Resonant Provides Preliminary Third Quarter 2020 Results, Delivers Technical 5G Milestone With Strategic Partner Ahead of Guidance

GOLETA, Calif., Oct. 07, 2020 (GLOBE NEWSWIRE) -- Resonant Inc. (NASDAQ: RESN), a leader in transforming the way radio frequency, or RF, front-ends are being designed and delivered for mobile handsets and wireless devices, has provided preliminary unaudited financial and operational results for the three months ended September 30, 2020.

Preliminary Unaudited Third Quarter Operational & Financial Summary:

• Achieved the second milestone under Resonant’s agreement for the development of 5G Mobile XBAR filters with the world’s largest RF filter manufacturer, a prerequisite that enables commercialization, which milestone required Resonant’s XBAR RF filters to achieve previously determined target performance, packaging and initial reliability. With the second milestone achieved, Resonant will now begin working on the balance of the mobile 5G XBAR RF filter designs under the final two phases of the initial agreement. This second milestone was achieved ahead of guidance, which previously estimated achievement to occur by the end of 2020.
• Resonant shipped five RF filter designs to Chinese customers in the third quarter of 2020, a significant increase from the two designs shipped in the second quarter of 2020. The designs shipped are in-line with guidance that Resonant would ship five new designs in the third quarter of 2020.
• Resonant customers have reported shipments of greater than 4.1 million units in the third quarter of 2020, an increase of 163% when compared to the 1.55 million units shipped in the same year-ago quarter. Sequentially, this represents unit shipment growth of greater than 28% when compared to 3.2 million units shipped in the second quarter of 2020. These results are in-line with guidance that unit shipments in the second half of 2020 would be greater than the first half of 2020.
• Deferred revenues in the third quarter of 2020 increased 14% to $2.4 million, compared to $2.1 million in the same year-ago quarter. Sequentially, deferred revenues increased 118% when compared to $1.1 million in the second quarter of 2020. Resonant will recognize these deferred revenues over the balance of the respective contracts.
• Revenue in the third quarter of 2020 increased to $1.4 million, compared to $79,000 in the same quarter a year-ago. Sequentially, revenues increased 132% when compared to $0.6 million in the second quarter of 2020. These results are in-line with guidance that revenues would grow sequentially in the third quarter of 2020. Revenues in the third quarter are primarily related to the milestone payment, while revenues for the fourth quarter are expected to be similar to the revenues for the first and second quarters of 2020.
• Cash used in the third quarter of 2020, net of the milestone payment, was approximately $3.8 million, compared to $5.8 million of cash used in the same year-ago quarter and $5.6 million of cash used in the second quarter of 2020. As of September 30, 2020, Resonant had cash and cash equivalents of approximately $20.0 million.

“The acceleration in our business is becoming apparent in the third quarter of 2020, as we delivered against all of our key metrics, including an increase in units shipped by customers, new library designs delivered to customers, robust revenue growth and a reduction in cash consumption,” said George B. Holmes, Chairman and Chief Executive Officer of Resonant. “Perhaps most important is the achievement of the second 5G XBAR filter milestone with our strategic partner, who is the world’s largest RF filter manufacturer. The achievement of this significant milestone confirms our technology meets the necessary metrics to move towards mass production, while also providing an influx of pre-paid royalties which will be recognized over the remainder of the contract. Taken together, Resonant currently stands in a stronger position than ever to capitalize on the multi-billion dollar 5G market.