Energous Corporation (NASDAQ:WATT) Q2 2023 Earnings Call Transcript

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Cesar Johnston: So we still guide in that direction. We are loaded towards the second half of the year. We have those validation – proof-of-validation system. Some of those are moving really, really well. So we will be updating you in the next quarter on where we are with those.

Suji Desilva: Okay. Can I just ask my last question there. Will there be more than one production system contributing to revenue in 4Q? Is that the expectation built into your guidance?

Cesar Johnston: That is the expectation based on what we have right now. And it’s at this point in time, a function of the customer’s decision-making. And some of those are, by the way, related to the Fortune 100 company we’ve been working with.

Suji Desilva: Okay. Very helpful, Cesar. Thank you, Cesar. Thank you, Susan.

Cesar Johnston: Thank you. Thank you, Suji.

Operator: Our next question comes from Jon Hickman with Ladenburg. Please go ahead.

Jon Hickman: Most of my questions were already asked, but I do — could you maybe speak to the fact that now you have 20 of these proof-of-concept programs in summer are farther along than that. Is it getting easier for the customers to do their validation because of previous work?

Cesar Johnston: Yes, definitely. We are way much more experience on the requirements and on the installations. We’ve done a number of them by now. So in many cases, we are able to go and set them up way much faster than we usually. We have situations where within 24 hours, 48 hours, we can actually set them up and show the capability and the feasibility of our technology, which, by the way, compared to other old technologies, it is far superior when it comes to visibility and coverage.

Jon Hickman: And do you have the manpower for like a proof-of-concept to double by the end of the year to 40. Could you handle that?

Cesar Johnston: Yes. Yes, we can. In fact, as you pointed out, as we move forward, what we’ve done as part of the strategy is try to focus ourselves into a very limited number of products, and that includes our one-watt, two-watt systems. They’re all the same. They’re not changed pretty much. We just step and repeat that. And how we install and how we deploy the technology is something where we have developed internal tools that are unique to our industry and allow us to pretty much know what the best places and what the best locations are. And working with those customers, we have very, very clear technical guidelines that actually have saved tremendous amounts of time. And yes, I mean, if we have to double, we are prepared for that. Yes.

Jon Hickman: Okay. Thank you.

Cesar Johnston: Thank you, Jon. Appreciate it.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Cesar Johnston for any closing remarks.

Cesar Johnston: Thank you. Energous continues progressing as we lead in the emergence of IoT wireless power networks and towards removing the need for batteries and cables. We continue to innovate in developing novel solutions used in our advanced technologies and robust intellectual property, resulting in this quarter in the two-watt PowerBridge transmitter enhancements, which positions the company as a leader in power charging solutions.Finally, I was pleased to see a 21% increase in revenue over the prior quarter and believe that a key progress indicator for potential revenue in future quarters as the number of IoT wireless power network proof-of-concept installations, which has grown by 43% over the past quarter, now totaling 20. Thank you to all our shareholders, stakeholders and Energous’ team members, and we look forward to updating you on the company’s progress again.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Cesar Johnston: Yes. Thank you.

Susan Kim Van Dongen: Thank you.

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