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Akoustis' (AKTS) Q4 Earnings Match Estimates, Revenues Lag

Shares of Akoustis Technologies, Inc. AKTS were down 3% on Aug 24, following not-so-encouraging fiscal fourth-quarter results. The company reported fourth-quarter fiscal 2020 non-GAAP net loss of 19 cents per share, matching the Zacks Consensus Estimate. The company had reported a loss of 16 cents in the year-ago quarter.

Revenues of $365K lagged the Zacks Consensus Estimate of $0.43 million. The figure was flat on a sequential basis. Nevertheless, the company witnessed an improvement of more than 350% in core filter product revenues amid coronavirus crisis led headwinds.

At the end of the reported quarter, the company commenced shipping RF filter products into two high-volume commercial markets, namely 5G small cell network infrastructure and WiFi CPE devices.

Management anticipates that going ahead, design wins will be realized into revenues on strength in advanced, high performance frequency selectivity solutions, which include BAW-based WiFi 6E coexistence filters.

Expanding portfolio of commercially available RF filter products and related technology strength is expected to aid the company strengthen presence across large and growing markets comprising high-band WiFi, 5G network infrastructure, advanced defense communications equipment and 5G mobile devices.

The company reported non-GAAP operating loss of $6.6 million in fiscal fourth quarter, compared with loss of $4.7 million in the year ago-quarter.



On a year-to-date basis, Akoustis’ stock has returned 5.2%, compared with the industry’s rally of 7.4%.

Recent Developments Remain Noteworthy

Akoustis shipped compliant 5G band n77 high power RF filters to first tier-1 network infrastructure customer. The company’s 5.5 gigahertz (GHz) BAW filter for WiFi 6E specification gained traction with samples being shipped to various tier-1 OEM and SoC companies.

Moreover, the company rolled out 6.5 GHz BAW filter for WiFi 6E specification compliant with ultra-wideband 5.9 to 7.1 GHz unlicensed spectrum.

Markedly, Akoustis secured order for 5.5 and 6.5 GHz WiFi 6E coexistence filters from tier-1 enterprise OEM.

The company also inked strategic purchase agreement with tier-1 OEM in a bid to accelerate the development and sale of various latest XBAW filters for WiFi 6E.

Further, the company introduced 14th design-locked RF filter solution. Strength in filter technology is aiding it in expanding XBAW patent portfolio. As of Aug 17, 2020, the company had 33 issued and licensed XBAW patents and 71 pending.

Balance Sheet & Cash Flow

As of Jun 30, 2020, the company had cash and cash equivalents of $44.4 million compared with $39.6 million as of Mar 31, 2020.

Capital expenditure in the fiscal fourth quarter was $3.4 million, compared with $2.2 million in the prior quarter. Management attributes the increase to expenses pertaining to the planned 500% capacity expansion in the company's New York fab.
 

Akoustis Technologies, Inc. Price, Consensus and EPS Surprise

Akoustis Technologies, Inc. Price, Consensus and EPS Surprise

Akoustis Technologies, Inc. price-consensus-eps-surprise-chart | Akoustis Technologies, Inc. Quote

Cash used in operating activities in the fiscal fourth quarter was $4.9 million, compared with $4.4 million utilized in the fiscal third quarter.

Fiscal 2020 at a Glance

Revenues of $1.79 million were up 24% year over year. The year-over-year growth can be attributed to growing clout of company’s solutions across emerging markets, including 5G small cell market and high-band WiFi domains. The Zacks Consensus Estimate was pegged at $1.84 million.

Guidance

For first-quarter fiscal 2021, the company expects revenue growth of at least 50% on a quarter-over-quarter basis, driven by robust backlog, initiation of production across the 5G small cell market, and continuous ramp up of ultra-high frequency of 5.2 and 5.6 GHz WiFi filters.

Zacks Rank & Key Picks

Akoustis currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader sector are Apple AAPL, Blackbaud BLKB and Analog Devices ADI. While Apple and Blackbaud flaunt a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Apple, Blackbaud, and Analog Devices is currently pegged at 10.7%, 7.6%, and 13.3%, respectively.

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