Akoustis Announces Leadership Transition

Rhea-AI Summary

Akoustis Technologies, Inc. (Nasdaq: AKTS) announced a significant leadership transition on August 8, 2024. Jeffery B. Shealy has mutually agreed to resign as Chief Executive Officer and Board member, effective August 6, 2024. Kamran Cheema, the company's Chief Product Officer since 2022, will serve as interim CEO. Mr. Cheema, who joined Akoustis in August 2021 as VP of Engineering, brings over 30 years of experience in acoustic technology and RF expertise.

Prior to Akoustis, Mr. Cheema was Vice President of Engineering at Qualcomm RF360, overseeing micro-acoustic hardware solutions for the mobile phone market. The Board of Directors, through co-chairman Arthur Geiss, expressed gratitude for Mr. Shealy's years of service and leadership, wishing him well in his future endeavors.

Positive

• Appointment of experienced interim CEO with over 30 years in acoustic technology
• Smooth leadership transition with mutual agreement

Negative

• Departure of long-standing CEO may lead to temporary uncertainty
• Potential disruption in company strategy and operations during transition

Charlotte, NC, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Akoustis Announces Leadership Transition

Charlotte, NC, August 8, 2024 (GLOBE NEWSWIRE) - Akoustis Technologies, Inc. (Nasdaq: AKTS) (“Akoustis” or the “Company”), an integrated device manufacturer (IDM) of patented bulk acoustic wave (BAW) high-band RF filters for mobile and other wireless applications, announced today the mutually agreed resignation of Jeffery B. Shealy as Chief Executive Officer and as a member of the Board of Directors, effective August 6, 2024.

Kamran Cheema, the Company’s Chief Product Officer, will serve as interim Chief Executive Officer. Mr. Cheema has served as Chief Product Officer for the Company since 2022. He joined Akoustis in August 2021 as VP of Engineering, bringing a wealth of RF experience in product design, manufacturing, technology development, program management and quality management with over thirty years of experience in acoustic technology. Before joining Akoustis, Mr. Cheema was the Vice President of Engineering at Qualcomm RF360, where he was responsible for all aspects of micro-acoustic hardware solutions for the mobile phone market. Mr. Cheema holds a MSEE from the University of Central Florida.

“On behalf of the Board and rest of the Company, I wanted to thank Jeff for his many years of service to the Company,” said Arthur Geiss, co-chairman of the Board of Directors. “We are appreciative of Jeff’s expertise and leadership throughout his tenure as Chief Executive Officer and wish him well in his future endeavors.”

About Akoustis Technologies, Inc.

Akoustis® (http://www.akoustis.com) is a high-tech BAW RF filter solutions company that is pioneering next-generation materials science and MEMS wafer manufacturing to address the market requirements for improved RF filters ‒ targeting higher bandwidth, higher operating frequencies and higher output power compared to legacy polycrystalline BAW technology. The Company utilizes its proprietary and patented XBAW^® manufacturing process to produce bulk acoustic wave RF filters for mobile and other wireless markets, which facilitate signal acquisition and accelerate band performance between the antenna and digital back end. Superior performance is driven by the significant advances of poly-crystal, single-crystal, and other high purity piezoelectric materials and the resonator-filter process technology which enables optimal trade-offs between critical power, frequency and bandwidth performance specifications. 

Akoustis plans to service the fast growing multi-billion-dollar RF filter market using its integrated device manufacturer (IDM) business model. The Company owns and operates a 125,000 sq. ft. ISO-9001:2015 registered commercial wafer-manufacturing facility located in Canandaigua, NY, which includes a class 100 / class 1000 cleanroom facility — tooled for 150 mm diameter wafers ‒ for the design, development, fabrication and packaging of RF filters, MEMS and other semiconductor devices. Akoustis Technologies, Inc. is headquartered in the Piedmont technology corridor near Charlotte, North Carolina.

Forward-Looking Statements

This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, each as amended, that are intended to be covered by the “safe harbor” created by those sections. These forward-looking statements include, but are not limited to, statements about our estimates, expectations, beliefs, intentions, plans or strategies for the future (including our possible future results of operations, profitability, business strategies, competitive position, potential growth opportunities, potential market opportunities and the effects of competition), and the assumptions underlying such statements. Forward-looking statements include all statements that are not historical facts and typically are identified by use of terms such as “may,” “might,” “would,” “will,” “should,” “could,” “project,” “expect,” “plan,” “strategy,” “anticipate,” “attempt,” “develop,” “help,” “believe,” “think,” “estimate,” “predict,” “intend,” “forecast,” “seek,” “potential,” “possible,” “continue,” “future,” and similar words (including the negative of any of the foregoing), although some forward-looking statements are expressed differently. Forward-looking statements are neither historical facts nor assurances of future results, performance, events or circumstances. Instead, these forward-looking statements are based on management’s current beliefs, expectations and assumptions, and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those currently anticipated include, without limitation, risks relating to our limited operating history; our inability to generate revenues or achieve profitability; the failure of our common stock to meet the minimum requirements for continued listing on the Nasdaq Capital Market, the impact of a pandemic or epidemic or natural disaster, including the COVID-19 pandemic, the Russian-Ukrainian and Middle East conflicts and other sources of volatility on our operations, financial condition and the worldwide economy, including our ability to access the capital markets; increases in prices for raw materials, labor, and fuel caused by rising inflation; our inability to obtain adequate financing and sustain our status as a going concern; the results of our research and development activities; our inability to achieve acceptance of our products in the market; general economic conditions, including upturns and downturns in the industry; existing or increased competition; our inability to successfully scale our New York wafer fabrication facility and related operations while maintaining quality control and assurance and avoiding delays in output; contracting with customers and other parties with greater bargaining power and agreeing to terms and conditions that may adversely affect our business; the possibility that the anticipated benefits from business acquisitions will not be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of acquired businesses’ operations will be greater than expected and the possibility of disruptions to our business during integration efforts and strain on management time and resources; risks related to doing business in foreign countries, including rising tensions between the United States and China; any cybersecurity breaches or other disruptions compromising our proprietary information and exposing us to liability; our limited number of patents; failure to obtain, maintain, and enforce our intellectual property rights; claims of infringement, misappropriation or misuse of third party intellectual property, including the lawsuit filed by Qorvo, Inc. in October 2021, that, regardless of merit, has resulted in significant expense and a judgment against us for approximately $38.6 million; our inability to attract and retain qualified personnel; the outcome of current and any future litigation; our reliance on third parties to complete certain processes in connection with the manufacture of our products; product quality and defects; our inability to successfully manufacture, market and sell products based on our technologies; our ability to meet the required specifications of customers and achieve qualification of our products for commercial manufacturing in a timely manner; our failure to innovate or adapt to new or emerging technologies, including in relation to our competitors; our failure to comply with regulatory requirements; stock volatility and illiquidity; our failure to implement our business plans or strategies; our failure to maintain effective internal control over financial reporting; our failure to obtain or maintain a Trusted Foundry accreditation or our New York fabrication facility; and shortages in supplies needed to manufacture our products, or needed by our customers to manufacture devices incorporating our products. These and other risks and uncertainties are described in more detail in the Risk Factors and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of the Company’s most recent Annual Report on Form 10-K and in subsequently filed Quarterly Reports on Form 10-Q. Considering these risks, uncertainties and assumptions, the forward-looking statements regarding future events and circumstances discussed in this document may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements included in this document speak only as of the date hereof and, except as required by law, we undertake no obligation to update publicly or privately any forward-looking statements, whether written or oral, for any reason after the date of this document to conform these statements to new information, actual results or to changes in our expectations.

FAQ

Who is the new interim CEO of Akoustis Technologies (AKTS)?

Kamran Cheema, previously the Chief Product Officer, has been appointed as the interim CEO of Akoustis Technologies (AKTS) effective August 6, 2024.

Why did Jeffery B. Shealy resign as CEO of Akoustis (AKTS)?

The press release states that Jeffery B. Shealy's resignation was mutually agreed upon, but no specific reason was provided for his departure from Akoustis (AKTS).

What is Kamran Cheema's background before joining Akoustis (AKTS)?

Before joining Akoustis (AKTS), Kamran Cheema was the Vice President of Engineering at Qualcomm RF360, responsible for micro-acoustic hardware solutions for the mobile phone market. He has over 30 years of experience in acoustic technology.

When did the leadership change at Akoustis Technologies (AKTS) take effect?

The leadership change at Akoustis Technologies (AKTS) took effect on August 6, 2024, with Jeffery B. Shealy's resignation and Kamran Cheema's appointment as interim CEO.