Resonant Inc (NASDAQ:RESN) and an existing tier-one licensee of its technology have decided to expand their agreement and that will generate more revenue for Resonant.
But there are some terms of the new agreement that you will not know and Resonant has tried to explain why it is keeping some information about the deal close to its chest.
Withheld details of the deal
Resonant Inc (NASDAQ:RESN) said that it has agreed and settled with the unnamed licensee on the milestone and royalty payments terms of new licensing agreement. However, because of issues of confidentiality surrounding the agreement, Resonant said it will not let anyone to know the finer details of their payment agreement with the tier-one client.
A boost to the topline
But what is obvious is that the deal will increase the amount of revenue that Resonant Inc. (NASDAQ: RESN) generates from the client and should also positively impact its consolidated topline figure. The company reported revenue of $0.03 million and EPS loss of $0.42 in the last quarter.
7 products in the work
Though Resonant will not let you how much exactly the tie-one client will be paying for the expanded licensing agreement, it revealed that the client is now working on seven products based on its technology.
The new licensing agreement specifically covers technology that relates to multiplexers. For instance, the client in question will use the additional license to develop an integrated module that combines a duplexer and quadplexer.
Growing demand for thinner and lighter mobile devices with enhanced video capabilities has necessitated the need for multiplexer modules.
As such, Resonant Inc. (NASDAQ: RESN) is hoping that more of its licensees will be coming for the technology that enable them to create multiplexer modules.
The announcement of the expanded licensing deal with an existing tier-one client comes after Resonant recently announced a management shakeup. After CFO John Philpott decided to quit, the company brought in Ross Goolsby to fill the vacant CFO position on interim basis.
2Q2016 results Resonant Inc. (NASDAQ: RESN)
Resonant Inc. (NASDAQ: RESN) is set to release its 2Q2016 financial results today, August 10.