So, it's another delay, another couple of months waiting.
"... As has been extensively reported, the company’s primary technical objectives and milestones are currently focused on the fabrication and characterization of MEMS GEN-II chips. As has been previously described, a number of novel design elements have been incorporated into MEMS GEN-II chip design, that are forecasted to provide substantially higher sound pressure (SPL or“loudness”) when compared to MEMS GEN-I.
[Yes, these have all already been clearly signalled to holders, and reported and described.]
The performance introduced by MEMS GEN-I has quite literally astounded the industry. This is not solely for being the first single loudspeaker driver (of any size or cost), that can reproduce the entire audible spectrum (and beyond), but for its qualitative reproduction capabilities. Such capabilities include a near perfectly flat Frequency and Phase Response with practically no distortion. While this in itself represents a quantum leap in sound reproduction, nonetheless it [i.e. MEMS GEN-I ] does not quite meet the objectives set by management for the commercial version of our product; as each additional decibel provide by MEMS GEN-IIwill exponentially enhance the commercial appeal of the product by reducing the number of chips required per application thus saving customers considerable space, power and costs.
[All true. its is a fantastic bit of revolutionary tech.]
As has been reported the pioneering SPL design elements introduced into MEMS GEN-II require adjustments to the fabrication processes. These modifications have proven to be more challenging than originally anticipated by our vendor, as all 3 fabrication facilities required alteration to tools and techniques used in MEMS GEN-I. While our vendor has spared no expense or effort contending with these challenges, it has taken them more time then they originally anticipated, begrudgingly forcing them to adjust first delivery timelines from September-October to Nov- December of 2023...."
This indicates an additional 3 months of extra time to get us to where we thought we were now. Previously we have been told that a wafer run, from go to whoa, had been reduced down to around 6 weeks. That implies that production may have had to go back to the start several times already. Not that that is the end of the world, it is not a failure if it takes a bit more rework to get it right. I would expect that the costs of this will be borne by EM - and their willingness to do this is to their credit. I also appreciate that every restart signifies that some characteristics can be analysed, understood, and changed - modified, altered, adjusted, are the words used here - and this leads to better control of the parameter envelope in future production. There is no question that this device is cutting edge tech and that is why they are also called bleeding edges by those who have worked on them.
But we have been told this before. And we have taken and trusted the reassuring words of these announcements several times already.
I have to ask: why could these findings not have been announced at or just after the end of September when we were told the shipment of finished chips was expected? Why was there no news whatsoever? Why have we had to wait for the 4C to have confirmed that this highly anticipated and clearly signalled event had not been fulfilled on time? Surely that was equally a price sensitive piece of news?
What I object to is not being given timely news on delayed progress when we have been reassured that the wait will be finite and short. The indications of a failure of a scheduled event is undoubtedly not something that happens a month late for both parties. It is only we as holders that get left out of the loop for that whole time. That expectation on holders' part is one of the causes of some loss of patience and a growing cynicism about what gets announced. And that leads to loss of credibility amongst investors and to weakness of the share price. Boy cries wolf too often and boy gets eaten.
I ask myself which I would prefer: early news that there was an anticipated delay of 3 months? Or last possible minute news that a delay had occurred a month or so back and there will be a delay of 2 months. I would pick the first option every time. It signals a respect for me as a shareholder to be treated as a grownup. I feel that is lacking from AKP management.
So its not bad news, but it's not quite the good news we were probably all hoping to hear today, so choose the cartoon that best matches your own sentiment.
(20min delay)