CORRECTING and REPLACING Guerrilla RF Reports Record Second Quarter 2024 Results and Gross Margin Expansion
-
Record revenue quarter of
$6.1 million , 61.7% increase over prior year period
- Gross Margin expands 631 basis points over prior year quarter to 65.3%
-
Closed on
$22 million private placement, strengthening financial condition
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The updated release reads:
GUERRILLA RF REPORTS RECORD SECOND QUARTER 2024 RESULTS AND GROSS MARGIN EXPANSION
-
Record revenue quarter of
$6.1 million , 61.7% increase over prior year period
- Gross Margin expands 631 basis points over prior year quarter to 65.3%
-
Closed on
$22 million private placement, strengthening financial condition
“During the quarter we continued to execute on our growth plans, releasing 12 new products into production and expanding our opportunities in the Catalog Markets and Infrastructure Markets with the acquisition of a GaN device portfolio. Even though we are seeing weakness in the Automotive Market, increased 5G deliveries enabled us to reach a new revenue record of
Second Quarter Highlights
-
Revenue for the current quarter increased 61.7% to
$6.1 million as compared to$3.8 million in the year ago quarter.
- Gross margin for the current quarter increased 631 basis points to 65.3% of revenues as compared to 59.0% for the year ago quarter.
-
Operating loss for the current quarter was
$1.2 million as compared to$3.4 million for the year ago quarter.
-
Net cash used in operating activities narrowed to
$1.2 million as compared to$3.1 million in the year ago period.
-
Adjusted EBITDA loss (a non-GAAP measure) was
$0.5 million for the current quarter as compared to an Adjusted EBITDA loss of$2.7 million for the year ago quarter.
-
Product backlog (a non-GAAP measure) was
$5.0 million at the end of the current quarter as compared to$5.5 million for the year ago quarter.
- Automotive Market product sales continued to be soft during the current quarter, declining to 31% of total revenue for the quarter as compared to 57% of total revenue for full year 2023.
- Wireless Infrastructure grew to 35% of total revenue for the current quarter, compared to 9% of total revenue for full year 2023.
- Released 12 new products into production during the quarter.
- Completed strategic acquisition of GaN device portfolio from Gallium Semiconductor, opening opportunities in the telecom, radar, and industrial markets for these new products.
Subsequent Events
-
On
August 5, 2024 , the Company completed a$22.0 million private placement, with net cash proceeds of approximately$21.6 million after deduction of expenses. We plan to use the new capital to accelerate the Company’s growth, pay down outstanding debt and strengthen our competitive position through investing in new market penetration, expanded product offerings, additional R&D initiatives, and purchases of new capital equipment.
-
Restructured primary credit facility by reducing outstanding principal balance and interest rate while extending maturity until
December 31, 2028 .
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
|
||||||||
Balance Sheet |
||||||||
|
|
|||||||
Assets |
Unaudited |
Audited |
||||||
Cash |
$ |
641,385 |
|
$ |
781,318 |
|
||
Accounts receivable, net |
|
2,143,754 |
|
|
2,079,111 |
|
||
Inventories |
|
1,663,227 |
|
|
1,533,592 |
|
||
Prepaid expenses |
|
410,415 |
|
|
458,313 |
|
||
Total Current Assets |
|
4,858,781 |
|
|
4,852,334 |
|
||
Deferred Offering Costs |
|
55,730 |
|
|
- |
|
||
Intangible Assets, net |
|
354,787 |
|
|
- |
|
||
Operating ROU Assets |
|
9,916,247 |
|
|
10,500,620 |
|
||
Property, Plant, and Equipment, net |
|
3,041,743 |
|
|
3,659,084 |
|
||
Total Assets |
$ |
18,227,288 |
|
$ |
19,012,038 |
|
||
Liabilities and Stockholders' Equity (Deficit) |
|
|||||||
Accounts payable and accrued expenses |
$ |
2,054,927 |
|
$ |
2,099,537 |
|
||
Short-term debt |
|
1,846,010 |
|
|
1,628,667 |
|
||
Derivative liabilities |
|
- |
|
|
158,000 |
|
||
Operating lease, current portion |
|
710,863 |
|
|
745,969 |
|
||
Finance lease, current portion |
|
870,448 |
|
|
978,543 |
|
||
Convertible notes |
|
- |
|
|
78,905 |
|
||
Convertible notes - related parties |
|
- |
|
|
700,189 |
|
||
Notes payable, current portion |
|
- |
|
|
10,948,668 |
|
||
Total Current Liabilities |
|
5,482,248 |
|
|
17,338,478 |
|
||
|
||||||||
Long-term debt |
|
579,453 |
|
|
698,600 |
|
||
Operating lease |
|
5,812,538 |
|
|
6,176,508 |
|
||
Finance lease |
|
1,221,683 |
|
|
1,593,979 |
|
||
Notes payable |
|
10,508,591 |
|
|
- |
|
||
Total Liabilities |
|
23,604,513 |
|
|
25,807,565 |
|
||
|
|
|
|
|||||
Preferred stock |
|
- |
|
|
- |
|
||
Common stock |
|
1,006 |
|
|
789 |
|
||
Additional paid in capital |
|
42,790,374 |
|
|
36,243,146 |
|
||
Accumulated deficit |
|
(48,168,605 |
) |
|
(43,039,462 |
) |
||
Total Stockholders' Equity (Deficit) |
|
(5,377,225 |
) |
|
(6,795,527 |
) |
||
Total Liabilities and Stockholders' Equity (Deficit) |
$ |
18,227,288 |
|
$ |
19,012,038 |
|
|
Three Months Ended |
Six Months Ended |
||||||||||||||
Profit and Loss |
Unaudited |
Unaudited |
||||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Product revenue |
$ |
6,109,732 |
|
$ |
3,575,312 |
|
$ |
11,199,505 |
|
$ |
6,615,721 |
|
||||
Royalties and non-recur eng. |
|
822 |
|
|
204,022 |
|
|
2,298 |
|
|
394,501 |
|
||||
Total |
|
6,110,554 |
|
|
|
3,779,334 |
|
|
11,201,803 |
|
|
7,010,222 |
|
|||
Direct product cost |
|
2,120,281 |
|
|
1,549,881 |
|
|
3,990,956 |
|
|
2,953,226 |
|
||||
Gross Profit |
|
3,990,273 |
|
|
2,229,453 |
|
|
7,210,847 |
|
|
4,056,996 |
|
||||
Operating Expenses |
||||||||||||||||
Research and development |
|
2,412,541 |
|
|
2,652,989 |
|
|
4,664,074 |
|
|
5,239,158 |
|
||||
Sales and marketing |
|
1,583,377 |
|
|
1,629,944 |
|
|
2,936,286 |
|
|
2,991,893 |
|
||||
General and administrative |
|
1,190,990 |
|
|
1,377,342 |
|
|
2,645,685 |
|
|
2,923,505 |
|
||||
Total Operating Expenses |
|
5,186,908 |
|
|
5,660,275 |
|
|
10,246,045 |
|
|
11,154,556 |
|
||||
Operating Loss |
|
(1,196,635 |
) |
|
(3,430,822 |
) |
|
(3,035,198 |
) |
|
(7,097,560 |
) |
||||
Interest expense |
|
(856,468 |
) |
|
(389,012 |
) |
|
(2,541,255 |
) |
|
(730,869 |
) |
||||
Change in fair of derivative liabilities |
|
- |
|
|
- |
|
|
158,000 |
|
|
- |
|
||||
Other income (expense) |
|
296,512 |
|
|
(1,248 |
) |
|
289,310 |
|
|
5,929 |
|
||||
Total other income(expenses) net |
|
(559,956 |
) |
|
(390,260 |
) |
|
(2,093,945 |
) |
|
(724,940 |
) |
||||
Net Loss |
$ |
(1,756,591 |
) |
$ |
(3,821,082 |
) |
$ |
(5,129,143 |
) |
$ |
(7,822,500 |
) |
Backlog, EBITDA and Adjusted EBITDA Reconciliation
References to “product backlog” means the amount of product sales that have been committed to by customers, but have not yet been completed, shipped, or invoiced. The Company's product backlog can be materially impacted by supply chain constraints, a shift in customer ordering patterns whereby customers place orders in anticipation of extended product delivery lead times, or other customer order delivery request modifications. Furthermore, because the Company partners closely with a number of its customers to produce high-performance, quality components that are often designed into customers’ end products, immediate substitution of the Company’s products is neither typically desired by customers nor necessarily feasible. As such, the Company has not historically experienced significant order cancellations, and the Company does not expect significant order cancellations in the future. The Company closely monitors product backlog and its potential impact on the Company’s financial performance.
References to “EBITDA” mean net loss, before considering interest expense, provision for income taxes, depreciation and amortization. References to Adjusted EBITDA excludes irregular or non-recurring items and are not directly related to the Company’s core operating performance. EBITDA and Adjusted EBITDA are not measures of financial performance under
|
|||||||
EBITDA Reconciliation |
Q2 2024 |
Q2 2023 |
|||||
Unaudited |
Unaudited |
||||||
Net Loss |
$ |
(1,756,591 |
) |
$ |
(3,821,082 |
) |
|
Interest expense |
|
856,468 |
|
|
389,012 |
|
|
Depreciation and amortization |
|
383,911 |
|
|
423,053 |
|
|
EBITDA |
|
(516,212 |
) |
|
(3,009,017 |
) |
|
Share-based compensation |
|
338,036 |
|
|
330,177 |
|
|
Economic development incentive proceeds |
|
(294,500 |
) |
|
- |
|
|
Adjusted EBITDA |
$ |
(472,676 |
) |
$ |
(2,678,840 |
) |
About
Founded in 2013,
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements include projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgments of the Company and its management about future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company’s control. Actual results may differ materially from those in the forward-looking statements as a result of several factors, including those described in the Company’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240813151981/en/
ir@guerrilla-rf.com
+1 336 510 7840
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