Gross margin expanded to 25.6% in Q1 from 15.3% in the same period a year ago. Operating expenses totaled $3 million for the quarter. Cash and cash equivalents at quarter-end amounted to $9.7 million.
Several leading brands such as LG, Bang & Olufsen, Hisense, Onkyo and Harman launched new products featuring WiSA immersive sound technology. Summit expects the announcement of two more TV brands later this year.
“The WiSA Wave marketing program continues to drive website traffic. In Q1 2021, we exceeded our guidance with 139,000 visitors, up from 34,000 in Q1 2020. We continue to expect more than 1 million visitors in 2021. To that end, we strengthened our board and digital marketing capabilities, welcoming our new director who will be advising the company in building the consumer category with the WiSA Wave. Further, we expect to open the WiSA Amazon store soon, which will allow all WiSA Certified products being sold on Amazon to be highlighted in the category as well as enable bundling promotions with WiSA Ready TVs, transmitters, and speakers. This traction fuels our belief that 2021 will be a breakout year for Summit Wireless.” – Brett Moyer, CEO
For the second quarter of 2021, Summit expects revenues to increase over 250% from the same period last year. Gross margin is expected to improve sequentially while operating expenses are expected to total approx. $3.1 million.