Akoustis Awarded New DARPA Contract to Advance XBAW Technology

Rhea-AI Summary

Akoustis Technologies (NASDAQ: AKTS) has secured a multi-year contract from DARPA under the Direct-to-Phase-2 program to develop a Piezo MEMS process design kit for its proprietary XBAW™ process. This initiative aims to enhance the design and fabrication of BAW structures, potentially leading to new applications in RF filters for both commercial and defense markets. Upon completion, DARPA may fund a Phase 3 program to support customer engagements using the new PDK. With growing interest in its XBAW™ technology, Akoustis is expanding its product catalog to include various RF filters, targeting the rapidly evolving 5G and WiFi markets.

Positive

• Awarded a multi-year contract from DARPA for Piezo MEMS development.
• Expansion of technology applications through a new design kit for BAW structures.
• Potential to engage multiple customers post-program completion.
• Growing interest in XBAW™ technology with production in multiple markets.
• Addition of 15 new filters to product catalog targeting 5G and WiFi markets.

Negative

• None.

– Defense Advanced Research Projects Agency (DARPA) Is the Premier Government Agency Making Pivotal Investments in Breakthrough Technologies for National Security –
– Direct-to-Phase-2 Program to Facilitate MEMS Development, Produce Novel Piezoelectric Materials and Device Designs for Commercial and Defense Markets –

Charlotte, N.C., Oct. 27, 2020 (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 that it has been awarded a new, multi-year direct-to-phase 2 (DP2) contract from DARPA to further develop Akoustis’ technology through the development of a Piezo MEMS process design kit (PDK) for the Company’s proprietary and patented XBAW™ process.

The DP2 program of the Small Business Innovation Research (SBIR) contract will be dedicated to developing a general purpose PDK that will enable BAW and other similar MEMS structures to be designed and fabricated using the Company’s state-of-the-art XBAW™ process. The proposed Piezo MEMS PDK will encompass all aspects of the Company’s process technology ranging from material properties, process rules for stack dimensions, process control monitoring, design rule checking, and example device models.

Upon successful completion of the DP2 program, DARPA may choose an option to fund a phase 3 program. This option supports multiple customer engagements leveraging the new PDK to create devices and circuits, including RF filters, using the Company’s XBAW™ process.

Jeff Shealy, Founder and CEO of Akoustis, stated, “We are honored to receive this contract award from DARPA to further develop the XBAW™ platform and expand the reach of our technology to facilitate new customers.” Mr. Shealy continued, “This will greatly expand the opportunities for XBAW™ moving forward as other designers will be able to develop new products utilizing novel piezoelectric materials and substrates outside of our current targets, which could lead to new opportunities in adjacent fast growing markets.”

Akoustis’ high frequency, high performance XBAW™ process and filters are experiencing growing interest as the Company has entered production in multiple markets in calendar 2020, including 5G network infrastructure, high-band WiFi and phased-array radar applications.

Akoustis has added 15 filters to its product catalog including a 5.6 GHz WiFi filter, a 5.2 GHz WiFi filter, a 5.5 GHz WiFi-6E filter, a 6.5 GHz WiFi 6E filter, three small cell 5G network infrastructure filters including two Band n77 filters and one Band n79 filter, a 3.8 GHz filter and five S-Band filters for defense phased-array radar applications, a 3.6 GHz filter for the CBRS 5G infrastructure market and a C-Band filter for the unmanned aircraft systems (UAS) market. The Company is also developing several new filters for the sub-7 GHz bands targeting 5G mobile device, network infrastructure, WiFi CPE and defense markets.

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 incumbent polycrystalline BAW technology deployed today. The Company utilizes its proprietary 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 high-purity, single-crystal and associated piezoelectric materials and the resonator-filter process technology which drives electro-mechanical coupling and translates to wide filter bandwidth. 

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 120,000 sq. ft. ISO-9001:2015 certified 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, 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, 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," "estimate," "predict," “intend,” “forecast,” “seek,” "potential," "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 ability to obtain adequate financing and sustain our status as a going concern; our limited operating history; the results of our research and development activities, including uncertainties relating to semiconductor process manufacturing; the development of our XBAW^TM technology and products presently under development and the anticipated timing of such development; our ability to protect our intellectual property rights that are valuable to our business, including patent and other intellectual property rights; our reliance on third parties to complete certain processes in connection with the manufacture of our products; product quality and defects; existing or increased competition; our ability to successfully manufacture, market and sell products based on our technologies; the ability to achieve qualification of our products for commercial manufacturing in a timely manner and the size and growth of the potential markets for any products so qualified; our ability to successfully scale our New York wafer fabrication facility and related operations while maintaining quality control and assurance and avoiding delays in output; the rate and degree of market acceptance of any of our products; our ability to achieve design wins from current and future customers; contracting with customers and other parties with greater bargaining power and agreeing to terms and conditions that may adversely affect our business; risks related to doing business in foreign countries; any security breaches or other disruptions compromising our proprietary information and exposing us to liability; our ability to raise funding to support operations and the continued development and qualification of our products and the technologies underlying them; our ability to service our outstanding indebtedness represented by our $25.0 million principal amount of senior convertible notes due in 2023; and the impact of a pandemic or epidemic or a natural disaster, including the COVID-19 pandemic, on our operations, financial condition and the worldwide economy, including its impact on our ability to access the capital markets; our ability to maintain effective internal control over financial reporting; and our ability to obtain and maintain the Trusted Foundry accreditation of our New York wafer fabrication facility. 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

What contract has Akoustis Technologies (AKTS) received from DARPA?

Akoustis Technologies has been awarded a multi-year Direct-to-Phase-2 contract from DARPA to develop a Piezo MEMS process design kit for its XBAW™ technology.

How will the DARPA contract help Akoustis Technologies (AKTS)?

The DARPA contract will facilitate the design and fabrication of BAW structures, expanding Akoustis's technology applications and potentially leading to new customer opportunities.

What is the significance of the new Piezo MEMS design kit for Akoustis (AKTS)?

The Piezo MEMS design kit will enable the design and fabrication of advanced RF filters and similar MEMS structures, enhancing market reach and product development capabilities for Akoustis.

What markets is Akoustis Technologies (AKTS) targeting with its new RF filters?

Akoustis is targeting the 5G network infrastructure, high-band WiFi, and defense phased-array radar applications markets with its new RF filters.

What does the award from DARPA mean for Akoustis Technologies' future?

The award from DARPA represents a significant advancement for Akoustis, potentially paving the way for further funding and partnerships in developing innovative RF filter technologies.