Summit Wireless Technologies Inc (NASDAQ: WISA) is having a strong start in the premarket hours this morning, and for good reason. The company provided its preliminary revenue results for the fourth quarter, exciting investors. Here’s what’s going on:
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- Summit Wireless Technologies Provides Preliminary Q4 Results
- Management Commentary
- This News Is Huge
- Final Thoughts
Summit Wireless Technologies Provides Preliminary Q4 Results
In the press release, Summit Wireless Technologies, founding member of the WiSA Association, announced its preliminary revenue for the fourth quarter, which ended on December 31, 2020. The company also provided guidance for the first quarter, setting the stage for tremendous growth.
In the fourth quarter, WISA said that it expects revenue to exceed $1 million. Should this be the case, it will represent an increase of at least 130% year over year from $430,000 in Q4 of 2019.
The company went on to say that the year-over-year growth is primarily attributed to an increase in volumes of modules for consumer electronics companies as a result of new customer design wins, enabling mainstream consumers and audio enthusiasts to experience high-quality audio.
In a statement, Brett Moyer, CEO at WISA, had the following to offer:
The record preliminary revenues of over $1.0 million for the fourth quarter of 2020 is testament to the unique value that our technology brings to both partners and the end-consumer in delivering a fully immersive, cost-effective audio experience. We attribute some of this success to the brand recognition and sheer number of consumers visiting both our website, as well as brand websites, which increased over 85% to more than 185,000 in the last quarter of 2020. This sharp increase demonstrates the power of our WiSA Wave marketing program and asserts that consumers are starving for a seamless, easy to set up home audio experience that only WiSA technology can provide.
We expect the momentum that we established in 2020 to accelerate well into the future, with first quarter 2021 revenues expected to grow over 100% when compared to the same year-ago quarter.
Guidance also proved to be a big hit. The company said that in the first quarter, which ends March 31, 2021, it expects to generate a more than 100% increase in revenue year-over-year, with revenues topping $822,000.
It’s important to keep in mind that the first quarter typically has the lowest seasonality for customers and shipments.
quarter typically has the lowest seasonality for customers and shipments.
This News Is Huge
The bottom line here is simple. Summit Wireless Technologies is firing on all cylinders in the process of creating a home entertainment ecosystem surrounding quality sound.
Throughout the past year, the company has added several members to the WiSA Association, both on the television side of the coin and on the speakers side of the coin. Moreover, the company announced the launch of the Association’s first branded product, and now, all of that work is paying off with revenues more than doubling on a year over year basis, and more of the same expected ahead.
All in all, if you’re not paying attention to WISA stock yet, now is the time to start. The company is changing the way we view home sound, creating an ecosystem around its brand, much like what we saw Apple do in the smartphone space and Google do in the digital world.
The creation of this ecosystem is paying off in a big way, with revenues climbing and no signs of that climb slowing, making WISA stock one for the books.
Disclaimer. The author is not a financial advisor or broker/dealer. This article outlines the views of the author, and not necessarily those of the outlet on which it was published or the companies mentioned within the article. CNA Finance has a monetary relationship with Summit Wireless Technologies. Summit Wireless Technologies played no role in the development, review, or editing of the above article.