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FWIW This came out at 2:00 CST. and it has Q and A transcripts.
GuruFocus News
Fri, May 9, 2025 at 2:00 PM CDT 3 min read
In This Article:
REFR
+39.17%
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points- Research Frontiers Inc ( NASDAQ:REFR) reported a 79% increase in royalty revenues in Q1 2025, driven by strong demand in the automotive and aircraft sectors.
- The company achieved a significant 214% sequential increase in royalty income from the previous quarter, Q4 2024.
- REFR remains debt-free with a strong cash position, projected to fund operations for more than the next 5 years.
- The company is seeing significant momentum in the automotive sector, with new car models expected to be introduced in 2025 using SPD smart glass technology.
- REFR is excited about growth potential in the architectural market, particularly with the anticipated launch of a retrofit application that simplifies installation and reduces costs.
Negative Points- Despite revenue growth, Research Frontiers Inc ( NASDAQ:REFR) reported a net loss of $177,687 for Q1 2025.
- The company faces competition from other smart glass technologies, although some competitors have filed for bankruptcy.
- There is uncertainty regarding the commercialization timeline for the 'dark particle' technology, which is seen as a significant advancement.
- The company acknowledges that tariffs could impact price-sensitive markets, although they do not expect a significant effect on their revenue.
- REFR's reliance on Gauzy for production and marketing may limit its ability to independently promote its SPD technology.
Q & A HighlightsQ: Can you provide more details about the "dark particle" technology and its significance? A: Joe Harari, President and CEO, explained that the "dark particle" technology, announced with Gauzy, is considered the "holy grail" due to its aesthetic and technical advantages. It offers a more neutral color, which is preferable for side windows in cars, and blocks more light, making it appear opaque. This technology is still in development, and no projects have been put on hold waiting for its commercialization.
Q: Are there any updates on the use of SPD technology in the automotive sector, particularly with new car models? A: Joe Harari noted significant momentum in the automotive sector, with new car models expected to use SPD technology in 2025. The Cadillac Celestiq and Ferrari have shown strong sales, and Mercedes has reintroduced SPD in their luxury van. Additionally, a new European car model has been added since the last call.
Q: What is the status of the architectural market, and how is the retrofit application progressing? A: Joe Harari highlighted the potential for growth in the architectural market, particularly with the retrofit application, which simplifies installation and reduces costs. This application is expected to launch in the second half of the year, and several projects are already underway.
Q: How are tariffs affecting Research Frontiers' business, especially in the automotive sector? A: Joe Harari stated that tariffs have not significantly impacted their business, particularly in the premium automotive market. The company's global footprint and the US content of their products have helped mitigate any potential effects.
Q: Is there any progress in the display market, particularly with partnerships like LG? A: Joe Harari mentioned ongoing developments in embedding OLED displays in windows, such as train windows, and the increasing functionality of glass in vehicles. However, he did not provide specific details about partnerships with LG.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus. |
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