Resonant Inc. (NASDAQ:RESN) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 04:30 pm ET
[Operator Instructions] Our first question comes from the line of Cody Acree with Drexel Hamilton. Please proceed with your question.
Yeah, thanks for taking my questions and congratulations on the progress. I guess, if I can start off, George, with the Teledyne relationship, giving you both front-end and back-end to your customers, but looking maybe even a different way where you've said you didn't want to be in the filter manufacturing business itself,although this partnership with Teledyne definitely looks like it would give you the capability if you want?
Yeah, Cody. I'll touch on this briefly and I might have Marty jump in and talk a little bit about the relationship with Teledyne specifically, but clearly, we're not walking away from our go-to-market model of royalty-based sales on a per unit royalty basis to either vertically integrated or non-vertically integrated customers. But as you know and as we have noted on the past several calls, we have built out our foundry program with some very significant players and this most recent announcement is just another step down the path to get high-volume capability and make it available for our latest technology.
What this does, it really creates options, right? And our view today, we've talked about this a bit on previous calls is we're very, very focused on tying to revenue and clearly when you have customers that have a clear path to revenue, we want to support them in the best way we can as it relates to getting them product quickly and efficiently and leveraging their impact on their customers, which are a large OEM handset manufacturers.
What this gives us is, it gives us great flexibility to create a branded solution as well if we so choose and perhaps have a combination of both royalty and branded products that we make available to our customers. And clearly, this creates a pretty interesting opportunity because it has the potential to tenfold increase the top line revenue. That being said, we're 100% committed to our current royalty model. And this new opportunity has been something we've had in the works for the last two years as we work to build out our foundry program and it's really all about ensuring time to revenue straightest path to the customer and delivering our technology into the market.
Very good. Thank you. George, also, I guess, just your opinion, but there's obviously some disconnect between what somebody like your largest RF filter maker sees in Resonant and giving you royalties or giving you prepaids and equity investment and so on. And what the rest of the public is valuing your stock at, I guess, to what do you attribute that disconnect?
It's a great question, Cody. And there are guys much smarter than me that understand the math problem but it is pretty surprising that the investment community hasn't valued this very, very significant achievement and relationship we have with the world's largest filter manufacturer, doesn't understand that their dominance really creates a