Summit Wireless Technologies Inc (NASDAQ: WISA) is headed up in the premarket hours this morning, and for good reason. The company announced the launch of a new internet of things (IoT) transceiver module. Here’s what’s going on:
Skip to What You Want to Read
- Summit Wireless Announces IoT Launch
- Management Commentary
- Why This News Is So Exciting
- What Analysts Think About WISA Stock
- Final Thoughts
Summit Wireless Announces IoT Launch
In the press release, Summit Wireless Technologies said that it launched a new IoT transceiver module. The module was designed for low-cost wireless audio transmission from TVs and soundbars to surround sound systems and subwoofer speakers for an immersive sound experience.
WISA said that the new module is named “Discovery” and is powered by its advanced Wi-Fi compliant software. The software is designed for fixed low latency wireless audio transmission.
WISA went on to explain that the transceiver module will keep up to four independent wireless audio channels perfectly synchronized in a room size up to 10 meters square. As such, Discovery is ideally suited for entry level home entertainment systems, including soundbars, TVs, subwoofers and dolby atmos applications.
The Discover module introduces a new wireless speaker pairing process option called ConexUsTM. With the simple push of a button, consumers can pair speakers and assign their correct audio channel. In general, the pairing process takes less than 60 seconds once the speakers are powered and placed in the desired home theater configuration.
Importantly, the ConexUs pairing process simplifies the consumers’ out of the box experience by eliminating the need for router access, network passwords, special user interfaces or mobile applications.
In a statement Tony Parker, VP of Business Development & Strategy at Summit Wireless Technologies, had the following to offer:
In today’s world consumers are investing in their sanctuaries, and home entertainment has become a priority. To date, however, the cost and complexity of setup for surrounds and subwoofer speakers prevented mass market adoption beyond a basic soundbar. The new Discovery module significantly lowers the integration cost hurdle for adding wireless speakers to soundbars and TVs that consumers are demanding. ConexUs gives them the confidence to set up the system themselves without the added expense of hiring a custom installer.
The above statement was followed up by Hoffei Hou, CEO at EDOM Technology. Here’s what he had to say:
As a semiconductor agent and distributor, we have our fingers on the pulse of latest trends, and we are seeing a growing demand for cost effective, wireless home entertainment solutions. As the primary distributor for Summit Wireless’ Discovery module in ASIA we are excited to bring the new module to our customer base and feel it will fill a critical market need for robust wireless connectivity.
Why This News Is So Exciting
The news released by WISA this morning is overwhelmingly positive. Over the past several years, the company has been working with the goal of making high-quality, immersive sound, available in the average consumer’s household.
The company’s Discovery module further expands its ability to do just that. Let’s not forget, WiSA Ready televisions and certified speakers are already capable of connecting on a wireless plug and play basis. Now, the company is greatly expanding its audience, giving consumers a way to incorporate their current televisions, whether WiSA Ready or not, soundbars, and other products, into their immersive sound experience.
All in all, the Discovery module only serves to greatly expand the company’s target audience, setting the stage for strong revenue growth ahead.
What Analysts Think About WISA Stock
While it’s never a good idea to blindly follow the opinions of analysts, or any other expert for that matter, it is a good idea to use these opinions to validate your own. In terms of WISA stock, analysts have an overwhelmingly positive opinion.
According to TipRanks, there are currently two analysts weighing in on WISA stock, both of whom rate the stock a Buy. Furthermore, the average price target on the stock is sitting at $4.25. However, this price target was provided prior to today’s Discovery announcement and prior to the recent launch of the WiSA SoundSend dongle. Both of these products have the potential to greatly expand the company’s audience and potential revenue growth and should be accounted for in the price target. As such, when these analysts review the company, I’m expecting that the price target will be increased.
The bottom line here is simple. Summit Wireless Technologies is setting the stage for tremendous growth ahead. As a result of the COVID-19 pandemic, spending on home entertainment is higher than it ever has been. With simplified options to enjoy immersive home theater sound, it only makes sense that demand for both SoundSend and Discovery will increase rapidly, offering up an opportunity for WISA to generate significant revenue ahead.