WiSA Technologies, Inc. (NASDAQ:WISA) Q3 2023 Earnings Call Transcript

Jack Vander Aarde: Yeah. Got you. Okay, that’s helpful, Brett. And then if I move on to just gross margin, which obviously is — there was an explanation covered in the press release, in the 10-Q. But just trying to get a read through on kind of your expectations then from an analyst perspective, more or less. So what are you expecting like — just in general, do you expect kind of more of a normalized gross margin? Or do you expect kind of a similar results, I guess, in the near term until the WiSA E licensing kind of kicks in next year?

Brett Moyer: Yeah. So the gross — there’s good news and the bad news of the gross margin. So let’s just put those pieces together. The assessment of the 60-odd meetings that we had, we think more designs in the audio file space are going to get implemented in WiSA E versus WiSA HT. So that’s one of the reasons we modified our inventory reserve on it. So bad news we took the reserve. Good news is we took it because we’re getting very strong feedback from the technology evaluations on WiSA E. From a audio product perspective, we think they’ll continue in the low teens. Our mission there is convert inventory into cash effectively versus margin because as we look into Q3 and Q4, it’s all about WiSA E products. So we only market audio products like a soundbar or speakers to drive consumer awareness around WiSA and then demonstrate performance of our technology with the consumer to potential customers of ours, which is particularly an example of the soundbar.

So I think as you look at speaker margins, it’s probably the high teens through Q2.

Jack Vander Aarde: Got you. Okay, that’s helpful. Cash is king, right, that makes sense there. Okay, Brett, if I have any more, I’ll let you know, but I’ll hop back in the queue. Thanks for the update.

Brett Moyer: Yep.

Operator: [Operator Instructions] And since there are no further questions at this time. I will turn the conference back over to Brett Moyer for some closing remarks. Thank you.

Brett Moyer: I’d like to thank everybody for joining us either today or on the webcast later today and tomorrow. I would like to remind you that WiSA E is launched and the first product that we can offer to the consumers directly is the soundbar, the 5.1.4 Milan soundbars and there’s a great opportunity to get that just ahead of Christmas at $649. If you use WiSA E as a promo code at platinaudio.us. That’s my commercial, but thanks for joining. Appreciate it.

Operator: And this concludes the conference. We — thank you very much for today’s presentation. You may now disconnect.