Resonant Inc. (NASDAQ:RESN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 04:30 pm ET


Resonant Inc. (NASDAQ:RESN) Q2 2020 Earnings Conference Call - Final Transcript


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George B. Holmes

historically defined as wave 2, highlighted in the infographic we published in June on 5G.

So what's the problem? Early 5G phones use inefficient filtering technologies that won't cut it in the future generations because they rely on the uncrowded use of the 5G frequency spectrum and are not concerned with out-of-band emissions. The next wave of 5G, what I'm referring to as wave 2, will deliver high data rates, but require much larger bandwidths and protection from interference, requiring a different type of resonator technology than is used today. So in many ways, players who talk about having 5G capabilities today are focused on the initial coverage and leveraging it as a marketing tool, but are not ready for the next phase.

To our knowledge, Resonant's XBAR technology is literally the only RF filter technology that has showcased the ability to innately meet the complex requirements of bandwidth of 5G applications. When I talk innately, I mean natively, out of the box, to meet these requirements. Not only do we believe our technology is the best solution today, it'll likely be the lowest cost one as well.

Other competing technologies that have been used in the market are using things like doping or additional external components to increase resonator bandwidth, which negatively affects performance, and still doesn't meet the full bandwidth demands required of 5G. And all these technologies are competing against one another. The beauty of Resonant's business model is that we are enabling customers rather than competing against them.

Now let's turn to Slide 7. So how did Resonant become the RF filter solutions provider with the exclusive technology to deliver upon the promise of 5G? As we've discussed before, the key differentiator is our Infinite Synthesized Networks, or ISN, multiphysics electronic design automation or EDA software platform, specifically created for the development of RF filters. ISN enables us to design faster, better and more cost effectively than competing technologies.

What do I mean by that? The faster comes from our ability to leverage mathematical models to rapidly design filters that often require few returns through a foundry and provide a path to straightforward integration into modules. The cheaper comes from several areas, fewer engineers are needed, few returns are needed, filters can be manufactured on a cheaper process due to the precision of our designs. The product can get to the market quicker. The better comes from our ability to solve these complex challenges demanded by the increasing filter requirements such as those demanded by 5G. What's key here is the use of our ISN platform to simulate thousands of variations that we believe can't be contemplated by traditional methods.

Now let's turn to Slide 8. So today, we stand at an attractive intersection. The combination of the demands of 5G, the innovation of new materials, such as engineered substrates, the strength and speed of ISN that have allowed us to create our completely novel XBAR technology, which as I highlighted earlier, is quickly becoming recognized