BEAVERTON, Ore. - WiSA Technologies, Inc. (NASDAQ: WISA), a pioneer in wireless sound technology for home entertainment systems, has announced a significant increase in its preliminary revenue for the third quarter of 2024. The company estimates that its revenue will reach between $1.0 million and $1.2 million, marking a substantial rise from the $0.3 million reported in the second quarter of the same year.
The projected growth exceeds 200% on a sequential basis, attributed to the sales of WiSA's multichannel wireless audio technology. This leap is partly due to the production integration of WiSA's technology by a multi-national licensee, which has incorporated both the WiSA E software into their source device and the WiSA E module into their speakers. According to Brett Moyer, CEO of WiSA Technologies, the activation of the WiSA E transmit functionality leads to royalty payments and generates additional revenue from the sale of WiSA E-enabled receiver modules.
WiSA has secured five licensing agreements for its WiSA E technology and aims to reach eight by the end of 2024. Moyer emphasized the company's strategy to license a significant portion of Android-based HDTVs and to build an ecosystem of WiSA E-enabled speaker systems, aiming to penetrate multiple end markets through top-tier licensing partners.
The company is scheduled to file its Form 10-Q for the third quarter on November 14, 2024, and will host an investor conference call the following morning. WiSA has cautioned that the preliminary financial information is subject to completion and has been prepared in good faith but could materially differ from the final results.
WiSA Technologies, based in Beaverton, Oregon, collaborates with leading consumer electronics brands and manufacturers to deliver immersive wireless sound experiences. The company is a founding member of the Wireless Speaker and Audio Association, which aims to define interoperability standards for wireless audio.
This revenue forecast serves as a forward-looking statement, and as such, it comes with inherent uncertainties. The company has advised that investors should not rely solely on these preliminary figures and should await the full financial statements prepared in accordance with United States generally accepted accounting principles. The information in this article is based on a press release statement from WiSA Technologies, Inc.
In other recent news, WiSA Technologies has experienced significant changes in its executive team and financial operations. The company announced the appointment of Stanley Mbugua as Vice President of Finance and future Chief Accounting Officer, succeeding Gary Williams who is set to leave the company on November 30, 2024. Mbugua, with his extensive experience in financial operations, is expected to play a key role in WiSA's financial future.
Furthermore, WiSA Technologies has extended the warrant exercise period and issued new common stock purchase warrants. The company has also entered into agreements resulting in the issuance of additional warrants and the amendment of existing ones. These developments are part of WiSA's strategic financial adjustments.
On the product front, WiSA Technologies launched WiSA E, a new technology for wireless immersive audio transmission. The company has already secured five licenses for WiSA E, anticipating revenue later this year. In addition to these, WiSA Technologies has regained compliance with Nasdaq's equity listing rule, following a decision by the Nasdaq Hearing Panel.
Other recent shifts within the company include the appointment of Kimberly Briskey to the Board of Directors. These are among the recent developments at WiSA Technologies, as the company continues to navigate its transitional phase.
InvestingPro Insights
While WiSA Technologies' preliminary revenue forecast for Q3 2024 shows promising growth, it's crucial to consider this information alongside current financial metrics and expert insights. According to InvestingPro data, WiSA's revenue for the last twelve months as of Q2 2024 stood at $1.79 million, with a concerning revenue growth decline of -34.87% during the same period.
InvestingPro Tips highlight that WiSA is "quickly burning through cash" and "suffers from weak gross profit margins." These factors may pose challenges to the company's financial health, despite the projected revenue increase. The gross profit margin for the last twelve months as of Q2 2024 was notably negative at -115.99%, underscoring the company's struggle with profitability.
On a more positive note, an InvestingPro Tip indicates that WiSA "holds more cash than debt on its balance sheet," which could provide some financial flexibility as the company pursues its growth strategy. Additionally, the stock has seen a "significant return over the last week," with a 1-week price total return of 10.19% as of the latest data.
For investors seeking a comprehensive analysis, InvestingPro offers 16 additional tips for WiSA Technologies, providing a deeper understanding of the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.