Akoustis Technologies, Inc. (NASDAQ:AKTS) Q1 2023 Earnings Call Transcript

I think the thing that I particularly look at is if the customer is coming to us to solve a new technical problem and really engaging on a new platform, then we know we’ve taken care of them on the initial production of their first product. So we’re seeing repeat activity, repeat engineering, and that’s the type of supplier that we want to be is we want to be strategic for these new Wi-Fi 6E, Wi-Fi 7 platforms and really be the go-to supplier for filters in Wi-Fi. And if you look at €“ if you look in the mobile market, we want to do the same, where the world’s only merchant supplier of filters for mobile. We don’t compete with our customers there. So I think we’re a good strategic partner there, and we would expect in the mobile market once we have the traction there that, that will lead to follow-on programs with existing customers, as well as be a proof-of-concept for new customers to give them the confidence to engage with us.

In terms of what the number of customers roll out – on a pull pays and Ken into that conversation.

Ken Boller: Hi, Tony, there’s a couple of comments I’ll make there. By the end of calendar year ‘233 we should add more than 25 customers in production. As you can see, we are typically adding about two per quarter. And if you look at the dollar content per system and also the shifts of what we’re seeing in Wi-Fi 6 and to Wi-Fi 6E to Wi-Fi 7, the dollar content per system, particularly with architectures that are going triband or quad band. It’s increasing from maybe 250 up to $7 up to $10. So the overall revenue per program should continue to shift upwards as well. So for the Wi-Fi side, it’s a pretty exciting time for us. And as Jeff highlighted, we’ve got a lot of stickiness with our customers. HP Room is one that we publicly announced.

And as Jeff highlighted, there’s plan for reuse of those products into other programs. And I spent two weeks over in Asia recently and visited with over 16 ODMs and OEMs and had very positive reception on the product portfolio. We’re leading the industry and the products that we’re leasing right now. So this is – it’s a timing of customers that end-of-life programs with new ones coming on and also the transition to these more complex architectures, the Wi-Fi sector should be pretty good, as well as what Jeff mentioned on the mobile side.

Anthony Stoss: Perfect. Thanks, guys. Really nice to see things come together for you.

Jeff Shealy: Thanks, Tony.

Operator: Thank you. Our next question comes from the line of Rick Schafer with Oppenheimer & Company. Please proceed with your question.

Wei Mok: Hi, good morning. This is a Wei Mok on the line for Rick. Congrats on all the activity in Wi-Fi, mobile and 5G infrastructure. My first question is on Wi-Fi announcements. It looks like all three design wins are on 4×4 MU-MIMO. Can you remind us from a unit and ASP perspective, what does that mean for Akoustis. And do you see a path towards high orders of transmit and receive in such as 8×8?

Jeff Shealy: Okay. Wei, thanks for your comments. Good to talk to you. Dave will touch on your question on Wi-Fi.