Why Are WiSA Shares Trading Lower Today?

WiSA Technologies, Inc WISA shares are trading lower Tuesday since it reported its quarterly topline miss.
On Monday, WISA reported first-quarter revenue of $0.5 million, down from $0.6 million a year ago vs. the consensus of $0.8 million.
EPS loss of $(0.53) beat the consensus loss of $(3.36).
The Q1 gross margin loss of (267)%, compared to 11% a year ago, was mainly attributable to a $1.3 million increase in inventory reserves.
WISA held $5.3 million in cash and equivalents as of March 31.
WISA expects FY24 revenue of $10 million - $15 million as it expects its planned acquisition of Comhear Inc to close in Q3 and be accretive in Q4 of 2023.
On Monday, WISA agreed to acquire Comhear, an AI-enabled adaptive audio technology developer. It expects full-year revenue growth for FY23.
Brett Moyer, CEO, President, and Chairman of WISA, said, "As previously announced, the slowdown in spending on consumer electronics impacted our results and the industry overall in Q1 2023," remarked Moyer.
"We remain excited about the prospects to scale our business in 2023 and still expect full-year revenue growth this year, with stronger revenue contribution coming in the second half of 2023."
WISA develops spatial, wireless sound technology for smart devices and next-generation home entertainment systems.
Price Action: WISA shares traded lower by 16.8% at $1.34 on the last check Tuesday.

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