BK Technologies reports Q4 EPS 8c vs. (28c) last year

Reports Q4 revenue $16.3M vs. $20.3M last year. John Suzuki, CEO of BK Technologies commented, “2023 was a strong year for BK Technologies, highlighted by both revenue growth and gross margin improvement. We shipped 34,500 radios in fiscal 2023, an increase of 37% compared to fiscal 2022, as existing and new customers conducted lifecycle upgrades to their portable communications technology. We recognized a 45% increase in full year revenue compared to the prior year, achieved our sixth consecutive quarter of gross margin improvement and our second consecutive quarter of profitability. “In the fourth quarter, we expanded our existing relationship with East West Manufacturing to make them the primary manufacturer of BK Technologies’ radio product line,” Mr. Suzuki continued. “We believe that outsourcing our manufacturing and transitioning to a more asset light model will improve our gross margins in the long term by simplifying our supply chain management and reducing production expenses and end-product costs. The transition to contract manufacturing is well underway and will take place in stages with no anticipation of meaningful interruptions in production or shipping. As previously stated, East West made a $2 million investment in BK Technologies that consisted of the purchase of 77,520 shares of Common Stock at $12.90 per share, plus warrants to purchase 135,500 shares of the Company’s Common Stock at an exercise price of $15.00 per share. The proceeds from the East West investment have been allocated toward paying down our accounts payable and line of credit. Mr. Suzuki concluded, “We’re optimistic about the upcoming year which should be characterized by expanding gross margins, lower operating costs, and significantly improved profitability. With our visibility today, we believe we are on track to exceed earnings per share of $1.50 for full year 2024. In addition, we expect to see improved working capital as we transition our manufacturing and reduce inventory levels. Overall, we anticipate that 2024 will demonstrate continued profitability as we focus our efforts to establish the BKR9000 as a premier multiband radio in the market to drive additional revenue growth in the coming years.”