WiSA Technologies Reports Q4 and Full Year 2022 Results
WiSA Technologies, Inc. (WISA) reported Q4 2022 revenue of $0.9 million, unchanged from Q3 2022, significantly down from $2.0 million in Q4 2021. The gross margin plummeted to 2% from 30% a year ago, attributed to excess inventory and sluggish consumer spending on electronics. The company anticipates $1.1 million lower operating expenses in Q1 2023 due to reduced discretionary spending. Despite current challenges, WiSA expects revenue growth in 2023 driven by new product introductions and replenished inventories. Recent highlights include successful demonstrations of their technology at CES 2023 and ongoing customer interest in their product portfolio.
- Anticipating $1.1 million lower operating expenses in Q1 2023.
- Expecting revenue growth in 2023 based on new product launches.
- Successful demonstrations at CES 2023 indicating strong customer interest.
- Q4 2022 revenue declined to $0.9 million from $2.0 million in Q4 2021.
- Gross margin decreased to 2% compared to 30% in Q4 2021 and 14% in Q3 2022.
- Excess inventory reported due to sluggish consumer spending.
- Advances WiSA E for TVs to transmit Immersive Audio without an HDMI cable or Soundbar -
- Expects approximately
“Q4 2022 revenue was
Growing Customer Interest and Engagement
“WiSA continues to drive industry innovation in immersive audio at all price points. Our world class engineering team continues to develop and advance WiSA E, our interoperable IP targeted for licensing and to run on third-party chips as well as our own modules, enables superb audio transmission without an HDMI cable,” said Moyer. “Beta samples for WiSA E have shipped to our first customer, and we expect to ship to the next three customers in Q2 2023.
“WiSA made a strong showing at CES in
Q4 2022 Financial Highlights
-
Q4 2022 revenue was
$0.9 million $2.0 million $0.9 million -
Q4 2022 gross margin as a percentage of sales was
2% , compared to30% in Q4 2021 and14% in Q3 2022. -
On
December 1, 2022 , we closed a public offering for gross proceeds of approximately$7.6 million -
At
December 31, 2022 , cash and cash equivalents were$2.9 million
On
Revenue Guidance
While current industry conditions provide limited visibility and the first half of the year is typically a seasonally slow period,
Q4 2022 and Recent Highlights
-
Demonstrated Dolby
Atmos Music was trending with the Dolby Atmos at the LD Micro Main Event XV. - Premiered WiSA Association’s latest category expansion at CEDIA Expo 2022, where members won multiple awards.
- Platin Audio debuted the world’s first wireless Dolby Atmos enabled WiSA Certified speaker system.
- Launched a new App delivering powerful and intuitive control of WiSA-Enabled TVs, Soundbars, and External Transmitters.
-
Platin Audio showcased its New Monaco 5.1.2 at B&H Photo Video SuperStore in
New York City . -
At CES 2023, demonstrated:
- WiSA’s multichannel audio software IP running on an Android TV SoC Platform
- WiSA E 5GHz multichannel audio software running on a Realtek wireless chip
- A wireless 5.1.4 Dolby Atmos soundbar system platform powered by WiSA DS.
- Began shipping WiSA E multichannel audio development kits to initial Beta customers.
- Mesanovic’s latest studio monitor speaker earned WiSA HT Interoperability Certification.
- Pylon Audio’s Jasper loudspeakers line earned WiSA HT Interoperability Certification.
WiSA Technologies Investor Conference Call
Management will hold a conference call to discuss the results and provide a business update at
WiSA Technologies Fourth Quarter 2022 Results webcast
Those without internet access or who wish to dial in may call: 1-877-270-2148 (domestic), or 1-412-902-6510 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the
A webcast replay of the call will be available approximately one hour after the end of the call and will be available for one year, at the above webcast link. A telephonic replay of the call will be available through
A presentation of the Q4 2022 results will be accessible on
About
© 2023
Safe Harbor Statement
This press release contains forward-looking statements, which are not historical facts, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements, including statements herein regarding revenue growth, future operating expenses, design production, licensing opportunities, shipment of our interoperable IP, product and app launches, are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting WiSA Technologies’ business, including our ability to predict the timing of design wins entering production and the potential future revenue associated with our design wins; our rate of growth; our ability to predict direct and indirect customer demand for our existing and future products and to secure adequate manufacturing capacity; our ability to hire, retain and motivate employees; the effects of competition, including price competition within our industry segment; technological, regulatory and legal developments that uniquely or disproportionately impact our industry segment; developments in the economy and financial markets; current macroeconomic uncertainties associated with the COVID-19 pandemic; our inability to predict or measure supply chain disruptions resulting from the COVID-19 pandemic and other drivers; and other risks detailed from time to time in WiSA Technologies’ filings with the
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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For the years ended |
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(in thousands, except share and per share data) |
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(unaudited) |
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Year Ended |
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2022 |
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2021 |
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Revenue, net |
|
$ |
3,365 |
|
|
$ |
6,541 |
|
Cost of revenue |
|
|
2,970 |
|
|
|
4,677 |
|
Gross profit |
|
|
395 |
|
|
|
1,864 |
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|
|
|
|
|
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Operating Expenses: |
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|
|
|
|
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Research and development |
|
|
7,144 |
|
|
|
5,236 |
|
Sales and marketing |
|
|
6,140 |
|
|
|
4,123 |
|
General and administrative |
|
|
5,155 |
|
|
|
4,016 |
|
Total operating expenses |
|
|
18,439 |
|
|
|
13,375 |
|
Loss from operations |
|
|
(18,044 |
) |
|
|
(11,511 |
) |
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Interest expense, net |
|
|
(898 |
) |
|
|
(9 |
) |
Change in fair value of warrant liability |
|
|
2,852 |
|
|
|
— |
|
Change in fair value of derivative liability |
|
|
(47 |
) |
|
|
— |
|
Gain on forgiveness of Paycheck Protection Program loan |
|
|
— |
|
|
|
859 |
|
Other expense, net |
|
|
(12 |
) |
|
|
(11 |
) |
Warrant inducement expense |
|
|
— |
|
|
|
(1,146 |
) |
Loss before provision for income taxes |
|
|
(16,149 |
) |
|
|
(11,818 |
) |
Provision for income taxes |
|
|
2 |
|
|
|
2 |
|
Net loss |
|
|
(16,151 |
) |
|
|
(11,820 |
) |
Convertible preferred stock dividend |
|
|
— |
|
|
|
(34 |
) |
Deemed dividend on exchange of convertible preferred |
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|
|
|
|
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stock for common stock |
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|
— |
|
|
|
(1,192 |
) |
Net loss attributable to common stockholders |
|
$ |
(16,151 |
) |
|
$ |
(13,046 |
) |
Net loss per common share - basic and diluted |
|
$ |
(82.89 |
) |
|
$ |
(105.20 |
) |
Weighted average number of common shares used in computing net loss per common share |
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|
194,852 |
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|
|
124,016 |
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Note: Share and per share amounts have been retroactively adjusted to reflect the impact of a 1-for-100 reverse stock split effected in |
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FAQ
What were WiSA's Q4 2022 financial results?
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What is WiSA's revenue guidance for 2023?
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