Aktis Oncology, Inc.

Good day, ladies and gentlemen, and welcome to the Acoustis Technologies Business Update Conference Call. As a reminder, this conference call is being recorded. At the conclusion of the company presentation, Acoustis Management will take questions. To ask a question, press star 1 on your keypad to be placed into the queue. A replay of the call will be available on the Investor Relations section of the Acoustis website.

Thank you, Operator, and good morning to everyone on the call. Welcome to ACOUSTA's fourth quarter and fiscal year end 2021 business update conference call. We are joined today by our founder and CEO, Jeff Scheele, interim CFO, Ken Bowler, and EVP of business development, Dave Eichle. Before we begin, please note that today's presentation includes forward-looking statements about our business outlook. All statements other than statements of historical facts included in this conference call, such as expectations regarding our strategies, operations, costs, plans, and objectives, including the timing and prospects of product development and customer orders, our expectations regarding achieving design wins from current and future customers, the possibility of entering into collaborative or partnering relationships, potential impacts of the COVID-19 pandemic, and guidance regarding expected revenue, product orders, and milestones for the current and future fiscal quarters, our forward-looking statements. Such forward-looking statements are predictions based on the company's expectations as of today and are subject to numerous risks and uncertainties. The company and our management team assume no obligations to update any forward-looking statements made on today's call. Our SEC filings mention important factors that could cause actual results to differ materially. Please refer to our latest Form 10-K and Form 10-Q filed with the SEC to get a better understanding of those risks and uncertainties. In addition, Our presentation today will also refer to certain non-GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measure is presented in our earnings call highlight release available in the investors section of Acoustis.com. I would now like to turn the call over to Jeff Shealy, founder and CEO of Acoustis.

Thank you, Tom, and welcome everyone to our 2021 fourth fiscal quarter and year-end business update call. Fiscal 2021 was an exciting year for Acoustus as we entered volume commercial production of our patented XBAL filters with our Tier 1 consumer-focused Wi-Fi 6 customer. This helped lead to year-over-year revenue growth of over 270% in fiscal 2021, and we expect strong growth to continue in fiscal 2022 and beyond. We have had a growing number of design wins across each of our major markets over the past several months, which we expect will translate into record quarterly revenue by the December quarter. While we exited the June quarter with one major customer in production, we expect to end the current calendar year with over five customers in production, with additional customers expected in early calendar 2022. We generated significant momentum in our Wi-Fi filter business in fiscal 2021, specifically in the wireless router market with both Wi-Fi 6 and Wi-Fi 6E filters. And we are currently ramping up efforts to enter the 5G mobile market in calendar 2022. We added two new customers in 5G mobile during fiscal 2021 and have delivered early samples to one of these customers. We continue to target production ramps with both customers in calendar 2022. We added two new network infrastructure customers in fiscal 2021, both targeting the citizens broadband radio service or CBRS market in the US. We expect to begin shipping against volume orders in the current September quarter to support the customer's initial ramps this calendar year. The ramp of our 5G small cell Network infrastructure business continues to be impacted largely due to the effect of the global semiconductor supply chain shortages on our customers, as well as operator-driven network deployment priorities and timing changes. But we continue to expect to ramp multiple filters with our customers in the current fiscal year. In our defense and other markets, we continue to work with DARPA on the Direct-to-Phase-2, or DP2, program, for the development of an XBAW filter product development kit that will enable BAW and other similar MEMS structures to be designed and fabricated using the company's state-of-the-art patented XBAW process. Recently, we added a new VP of Engineering, Cameron Chima, an extraordinary talented executive who brings a wealth of RF experience in product design, manufacturing, technology development, program management, and importantly, 25 years of experience in microacoustic hardware. Cameron comes to us from Qualcomm RF360, where he was vice president of engineering. Cameron will lead our 5G mobile and multi-chip module development, as well as assist in deploying wafer level packaging into mobile products, including 5G smartphones. I am pleased to introduce him to our executive team and welcome him to our company. And we look forward to his leadership and contributions moving forward. I would now like to discuss the highlights from each of our market segments in the June quarter, beginning with our Wi-Fi business. Wi-Fi activity continues to increase as evidenced by the multiple announcements we have made over the past few months and the customers we expect to go into production later this calendar year and expanding further in calendar 2022. We continue to ship both 5.2 and 5.6 gigahertz Wi-Fi 6 coexistence filters to our tier one consumer focused customer. This was the first of three Wi-Fi 6 customers that we announced over the past year. And as we announced last week, we expect to ramp production with our second Wi-Fi 6 customer beginning in the December quarter of the current calendar year. We believe the Wi-Fi 6E filter market will expand significantly in calendar 2022 and beyond, driven by the rapid release and adoption of Wi-Fi 6E CPE. Additionally, there are strong indications that OEMs are planning to incorporate the new Wi-Fi 6E standard in 5G smartphones, tablets, laptops, and other devices, likely making the Wi-Fi 6E filter market significantly larger than the current Wi-Fi 6 market by both unit volume and revenue. We have made significant progress with our Wi-Fi 6E portfolio, which includes our 5.5 and 6.5 gigahertz coexistence solution, our new 5.6 and 6.6 XBAL filters that we announced in April. In the June quarter, we announced our first design win in Wi-Fi 6E with a Tier 1 enterprise-focused customer and we expect additional Y560 design wins in the September quarter and beyond. Additionally, we have design locked and delivered to our previously announced Tier 1 Enterprise customer four custom high-performance XBAL filters targeting ultra tri-band applications. These four filter products are currently in qualification for production release, and the initial production ramp is scheduled for the December quarter. In the March and June quarters, we also added three new Wi-Fi system on chip or SOC customers with reference design wins for multiple Wi-Fi 6E platforms. We expect more than three Wi-Fi 6E customers to be in production by the end of the year with more to follow in calendar 2022. We've recently announced that we have received our first development order from a tier one PC chipset maker for a Wi-Fi 6E Diplexer, the development of this diplexer will build on our earlier filter modules and leverage our expanding chip scale package or CSP technology. This new diplexer represents the first step towards developing more complex and integrated modules for our customers using our XBAL process and technology. The PC market represents another large market for Acoustus, and we are well positioned to meet the critical requirements, including small size and superior signal selectivity in Wi-Fi 6E. And finally, last week we announced that we have received a new design win from a carrier-focused OEM for our 5.5 and 6.5 gigahertz Wi-Fi 6E filters for a MU-MIMO Gateway product, which is expected to begin shipping in the December quarter of the current calendar year. To summarize our recent Wi-Fi activity, we have more than 12 XBall Wi-Fi filters, four for Wi-Fi 6 and more than eight for Wi-Fi 6E, up from four last quarter. As of today, we have three announced design wins in Wi-Fi 6 and two in Wi-Fi 6E, and we expect the number of Wi-Fi customers in production will increase from one to more than five by the end of the year. We also added three new Wi-Fi 6E SoC partners in the March and June quarter. And lastly, we're developing our first XBAR diplexer with which we intend to enter the PC market, another substantial market in unit volume and revenue. I would now like to discuss our recent developments in 5G mobile. While most of our efforts in 5G mobile are geared towards engineering samples by the end of the calendar 2021 and production ready parts by the end of calendar 2022, we did receive a significant validation of our technology from one of our 5G mobile customers in the past few months. In June of this year, we delivered the first engineering samples to our tier two RF front end module customer, and we signed a foundry agreement with this customer, which puts us in excellent position to enter the 5G mobile market in calendar 2022. This opens Acoustus to our largest potential market by both revenue and unit volume and is a significant achievement for our company and team. We continue to make progress with our second tier one RF component customer. As we announced this morning, we just delivered first engineering samples of the first of two filters that we're developing for their 5G mobile products. We are on track to deliver the second sample to this customer by the end of the current calendar year and remain confident that we will be ready to enter volume production with this customer in the second half of calendar 2022. Our wafer level packaging efforts continue to progress. We introduced our first WLP technology in the past month using a North American supply chain and expect to qualify the process by the end of the current calendar year. In the past month, we also shipped 5G mobile engineering samples to our RF front end module maker customer, complete with these new WLP packages. We plan to expand our capabilities in WLP as we deliver new filters that can leverage the technology for mobile handsets and other devices where size considerations are at a premium. To summarize our 5G mobile activity, We have multiple customer-funded XBAL filters in design. We currently are focused on two customer engagements, a Tier 1 RF component company and a Tier 2 RF front-end module maker. And both customer engagements are actively engaged with either our design or manufacturing teams. We have recently entered into a foundry agreement with one of our customers to produce a 5G mobile handset filter product. in the second half of calendar 2022. And we have shipped 5G mobile samples with our new WLP technology and expect to enhance our WLP capabilities moving forward. I would now like to move on to network infrastructure. Wide bandwidth, high power handling, low insertion loss, and high out-of-band rejection are the core filter performance requirements for 5G network infrastructure. Acoustus is ideally positioned to compete in this segment, given our small form factor filter solutions and our growing portfolio of RF filters above three gigahertz, where 5G is being deployed worldwide. Citizens Broadband Radio Service, or CBRS, has emerged as the initial driver for our 5G network infrastructure business, with three design wins in the current calendar year, including two at the end of July. The first customer design win for CBRS is for a 3.6 gigahertz XBAL filter for base station equipment, and the second customer's two design wins include both base station and consumer premise equipment. We expect to ship volume filters to both customers in the current September quarter as each customer looks to ramp production before the end of calendar 2021 and into 2022. Furthermore, we are currently engaged with over 10 SOC, OEM, and ODM makers for the development of CBRS networks using 5G and expect to announce additional design wins as the CBRS networks are further deployed. The FCC C-band auction for 3.7 to 3.98 GHz spectrum last December raised over $80 billion. on new sub-6 gigahertz 5G spectrum in the United States. This has created yet another 5G network infrastructure opportunity for Acoustus, and we demonstrated early XBAL filter samples addressing this new 3.8 gigahertz spectrum in the June quarter. We are currently improving on this initial design and expect to demonstrate additional samples by the end of calendar 2021. We expect carriers will look to deploy small cell base stations that operate at this frequency by late calendar 2022 or early calendar 2023, and we are currently in early discussions with multiple OEMs. As we mentioned on our last conference call, the production ramps with our 5G small cell network infrastructure customers focused on Asia have been slower than previously expected due to the global semiconductor supply chain shortages, operator-driven network deployment priorities, and timing changes, but we continue to expect to ramp production with multiple filters with these customers in the current fiscal year. Similarly, continued customer specification changes have delayed commercialization of our massive MIMO network infrastructure filters, but we continue to work with the customer to develop a plan to introduce a final product. To summarize our 5G network infrastructure activity, We have five completed 5G network infrastructure XBAL filters, four for small cell base stations, and one for CBRS. To date, we have announced three design wins in small cell with our tier one customer and one from a second customer. Additionally, we have received three design wins for CBRS from two leading network infrastructure OEMs. In the June quarter, we developed our first 3.8 gigahertz filter for the US 5G mobile, with further iterations expected in late calendar 2021, early calendar 2022, and we now have over 10 customer engagements, five of which have already placed purchase orders. I would like to now discuss our progress in our other market segment. During the June quarter, We continue to work with the Defense Advanced Research Projects Agency, or DARPA, to develop our technology involving the multi-year R&D contract from DARPA through the development of a piezo MEMS process design kit, or PDK, for the company's proprietary and patented XBAL process, the direct to phase two or DP2 contract, is dedicated to developing a general-purpose PDK that will enable BAU and other similar MEM structures to be designed and fabricated using the company's state-of-the-art patented XBAU process. We expect this will expand the opportunities for XBAU moving forward as other designers will be able to develop new products utilizing our novel piezoelectric materials and substrates outside the current devices, which could lead to new opportunities in adjacent vertical markets. I am pleased to announce today that we have received an order from one of our existing defense customers for a seventh XBAL filter the customer will use in a phased array radar application that is expected to ship later this calendar year. To summarize our other market segments, we recently received an order to deliver a seventh XBAL filter to our first defense customer. We have seven completed XBAL filter solutions for the civilian and defense markets. We continue to refine and improve our XBAR PDK driven by the Direct-to-Phase II contract with DARPA. And finally, we have a total of three customer engagements, two of which already have placed purchase orders or provided NRE revenue. Next, I'd like to hand it over to Ken for some financial highlights.