Shareholders were anxious to hear from the management of Energous Corporation
(WATT: Nasdaq)
during the company’s regularly scheduled earnings conference call held this
week. Needed was an update on the much
anticipated debut of the company’s WattUp
wire-free charging technology in mobile devices. Energous’ product plans have morphed over the
years as one limitation after another was discovered both by Energous engineers
as well as those employed by prospective customers.
Indeed, the
stock has traded off in recent weeks as a short-seller report made the rounds,
alleging design failures of one sort or another. The WattUp
receivers rely on multiple antennas to collect micro energy beams created by a
radio frequency (RF) transmitter. The key to success in the charging system is
how Energous engineers have designed a ‘pocket-forming’ technology that directs
the energy to the receiver by changing the shape and content of the RF waves. The receiver chip set then converts the RF
signal to a direct current (DC).
Energous
management did not disappoint - at least in terms of an update. During the conference call this week discussing financial results in the
second quarter ending June 2017, Energous announced receipt of the first orders
for production quantities of chipsets incorporating its WattUp wireless charging technology. Shipments to customers are scheduled for the
quarter ending September 2017. Final
products with the WattUp technology
on-board are expected to reach consumers before the end of 2017.
Shareholders have long awaited first commercial orders
for the WattUp technology. Additional accomplishments in the quarter
suggest that the business pipeline could produce additional orders. Active customer engagements increased to 76
in the quarter from 68 in the previous three months. The Company also claimed milestones were
reached on projects with strategic partners that are aimed at commercial sales. One glitch in the commercialization process
is the fact that Energous has yet to receive all required regulatory
approvals. Tests are planned to
demonstrate compliance with Federal Communications Commission regulations for
substantial power-at-a-distance transmitters.
While the Company does appear to be near full commercial
production and sales, shareholders appear unimpressed. On the quarter
announcement, the stock began a slide down, setting a new 52-week low in the
final day of trading last week. Granted
there was something of a downdraft last week in the small-cap sector related to
broader market issues. However, we
believe the old axiom ‘buy on rumor, sell on news’ might have been at play in
trading of WATT last week. For those who
are contrarian minded, this might be the opportunity to snap up shares of ahead
of Energous entering full commercial stage.
1 comment:
I enjoy your blog, Ms. Fiakas. I am tempted to add shares while they are near 52 week lows, but anticipate a large drop if there is no mention of Energous at Apple's keynote event next month. Do you have any thoughts on the likelihood of WhatUp tech being integrated into any Apple products this year or any year?
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