Audio Pixels – the market’s laughing stock

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Audio Pixels has earned a new reputation as a ‘meme stock’, but investors still hold out hope for the digital sound revolution.

Audio Pixels is “anything but ordinary”. That’s what the company told investors in a statement to the Australian Securities Exchange as it reported a modest $26 million loss.

Investors have watched as the company soared to a market capitalisation as high as $900 million, then fell to $200 million, while delivering cumulative losses of about $50 million since 2011. Shares closed down 4.8 per cent on Tuesday at $7.51. Over the following 14 years, Bart tipped in millions of dollars of his own money, and raised more than $32 million from public investors.When the stock hit the ASX boards – for the second time – in 2011, Audio Pixels told the market it had signed a manufacturing agreement with Sony. Investors were thrilled. Sony, they were told, was gearing up to mass-manufacture the digital chips.

“The ‘demonstration’ involved him pulling out an iPad and showing me a video of the speakers, supposedly, playing some music. It was less than convincing,” the fund manager says, describing the company’s market capitalisation as “astonishing”.As 2013 ticked over into 2014, Bart and his team seemed to discover how difficult it was to transplant vibrating pixels on to a microchip that could then be installed into every speaker on Earth.

That same year, a new fabricator – Tower Semiconductor – was brought on to help match the real-world products with the “revolutionary” designs, but 2017, 2018 and 2019 were plagued with frequent delays. Dissipation layers needed refining. Pixel yields were below expectations.

 

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