Aktis Oncology, Inc.

Good day, ladies and gentlemen, and welcome to the Acoustis Technologies Fiscal 2023 Fourth Quarter Conference Call. As a reminder, this conference call is being recorded. At the conclusion of the company's presentation, Acoustis Management will take questions. To ask a question, please press star 1 on your telephone keypad to be placed in the queue. A replay of the call will be available on the Investor Relations section of the Acoustis website. I would now like to turn the floor over to Tom Sapenzis.

Thank you, Operator, and good morning to everyone on the call. Welcome to ACOUSTA's fourth 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 to the most directly comparable gap measure is presented in our earnings call highlight release available in the investor 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 fourth quarter conference call. During the quarter, we were able to deliver our seventh consecutive quarter of record sales as revenue growth in the June quarter was within our guided range of up 10 to 20% sequentially. This was driven by a 41% sequential growth in filter product revenue with continuing Wi-Fi 6E ramps across the enterprise market, increased activity in service provider and consumer markets, as well as shipments to our tier one 5G mobile RF component customer for broad sampling of its multiplexer for 5G mobile devices. Additionally, we experienced a rebound in our soft filter, automotive, and timing control business during the June quarter and expect this business to show further gains moving forward as new products are introduced, which I will describe in greater detail shortly. During the June quarter, we had two customers that made up greater than 10% of our revenue XBAL-related sales accounted for the top five customers and six out of the top 10 customers. Our top 10 customers made up 63% of our revenue. Our top 25 customers made up 77% of revenue. In terms of regional sales, three out of our top 10 customers were Asia-based. Finally, our top two customers in Q4 increased their sequential revenue with Acoustis by 18% and 3% respectively. We are experiencing the same challenging in-market environment that has been noted by many of our customers and industry peers over the past several weeks as high component inventory levels, weak consumer electronics demand, particularly in mobile handsets, and a slower return to office implementation have negatively impacted multiple segments of the consumer electronics industry. This corresponds with a slower than expected rebound in the automotive, 5G mobile devices and network infrastructure, and Wi-Fi markets, with focus weakness in both consumer and service provider markets. As a result, we expect revenue for the September quarter to be down approximately 15%. Despite these macro challenges, We continue to receive new design wins and introduce new products that we expect will facilitate substantial revenue growth over the next 24 months. I would now like to take a moment to discuss the recent developments involving the Chips and Science Act of 2022. Regarding Chips Act funding, 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. Acoustis' current activity includes proposal activity with both the DOC and DOD-related programs for domestic semiconductor manufacturing, R&D, and the commercialization of leading-edge nanotechnologies. As of today, we have submitted one DOD proposal With Acoustis as the lead contractor or hub 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. We currently expect the DoD to announce their award selections by the end of September. Acoustis is seeking to expand its domestic manufacturing footprint, including both semiconductors and advanced packaging, at our New York campus under the DOC CHIPS for America program. We are currently awaiting feedback on our pre-application from the DOC and we expect to file a final application by the end of the calendar year and expect a program in calendar year 2024. We continue to plan our CHIPS application around multiple semiconductor partners which intend to manufacture semiconductor materials wafers and or packaging on our New York manufacturing campus. Next, I would like to discuss several compelling updates in our primary target markets, beginning with Wi-Fi. One of our milestones during the June quarter was to deliver two additional Wi-Fi design wins, and we received four new wins, all of which are expected to ramp over the next 12 months. These design wins include high frequency Wi-Fi 6E and Wi-Fi 7 X-Ball filter solutions, as well as 2.4 gigahertz ball filter solutions. During the June quarter, we began sampling our new 5.6 and 6.6 gigahertz Wi-Fi 6E and Wi-Fi 7 filter solutions to multiple customers. These new parts offer approximately four times size reduction compared to earlier generation parts, and initial feedback has been positive. We have received our first design win for these new filter solutions for a consumer-focused Wi-Fi 6E platform with a multi-user, multiple in, multiple out, or MU-MIMO architecture. We now have multiple catalog and customer Wi-Fi 6E and Wi-Fi 7 XBAL filter solutions that are currently selling in the market. While the overall Wi-Fi market has been impacted over the past 12 months by excess inventory driven by component shortages in 2021 and 2022 and slowing Wi-Fi AP demand post-COVID, we do expect improvement in the next six months with normalized inventory levels returning in calendar 2024. With our continuing design wind traction, as evidenced by the four new design winds in the June quarter, We expect strong growth in our Wi-Fi business to continue in calendar 2024 and beyond. This will be driven by our expanding portfolio of catalog Wi-Fi products in the spectrum covering 2.4 gigahertz to 7.1 gigahertz combined with our ability to rapidly deliver customized solutions. Looking ahead in the September quarter, we expect to receive a design win for next generation Wi-Fi 7 hardware. with a consumer-focused OEM. Further, we also expect to receive a design win for a next-generation Wi-Fi 7 solution with a Tier 1 US-based carrier. And finally, we plan to secure design wins for our Tier 1 enterprise class customers' Wi-Fi 7 suite of routers and access points. Next, I would like to discuss our recent developments in the 5G mobile market. We continue to ship our initial 5G mobile filter to our Tier 1 customer in the June quarter. The customer has been sampling its multiplexer that uses our filter and has been waiting for its chipset reference design partner to launch its baseband into the China market during the June quarter. Our 5G mobile customer brought a Tier 1 smartphone tablet, OEM, to our Canandaigua, New York, FAB to perform its own quality audit of our facility and manufacturing process. We successfully passed the audit, including two offshore assembly and test locations, further validating our technology and manufacturing capability. This was our first audit by a Tier 1 handset OEM, so this was a major milestone for our company. We delivered two newly developed Wi-Fi 7 filter samples to our Tier 2 mobile customer during the June quarter and we continue to expect these filters to be qualified and ready for production in the first half of calendar 2024. These two new filters are being developed using our foundry process with the customer creating its own designs using our advanced machine learning driven AI product development kit or PDK. Our customer has decided it would like to make minor changes to the first design and we expect to begin redesign later this year. Our anticipated milestones for the September quarter include, we expect to receive an order for a 2.4 gigahertz Wi-Fi filter for our tier two 5G mobile RF front end module making customer. I will now discuss our progress in our network infrastructure business. During the June quarter, we continued XBAR filter shipments to our CBRS customers targeting the US market. We are seeing the 5G open radio access network or O-RAN market slow along with the broader RAN market as operators take inventory of existing developments. We do expect the small cell market to improve in calendar 2024 as carriers throughout the U.S., Europe, the Middle East, and Africa begin to deploy sub-5 gigahertz networks due to increased data demands. We expect carriers to deploy small cells in greater numbers in 5G networks to expand capacity and improve service. We had several major developments in our network infrastructure business during the June quarter. First, we successfully delivered samples of seven gigahertz XBAL filters to a tier one European 5G network infrastructure OEM. We were also awarded a development order for a new high band, massive MIMO, filter design from the same tier one OEM aimed at the new seven gigahertz spectrum for 5G base station applications. For the September quarter, we expect to secure a fourth design win in 5G from a new massive MIMO customer. Furthermore, we are currently working to engineer new improved samples of our 5G band 41 and 5G US 3.8 gigahertz network infrastructure filter solutions. We expect to finalize the design and provide samples in the December quarter. And now finally, I would like to provide an update on our defense and other businesses. During the June quarter, we achieved several milestones in our defense and other market segment. We successfully broadened the sampling of our new automotive CV2X XBAW filter solution to multiple customers. While we have been involved in the automotive market delivering RFMI, soft filter, and crystal components, the introduction of our new XBAW solution for CV2X should significantly expand our potential TAM for the automotive market. Our new CV2X filter operates between 5.855 and 5.925 gigahertz and allows for device to device and device to network connections for multiple applications aimed at providing safe and effective communication within vehicles. Our new patented filter delivers low loss performance and enables high power handling capabilities that establish long range connectivity for CV2X applications. We also successfully delivered the second of two resonators for the timing control market after our customers asked for wider bandwidth performance earlier in the year. We are now working on qualifying this resonator and our customer is finalizing the development of its low jitter oscillator product that is aimed at multiple end markets. During the quarter, we were also able to secure a development order for a new millimeter wave XBAL filter for a tier one defense customer. Our biggest success in the defense and other market segment was the introduction of our new XP3F technology which incorporates a new revolutionary multi-layer nanomaterial that incorporates our patented single-crystal piezoelectric material. This new nanomaterial was developed with funding from the Defense Advanced Research Project Agency, or DARPA, to scale the XBAR technology to frequencies up to 18 gigahertz. The new piezoelectric material stack and the accompanying manufacturing process enables high-Q microacoustic wideband with filter solutions that will provide improved coexistence compared to competing high-frequency LTCC, IPD, and PCB solutions. We believe the XP3F technology could present Acoustis with significant opportunities in X-band radar, SATCOM KU band, and upcoming 5G, 6G, FR3 spectrum, and we are receiving significant customer interest in both defense and commercial markets. For the September quarter and the defense and other market segments, we're expecting to secure a design win of at least one of the following. Crystal oscillator, ball filter, and or saw filter used in automotive wireless battery management systems or WBMS solutions, used in a tier one IC reference design, and We also expect to complete the qualification of the second XBall resonator for a timing control customer. And now I would like to hand the call over to Ken to go through our financial highlights.