Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| As a result, we have backlog to support a return to record quarterly revenue in the March quarter, with quarterly sales expected to be up 18% to 25% |
| We're pretty bullish on being able to secure funding – a follow-on funding for the XP3F technology, which, as you know, allows us to access much higher frequencies |
| And with strong performance in defense, Wi-Fi as well as network on a percentage growth basis |
| We are diligently pursuing product cost savings to lower operating expenses and improve gross margin |
| Consistent with our early guidance for fiscal Q3 on last quarter's investor call, we reiterate our expectation to return to record quarterly revenue for the quarter ending March 31, 2024, up 18% to 25% sequentially |
| One key customer milestone for the quarter was the successful completion of a supplier quality audit for an FDA approved diagnostic chip aimed at real time PCR results |
| But I'll add that the company is well positioned on the patent claims |
| So Wi-Fi, we expect very strong performance there |
| So, the single crystal gives us some advantages on power handling with some of these applications where you've got this really steep rejection and a narrow transition window |
| The ASPs in the Wi-Fi 7, that's favorable for us |
| As per our guidance, we expect to achieve record quarterly revenues in the March quarter |
| Finally, GDSI saw double-digit increase in new quoting activity over the prior quarter, which we will push to convert to new orders to grow the business |
| The company sits with a strong balance sheet after the recent completion of $11.5 million underwritten common stock offering announced in late January |
| And we've got a unique position here that we're enabling these systems based on our product portfolio of narrowband and wideband |
| So we're very bullish with the content |
| What I what I will say, though, kind of overarching is if you look at the model that we're charging to, the model would be upside to the model that we're projecting for the full year |
| So that's strong |
| So, that's good to continue to increase our customer base there and it's usually pretty sticky |
| So we expect this momentum to be pretty strong through 2024 calendar year, with a lot of the Wi-Fi 7, and you can expect us to make every quarter announcements on the design wins and give you guidance on one of those projected ramps |
| Today, we believe we have worked through the inventory issues from 2023, and we expect demand returning in Wi-Fi with strength in Wi-Fi 6E and first production demand in Wi-Fi 7 |
| So we're pretty excited about that |
| Also, we've seen some improvement in harmonics, which are critical for some of these [indiscernible] type applications |
| So, the single crystal is a good building block for discrete devices and also for these high performance technologies like the XP3F |
| The inventory channel build-up in Wi-Fi is behind us and we continue to receive design wins and introduce new products |
| Our second milestone was to secure multiple design wins for our tier 1 enterprise class customers Wi-Fi 7 suite of routers |
| Finally, we successfully engaged a fifth mobile partner offering our XBAW process and foundry for their module and discrete product needs |
| Once you have a customer in this sector and you maintain a good customer intimacy and technical support, you will continue to support the new design wins |
| And we talked about margin improvements as well |
| We met with this customer last month and receive positive feedback and expect this engagement to continue for X band phased array radar applications |
| But, overall, the mobile would be upside to the plan |
| Statement |
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| If you look at 5G overall, Nokia, Ericsson, others in that sector have had poor quarterly earnings, and so that has slowed down the 5G deployments |
| During the quarter, we experienced softness in XBAW filter shipments to our 5G network infrastructure customers |
| Last year, we commented that the buildup in channel inventory, particularly at our Wi-Fi customers in the Asia region, would adversely impact our revenue in the second half of calendar 2023 |
| Those numbers have come down and they are going to continue to come down as well |
| If you look over in the defense segment, David indicated, it has slowed down |
| So there's lack of activity there |
| This motion represents an additional challenge to key parts of Qorvo's claims |
| There were also some timing issues, particularly with a large program that we have on the NRE side with the government |
| The network side has slowed down |
| But I still predict that to be in the – come down a little bit in the $11 million to $15 million range per quarter of revenue to achieve operating cash flow breakeven |
| As a result, GAAP net loss per share was $0.21 |
| Furthermore, with the expense reductions and cost saving actions in place, we expect that operating cash burn will drop another 30% to 40% in the June quarter |
| The good news is that the slowdown we saw, and we talked about the inventories under control, we started seeing the pick back up on some of the legacy Wi-Fi 6E programs as they make transition to the Wi-Fi 7 program |
| As a reminder, this lawsuit alleges Qorvo is infringing a patent licensed exclusively to Akoustis by Cornell University, as described in past calls |
| So that also somewhat brings down the need for the gross margin and the revenue in the quarter of operating cash flow breakeven |
| Please keep in mind, even if the court ultimately does not grant Akoustis' motions, the defects in Qorvo's case will remain hurdles Qorvo would have to overcome at any trial |
| And so, as we talked about getting the cash flow breakeven at the end of the year, and we do expect that cash flow to be a little lumpy going through the year because we got ITC credits and the timing of those, Ken mentioned some of the timing challenges |
| On a GAAP basis, operating loss was $15 million for December quarter, driven by revenue of $7 million, offset by labor costs of $8 million, depreciation and amortization of $3.2 million and other operational costs totaling $10.8 million |
| And then the same thing with carrier Wi-Fi 6E program has picked up from reductions in their inventories |
| However, we expect modest growth of shipments to return in the March quarter |
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