BK Technologies Corp (BKTI) Reports Significant Revenue Growth and Profitability in Q3 2023
Third quarter revenue surged by 68% to $20.1 million, driven by robust demand for BKR 5000 and new BKR 9000 radios.
Gross margin improved to 32%, marking the fourth consecutive quarter of margin enhancement.
Company returns to profitability with third quarter EPS of $0.03.
Order backlog stands strong at $21.8 million as of September 30, 2023.
On November 9, 2023, BK Technologies Corp (BKTI) released its financial results for the third quarter, showcasing a remarkable increase in revenue and a significant improvement in profitability. The company's earnings report revealed a 68% jump in third quarter revenue, reaching $20.1 million, primarily attributed to increased shipments and strong demand for its BKR 5000 and the newly introduced BKR 9000 radios.
Financial Performance Overview
The company's gross margin saw a substantial improvement, rising to 32% compared to 19% in the third quarter of the previous year. This marks the fourth consecutive quarter of sequential margin improvement. BK Technologies achieved earnings per share (EPS) of $0.03, a notable turnaround from a net loss of ($2.4 million) or ($0.71) per basic and diluted share in the same quarter last year.
Operational Highlights and Future Outlook
John Suzuki, CEO of BK Technologies, expressed optimism about the company's trajectory, citing increased demand and market recognition for their products.
Our third quarter results reflect continued growth in demand and market recognition for our products, as evidenced by a 68% increase in revenue, improved margin performance and a return to profitability,"
Suzuki stated. He also highlighted the potential of the BKR 9000 for public safety agencies and the strategic move to outsource manufacturing to East West Manufacturing, aiming to simplify supply chain management and reduce product costs.
Year-to-Date Financials
For the first nine months of 2023, BK Technologies reported a revenue increase of 89% to $57.8 million, compared to $30.6 million in the prior year. The gross profit margin for this period was 29%, up from 18% in the previous year. Despite these gains, the company recorded a net loss of ($2.5 million) or ($0.74) per basic and diluted share for the first nine months, an improvement from a net loss of ($10.7 million) or ($3.16) per basic and diluted share in the same period last year.
Balance Sheet and Capital Management
Working capital was reported at approximately $13.8 million, with cash, cash equivalents, and trade receivables being the primary components. This is a slight increase from the year-end 2022 working capital of approximately $13.2 million.
BK Technologies will host a conference call and webcast for investors to discuss these results and provide further insights into the company's performance and strategy. The company remains committed to serving public safety professionals and government agencies with high-quality communication equipment and innovative SaaS solutions.
For detailed financial tables and further information, investors and interested parties are encouraged to review the full earnings release and join the conference call or access the webcast through the company's website.
As BK Technologies Corp (BKTI) continues to navigate the dynamic landscape of public safety communications technology, the company's latest earnings report signals a period of growth and operational efficiency that may appeal to value investors and those interested in the sector's advancements.
Explore the complete 8-K earnings release (here) from BK Technologies Corp for further details.
This article first appeared on GuruFocus.
