Energous Corporation (NASDAQ:WATT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 04:30 pm ET

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Energous Corporation (NASDAQ:WATT) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. And welcome to the Energous Corporation's Third Quarter 2019 Financial Results Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Mike Bishop with the company's Investor Relations. Please go ahead.

Executive
Mike Bishop

Thank you, Kate. And welcome, everyone. Before we begin, I would like to remind participants that during today's call, the company will make forward-looking statements. These statements, whether in prepared remarks or during the Q&A session are subject to inherent risks and uncertainties that are detailed in the company's filings with the Securities and Exchange Commission, except as otherwise required by Federal Securities Laws. Energous disclaims any obligation or undertaking to publicly release updates or revisions to the forward-looking statements contained herein or elsewhere to reflect changes in expectations with regard to those events, conditions and circumstances.

Also, please note that during this call, Energous will be discussing non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in today's press release, which is posted on the company's website.

Now, I'd like to turn the call over to Steve Rizzone CEO of Energous. Please go ahead, Steve.

Executive
Stephen R. Rizzone

Thank you, Mike. Good afternoon and welcome to the Energous third quarter conference call. Brian Sereda, our Chief Financial Officer, is also joining me today. I'd like to begin with comments on the company's progress and provide a general business update before turning the call over to Brian for a financial update. We will then open the call to questions. Looking at the third quarter, we are not where we expected to be from a revenue standpoint. However, for reasons we'll expand on in a moment, I remain extremely confident and optimistic about the future of Energous. As we've communicated in the past, our goal has been to establish and launch a new technology on a global basis. We originally focused our attention and resources on high volume opportunities from Tier 1 accounts with a global reach. This ambitious plan was contingent upon regulatory certifications in three major markets; North America, Europe, and Asia.

To-date, we've been successful in both North America and Europe, and are making significant progress in Asia, which we will expand on later in the call. The current lack of regulatory approval in Asia has delayed major customer launches, negatively impacting our revenue and growth expectations. Again, we see this as a delay as customer engagements in multiple verticals remains strong. In spite of this, I remain extremely confident and optimistic about the future of Energous and here's why.

First, we have been able to prioritize our near term customer projects, focusing on product launches in regions where we already have regulatory certification. This reset has taken some time but we are now seeing the benefits of this change. For example, you saw that our customers, Delight, launched their Oasis-RC PSAP into North American market this