Summit Wireless Technologies, Inc (NASDAQ:WISA) Q2 2020 Earnings Conference Call - Final Transcript
Aug 13, 2020 • 04:30 pm ET
know exactly what to do with the WiSA brands, the logos we will equip them, where they go on a TV screen, where they go on a box, a manual and a website, right. Because it's important to us that the consumer knows one WiSA product works with another just like Bluetooth works with Bluetooth, HDMI works with HDMI and that WiSA represents simple setup, high-quality wireless audio. We don't put all brands up here. It gets pretty convoluted. But for those that are new, a lot of these brands are the most strategic and the most active ones. And the new one from the last presentation would be SKYWORTH, which is the Chinese guys and we will talk about them shortly.
For the rest of the meeting, now we are past the overview. We will do a quick COVID update. We will talk about the display industry, so TVs and laser projectors and those design wins. We will talk about where the speaker design wins and products are and then what the WiSA wave is that we talked about this morning and what we are trying to do with that and the industry support we have so far gotten from the members. And then finally, George will give you a quick update on the corporate positions.
So, COVID, we did say in our year end call that COVID was impacting designs only nominally. And you can see that now that a year ago in Q3, we have six audio systems out in the market. This year we will have 18 or more in the market. So designs were slowed up, the design process in China was slowed up four to six weeks, but kept right on going and those products have launched started launch or are launching. And in fact, even though Q2 was a very challenging quarter for everybody obviously, 45% of our revenue was all new projects. And those are initial production runs which are usually small or prototypes, but high activity from new design projects in Q2.
Anecdotally, consumers where demand was slow for speakers in late March through May, lot of -- largely because of retail stores were closed, but the larger stronger brand customers of ours were able to ramp up their direct-to-consumer digital marketing by the end of Q2 and that helped offset some of the decline for them in retail sales, but not entirely. Now, all of that comes into what are we trying to do with the ways and how to help our brands market to consumers directly either to support their retailers as they open up or market for their own purposes to close off sales sooner.
Displays, this month or -- I'm sorry in July, we expanded the display membership with SKYWORTH. They are the largest Chinese TV manufacturer. According to them, we don't -- we take their word for it, but they are certainly large. They will announce their first product in August, a product announcement coming out.