Akoustis Soars 200% in Pre-Market Amid Bankruptcy Fears After $39M Lawsuit Loss To Qorvo
Akoustis Technologies (NASDAQ:AKTS) was trading nearly 200% higher during the Wednesday pre-market session as the company floated the probability of bankruptcy after losing a lawsuit against semiconductor manufacturer Qorvo Inc. (NASDAQ:QRVO).
What Happened: At the time of writing, Akoustis was trading 200.6% higher at $0.41 on the Wednesday pre-market, according to Benzinga Pro. This comes after it closed at $0.13 on Tuesday.
Akoustis recently lost a lawsuit against Qorvo in the District Court for the District of Delaware. As part of the lawsuit, Acoustis needs to pay $38.6 million, which the company says affects its ability to raise capital and continue operations.
Why It Matters: Akoustis, which manufactures bulk acoustic wave radio frequency (RF) filters, was found to have willfully misappropriated Qorvo trade secrets and infringed on two Qorvo patents.
The company said that the lawsuit’s verdict might also lead them to consider bankruptcy protection.
The lawsuit verdict also comes on the heels of its third-quarter revenue for the fiscal year ending in 2024. As reported on May 13, the revenue was up by 7% quarter-over-quarter to $7.5 million. The growth was attributed to robust activity in the sales and design win pipelines, semiconductor services business, and new products introduced in Wi-Fi 6E/7 and 5G infrastructure. The Company had expressed revenue expectations between $7.0 to $7.5 million in sales revenue in the June quarter.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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