and IP
• Uses existing SAW fab processing • Smaller and cheaper than known BAW alternatives • Next generation design completed in one fab
design turn
Resonant Band 3 Duplexer
(TC-SAW)
Avago Band 3 Duplexer *
(FBAR- Best in Class)
Tx Center Band Loss 0.9dB 1.2dB
Band Edge Loss 2.2dB 2.1dB
Rx Center Band Loss 0.9dB 1.1dB
Band Edge Loss 2.8dB 2.4dB
Isolation 54dB 53dB
Size 1.8x1.4x0.38mm 2.0x1.6x0.9mm
Our Band 3 design showed outstanding synergy between modeled (green) and
measured (blue) performance
Key Performance Metrics
* Source: Avago ACMD- 6103 Band 3 Duplexer Datasheet
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Resonant Models Accurately Predict Performance
0.1
1
10
100
1000
10000
27 27.5 28 28.5 29 29.5 30 30.5 31 31.5
Lifetim
e(Hou
rs)
ANTOutputpower(dBm)
The accurate modeling of acoustic filters using ISN allows: • Reduction in development time and cost • Using the Fab’s existing production process • Solutions to challenging design problems
• Designing for multiple temperatures and optimized for high power performance
• Improving yield and production costs
Above graph reflects the Band 3’s predictive performance was validated by actual results
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Product 2 On Schedule
• Engaged a new filter manufacturer in March 2015
• SAW duplexer for another high-volume, BAW/TC-SAW band (not band 3)
• First parts received recently, revised design turn in process
• Expect to be completed no later than Q1 2016
RF Filter Opportunities continue to grow because of band proliferation and
industry constraints on both supply & design
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A Tunable Filter is the Holy Grail of the RF front end – reducing costs and the RF footprint
Our first prototype tunable designs
• We believe that ISN technology enables us to design cost
effective tunable and multiplexing filters
• One filter that can “tune” or “switch” to cover multiple bands thus reinventing the RF front end
• Completed the first step in Resonant’s ISN design approach, which involves evaluating polynomial representations & design feasibility
• On track to deliver prototype parts by end of 2015
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ISN is Creating A New Wave of Tunable Filters
• Analysis of millions of designs (each blue cross represents one complete circuit solution)
• Optimizing the best
• Realizing the few
• Essential for multiplexing and tunable designs
Ref
lect
ion
Ref
lect
ion
Transmission Transmission Represents the predictive results of two different Bands which is the first step in optimizing the use of multiple Bands in one filter
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Financials
Q2 2015 Q2 2014
Research & Development Expenses $1.1M $1.0M
General & Administrative Expenses $1.0M $0.5M
Net Loss $(2.5M) $(2.2M)
Earnings (Loss) Per Diluted Share $(0.31) $(0.69)
Average Diluted Shares Outstanding 7.2 3.1
Working Capital @ June 30, 2015 $9.2M
Working Capital @ December 31, 2014 $13.2M
We believe we have sufficient cash to support our planned operations through the first half of 2016
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Conclusion
• Problem: Carrier aggregation and more complex Multiple-In-Multiple-Out (MIMO) designs are enabling the emerging LTE-Advanced and 5G networks, which in turn will require dramatically smaller and cheaper RF filters
• Solution: Resonant’s ISN method of designing filters can change the current direction of RF Front-Ends (RFFEs) for mobile devices by creating: • SAW filters that have the performance of BAW designs
• Tunable filters that will dramatically reduce the overall footprint and cost of RFFEs while improving their performance
• Access the white paper titled, “Radically Reducing the Cost and Size of Cellphone RF Filters to Fuel the Mobile Revolution,” by visiting www.resonant.com.