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Energous Corp. (WATT)
Q3 2015 Results Earnings Conference Call
November 10, 2015, 11:30 AM ET
Matt Hayden - Chairman, MZ North America
Stephen Rizzone - President and CEO
Brian Sereda - VP of Finance and CFO
David Williams - Ascendiant Capital
Lou Basenese - Disruptive Tech Research
Good day and welcome to the Energous Corporation Third Quarter 2015 Earnings Call. Today’s conference is being recorded.
At this time, I'd like to turn the conference over to Matt Hayden of MZ North America. Please go ahead, sir.
Previous Statements by WATT
» Energous' (WATT) CEO Stephen Rizzone on Q2 2015 Results - Earnings Call Transcript
» Energous's (WATT) CEO Stephen Rizzone on Q1 2015 Results - Earnings Call Transcript
» Energous' (WATT) CEO Steve Rizzone on Q4 2014 Results - Earnings Call Transcript
» Energous' (WATT) CEO Steve Rizzone on Q3 2014 Results - Earnings Call Transcript
The press release detailing the quarterly update crossed the wire this morning and is available at the Company's website. We can also find additional information about the Company. After Management’s prepared comments today, we will open the floor for your questions.
Before we get started, I'm going to ask everyone to take note of the Safe Harbor paragraph in the press release. Any forward-looking statements that are made today whether in prepared remarks or during the Q&A session speak to the date thereof and are subject to inherent risks and uncertainties included in all of our public filings with the SEC.
Except as otherwise required by federal securities laws, we disclaim any obligation or undertaking to publicly release updates or revisions to forward-looking statements and contained therein or elsewhere to reflect changes and expectations with regards to those events, conditions, and circumstances.
With that all the way, I'd like to turn the floor over to you Steve.
Thank you, Matt and good morning. I’d like to welcome everyone to our third quarter 2015 Company update and financial results call. I will take you through the developmental and operational highlights for the quarter before turning the call over to Brian to discuss our financial performance. I will then conclude the call with some summary comments after which we will have a Q&A session.
To begin I’m very pleased to report that Energous met two key development milestones during the quarter. First as part of our joint development agreement with our Tier 1 partner, we completed a major development milestone relating to our WattUp prototypes which resulted in meaningful revenue during the quarter.
Following the completion of this milestone, Energous expects to continue its collaboration with the Tier 1 strategic partner toward the end goal of incorporating the WattUp technology into one or more of their consumer electronic devices.
The revenue represent a significant cash infusion which extends our operational runway and coupled with the 400,000 in recognized revenue from previous quarters means that we have met our stated 2015 revenue goals.
While we were on the subject of our Tier 1 partner, we should comment that execution on specific milestones is required to continue to move the relationship forward and will ultimately determine whether our agreement extends to commercialization and over the licensing phase.
With each passing quarter we expect to make further progress thus minimizing risk and leading toward product launch. As a result of a continuing engineering resource requirement necessary to support our Tier 1 partner, as well as those required to support the next group of licensees we expect to have under contract shortly.
We will likely be increasing engineering and engineering related expenses by 10% to 15% next year with the expectations at the majority of these expenses will be offset by increases in engineering services revenue.
It is important to note that included in these expenses will be the cost associated with the build-out of the infrastructure necessary to transition the company from development and customer acquisition to fulfillment in conjunction with the goal of releasing the integrated WattUp technology in consumer electronic and IoT devices consistent with all the time frames we have already discussed. We remain on target to achieve these goals.
The second major development milestone was the sampling of our third generation ASIC which we believe our sufficient quality, efficiency, size and cost to meet the requirements for commercial integration.
Before the end of the year we will begin the qualification process with these ASICs including all of the necessary testing required to deliver these parts to partners for actual integration into CE devices.
The next major milestone for the quarter was the independent third party testing and validation of the WattUp technology which we announced yesterday in the press. As the leader in the rapidly emerging uncoupled wireless power market, we thought it was appropriate to set the bar and have the performance of our WattUp technology independently validated.
To this end, we commissioned underwriter laboratories more commonly known as UL to conduct an independent performance evaluation of the abilities of the WattUp technology to receive power at a distance, send power simultaneously to multiple receivers and roam while charging.
We were very pleased with the results as they validated and actually exceeded our expectations with respect to our longstanding WattUp specifications. For those of you who may not have seen the release, I would suggest you to review it on our website as the performance of the technology was impressive on all fronts.
Here is a brief summary of the results of the amount of actual power delivered to a device at varying distances with a single WattUp transmitter. Power received at zero to five feet measured 5.55 watts compared to our targeted performance of 4 watts. Power received at five to 10 feet measured 3.74 watts compared to our targeted performance of 2 watts and power received at 10 to 15 feet measured 1.06 watts compared to our targeted performance of 1 watt.