Bk technologies news

BK TECHNOLOGIES ANNOUNCES 2022 Q2 RESULTS – STRONG DEMAND FOR RESERVING 5000 DROVE BKR 2Q 19 MIL. USD

WEST MELBOURNE, FL August 11, 2022 / BK Technologies Corporation (NYSE American: BKTI) (“the Company” or “BK Technologies”) today announced financial and operating results for the second quarter and six months ended June 30, 2022. The Company will hold conference call today, August 11, 2022, at 9:00 a.m. Eastern Time.

Second quarter 2022 financial and operating highlights

Revenues of $12 million with record bookings of $19 million in the quarter driven by strong demand for the BKR 5000 Shipments improved, however product margins were impacted by continued shortages of certain key chip components, which dramatically increased the cost of certain parts Launch of the second BKR5000 production line in June to increase production speed, reduce backlog and support expected continued strong demand

Our BKR 5000 line of portable radios and accessories saw continued market strength, resulting in record bookings in the second quarter of $19 million,” said John Suzuki, CEO of BK Technologies. “Our communications equipment has a proven track record and excellent reputation for reliability and resilience, particularly in remote areas where many of our customer agencies respond to emergencies, natural disasters and wildfires. the frequency and intensity of these crisis situations increase, we remain committed to providing communications solutions that keep first responders safe as they protect the communities and geographies they serve.

As we have previously discussed, component shortages and supply chain issues have impacted our ability to convert orders into shipments. As we addressed these shortfalls, we saw transportation activity resume at a historically pace in the second quarter, however, margins were compressed due to high costs for certain components. In addition, we added a second BKR 5000 production line at our Melbourne, Florida facility to increase our production capacity. We are seeing improvements in the supply chain and mitigation of component shortages and believe we are well positioned to fulfil a significant portion of our backlog and improve margin performance during the second half of 2022.

We are finally making solid progress with our SaaS business unit and are encouraged by our goal of delivering a scalable smartphone application that will provide unique SaaS services to the public safety market. Development of our first application is currently underway and is expected to launch during the fourth quarter of 2022, with revenue generation beginning in early 2023. We believe that by expanding our offering with this expanded capability, we will create an opportunity to reach a wider audience in the communications market for public safety and will support further sales of BKR series radios.”

Kyle Carinaria, Chairman of BK Technologies, said: “I am optimistic that the back half of 2022 will show improvement in many key metrics as we move forward with a sense of urgency and a strong desire to create shareholder value.”

Financial overview for the second quarter of 2022

Revenue rose 7% to $12.1 million compared to $11.3 million in the second quarter of last year and increased 84% sequentially compared to the first quarter of 2022. Gross profit margin was 14% compared to 38% in the same quarter last year. Lower gross margins generally reflect increases in material and transportation costs. The company expects to see improved gross margins in the second half of 2022.

Selling, general and administrative expenses totalled $5.4 million, compared to $4.6 million in the second quarter last year.

The operating loss totalled ($3.7 million), compared to an operating loss of ($200,000) in the second quarter last year.

BK Technologies posted a net loss of ($4.3 million) or ($0.26) per basic and diluted share, compared to net income of $1.8 million, or $0.14 per basic and $0.13 per share, after adjustment, for the second quarter of last year. year. In the second quarter of 2022, the company reported an unrealized loss ($602,000) on its investment in FG Financial Group (FGF), compared to an unrealized gain of $2.3 million in the same quarter last year.

Financial overview for the first six months of 2022

Revenue decreased 6% to $18.7 million, compared to $19.9 million in the first six months of last year. Gross profit margin was 17% compared to 38% in the first six months of last year. Lower gross margins generally reflect increases in material and shipping costs. The company expects gross margin to improve in the second half of 2022.

Selling, general and administrative expenses were $10.3 million, compared to $8.5 million for the first half of 2021.

The operating loss totalled ($7.1 million), compared to an operating loss of ($1.1 million) in the first six months of last year.

BK Technologies reported a net loss of ($8.3 million) or ($0.49) per basic and diluted share, compared to net income of $1.2 million or $0.09 per basic and diluted share, adjusted, for the first half of last year. In the first six months of 2022, the company reported an unrealized loss ($1.1 million) on its investment in FG Financial Group (FGF), compared with an unrealized gain of $2.5 million in the first six months of last year.