CORRECTING and REPLACING Guerrilla RF Reports Record First Quarter 2024 Results and Gross Margin Expansion
-
Record revenue quarter of
$5.1 million
- Gross Margin expands 640 basis points sequentially over prior quarter
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The updated release reads:
GUERRILLA RF REPORTS RECORD FIRST QUARTER 2024 RESULTS AND GROSS MARGIN EXPANSION
-
Record revenue quarter of
$5.1 million
- Gross Margin expands 640 basis points sequentially over prior quarter
“Following a challenging 2023, we accelerated our momentum by increasing revenue as a result of our strong foothold in the Automotive market and deeper penetration in the 5G Infrastructure market with previously announced satellite communications and point to multi-point communications shipments,” said
Corporate Highlights
-
Completed a
$5.0 million private placement, with net cash proceeds of approximately$3.0 million after deduction of expenses and conversion of existing debt. We plan to use the new capital to accelerate the Company’s growth and strengthen its competitive position through new market penetration, expanded product offerings, additional R&D initiatives, and new capital equipment.
- Announced the acquisition of strategic GaN product portfolio and intellectual property of Gallium Semiconductor. We believe this acquisition will accelerate our penetration into this market by an estimated two years.
- Extended maturity of primary credit facility to 2026.
-
Management reiterates 2024 revenue guidance of
$21.0 to$26.0 million .
Financial Highlights
- Revenue for the first quarter of fiscal 2024 increased 59.4% as compared to the first quarter of fiscal 2023.
-
Quarterly revenues increased 8.5% to
$5.1 million , up from$4.7 million recorded in the fourth quarter 2023.
- Gross margin for the first quarter of fiscal 2024 was 63.2% of revenues as compared to 56.6% for the first quarter of fiscal 2023 and up 640 basis points from Q4 2023.
-
Operating loss for the first quarter of fiscal 2024 was
$1.8 million as compared to$3.7 million for the first quarter of fiscal 2023.
-
Net cash used in operating activities reduced to
$0.8 million (a$5.0 million reduction from first quarter 2023) as a result of increased sales, margin expansion and expense management efforts.
-
Adjusted EBITDA loss (a non-GAAP measure) was
$1.1 million for the first quarter of fiscal 2024. See EBITDA Reconciliation below.
-
Backlog (a non-GAAP measure) increased at the end of the first quarter of fiscal 2024 to
$8.3 million as compared to$6.5 million at the end of the first quarter of fiscal 2023.
-
Cash balance as of
March 31, 2024 , was approximately$3.6 million compared to$0.8 million as ofDecember 31, 2023 .
Financial Results for Three Months Ended
-
Revenues were
$5.1 million , as compared to$3.2 million in the prior year period.
-
R&D expenses decreased to
$2.3 million , as compared to$2.6 million for the prior year period.
-
Sales and marketing expenses remained flat at
$1.4 million , as compared to the prior year period.
-
General and administrative expenses decreased slightly to
$1.5 million , as compared to the prior year period.
|
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||||||||
Balance Sheet |
||||||||
|
|
|||||||
Assets |
|
Unaudited |
|
|||||
Cash |
$ |
3,600,710 |
|
$ |
781,318 |
|
||
Accounts receivable, net |
|
2,819,814 |
|
|
2,079,111 |
|
||
Inventories |
|
1,773,596 |
|
|
1,533,592 |
|
||
Prepaid expenses |
|
540,911 |
|
|
458,313 |
|
||
Total Current Assets |
|
8,735,031 |
|
|
4,852,334 |
|
||
Operating right-of-use assets |
|
10,209,384 |
|
|
10,500,620 |
|
||
Property, plant, and equipment, net |
|
3,332,955 |
|
|
3,659,084 |
|
||
Total Assets |
$ |
22,277,370 |
|
$ |
19,012,038 |
|
||
Liabilities and Stockholders' Equity (Deficit) |
|
|
||||||
Accounts payable and accrued expenses |
$ |
3,590,654 |
|
$ |
2,099,537 |
|
||
Short-term debt |
|
2,839,529 |
|
|
1,628,667 |
|
||
Derivative liabilities |
|
- |
|
|
158,000 |
|
||
Operating lease, current portion |
|
731,952 |
|
|
745,969 |
|
||
Finance lease, current portion |
|
939,975 |
|
|
978,543 |
|
||
Convertible notes |
|
- |
|
|
78,905 |
|
||
Convertible notes - related parties |
|
- |
|
|
700,189 |
|
||
Notes payable, current portion |
|
- |
|
|
10,948,668 |
|
||
Total Current Liabilities |
|
8,102,110 |
|
|
17,338,478 |
|
||
Long-term debt |
|
634,717 |
|
|
698,600 |
|
||
Operating lease |
|
5,994,557 |
|
|
6,176,508 |
|
||
Finance lease |
|
1,394,430 |
|
|
1,593,979 |
|
||
Notes payable |
|
10,178,238 |
|
|
- |
|
||
Total Liabilities |
|
26,304,052 |
|
|
25,807,565 |
|
||
Common stock |
|
995 |
|
|
789 |
|
||
Additional paid in capital |
|
42,384,337 |
|
|
36,243,146 |
|
||
Accumulated deficit |
|
(46,412,014 |
) |
|
(43,039,462 |
) |
||
Total Stockholders' Equity (Deficit) |
|
(4,026,682 |
) |
|
(6,795,527 |
) |
||
Total Liabilities and Stockholders' Equity (Deficit) |
$ |
22,277,370 |
|
$ |
19,012,038 |
|
|
||||||||
Profit and Loss Statement |
Q1 2024 |
Q1 2023 |
||||||
Unaudited |
||||||||
Product revenue |
$ |
5,089,773 |
|
$ |
3,040,409 |
|
||
Royalties and non-recurring engineering revenue |
|
1,476 |
|
|
190,479 |
|
||
Total |
|
5,091,249 |
|
|
3,230,888 |
|
||
Direct product cost |
|
1,870,675 |
|
|
1,403,345 |
|
||
Gross Profit |
|
3,220,574 |
|
|
1,827,543 |
|
||
Operating Expenses: |
||||||||
Research and development |
|
2,251,533 |
|
|
2,586,169 |
|
||
Sales and marketing |
|
1,352,909 |
|
|
1,361,949 |
|
||
General and administrative |
|
1,454,695 |
|
|
1,546,163 |
|
||
Total operating expenses |
|
5,059,137 |
|
|
5,494,281 |
|
||
Operating loss |
|
(1,838,563 |
) |
|
(3,666,738 |
) |
||
Interest expense |
|
(1,684,787 |
) |
|
(341,857 |
) |
||
Change in fair value of derivative liabilities |
|
158,000 |
|
|
- |
|
||
Other income (expense) |
|
(7,202 |
) |
|
7,177 |
|
||
Total other income (expense), net |
|
(1,533,989 |
) |
|
(334,680 |
) |
||
Net loss |
$ |
(3,372,552 |
) |
$ |
(4,001,418 |
) |
EBITDA and Adjusted EBITDA Reconciliation
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
|
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EBITDA Reconciliation |
Q1 2024 |
Q1 2023 |
||||||
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|
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Net Loss |
$ |
(3,372,552 |
) |
$ |
(4,001,418 |
) |
||
Interest expense |
|
1,684,787 |
|
|
341,857 |
|
||
Depreciation and amortization |
|
366,281 |
|
|
398,321 |
|
||
EBITDA |
|
(1,321,484 |
) |
|
(3,261,240 |
) |
||
Share-based compensation |
|
396,197 |
|
|
268,640 |
|
||
Change in fair value of derivative liabilities |
|
(158,000 |
) |
|
- |
|
||
Adjusted EBITDA |
$ |
(1,083,287 |
) |
$ |
(2,992,600 |
) |
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
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ir@guerrilla-rf.com
+1 336 510 7840
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