Summit Wireless Technologies, Inc. (WISA) stock, a wireless sound technology company, provided an update for its first quarter ended March 31, 2021, today on May 12, 2021, after which the WISA stock price saw an uptrend of 13.18% to reach $2.92 a share at the time of this writing. Before this financial update, WISA stock recorded a loss of 1.53% at the previous closing. Let’s briefly discuss the recently announced financial results of Summit stock.
First Quarter Financial Highlights:
- Summit Wireless generated $1.2 million in the first quarter of 2021 which is breathtaking 181% higher than $0.4 million in the same tenure of the prior year.
- The gross margin for WISA stock moved from 15.3% in Q1 2020 to 25.6% in Q1 2021. This gross margin was 23.9% in Q4 of 2020.
- WISA stock spent $3.0 million in operating expenses in which $0.3 million of non-cash charges were also included.
- As of March 31, 2021, WISA stock had cash and cash equivalents of $9.7 million while these were $7.4 million at the end of December 2020.
Financial Guidance for Second Quarter 2021:
- Revenue for the second quarter would likely increase by 250+% as compared to the second quarter of 2020.
- The gross margin for WISA stock is expected to improve sequentially.
- $3.1 million operating expenses are estimated for the Q2 of 2020 which also include $0.4 million of non-cash charges.
Summit Developments & Future Growth:
Summit’s increase in sales revenue reflects the introduction of new products to market and effective marketing over the year. Due to WISA’s continued marketing efforts, the website traffic has exceeded the guidance with 139,000 visitors in the first quarter of 2021 which is34,000 higher than the first quarter of 2020.
Many leading brands have featured Summit’s sound technology by launching new products. The WISA stock is anticipating two more TV brands later this year in addition to enhancement in SoundSend via a software update, initially available in the U.K and Japan. Furthermore, Summit management is planning to open a WiSA Amazon store soon in the future.
Investors are responding to the positive financial update for the first quarter of 2021 announced by the WISA stock today. The guidance for the second quarter and future plans show that the 2021 year would prove to be a breakout year for WISA stock. Hence it can be a good bet for investors in the long run.