Aktis Oncology, Inc.

And welcome to the Acoustics Technology Festival 2023 third quarter conference call. As a reminder, this conference call is being recorded. At the conclusion of the company's presentation, Acoustics Management will take questions. To ask a question, please press star 1 on your keypad to be placed into the queue. A replay of the call will be available on the investor relations session of the Acoustics website.

Thank you, Operator, and good morning to everyone on the call. Welcome to ACUSTA's third quarter fiscal 2023 conference call. We are joined today by our founder and CEO, Jeff Scheele, 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 and operations, including the timing and prospects of product development and customer orders and design wins, possible collaborative or partnering relationships, litigation matters, and expected financial and operating results, are 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 obligation 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 the most directly comparable gap measure is presented in our earnings call highlight release available in the investors section of Acoustus.com. I would now like to turn the call over to Jeff Scheele, founder and CEO of Acoustus.

Thank you, Tom, and welcome everyone to our fiscal third quarter conference call. While the broader economic environment remains challenging, Acoustus drove unit and top line growth once again to achieve another quarter of record revenue of $7.4 million, which was within the 20% to 40% growth range we guided to on our last call. We are experiencing interest across our growing product portfolio and all our end markets. Wi-Fi and 5G mobile remain the primary revenue and unit drivers in the March quarter, and we expect this to continue throughout the calendar 2023 as we add new customers and new design wins across both markets. In terms of specific trends during the March quarter, Acoustis had two greater than 10% customers. XBAR-related sales drove the top five customers and seven out of the top 10 customers. Our top 10 customers made up 59% of revenue. Our top 25 customers made up 75% of revenue. In terms of regional sales, three out of five and five out of our top 10 customers were Asia-based. Further, we added a 5G mobile customer into our top five customer ranking. And finally, our top two customers in Q3 increased their sequential revenue with Acoustas by 335% and 79% respectively. Moving on, during our last call, we highlighted several macro challenges that led to broad weakness in our saw filter business across multiple markets, including automotive, IoT, medical devices, particularly in China and Europe. During the March quarter, we experienced some recovery across each of these markets, although forward visibility in China remains challenging. Despite persistent economic challenges, we expect to continue top-line growth in the June quarter, driven by XBAL unit growth, continued improvement in our soft filter business, and favorable seasonal trends in our wafer service business. We expect to ship additional filters to our first tier one 5G mobile customer, and we have entered the US carrier market in Wi-Fi, as highlighted in a recent announcement. We expect further growth from our consumer and enterprise class Wi-Fi customers, including HP Aruba. And finally, we continue to execute on our contract business with DARPA, as we are involved in multiple projects that are redefining the capabilities of XBAR technology. Furthermore, we continue to expect incremental sequential revenue growth each quarter throughout the calendar year as we execute across multiple markets in our growing product portfolio, which includes Acoustis XBAR solutions, soft filter, crystal timing products, and wafer services. For the June quarter, Our current backlog supports sequential revenue growth in a range of 10% to 20%. We remain focused on driving revenue and unit growth across all our target end markets, with a particular emphasis on 5G mobile and infrastructure, Wi-Fi 6E and 7AP, IoT, and automotive applications. As indicated in January, we began shipping high-volume XBAL filter solutions to our first 5G mobile customer in the March quarter. I would now like to take a moment to discuss recent developments involving the CHIPS and Science Act of 2022. The CHIPS Act was signed into law on August 9, 2022, and is designed to boost U.S. competitiveness, innovation, and national security. The law aims to infuse investments in domestic semiconductor manufacturing capacity, as well as jumpstart R&D and commercialization of leading-edge nanotechnologies and create new regional high-tech hubs. The Domestic Manufacturing Program is being implemented by the Department of Commerce, or DOC. R&D investments in nanotechnology and the creation of regional high-tech hubs are being driven by the Department of Defense, or DOD. ACOUSIS's current activity related to chips includes proposal activity with both DOC and DOD related to programs for domestic semiconductor manufacturing, R&D, and commercialization of leading edge nanotechnology. As of today, we have one DOD proposal which was submitted during the March quarter with Acoustis as the lead contractor focused on electronic warfare, or EW, for defense applications. The proposed five-year contract, if awarded, has an initial program budget of over $150 million. Our proposal incorporates multiple partners, including over 10 industrial and government labs, as well as numerous university partners focused on the goal of developing and manufacturing semiconductors into advanced RF modules at our 57-acre campus located in upstate New York. One of the technologies we seek to integrate into our New York campus includes the breakthrough high-frequency XBAR research from our existing DARPA contract. It is worth noting that the program is a competitive process, and we expect the DoD to announce their award selections by mid-summer. ACOUSTIS is active in expanding its domestic manufacturing footprint, including both semiconductors and advanced packaging at our New York campus under the DOC CHIPS for America program. The application is a multi-stage process which is outlined clearly in the Notice of Funding Opportunity, or NOFO. Consistent with the published process, ACUSA submitted its Statement of Interest, or SOI, in late March. We are currently in the middle of the pre-application process with full application submissions beginning by the end of this quarter. In parallel, we are working closely with the local, regional, and state government of New York for financial support to include in our application, which is due later this quarter. We expect the CHIPS application to include multiple semiconductor partners which intend to manufacture semiconductor materials, wafers, and or packaging on our campus. As far as magnitude of our DOC application, we plan to propose a project contemplating spending up to approximately twice our current market cap. to establish 200 millimeter silicon wafer manufacturing capability as well as a U.S. advanced packaging center. As per the NOFO, a CHIPS award is expected to include a grant, refundable investment tax credit or ITC, and direct loans and loan guarantees. The mix of these components will determine the attractiveness of the DOC CHIPS for America program for our company. We are aware of the targets in the NOFO and are currently in discovery with the DOC to optimize various components to suit a small cap company like Acoustis. We believe the DOC wants this program to be successful for all sizes of companies, and they have been very attentive regarding our concerns and requests. We expect to have clarity by our next quarterly investor call. Beyond those two specific programs, we will continue to seek opportunities to leverage this CHIPS Act program. Next, I would now like to discuss several compelling updates in our primary target market, beginning with 5G mobile. During the March quarter, we successfully ramped our first 5G mobile filter product with a Tier 1 RF component customer. This customer has designed a multiplexer using our XBot technology, which is on a reference design with a Tier 1 chipset maker. Our customer is currently sampling its multiplexer with multiple tier one and tier two handset OEMs, and we currently expect multiple mobile handset design wins in the next three to six months. In addition, in the March quarter, we successfully delivered to one of our tier one RF module maker customers the second of two customer design XBAR filters. We delivered the first filter in the December quarter, and the customer has begun characterization and testing of both XBAL filters for down selection. And finally, we delivered the second iteration of a first XBAL filter sample to our second tier one 5G mobile module customer for a module that is expected to ship in late calendar 2025. Looking ahead, our expected milestones for the June quarter in 5G mobile include the successful completion of an onsite quality audit of our New York fab by a Tier 1 mobile device OEM, continued delivery of our high-volume XBAL shipments to our first Tier 1 customer, to secure a second XBAL RF filter development order from our first 5G mobile customer for a product that is expected to ramp production in the second half of calendar 2024, and finally, to deliver two new Wi-Fi 6E7 XBAL Foundry filter products to our Tier 2 5G RF module customer for access points and mobile applications. Next, I would like to discuss our recent developments in the Wi-Fi market. During the March quarter, we completed the development of our new 4 Series 5.6 GHz and 6.6 GHz Wi-Fi 6E7 XBAL filter solutions that enable broader use of the Uni 1-4 bands involved in high frequency Wi-Fi architectures. Furthermore, we ramped initial production volumes with a multi-billion dollar US-based carrier in the cable market. The customer is using our Wi-Fi 6E XBAR filter solutions to deliver last mile connectivity to both the home and business markets. This is one of three carrier focused Wi-Fi design wins we announced during the December 2022 quarter and we expect the other two customers to begin shipping in the near term. We received our first Wi-Fi 7 design win during the March quarter as we announced in our press release on May 3rd. This customer is a tier one enterprise OEM and has ordered our recently announced 5.5 gigahertz and 6.5 gigahertz XBAL filters. And finally, in March, we began a relationship with a new tier two RF module customer for the Wi-Fi access point market. This customer is a growing Asia-based RF module maker that is rapidly becoming a dominant RF player in its region. We have received an order from this new customer for the development of new Wi-Fi 7 XBall filters for the access point market, which we expect to deliver in the second half of calendar 2023. Looking ahead, our anticipated milestones for our Wi-Fi business in the June quarter include sampling next-generation XBAW filters to Tier 1 enterprise OEM for new Wi-Fi 7 platform, enabling full utilization of UNI 1 through 4 and UNI 5 through 8 bands. Secondly, we expect to receive two additional Wi-Fi 6E7 design WINS. And finally, we plan to sample our new 5.6 gigahertz and 6.6 gigahertz Wi-Fi 67 XBAL filters to multiple customers during the quarter. I will now discuss our progress in our network infrastructure business. During the March quarter, we continued XBAL filter shipments to our 5G small cell infrastructure customer, as well as the U.S. CBRS market. We continue to expect the small cell market to improve in the second half of calendar 2023, and into calendar 2024 as carriers throughout the U.S., Europe, and Middle East and Africa begin to deploy sub-5 gigahertz networks due to the increased data demand. We expect carriers to deploy small cells in greater numbers in 5G networks to expand capacity and improve service. We continue to promote our 5G infrastructure solutions, and I'm pleased to announce today have successfully secured reference design wins with a leading 5G transceiver OEM for multiple XBAL filters. This reference design is targeting Tier 2 small cell OEMs. During the March quarter, we expected to deliver initial samples of a new 5G band 41 network infrastructure filter. While we completed initial samples, we continue to work on the design to improve both power handling and small signal RF response. and plan to ship samples thereafter we are also expecting to receive a development order for a new 5g n77 filter from a tier 1 european 5g network infrastructure oem likely in the current june quarter therefore our milestones for the june quarter are we expect to sample a new band 41 x-ball filter for the u.s small cell market we expect to receive in order for a new 5G N77 XBAL filter for the massive MIMO market. And finally, I would like to provide an update on our defense and other businesses. We made significant strides in our defense and other business segments in the March quarter with the introduction of our new XBAL filter solution that addresses the challenging coexistent requirements of the CV2X spectrum for the automotive market. While we have been involved in the automotive market through our RFMI soft filter catalog components, the introduction of our new expo solution for CV2X should significantly expand our potential TAM and automotive. Our new filter targets the automotive, DSRC 802.11 , high power systems, telematics, and infotainment segments. CV2X operates between 5.855 and 5.925 gigahertz and allows for device-to-device and device-to-network connections for multiple applications aiming at providing safe and effective communication in vehicles. Our new patented filter delivers low insertion loss passband performance and enables high power handling capabilities that establish long-range connectivity for CV2X applications. We began sampling our new CV2X filter solution with tier one and tier two automotive industry leaders and expect to update the investment community as we receive feedback in the coming months. During the March quarter, we also finished qualification of one of two timing control resonator solutions for our first timing control customer. We were expecting to qualify both XBall resonator products but the customer has asked for a relatively large bandwidth shift in one of the two resonators. We expect this will be redesigned and qualified quickly. In our defense contract business, we continue to progress on our existing multi-year, multi-million dollar contract with DARPA to further enhance our XBAR PDK and scale our XBAR technology up to 18 gigahertz. We achieved a critical milestone during the March quarter and are making excellent progress towards scaling our technology to 18 gigahertz with an improved figure of merit. The milestone achieved was enabled by our patented single crystal piezoelectric nanomaterials, which are unique to Acoustis and the ball filter industry. And finally, during the March quarter, we concluded the acquisition of GDSI, which closed on January 1st, 2023. The acquisition brings a new cash flow positive service business to Acoustis with 250 plus customers, significant technical expertise in backend services, and alignment with our strategy to leverage the CHIPS Act to create new jobs and reshore core packaging technology from Asia. We have begun integrating GDSI into our systems and corporate structure and look forward to both leveraging their significant knowledge of back-end workflow and provide the resources necessary to grow the business as advanced semiconductor packaging demands increase in the United States as the CHIPS Act drives reshoring of production back to America. For the June 2023 quarter, our expected milestones in our defense and other business segment include the completion and qualification of the second XBall resonator for our timing control customer. Additionally, we plan to broaden the sampling of our new CV2X filter solution for the automotive market. And finally, we expect to secure $1 million plus new development order from a tier one defense customer for the development of a switch filter module using our XBall filter technology. And now, I would like to hand the call over to Ken to go through our financial highlights