Akoustis Technologies, Inc. (AKTS) stock prices were down by 2.34% as of the market closing on June 18th 2021, bringing the price per share down to USD$10.43 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 11.12%, bringing it up to USD$11.59.
Foundry Agreement
June 21st, 2021 saw the company announced that it had signed a foundry agreement with a mobile RF front-end customer for the manufacture of XBAW filters for 5G mobile handsets and other wireless devices. AKTS will use its patented and proprietary XBAW process to manufacture the new high-frequency RF filter.
Finalizing of Offering
The agreement was finalized after the purchaser evaluated initial filter samples that had been delivered by the company earlier in March of 2021. The company intends to deliver additional samples in the latter half of 2021, utilizing its innovative wafer chip-scale packaging. The purchaser is expected to bump up its volume production by the third quarter of 2022.
Scope of Agreement
The company’s entry into the 5G Mobile Smartphone filter sector has been a significant milestone for ATKS. The agreement is for smartphones and other wireless devices is built on the first pass success with the XBAW filter that had been delivered to ATKS’s second mobile RF front-end customer. The mobile handset BAW filter market has the potential to be the largest intermediate-to-long term opportunity to date in terms of both unit volume and revenue. The agreement facilitates the generation of substantial incremental unit and revenue growth in the second half of 2022 and beyond.
Expansive Growth
The company plans to up its annual production capacity at its New York location to roughly 500 million filters per year by the end of 2021. The company currently boasts a product catalog containing 15 commercial XBAW filters, including the recently introduced 5.6 Ghz and 6.6 GhzWiFi 6E coexistence filter modules. When the filter modules are qualified, they will bring the number of offerings up to 17. The company is also developing various innovative filters for the sub-7 Ghz bands that target 5G mobile device, network infrastructure, WiFi CPE, and defense markets.
Future Outlook for AKTS
Armed with a brand new agreement for its cutting-edge filters, ATKS is poised to continue its trajectory of success. The company is keen to push for the commercialization and proliferation of its expanding catalog of products and services. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
