WiSA Technologies Adds Additional Functionality to its Powerful WiSA E Immersive Audio Software

Rhea-AI Summary

WiSA Technologies, Inc. announces new features in WiSA E software stack to reduce integration costs for manufacturers. The company also provides a financial update for full year 2023, expecting revenue of $1.9-2.1 million and a net loss of $17.7-19.7 million.

Positive

• Introduction of 4-channel RX output and software sample rate converter in WiSA E software stack to reduce integration costs for manufacturers
• Expected total revenue for full year 2023 is $1.9-2.1 million with a net loss of $17.7-19.7 million
• Signing of 3 licensing agreements with TV/PTV companies and expectation of 3 more agreements by end of Q2’24
• Anticipated production by some licensees in Q3’24 with revenue recognition in 2024

Negative

• Net loss increased from $16.2 million in 2022 to $17.7-19.7 million in 2023
• Potential delay in revenue recognition from licensing agreements until 2024

Financial Analyst

WiSA Technologies' recent announcement highlights both operational advancements and financial performance, which could be of interest to stakeholders and potential investors. The addition of new features to the WiSA E software stack aims to reduce integration costs for manufacturers, which could improve margins and make WiSA's offerings more competitive. This technological edge might lead to increased adoption of WiSA's solutions in the home entertainment market.

However, the financial update reveals a widening net loss year-over-year, which raises concerns about the company's profitability and cost management. Despite this, the forecasted revenue range of $1.9 to $2.1 million for the full year 2023 and the expectation of new licensing agreements by the end of Q2'24 suggest potential for growth. The licensing model can provide a steady revenue stream, but it's essential to monitor the actual conversion of these agreements into realized revenue, especially given the company's history of net losses.

Investors should consider the balance between WiSA's growth strategy through licensing and its current financial health. The expected start of production by licensees in Q3'24 indicates a future revenue stream; however, the timing and magnitude of this impact are uncertain. The market will likely watch for the final audited financial results and evidence of successful implementation of the licensing agreements.

Market Research Analyst

The wireless audio technology sector is increasingly competitive, with consumer demand for high-quality, convenient and integrated home entertainment experiences. WiSA Technologies' enhancements to its WiSA E software stack, such as the 4-channel RX output and software sample rate converter, are designed to cater to these market trends. By enabling fewer speaker cabinets and wireless connectivity, WiSA is aligning with the consumer shift towards minimalist and wireless home entertainment setups.

From a market perspective, the ability to reduce integration costs and simplify system design could be a significant selling point for manufacturers looking to adopt WiSA's technology. The cost savings of $4-$6 per unit could be substantial when scaled across mass production. The reduction in time to market is another critical factor that can attract manufacturers, as it enables them to respond more quickly to changing consumer preferences and technological advancements.

However, the success of these enhancements will depend on their actual performance and the market's reception. It will be important to track consumer feedback and adoption rates post-implementation. Additionally, the competitive landscape, including actions by other industry players, could influence WiSA's market position and the effectiveness of its strategy.

Audio Technology Expert

The technical enhancements announced by WiSA Technologies represent a meaningful progression in audio technology, particularly for immersive audio experiences like ATMOS and DTS:X. The ability to output to four channels from a single receiver allows for a more streamlined and cost-effective approach to achieving high-quality surround sound. This can enhance the consumer experience by providing more options for soundbar and speaker setups without compromising on the immersive audio effect.

The software sample rate converter (SRC) is a noteworthy addition, as it addresses a common challenge in audio systems: the need to manage different audio sample rates effectively. By automatically detecting and converting to a standard 48k/24bit, the SRC simplifies the audio system's design and can potentially improve audio quality by ensuring consistency in sample rates.

These technical advancements are likely to be well-received by manufacturers looking for innovative solutions to integrate into their products. However, the real-world performance and reliability of these features will be important in determining their impact on the market. It's essential for WiSA to demonstrate the tangible benefits of these features through case studies or performance benchmarks to gain manufacturer and consumer confidence.

4-channel RX output and software sample rate converter provide tangible benefits for manufacturers;

WiSA provides operational and financial update

BEAVERTON, Ore.--(BUSINESS WIRE)-- WiSA Technologies, Inc. (NASDAQ: WISA), a leading innovator in wireless audio technology for intelligent devices and next-generation home entertainment systems, announces the addition of two features to its WiSA E wireless immersive audio software stack. Both new features target reducing the overall integration costs for manufacturers while adding new functionality.

"As powerful as WiSA E software already is, we continue to look for new ways to add functionality and reduce overall integrations costs,” said Tony Parker, vice president of technical marketing and strategy. “These two new feature enhancements make it much easier for our customers to do more with less – which not only can add functionality to systems but can also save both money and time to market.”

The two new enhancements added to WiSA E are:

1. Receiver (RX) with 4 channels output capability enabling:
   • Fewer speaker cabinets required for ATMOS, DTS:X, IAMF codecs supported by Dolby, DTS, and Google respectively
   • Ability to connect a TV wirelessly to a three-channel soundbar with a subwoofer (LFE)
   • A rear power bar or speaker that can support up-firing, left surround, right surround, and forward firing speakers
2. Software sample rate converter (SRC), which, when required, reduces integration costs by between $4 - $6 by simplifying overall system design
   • SRC auto detects audio sample rates and coverts them to 48k/24bit
     • Capable of converting CD quality audio 44.1k 16bit or 24bit
     • Capable of detecting and decimating higher data rates such as 96k/24bit

Full Year 2023 Financial Update

The Company also reported preliminary, unaudited revenue and net loss for the full year ended December 31, 2023 and updated guidance on signing licensing agreements for its WiSA E software.

Total revenue for the full year 2023 is expected to be in the range of $1.9 million to $2.1 million. The net loss for the full year 2023 is expected to be in the range of $17.7 million to $19.7 million as compared to a net loss of $16.2 million for the year 2022.

The company has signed 3 licensing agreements with TV/PTV companies and expects that an additional 3 license agreements will be signed by the end of Q2’24. The company expects some of the licensees to start production in Q3’24, and it expects to begin recognizing revenue from these agreements shortly thereafter in 2024.

These preliminary results are based on management’s initial analysis of operations for the year ended December 31, 2023. The Company expects to issue full financial results for the full year 2023 on or about April 1, 2024.

For more information about WiSA E or about these two new additions to WiSA E’s feature set, contact Tony Parker, vice president of technical marketing and strategy at tparker@wisatechnologies.com.

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 Beaverton, OR with sales teams in Taiwan, China, Japan, Korea, and California.

© 2024 WiSA Technologies, Inc. All rights reserved. WiSA Technologies, Inc. and the WiSA Technologies, Inc. logo are trademarks of WiSA Technologies, Inc. The WiSA logo, WiSA®, WiSA Ready™, and WiSA Certified™ are trademarks and certification marks of WiSA, LLC. Third-party trade names, trademarks and product names are the intellectual property of their respective owners.

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. In some cases, you can identify these 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 our business opportunities and prospects, as well as our licensing initiatives and expectations, 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 regarding, among other items: the degree to which the licensee implements the licensed technology into its products, if at all; the timeline to any such implementation; our current liquidity position and the need to obtain additional financing to support ongoing operations; general market, economic and other conditions; our ability to continue as a going concern; our ability to maintain the listing of our common stock on Nasdaq; our ability to manage costs and execute on our operational and budget plans; our ability to achieve our financial goals; and other risks as more fully described in our filings with the U.S. Securities and Exchange Commission. The Company’s independent registered accounting firm has not audited, reviewed, compiled or applied agreed-upon procedures with respect to the preliminary financial results. Accordingly, the Company’s independent registered accounting firm does not express an opinion or any other form of assurance with respect thereto. The information in this press release is provided only as of the date of this press release, and we undertake 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240325377225/en/

Tony Parker, vice president of technical marketing and strategy

tparker@wisatechnologies.com

Source: WiSA Technologies, Inc.

FAQ

What new features were added to WiSA E software stack?

The new features added are a 4-channel RX output capability and a software sample rate converter.

What is the expected total revenue for WiSA Technologies for full year 2023?

The expected total revenue for full year 2023 is in the range of $1.9 million to $2.1 million.

How many licensing agreements has the company signed with TV/PTV companies?

The company has signed 3 licensing agreements with TV/PTV companies.

When does the company expect some licensees to start production?

Some licensees are expected to start production in Q3’24.