WiSA Technologies Reports Q1 2024 Results
WiSA Technologies (Nasdaq: WISA) has reported its Q1 2024 financial results. The company has secured five WiSA E licensing agreements, up from two at the beginning of 2024, and expects to have eight agreements by year-end. The first WiSA E-enabled products are expected to contribute to revenues in the second half of 2024. Additionally, the company anticipates increased revenue from WiSA HT customers in the latter half of the year due to resumed orders. WiSA has bolstered its cash balance to approximately $8 million as of May 20, 2024, to support its growth strategy.
- Secured five WiSA E licensing agreements, up from two at the start of 2024.
- Expected to have a total of eight WiSA E licensing agreements by the end of 2024.
- First WiSA E-enabled products to contribute revenue in the second half of 2024.
- Anticipates stronger revenue contributions from WiSA HT customers in the second half of 2024.
- Bolstered cash balance to approximately $8 million as of May 20, 2024.
- Strategic investments in WiSA E to drive the next phase of revenue growth.
- Revenue contributions from new products and customers are only expected in the second half of 2024, indicating no immediate revenue boost.
- Dependent on successful integration and adoption of WiSA E-enabled products for future revenue growth.
- Recent financing transactions could imply potential dilution of shares.
WiSA Technologies has reported its Q1 2024 financial results and there are several key highlights that investors should consider. Firstly, the announcement of increased WiSA E licensing agreements, up from two to five within the quarter, is indicative of strong market interest and potential future revenue growth. The expectation of reaching eight licensing agreements by the end of 2024 suggests a positive trajectory for the company's licensing strategy.
Secondly, the company's cash position has improved to approximately
Thirdly, it’s noteworthy that the first WiSA E-enabled products are expected to contribute to revenue in the second half of 2024. This projection aligns with the company's broader growth strategy but also implies that immediate financial gains may be limited with more tangible impacts expected later in the year.
In summary, while the current financial performance and strategic direction appear promising, investors should remain cautious and closely track the company's quarterly updates to ensure that projected revenues and licensing agreements materialize as expected.
The development and anticipated deployment of WiSA E-enabled products mark a critical shift for WiSA Technologies. The WiSA E technology promises enhanced wireless audio capabilities, which are increasingly relevant in an era of smart devices and next-gen home entertainment systems. This technological advancement not only strengthens the company's product portfolio but also positions WiSA as a competitive player in a growing market segment.
However, technological adoption and integration by major brands are pivotal. The current momentum in securing five licensing agreements, with three more expected by year-end, suggests a strong validation from industry leaders. Yet, the true test will be in the performance and consumer reception of these enabled products, which are set to launch in the latter half of 2024.
Moreover, the resurgence of orders from WiSA HT customers indicates a recovering demand that could balance the company’s revenue streams while WiSA E products ramp up. Investors should watch for any updates on product performance, customer feedback and further licensing agreements, as these will be important in assessing the long-term sustainability and impact of WiSA E technology.
WiSA Technologies’ strategic focus on licensing agreements and technological advancements is poised to cater to several key markets, namely smart devices and home entertainment. The increasing number of WiSA E licensing agreements illustrates growing confidence from market-leading brands and could potentially drive significant market penetration.
The anticipated contribution to revenue from WiSA E-enabled products starting in the second half of 2024 aligns with broader market trends towards enhanced consumer experiences through superior audio technology. This shift in strategy is particularly relevant as consumers increasingly prioritize high-quality, wireless audio solutions in their living spaces.
The company’s proactive steps in securing financing to the tune of
Overall, WiSA Technologies appears to be on a solid path, but continual market analysis and monitoring of industry trends will be essential to gauge the company's long-term positioning and success.
- Expecting total of 8 WiSA E licensing agreements by year-end 2024, up from 5 currently -
- First WiSA E-enabled products expected to contribute revenue in 2H 2024 -
“In Q1 2024, interest from major brands for WiSA E licensing continued to gain momentum, and to date we’ve secured five agreements, up from two at the start of 2024,” said Brett Moyer, CEO, President, and Chairman of WiSA Technologies. “The first WiSA E-enabled products are anticipated to be delivered and begin contributing revenue in the second half of 2024. In addition, we now expect stronger revenue contributions from WiSA HT customers in the second half of 2024, as their inventories have decreased, and orders have resumed.
“We’ve made strategic investments in WiSA E, and it will be the key driver behind the next phase of revenue growth for WiSA. We’re gaining visibility into that growth as we penetrate multiple end markets working with the top-tier licensing partners that are presently implementing our technology. In addition, we remain in active discussions with multiple brands and expect to add three more WiSA E licensees in 2024.
“To support this growth, we’ve recently completed a series of financing transactions and have bolstered our cash balance to approximately
About WiSA E
WiSA E is WiSA’s proprietary technology that delivers seamless integration across platforms and devices, setting a new standard for interoperable high-quality audio excellence. It is System-on-Chip (SoC) agnostic, compatible with a wide range of SoCs including MediaTek, Qualcomm, Amlogic, and more. It is also operating system agnostic, currently integrated with Android devices, and Wi-Fi agnostic, functioning efficiently across any Wi-Fi compliant chip. Additionally, it can be seamlessly embedded into various devices, including TVs, mobile devices, set-top boxes, and projectors. Designed for interoperability between WiSA E audio source devices and playback equipment such as speakers, soundbars, subwoofers, smart speakers, and headphones, WiSA E provides a zero BOM cost solution, ensuring cost-effectiveness without compromising quality or performance.
Q1 2024 and Recent Operating Highlights
- Implemented WiSA E in the Android mobile market, enabling users to watch video on mobile phones and tablets while listening to fully synchronized audio playback on WiSA E-enabled speakers.
- Expanded WiSA E market reach to over 40 million TVs with the addition of a third HDTV licensee.
- Executed a fourth 5-year WiSA E licensing agreement with a major HDTV/PTV (Projection TV) brand.
- Signed a fifth WiSA E licensing agreement with a global consumer electronics company.
- Announced that Optoma, the nation’s leading 4K UHD and DLP® laser projection brand, received WiSA SoundSend Certification.
- Entered into a strategic partnership with CITECH Co., Ltd, a leading South Korean-based manufacturer of hi-fi audio products, digital advertising/information kiosks, and telecommunication media products, to integrate WiSA E software into CITECH’s HiFi ROSE line of media streamers.
Q1 2024 and Subsequent Financial Highlights
-
Q1 2024 revenue was
$0.3 million 46% from$0.5 million -
Q1 2024 gross margin as a percentage of sales was negative
33% , compared to negative267% in Q1 2023. The improvement in gross margin compared to the prior period is mainly attributable to the fact Q1 2023 included a$1.3 million -
Q1 2024 net income was
$2.7 million $0.9 million $1.3 million -
In April 2024:
- Presented its compliance plan before a Nasdaq hearing panel, which accepted the Company’s plan to achieve compliance with continued listing requirements, giving the Company until June 28, 2024 to demonstrate such compliance.
- Effected a 1:150 reverse stock split.
- Regained compliance with Nasdaq’s minimum bid price rule.
-
Executed a series of financing transactions that strengthened the balance sheet; as of May 20, 2024, held
$8 million
Special Stockholders Meeting on May 31, 2024
On May 31, 2024, WiSA Technologies will reconvene its Special Meeting of Stockholders first convened on May 13, 2024, which did not reach a quorum and thus had to be rescheduled. The WiSA Board of Directors again recommend that you VOTE FOR each of the following proposals:
Proposal #1: |
Authorize a Reverse Stock Split |
Proposal #2: |
Approve an Amendment to the Certificate of Incorporation to Allow the Board of Directors to Amend the Bylaws |
Proposal #3: |
Approve Issuance of Shares upon Exercise of February 2024 Warrants |
Proposal #4: |
Approve Issuance of Shares upon Exercise of March 2024 Warrants |
Proposal #5: |
Consider and Act Upon Other Business |
These proposals are detailed in the Definitive Proxy Statement on Schedule 14A, filed with the Securities and Exchange Commission on April 17, 2024, and as amended thereafter. Your vote is important, and we encourage all stockholders to vote. For assistance with voting your shares, please contact WiSA’s proxy solicitor, Lioness Consulting, via email at info@lionessconsultingllc.com.
WiSA Technologies Investor Conference Call
Management will host its first quarter 2024 results conference call at 8:00 am PT / 11:00 am ET, on Tuesday, May 21, 2024.
The conference call will be available through a live webcast found here:
Webcast | First Quarter 2024 Results
Those without internet access or who wish to dial in may call: 1- 833-366-1124 (domestic), or 1- 412-317-0702 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the WiSA Technologies call.
A webcast replay of the call will be available approximately one hour after the end of the call and will be available for one year, at the above webcast link. A telephonic replay of the call will be available through May 28, 2024 and may be accessed by calling 1- 877-344-7529 (domestic) or 1- 412-317-0088 (international) or
A presentation of the Q1 2024 results will be accessible on Tuesday, May 21, 2024, under the “Investors” section of WiSA Technologies’ website.
About WiSA Technologies, Inc.
WiSA Technologies, Inc. (NASDAQ: WISA) is a leading provider of immersive, wireless sound technology for intelligent devices and next-generation home entertainment systems. Working with leading CE brands and manufacturers such as Harman International, a division of Samsung; LG; Hisense; TCL; Bang & Olufsen; Platin Audio; and others, the company delivers immersive wireless sound experiences for high-definition content, including movies and video, music, sports, gaming/esports, and more. WiSA Technologies, Inc. is a founding member of WiSA™ (the Wireless Speaker and Audio Association) whose mission is to define wireless audio interoperability standards as well as work with leading consumer electronics companies, technology providers, retailers, and ecosystem partners to evangelize and market spatial audio technologies driven by WiSA Technologies, Inc. The company is headquartered in
Safe Harbor Statement
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements, including statements herein regarding business opportunities and prospects, design production, product launches, licensing initiatives, and projected operating expenses are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting, among other items - risks related to market, economic and other conditions; our current liquidity position, the need to obtain additional financing to support ongoing operations, WiSA’s ability to continue as a going concern; WiSA’s ability to maintain the listing of its common stock on Nasdaq, WiSA’s ability to manage costs and execute on its operational and budget plans; and, WiSA’s ability to achieve its financial goals and other risks as more fully described in WISA’s filings with the SEC. The information in this press release is provided only as of the date of this press release, and WiSA undertakes no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law. WiSA disclaims any obligation to update these forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521668585/en/
David Barnard, LHA Investor Relations, 415-433-3777, wisa@lhai.com
Source: WiSA Technologies, Inc.
FAQ
What financial results did WiSA Technologies report for Q1 2024?
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