resonant (nasdaq: resn) is creating innovative filter designs...
TRANSCRIPT
Resonant (NASDAQ: RESN) is creating innovative filter designs for radio frequency, or RF, front-ends for the mobile device industry using a fundamentally new technology called Infinite Synthesized NetworksTM, or ISNTM. The RF front-end is the circuitry in a mobile device responsible for analog signal processing and is located between the device’s antenna and its digital baseband. Filters are a critical component of the RF front-end that select the desired radio frequency signals and reject unwanted signals.
NASDAQ: RESN
Fiscal Year End Dec. 31
Market Cap (7/2/15)
$23.8 M
Current Price (7/2/15)
$3.31
Shares Outstanding 7.2 M
Fully Diluted Shares O/S*
8.8 M
Insider Ownership
14.4%
Resonant Inc. 110 Castilian Drive Santa Barbara, CA 93117 Tel: 805-690-4684 www.resonant.com Investor Relations Contacts: Ina McGuinness Tel: 805-308-9488 [email protected] or Matt Hayden Chairman, MZ North America Tel: 949-259-4986 [email protected] www.mzgroup.us
SELECT FINANCIALS
THE CHALLENGE: NEED FOR A GREATER NUMBER OF MOBILE DATA FILTERS As carriers use more data bands, mobile devices need more filters
Sector Technology
Industry RF Semiconductor -
Integrated Circuits
RESONANT’S DESIGN APPROACH Allows for optimization of cost-size-performance design space
*Includes 804K warrants + 832K options/RSUs
Licensing its custom designs to suppliers for a per-unit royalty and license fees
Not manufacturing physical product
Utilizing existing manufacturing fabs and processes
BUSINESS MODEL Resonant intends to license designs to manufacturing partners
Creating next generation iterations to extend runway and target multiple customers needs
Generating high gross margins
Retaining all intellectual property
2011 2012 2014
One model with eight filters
Three models
with 31-35
filters each
July 8, 2015
Traditional Approach
Resonant Design Approach
Enables solutions with improved performance (e.g. BAW performance from SAW filters)
Methods as well as novel circuit solutions patentable
More than ten years of achievements on tools, methods & team
Utilize existing manufacturing methods
NAME SELECTED CURRENT OR PAST AFFILIATIONS
Terry Lingren CEO, Director & Co-founder
20+ years experience as a senior technology executive
John Philpott CFO
20+ years financial and accounting management experience
Bob Hammond CTO, Director & Co-founder
20+ years as Founder and CTO of STI
Neal Fenzi COO & Co-founder
20+ years in engineering, operations and marketing positions at STI
Mike Eddy VP, Corporate Business Development & Marketing
Founder and President of ANTONE Wireless; STI; Chemistry Ph.D. Oxford; MBA
Dan Christopher VP, General Counsel & Secretary
25+ years of experience representing start-up, emerging growth and middle-market companies
John Major Chairman
Multiple board memberships with public and private high- tech companies
Tom Joseph Independent Director
Leader in the RF, semiconductor, cellular, fiber optics and SAW industries. PhD & MSEE at USC
Rick Kornfeld Independent Director
VP Engineering and leader of first CDMA effort at Qualcomm; Serial Entrepreneur
Janet Cooper Independent Director
Financial expertise in capital markets, audit, tax, accounting, treasury and risk-management matters
DISCLAIMER: This information is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy any security or related financial instrument. The summary may include “forward-looking statements” with the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934 and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy. This document has been furnished to you solely for your information. The information contained herein may not be reproduced, disclosed or redistributed, in whole or in part, by mail, facsimile, electronic or computer transmission or by any other means to any other person, except with prior written consent of the Company. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.
MANAGEMENT TEAM & BOARD OF DIRECTORS
COMMERCIALIZATION STRATEGY Pursuing two RF filter markets
Traditional surface acoustic wave (SAW) filters struggle in “hard bands”
Therefore, manufacturers use more expensive bulk acoustic wave (BAW) filters
ISN can improve SAW filters to work in difficult bands & can reduce manufacturing cost
PRODUCT STATUS Targeting extremely high volume filter opportunities
Product 1
Currently formalizing a business relationship with the filter manufacturer
TC-SAW duplexer for a high-volume, BAW-only band
Performance is competitive with existing products
Plan to license directly to fab for sale to entire market
Product 2
Engagement with new manufacturer started in March 2015
SAW duplexer for another high-volume, BAW/TC-SAW band
Expect less than a year’s development time from March 2014
A filter that can “tune” to multiple bands could replace several existing filters
This would result in significant size and cost savings
Resonant believes ISN can create such
Single Band Designs: Improve Existing Filters
Tunable Designs: From Many Filters to One
2015 KEY MILESTONES Achieve first product “Design Completion” in 1Q15
Spec-compliant Band 3 duplexer achieved
Parts in evaluation by two prospective customers
Evaluating opportunities with several other potential customers
Commenced next generation designs
Expand customer base (add one or more customers) and have multiple product development projects underway by year end
Second customer added in March 2015
Complete prototype three-band tunable design by year-end
On track. Completed the first step in ISN design approach, which involves evaluating polynomial representations & design feasibility
Double technical staff to 20 by year end
Presently at 15 (5 added in 2015)
Avg. Cost of BAW Duplexer* $0.58
Avg. Cost of SAW Duplexer* $0.28
Difference (Enabled Margin) $0.30
Projected Filter Market: 20 billion units in 2014
Growing to 35 billion units by 2017*
*Navian Research, 2014
Cost Filter Set (2017)* $1.85
Cost of Tunable Filter (Projected) < $1.00
Difference (Enabled Margin) > $0.85
Resonant may also be able to reduce the number of
power amplifiers and switches, which would
result in a greater enabled margin *Navian Research, 2013