Aktis Oncology, Inc.

Good day, ladies and gentlemen, and welcome to the Acoustis Technologies fiscal 2024 third quarter conference call. As a reminder, this conference is being recorded. At the conclusion of the company presentation, Acoustis management will take questions. To ask a question, please press star 1 on your telephone 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.

Thank you, Operator, and good morning to everyone on the call. Welcome to Acousis' third quarter fiscal 2024 conference call. I am Ken Bowler, CFO, and I'm joined today by our founder and CEO, Jeff Shealy, Corporate General Counsel, Drew Wright, and EDP 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 GAAP 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 Shealy, founder and CEO of Acoustus.

Thank you, Ken, and welcome everyone to our FY24 Fiscal Third Quarter Conference Call. Revenue in the March quarter increased 7% sequentially to $7.5 million. Filter-related revenue was up 13% quarter over quarter and was the third highest quarter in the history of the company. During the March quarter, we had two customers that each made up greater than 10% of our reported revenue. XBAL-related sales accounted for the top four customers and six out of the top 10 customers. Our top 10 customers made up 64% of revenue. Our top 25 customers made up 78% of revenue. In terms of regional sales, three out of our top 10 customers were Asia-based. From a regional standpoint, 48% of our sales come from Asia, followed by 39% of sales coming from North America and 13% of our sales coming from Europe. Finally, our top two customers were Asia-based customers and collectively made up 36% of sales. During the March quarter, we unexpectedly experienced a major Wi-Fi 60 program abruptly sunset with one of our carrier customers. We had previously secured a design win with this carrier customer for Wi-Fi 7, and have already received production orders for this platform beginning in the September quarter. Overall, we are tracking nine design wins in Wi-Fi 7 AP platforms, and we see a growing trend to ramp major Wi-Fi 7 programs for enterprise and carrier customers in the second half of 2024. We remain bullish in Wi-Fi 7, and are currently in the early stages of production ramp with multiple tri-band and quad-band programs. As a result, we are guiding the June quarter revenue to be flat to down 5% given the Wi-Fi 6E sunset and eminent transition to Wi-Fi 7. The company continues to focus on expense and cost savings to significantly reduce cash burn moving forward For the March quarter, cash burn was down 31% sequentially. Ken will detail our ongoing activities and impact on reducing our cash burn during his upcoming comments. I would now like to take a moment to discuss updates involving the company's activity related to the CHIPS and Science Act of 2022. Regarding CHIPS Act funding, there are two detailed updates to share with investors. As of the end of the March quarter, we are members of six microelectronics ME Commons hubs funded by the Department of Defense. Membership to these hubs is critical as it allows access to be part of the hub proposal team for new government research programs. We currently have two active research programs under one hub membership. and we are waiting on the decision with the first proposal potentially worth several million dollars annually, beginning in the second half of calendar 2024. Furthermore, we are currently pursuing several new memberships with additional ME hub centers, and we'll detail our efforts and progress moving forward. Second, the CHIPS Act of 2022 includes a provision for a 25% refundable investment tax credit, or CHIPS ITC, on investments in facilities that manufacture semiconductors that were placed in service after December 31st, 2022. We currently estimate the amount of the refundable tax credit applicable to Acoustis to be between $2.8 and $4 million over the next nine to 12 months. Next, I would like to discuss several updates in our primary target markets, beginning with Wi-Fi. Our first milestone for the March quarter was to ramp XBAL filter production for two programs at a Wi-Fi 7 tier one enterprise class OEM. We successfully commenced pre-production deliveries at two ODMs for our customer during the quarter. One of the two programs included our first single crystal filter for enterprise Wi-Fi as it solves a difficult coexistence requirement while providing higher power handling for our customer solution. Our second milestone was to ramp XBall filter production for Wi-Fi 7 with a new tier one enterprise class OEM. While we did not commence ramp, we have received initial purchase orders in support of the program and expect the program to ramp in the September quarter. Our third milestone was to secure a design win for a Wi-Fi 7 solution with a Tier 1 network enterprise class OEM. We completed this milestone and announced two design wins in our press release earlier this month on May 1st. Looking ahead in the June quarter, we expect to ramp XBAL filter production for Wi-Fi 7 with a Tier 1 Enterprise Class OEM. We also plan to secure multiple design wins with a Tier 1 carrier for Wi-Fi 6E and 7. And finally, we expect to release at least seven new XBAL filters into production targeting Wi-Fi 7 tri-band and quad-band architectures. Next, I would like to discuss our recent developments in the 5G mobile market. During the March quarter, we expected to deliver the second of three Wi-Fi filters to our Tier 2 5G mobile RF front-end module-making customer. We have a foundry contract with this customer for a total of three filters. We now have shipped the first two filters. The third filter is still under customer design control and has not yet been released to the foundry. Finally, we continue our engagement with our fifth mobile partner offering our X-Ball process and foundry for their module and discrete product needs. We have shipped this partner multiple X-Ball die for engineering evaluation or a future Wi-Fi 7 multiplexer application for the mobile market. Our anticipated milestone for the June quarter includes securing a purchase agreement with a new tier one Asia partner focused on mobile and other market segments. I will now discuss our progress in our network infrastructure business. During the March quarter, we successfully achieved approved supplier status with two tier one infrastructure customers. Second, we successfully completed NRE development and delivered filters for the 5G N104 7 gigahertz band for massive MIMO architectures to a tier one network infrastructure customer. During the quarter, we experienced softness in XBAL filter shipments to our 5G network infrastructure customers. However, we expect flat growth of shipments for the remainder of calendar 2024 due to slow deployments of 5G small cell infrastructure hardware. For the June quarter, we expect to secure development order for band N104 filter targeting massive MIMO with a tier one customer. Finally, before handing the call off to Ken, I would like to provide an update on our defense and other markets business. As previously mentioned, our biggest success in the defense and other market segment was the introduction of our new XP3F technology, which incorporates a new revolutionary and patented multi-layered nanomaterial that incorporates our single crystal piezoelectric material. This new nanomaterial was developed with funding from the Defense Advanced Research Projects Agency, or DARPA, to scale the XBall technology to frequencies up to 20 gigahertz. During the March quarter, we continued work on our multi-million dollar phase two contract option, which extends our current DARPA coffee program and the funding through December 2024. As a result, during the March quarter, one of our top five customers were in our defense and other business category. In addition, we delivered our new XForge PDK to two defense customers for ongoing foundry engagements to facilitate their upcoming filter designs. Furthermore, we completed the design and sampled new 2.4 gigahertz Wi-Fi CPE automotive XBAL filters to two non-automotive customers. In our contract business, Our proposal on a new multimillion-dollar program with the Office of Naval Research, or ONR, to fund RF filter multiplexers incorporating our XBAW and P3F single-crystal nanomaterials technology has been accepted for award, and we are in the process of finalizing the contract with our customer so that we can begin performing in summer 2024. For the June quarter, In the defense and other market segment, we are expecting to secure our new government contract focused on advanced XP3F filter architectures beyond 20 gigahertz. Further, we expect to secure a CV2X design when with a tier one automotive customer focusing on the European market and we expect to release at least two new XBAL filters into production targeting CV2X and timing applications. And now I would like to hand the call over to Ken to go through our financial highlights.