Good afternoon. And welcome to the Energies Corporation's Third Quarter 2019 Financial Results Conference Call. All participants will be in listen only mode [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Mike Bishop with Investor Relations. Please go ahead.

Thank you, Kate. And welcome, everyone. Before we begin, I would like to remind participants that during today's call, the company will make forward looking statements. These statements, whether in prepared remarks or during the Q&A session are subject to inherent risks and uncertainties that are detailed in the company's filings with the Securities and Exchange Commission. Except as otherwise required by federal securities laws, Energous disclaims any obligation or undertaking to publicly release updates or revisions to the forward-looking statements contained herein or elsewhere to reflect changes in expectations with regard to those events, conditions or circumstances. Also, please note that during this call, Energous will be discussing non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in today's press release, which is posted on the company's Web site. Now, I'd like to turn the call over to Steve Rizzone CEO of Energous. Please go ahead, Steve.

Thank you, Mike. Good afternoon. And welcome to the Energous third quarter conference call. Brian Sereda, our Chief Financial Officer, is also joining me today. I'd like to begin with comments on the company's progress and provide a general business update before turning the call over to Brian for a financial update. We will then open the call to questions. Looking at the third quarter, we are not where we expected to be from a revenue standpoint. However, for reasons we'll expand on in a moment, I remain extremely confident and optimistic about the future of Energous. As we've communicated in the past, our goal has been to establish and launch a new technology on a global basis. We originally focused our attention and resources on high volume opportunities from Tier 1 accounts with a global reach. This ambitious plan was contingent upon regulatory certifications in three major markets; North America, Europe, and Asia. To-date, we've been successful in both North America and Europe, and are making significant progress in Asia, which we will expand on later in the call. The current lack of regulatory approval in Asia has delayed major customer launches, negatively impacting our revenue and growth expectations. Again, we see this as a delay as customer engagements in multiple verticals remains strong. In spite of this, I remain extremely confident and optimistic about the future of energy. And here's why. First, we have been able to prioritize our near term customer projects, focusing on product launches in regions where we already have regulatory certification. This reset has taken some time but we are now seeing the benefits of this change. For example, you saw that our customers, Delight, their Oasis-RC PSAP into the North American market this past quarter. The launch of the Delight PSAP was the…

Thanks Steve. At the close of market today, we issued our Q3 earnings press release announcing our operating financial results for the third quarter of fiscal 2019 ended September 30. For the quarter, we recognized $41,000 in revenues compared to last quarter's $48,000 and $187,000 lower than $220,000 of revenue in the same quarter last year. As Steve just discussed, we believe we are on track for additional product announcements later this year with more expected for 2020. We are engaged with a wide range of customers from regional companies with a single skew to multinationals with multiple consumer and industrial products. I've also mentioned this before. But similar to other enabling next generation technologies that are disruptive and have gone before us, one of our biggest challenges remain the internal development and integration cycles of customers. However, we are seeing progress as evidenced by recent announcements and customers joining us in the regulatory processes that Steve spoke to. Moreover, the ZPower partnership announced in Q3 reflects the growing confidence of other key technology suppliers in these initial verticals that RF based charging is a significant growth opportunity. Moving to our expenses. Total GAAP expense for the second quarter was $8.3 million, the lowest level in four years. This is $1.7 million below the prior quarter and approximately $4.5 million below the $12.9 million of total GAAP expense in the same quarter last year. The drop over the last quarter and prior year is mainly a result of lower R&D expenditures, such as third party ship and prototype development costs and lower stock compensation expense. We believe we can maintain this range of expenses along with headcount in the 60 plus minus range. We could see occasional quarterly increases in R&D expense to cover chip tape-out requirements as the technology…

Thank you. Operator, we will now take questions.

We will now begin the question-and-answer session [Operator instructions] First is a question from William Gibson of ROTH Capital. Please go ahead.

Any sort of range, Steve, on the number of products you would expect to be on the market by the end of next year?

By the end of next year, certainly double digits would be our expectations. I don't think I can give you any more clarity than that. As I said, we have undergone a major refocusing of our efforts understanding the importance of generating revenue as quickly as possible. And with this new regional focus, we are also targeting the key markets that we've talked about of hearables, hearing aids, wearables, medical sensors and smart glasses. And so I think you'll see, as I said, double digit launches across regions where we have certifications in those targeted markets, gaining momentum throughout the year.

And you also mentioned that you expect to have a certification in the three Asian countries by the end of 2020. Could one or two of those hit earlier and would that potentially open up business in advance of all three?

It's our goal to have regulatory certification on a global basis before the end of next year. But as we've always said, in dealing with regulatory agencies, it is impossible to put a specific timeline. I believe the cause for our optimism is justified based on the reasons that I noted in my remarks. I do believe that there's a distinct possibility that one or more of the countries could conceivably certify in the first half of next year. Depending on the country, there is a chance that that will move forward the customer engagements that require a global certification. The top tier customers that we're engaged with, they have a broad spectrum of requirements. Some require certification in all three jurisdictions. Others are limited and require only one or two, because they're not active participants in the respective jurisdiction. So it is possible that a singular launch or a singular certification in a country will open up opportunities to some of the Tier 1 global requirements that have basically have been put on hold until the certification is approved.

I will now turn the conference over to Mr. Rizzone for closing remarks.

All right, thank you. I would like to thank all of you listening today, as well for all of our long term investors who continue to believe in the vision of a second generation wireless charging technology powered by Energous. As significant private holders of Energous' stock, the executive management team and the Board of Directors understands our investors' concerns with the stock price and the delays in the revenue momentum. These delays and delusions affect all of us. However, the company is moving forward. And after considerable revamping of our customer funnel, we have a forecast for revenue in 2020, which does not have any regulatory or technologically related dependencies, leading us to have confidence our revenue will ramp. There is also strong evidence that wireless charging is in a state of transition, and Energous is uniquely positioned to capitalize on these changes in the market for the benefit of all of our constituents. We will be at the ROTH Conference next week in New York, and we look forward to reporting additional progress at our next conference call after the first of the year. Thank you, and good afternoon.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.