CHARLOTTE, N.C. - Akoustis Technologies, Inc. (NASDAQ: NASDAQ:AKTS), a manufacturer of high-band RF filters, has announced an $8 million order from a Tier-1 customer for Wi-Fi 6E and 7 access point filters. The company will deliver millions of parts over the next six months to meet demand for four Wi-Fi access points, two of which are already in production and two that are expected to begin production in the second half of 2024.
The order includes ten unique XBAW® filters, with six being next-generation designs aimed at improved performance in a smaller form factor. These filters are essential for allowing Wi-Fi devices to effectively access higher frequency bands, which is increasingly important for the growing demand for high-speed internet connectivity.
Akoustis' proprietary and patented XBAW® manufacturing process is used to produce these filters, which are designed to optimize critical power, frequency, and bandwidth performance specifications. The company operates a 125,000 square-foot commercial wafer-manufacturing facility in Canandaigua, NY, and is headquartered near Charlotte, North Carolina.
The information in this article is based on a press release.
In other recent news, Akoustis Technologies reported a 7% revenue increase to $7.5 million in Q3 FY2024. The company also announced production orders totaling $2 million for its Wi-Fi XBAW® filters, aimed at fulfilling demand for Wi-Fi 7 platform-based routers. These recent developments also include Akoustis launching a direct stock offering of 50 million shares, to raise around $10 million, a transaction managed by Roth Capital Partners.
However, the company faced challenges with the unexpected termination of a Wi-Fi 6E program. Despite this, Akoustis remains optimistic about the Wi-Fi 7 market and is preparing to increase production. In response to the company's Q3 earnings report, B.Riley adjusted the price target for Akoustis Technologies to $0.75, maintaining a Neutral rating.
Akoustis is also taking steps to reduce expenses and cash burn, aiming for operating cash flow breakeven within the next nine months. The company anticipates a sales rebound in Q1 FY2025 as the carrier project resumes, along with potential gains from Wi-Fi 7 filters and other areas.
These are the recent developments for Akoustis Technologies.
InvestingPro Insights
Akoustis Technologies (NASDAQ: AKTS) recently secured a significant $8 million order for its high-band RF filters, showcasing the company's potential to capture a larger share of the Wi-Fi filter market. While this order indicates a strong product demand, a closer look at the company's financial health through InvestingPro data reveals a complex picture.
The company's market capitalization stands at a modest $14.85 million, reflecting a challenging market perception. With a Price / Book ratio of 0.35 for the last twelve months as of Q3 2024, the stock is trading at a low multiple, which can be appealing to value investors seeking assets that may be undervalued relative to their book value. However, two critical InvestingPro Tips suggest caution: Akoustis operates with a significant debt burden and may have trouble making interest payments on its debt, which could be concerning for potential investors.
Despite recent positive movements, with a 17.14% return over the last week, the stock has experienced a sharp 95.18% decline over the last year, indicating extreme volatility and potential investor skepticism about the company's future profitability. Analysts do not anticipate Akoustis will be profitable this year, and the stock has been quickly burning through cash. With no dividends paid to shareholders and a history of weak gross profit margins, Akoustis presents a high-risk profile.
For investors considering Akoustis Technologies as part of their portfolio, it's worth noting that there are additional 16 InvestingPro Tips available that could provide deeper insights into the company's performance and outlook. To explore these further, a subscription to InvestingPro may be beneficial, and readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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