Core Insights - Akoustis Technologies has secured $2 million in production orders from a Tier-1 carrier customer for its XBAW® filters integrated into a Wi-Fi 7 platform, with production support scheduled from July 2024 through March 2025 [1][2] Group 1: Company Overview - Akoustis Technologies, Inc. is an integrated device manufacturer (IDM) specializing in patented bulk acoustic wave (BAW) high-band RF filters for mobile and wireless applications [1][3] - The company utilizes its proprietary XBAW® manufacturing process to produce RF filters that enhance signal acquisition and performance, targeting higher bandwidth and operating frequencies compared to traditional technologies [3][4] - Akoustis operates a 125,000 sq. ft. ISO-9001:2015 registered wafer-manufacturing facility in Canandaigua, NY, equipped for the design, development, and fabrication of RF filters and semiconductor devices [4] Group 2: Industry Context - The advancement of Wi-Fi technology is aimed at enabling higher data transfer rates and greater density per transmission, with Akoustis' filters supporting the 5 and 6 GHz Wi-Fi bands [2] - The integration of multiple XBAW® filters allows for Multi-Link Operation (MLO), resulting in higher throughput, lower latency, and speeds of up to 10 Gbps [2] - The demand for high-speed connectivity is increasing, and Akoustis is positioned to meet this demand with compact, high-performance solutions [2]

Industry Overview - The Zacks Semiconductors - Radio Frequency industry is facing challenges due to reduced capital spending by telecom carriers, rising commodity prices, persistent inflation, and global macroeconomic uncertainties [1] - Despite these challenges, companies like RF Industries and Akoustis Technologies are benefiting from increased spending on 5G deployment and the growth of IoT, ADAS, and AR/VR devices [1] Key Trends - Accelerated 5G deployment is a significant driver for the industry, with a forecast of 600 million WiFi hotspots globally by 2023, enhancing demand for RF power amplifiers and related products [3] - Innovation in IoT, wearables, and autonomous vehicles is expanding the market for RF semiconductor products beyond smartphones, with advancements in semiconductor manufacturing processes expected to bolster industry prospects [4] - The electric vehicle market is projected to grow fourfold by 2027, benefiting industry players through increased product inclusion [5] Challenges - Supply chain constraints and rising commodity costs, exacerbated by geopolitical tensions such as the Russia-Ukraine war, are hindering industry growth [5] - The industry is currently ranked 227 in the Zacks Industry Rank, placing it in the bottom 9% of over 250 Zacks industries, indicating bearish near-term prospects [6][7] Performance Metrics - The industry has underperformed the S&P 500 and its sector over the past year, declining 0.1% compared to the S&P 500's growth of 27.1% and the sector's return of 42.1% [8] - The forward 12-month price-to-earnings (P/E) ratio for the industry is 18.56X, lower than the S&P 500's 21.58X and the sector's 28.51X, with historical trading ranges between 8.17X and 23.62X [9] Company Insights - RF Industries, with a Zacks Rank of 2 (Buy), is experiencing growth due to a strong product portfolio and anticipated recovery in telecom capital expenditure, with shares gaining 9.2% year-to-date [10] - Akoustis Technologies, ranked 3 (Hold), has seen a significant decline of 85.2% year-to-date due to sluggish demand and the closure of a major customer program, although demand for WiFi 7 technology is expected to improve prospects [12]

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Charlotte, N.C., May 22, 2024 (GLOBE NEWSWIRE) -- Akoustis Technologies, Inc. (Nasdaq: AKTS) ("Akoustis" or the "Company"), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, announced today that it has entered into definitive securities purchase agreements for the purchase and sale of an aggregate of 50,000,000 shares of the Company's common stock (or common stock equivalents) at a purchase price of $0.20 per share o ...

Charlotte, N.C., May 22, 2024 (GLOBE NEWSWIRE) -- Akoustis Technologies, Inc. (Nasdaq: AKTS) (“Akoustis” or the “Company”), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, announced today that it has entered into definitive securities purchase agreements for the purchase and sale of an aggregate of 50,000,000 shares of the Company’s common stock (or common stock equivalents) at a purchase price of $0.20 per share o ...

Group 1 - Akoustis Technologies' stock is experiencing significant gains due to the rollout of design updates in its RF filter manufacturing process [1] - The company has redesigned its XBAW manufacturing process to eliminate features patented by Qorvo, a change that dates back to Fall 2022 [1] - Despite a disappointing jury verdict, the company is prepared to move forward and address any potential injunctions from Qorvo regarding its legacy products [1] Group 2 - AKTS stock has seen heavy trading, with over 80 million shares exchanged, significantly higher than its average daily volume of approximately 1.2 million shares [2] - The stock price has increased by 157.8% as of Wednesday morning, although it remains down 82.8% year-to-date as of the previous market close [2] - The company's float is 93.24 million shares, with a short interest of 10.4% [2]

Charlotte, N.C., May 22, 2024 (GLOBE NEWSWIRE) -- Akoustis Technologies, Inc. (NASDAQ:AKTS) ("Akoustis" or the "Company"), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, has announced the final release to manufacturing of design updates across its product portfolio. Akoustis developed the updates to its XBAW® manufacturing process to remove any patented features claimed by Qorvo, Inc. in U.S. Patent Nos. 7,522,018 ...

Core Viewpoint - Akoustis Technologies, Inc. has announced the final release to manufacturing of design updates across its product portfolio to address patent claims by Qorvo, Inc. [1][2] Group 1: Product Updates - The updates to the XBAW® manufacturing process were developed to eliminate patented features claimed by Qorvo in U.S. Patent Nos. 7,522,018 and 9,735,755 [2] - These design updates have been incorporated into both new and earlier XBAW® RF filter designs since Fall 2022 [2] - The company has released these design updates to manufacturing for all remaining filter products in production to avoid potential infringement [2] Group 2: Company Preparedness - The company expressed disappointment with the jury's verdict but indicated that it had prepared for all potential outcomes [3] - Testing and qualification over the last two years showed that the design updates do not impact the performance and reliability of the filters [3] - Management does not expect the verdict to affect the marketing of its product portfolio to existing and future customers [3] Group 3: Company Overview - Akoustis is a high-tech BAW RF filter solutions company focused on next-generation materials science and MEMS wafer manufacturing [4] - The company operates a 125,000 sq. ft. ISO-9001:2015 registered wafer-manufacturing facility in Canandaigua, NY, equipped for 150-mm diameter wafers [5] - Akoustis aims to service the growing multi-billion-dollar RF filter market using its integrated device manufacturer (IDM) business model [5]

Financial Data and Key Metrics - Revenue for Q3 2024 increased 7% sequentially to $7.5 million, with filter-related revenue up 13% quarter-over-quarter [5] - GAAP operating loss was $22.6 million, driven by labor costs of $6.7 million, a goodwill impairment charge of $8.1 million, and other operational costs totaling $12 million [16] - Non-GAAP operating loss was $12.5 million, with a non-GAAP net loss per share of $0.14 [16] - Cash burn decreased by 31% sequentially to $7.8 million, with CapEx spending at $0.3 million [17] Business Line Performance - Wi-Fi 6E program unexpectedly sunset, but the company secured a design win for Wi-Fi 7 with the same customer, expecting production orders to begin in the September quarter [6] - XBAW filter production ramped for two Wi-Fi 7 programs at a tier 1 enterprise class OEM, with pre-production deliveries completed during the quarter [9] - In the 5G mobile market, the company shipped the first two of three Wi-Fi filters to a tier 2 5G mobile RF front-end module customer [11] - Network infrastructure business achieved approved supplier status with two tier 1 customers, but experienced softness in XBAW filter shipments due to slow 5G small cell infrastructure deployments [12] Market Performance - 48% of sales came from Asia, 39% from North America, and 13% from Europe [5] - Top two customers, both Asia-based, collectively made up 36% of sales [5] - The company is tracking nine design wins in Wi-Fi 7 AP platforms, with a growing trend to ramp major Wi-Fi 7 programs in the second half of 2024 [6] Strategic Direction and Industry Competition - The company is transitioning from Wi-Fi 6E to Wi-Fi 7, with a focus on reducing cash burn and improving gross margins [7][23] - The company is pursuing CHIPS Act funding, with potential refundable tax credits estimated between $2.8 and $4 million over the next nine to twelve months [8] - The company is engaged in multiple defense and government contracts, including a multi-million dollar Phase 2 contract with DARPA and a new program with the Office of Naval Research [13][14] Management Commentary on Operating Environment and Future Outlook - Management remains bullish on Wi-Fi 7, expecting a production ramp in the second half of 2024 [7] - The company is guiding Q4 revenue to be flat to down 5% due to the Wi-Fi 6E sunset and transition to Wi-Fi 7 [17] - Management expects to achieve operating cash flow breakeven within the next nine months, driven by cost savings and CHIPS Act tax credits [18] Other Important Information - The company is involved in ongoing litigation with Qorvo, with potential significant financial and operational impacts depending on the trial outcome [20][21][22] - The company introduced XP3F technology, a new nanomaterial developed with DARPA funding, targeting frequencies up to 20 GHz [13] Q&A Session Summary Question: Revenue Dynamics and Wi-Fi 7 Transition - The Wi-Fi 6E program sunset resulted in a $1 million per quarter revenue shortfall, but the company expects a ramp in Wi-Fi 7 programs in the September quarter [27][28] - The company has nine Wi-Fi 7 design wins across multiple customers, with good visibility on orders through the end of the year [29][30] Question: Gross Margin and Expense Dynamics - Operating expenses are expected to decrease to $10-11 million per quarter, with over $20 million in annualized savings identified [33] - Gross margins are expected to improve to double-digits in the coming quarters, driven by new product introductions and cost reductions [34] Question: Operating Cash Flow Breakeven - The company expects to achieve operating cash flow breakeven at $11-15 million of revenue per quarter, with a 25% gross margin [34]