CHARLOTTE, NC - Akoustis Technologies, Inc. (NASDAQ: NASDAQ:AKTS), a manufacturer of patented bulk acoustic wave (BAW) high-band RF filters, announced today it has received a $13 million purchase order from a current Tier-1 customer. This order, for the production of XBAW® filters for Wi-Fi Access Points (AP), brings the total committed purchases from this customer to over $21 million.
The company's Vice President of Sales and Business Development, Colin Hunt, expressed confidence in fulfilling the new order, which supports the customer's Wi-Fi 6E and emerging Wi-Fi 7 platforms. Akoustis anticipates delivering several million units over the next 3-4 quarters from its New York fabrication facility.
In total, Akoustis will supply ten unique narrowband and wideband XBAW® filters, including four previous generation and six next generation designs. These are intended to enhance performance in a more compact form factor, aiming to reduce costs.
Based in Charlotte, North Carolina, Akoustis operates a 125,000 square-foot manufacturing facility in Canandaigua, NY. Their proprietary XBAW® manufacturing process targets higher bandwidth, operating frequencies, and output power than traditional polycrystalline BAW technology.
The press release also contains forward-looking statements regarding the company's future operations, profitability, and market opportunities. These statements are subject to risks and uncertainties that could affect actual results.
This news is based on a press release statement and provides a factual overview of Akoustis Technologies' recent business developments.
In other recent news, Akoustis Technologies reported a series of significant developments. The company announced a substantial change in its executive team, with David M. Aichele resigning as the Executive Vice President of Business Development. Colin Hunt will assume the role upon Aichele's departure. In the financial realm, Akoustis secured an $8 million order for Wi-Fi 6E and 7 access point filters and a $2 million order for Wi-Fi 7 routers. These orders highlight the growing demand for high-speed internet connectivity.
The company also reported a 7% revenue increase in Q3 FY2024, reaching $7.5 million. Despite the termination of a Wi-Fi 6E program, Akoustis remains optimistic about the Wi-Fi 7 market and plans to ramp up production. B.Riley, in response to the company's Q3 earnings report, adjusted the price target for Akoustis Technologies to $0.75, maintaining a Neutral rating.
In an effort to raise additional funds, Akoustis launched a direct stock offering of 50 million shares, managed by Roth Capital Partners. The company also outlined plans to reduce expenses and achieve operating cash flow breakeven within the next nine months. These recent developments underscore Akoustis's strategic approach towards financial management and their dedication to meeting the demand for advanced RF filters.
InvestingPro Insights
Amidst the announcement of a substantial purchase order from a Tier-1 customer, Akoustis Technologies (NASDAQ: AKTS) presents a mixed financial outlook according to the latest data from InvestingPro. The company's market capitalization stands at a modest $9.32 million, reflecting the size and scale of the business in the competitive tech sector.
Despite a notable revenue growth of 24.47% over the last twelve months as of Q3 2024, Akoustis is grappling with a significant debt burden, as highlighted by InvestingPro Tips, which could raise concerns about its ability to manage financial obligations, including interest payments on debt.
The company's Price / Book ratio, at 0.22 for the same period, indicates that the stock may be trading at a low multiple compared to the book value of its assets. This metric, along with a negative operating income margin of -257.9%, underscores the financial challenges Akoustis faces. Moreover, with a gross profit margin of -5.89%, the company is currently not generating a profit from its revenues, an aspect that prospective investors should consider.
InvestingPro Tips also suggest that the stock has experienced high price volatility, which could be a point of interest for short-term traders but may warrant caution for long-term investors. It is worth noting that there are over 16 additional tips available on InvestingPro for Akoustis Technologies, which can provide a deeper insight into the company's financial health and stock performance. For those looking to make an informed decision on AKTS, these additional tips could be a valuable resource.
Investors may also take note of the company's recent stock price performance, which has seen a significant decline over the past year. The stock is currently trading at only 4.23% of its 52-week high, and with analysts not anticipating profitability this year, this could signal a cautious outlook for Akoustis Technologies in the near term.
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