Akoustis Technologies Inc (NASDAQ:AKTS) stock has hit a distressing 52-week low, dropping to a mere $0.06, as the company faces a tumultuous period in the market. This significant downturn reflects a staggering 1-year change with the stock value plummeting by -93.8%. Investors are showing concern as the company grapples with the factors driving this decline, which has eroded nearly all of its market value over the past year. The sharp fall to this new low point has market watchers closely monitoring Akoustis Technologies, as stakeholders and analysts seek to understand the underlying causes and potential for recovery.
In other recent news, Akoustis Technologies is grappling with significant financial uncertainty following a series of legal setbacks. The company was found liable for trade secret misappropriation and patent infringement in a lawsuit with Qorvo (NASDAQ:QRVO) Inc., resulting in a substantial damages award of approximately $38.6 million and an additional $11.7 million in attorneys' fees. The final financial impact is still under evaluation, and depending on the outcome, Akoustis may need to seek bankruptcy protection.
Simultaneously, Akoustis is facing potential delisting from Nasdaq due to non-compliance with the minimum bid price requirement. However, the company plans to appeal this decision. Despite these challenges, Akoustis has secured multiple orders for its high-band RF filters, including a $13 million order for XBAW® filters for Wi-Fi Access Points, an $8 million order for Wi-Fi 6E and 7 access point filters, and a $2 million order for Wi-Fi 7 routers.
These orders underscore the growing demand for high-speed internet connectivity. In Q3 of FY2024, Akoustis reported a 7% increase in revenue, reaching $7.5 million. B.Riley maintained a Neutral rating for Akoustis Technologies following this earnings report. Lastly, Akoustis launched a direct stock offering of 50 million shares, managed by Roth Capital Partners, as part of its strategic approach to financial management.
InvestingPro Insights
Akoustis Technologies Inc (AKTS) has faced a challenging period, as reflected in the InvestingPro data. The company's market capitalization has been adjusted to a modest $6.23 million, and it has been trading at a very low Price / Book multiple of 0.15. Despite a revenue growth of 24.47% over the last twelve months as of Q3 2024, the company's gross profit margin has been negative at -5.89%, indicating that it has been selling its products at a loss. The stock's performance has been quite poor, with a 1-year total return of -93.71%, signaling a tough road ahead for the company.
InvestingPro Tips suggest that Akoustis operates with a significant debt burden and may have trouble making interest payments on its debt, which is a critical consideration for investors. Additionally, the stock has been identified as trading near its 52-week low, which could be a point of interest for value investors looking for potentially undervalued stocks. However, it's important to note that the company is not expected to be profitable this year, and analysts have concerns about its cash burn rate. For those interested in a deeper dive, there are 17 additional InvestingPro Tips available for Akoustis Technologies, which can be found at https://www.investing.com/pro/AKTS.
The insights provided by InvestingPro highlight the importance of looking beyond just the stock price when evaluating a company's health and potential for recovery. With careful consideration of these metrics and tips, investors can make more informed decisions.
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