Resonant, Inc (RESN)

[tykundegex]

I read the transcript of the earnings call yesterday. For the first time, they have provided concrete numbers about revenue possibilities for their current contracts, but have still refrained from providing guidance.

Sounds like current contracts would generate some $25MM annually for Resonant. Anyone confirm or have a different analysis? I'm assuming 10% royalties.

Today their designs cover 10% of their existing customers' markets, and less than 5% of the TAM. So while $25MM is not amazing, its a decent start and could easily be 5x that in a couple of years...

(underlining by me, transcript from SA)

So the TAM for the market that we are currently serving now equals $5.8 billion. Our customers are currently serving $2.5 billion or 44% of that specific market and based on Navian's reported share for our customers, the devices Resonant has under contract represent $250 million worth of filters if our customers were 100% successful in achieving their revenue targets and their share didn't increase with these new designs which we believe they have the potential to do.

...royalty revenues from these companies that we license designs to, that royalty tends to be for licensing per unit royalty basis tend be in the 1% to 20% range with the typical being in the 3% to 7% range. We said in the past that we believe that our tools, technology and team will give us the potential to shorten design cycle and increase customer margins that we see the potential for higher royalty revenue rates than the average.

...if our customers with products they currently have under contract with us actually delivered all those sockets ... there's $250 million worth of revenue opportunity of filters. That's the number. And you take that and do the math against the royalty opportunity that I described just previously and you can hone in on what that royalty opportunity could be for those devices we currently have under contract.

So hopefully that... gives you feel of the view of what that revenue opportunity and mass could be in the coming quarters and coming years.