Akoustis Signs Strategic Purchase Agreement with New Tier-1 OEM for WiFi 6E

Rhea-AI Summary

Akoustis Technologies (AKTS) has entered a strategic purchase agreement with a tier-1 enterprise WiFi OEM customer for new WiFi 6E XBAW filters operating above 5 GHz. These filters will function within the recently approved 6 GHz unlicensed spectrum for next-generation WiFi 6E applications. Initial product design has commenced, with sample delivery expected by December 2020. The company aims to capture significant market opportunities in the emerging WiFi 6E sector as demand for high-frequency filters rises.

Positive

• Strategic agreement with tier-1 enterprise WiFi OEM for WiFi 6E filters.
• Anticipated delivery of samples by December 2020, indicating progress.
• Targeting inclusion in enterprise-class WiFi CPE products for production in H1 2021.
• Development of XBAW filters expected to capitalize on the newly approved 6 GHz spectrum.

Negative

• None.

– Includes Development of Multiple XBAW RF Filters for Multi-Band MU-MIMO Architectures –
– Next Generation Filters Target Newly Approved 6 GHz Unlicensed Spectrum for High-Speed Enterprise WiFi 6E Applications –
– Company Expects Delivery of First Samples by December 2020 –

Charlotte, N.C., June 11, 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 signed a strategic purchase agreement with a new tier-1 enterprise WiFi OEM customer for multiple, new WiFi 6E XBAW^TM filters operating above 5 GHz.

The new filters will operate within the existing 5 GHz unlicensed spectrum as well as the 5.9-7.1 GHz bands recently approved by the FCC for next generation WiFi 6E CPE devices. Product design for each of these new filters has begun and Akoustis expects to deliver first samples by December 2020 for characterization and final customer acceptance. The XBAW^TM filters target inclusion in enterprise-class WiFi CPE products that are expected to go into production in the first half of calendar 2021.

Akoustis is developing these new XBAW^TM filters in parallel to standard WiFi 6E filters currently in development for catalog customers, including the 5.5 GHz filter  module announced on June 8, 2020.

Jeff Shealy, founder and CEO of Akoustis, commented, “We are excited to add our fifth tier-1 engagement. We believe there is a significant opportunity for our patented XBAW™ filters in the emerging WiFi 6E filter market. Our initial success with our first-to-market tandem 5.2 and 5.6 GHz WiFi filters has led to significant interest for our WiFi 6E filters for the newly unlicensed 6 GHz spectrum.”  Mr. Shealy continued, “As WiFi 6E emerges, customers are looking to make use of the new spectrum utilizing multiple architectures, which is driving the demand for new high-frequency, ultra-wide bandwidth BAW filters. Akoustis remains positioned to be a valued supplier to this developing high-volume commercial market.”

The FCC announced in late April the approval of 5.925-7.125 GHz for unlicensed use, which is the largest spectrum addition since the FCC allocated unlicensed spectrum for WiFi in 1989.  The next generation of WiFi that is expected to use these new frequency bands is called WiFi 6E.  This approval will create another significant new band, or combination of bands, over the next several years.

In advance of the April FCC approval, Akoustis has been developing filters to support the emerging WiFi-6E market. The Company has been active in developing wide bandwidth piezoelectric materials, device models, RF filter designs and has filed key patents surrounding its approach to WiFi 6E RF filters.

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

Akoustis has added 13 filters to its product catalog including a 5.6 GHz WiFi filter, a 5.2 GHz WiFi 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," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," “intend,” “forecast,” “seek,” "potential," "continue" and similar words, although some forward-looking statements are expressed differently. Forward-looking statements are neither historical facts nor assurances of future performance. 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 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 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; the rate and degree of market acceptance of any of our products; our ability to achieve design wins from current and future customers; 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; and the effects of a pandemic or epidemic or a natural disaster, including the Covid-19 pandemic. 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.

Contact:

COMPANY:
Tom Sepenzis
Akoustis Technologies
VP of Corporate Development & IR
(980) 689-4961
tsepenzis@akoustis.com

The Del Mar Consulting Group, Inc.
Robert B. Prag, President
(858) 794-9500
bprag@delmarconsulting.com

FAQ

What is the recent strategic agreement of Akoustis Technologies (AKTS)?

Akoustis Technologies has signed a strategic purchase agreement with a tier-1 enterprise WiFi OEM customer for new WiFi 6E XBAW filters.

When does Akoustis expect to deliver samples of its new filters?

The company expects to deliver the first samples of its new filters by December 2020.

What markets are Akoustis’ new filters targeting?

The new filters target the newly approved 6 GHz unlicensed spectrum for WiFi 6E applications.

What type of filters is Akoustis developing?

Akoustis is developing XBAW filters for multi-band MU-MIMO architectures.

What is the significance of the FCC's approval related to Akoustis Technologies (AKTS)?

The FCC's approval of the 5.925-7.125 GHz band for unlicensed use is significant as it opens up opportunities for next-generation WiFi 6E products, which Akoustis is positioned to supply.