WEST MELBOURNE, FL / ACCESSWIRE - BK Technologies Corporation (NYSE American:BKTI) today announced financial and operating results for the second quarter and six months ended June 30, 2021. The Company will host a conference call today, August 12, 2021, at 9:00 AM eastern time.
Recent Financial and Operational Highlights
- Second quarter revenue increased 14% to $11.3 million compared to $9.9 million in the second quarter of 2020 and grew by 32% sequentially compared to the first quarter of 2021
- Company experienced strong order activity for second quarter and first six months including multiple orders for new BKR 5000 Digital P25 portable communications technology (“BKR 5000")
- New Technology Innovation Center in South Florida tracking toward launch of BKR 9000 multiband communications technology (“BKR 9000") for the public safety market later this year
- Closed a public offering generating aggregate gross proceeds of $12.7 million
John Suzuki, BK’s Chief Executive Officer, commented, “Solid revenue growth of 14% in the second quarter reflects the strong demand we’re seeing for our communications technology, particularly as existing customers and new customers deploy our BKR 5000 portable communications platform. Government entities like forest and park services as well as fire rescue and emergency management agencies continue to turn to BK for the exceptional performance and reliability our technology provides. Our technology and equipment extend real-time communications capabilities in any terrain or setting - urban, suburban, rural or remote - helping ensure the safety of field personnel as they maintain and protect public lands, or fire and other first responders as they provide emergency services. During the second quarter we continued to experience certain material shortages and extended lead-times in the supply chain which impacted our ability to convert customer orders to shipments and we expect to encounter continued headwinds through the balance of the year as our supply chain partners work through the aftermath of operational disruptions related to the pandemic. However, we’re energized by the interest and order activity we’re seeing for our products.
Mr. Suzuki concluded, “In addition to the robust demand around our legacy communications technology, we remain focused on the development and launch of our multiband BKR 9000 product, which is anticipated by the end of this year. With its multiband capabilities, the BKR 9000 can address a much larger portion of the LMR market, positioning us to compete for larger contracts in new verticals.”
Second Quarter 2021 Financial Review
Revenue grew 14% to $11.3 million, compared with $9.9 million for the second quarter of last year. The gross profit margin was 37% compared to 44% in the same prior year period largely due to customer mix, cost increases for material and freight and expenses related to the ramp-up of internal manufacturing.
Selling, General & Administrative expenses totaled $4.6 million, compared with $4.4 million for the same quarter last year, reflecting the timing of engineering expenses as well as increased sales commissions.
Operating loss totaled approximately $342,000 compared with an operating loss of $36,000 in the second quarter of last year.
The Company achieved net income of $1.7 million or $0.13 per basic share and $0.12 per diluted share, compared with a net loss of $(302,000) or $(0.02) per basic and diluted share, for the second quarter of last year. In the second quarter of 2021 the Company recognized an unrealized gain of $2.3 million on its investment in FG Financial Group (FGF), compared with an unrealized loss of ($200,000) in the second quarter of 2020.
First Six Months 2021 Financial Review
Revenue for the first six months of 2021 totaled $19.9 million, compared with $20.8 million for the first six months of 2020. The gross profit margin was 37% compared with 40% for the same period last year largely due to customer mix, cost increases for material and freight and expenses related to the ramp-up of internal manufacturing.
Selling, General & Administrative expenses totaled $8.5 million, compared with $9.1 million for the same period of 2020.
Operating loss totaled approximately $1.2 million, compared with an operating loss of $884,000 for the first six months of last year.
The Company achieved net income of $1.0 million or $0.08 per basic and diluted share, compared with a net loss of $1.5 million, or $(0.12) per basic and diluted share, for the first half of 2020. In the first six months of 2021 the Company recognized an unrealized gain of $2.5 million on its investment in FG Financial Group (FGF), compared with an unrealized loss of ($506,000) in the first six months of 2020.
Working capital totaled approximately $24.9 million, of which approximately $22.9 million was comprised of cash, cash equivalents, and trade receivables. This compares with the working capital total, at year-end of last year, of approximately $15.1 million, of which $13.3 million was comprised of cash, cash equivalents, and trade receivables.
Conference Call and Webcast
The Company will host a conference call and webcast for investors today, August 12, 2021, at 9:00 AM eastern time.
Shareholders and interested parties may participate in the conference call by dialing (844) 407-9500 and international participants should dial (862) 298-0850 and ask to be connected to the BK Technologies Corporation Conference Call. The call will also be webcast at www.bktechnologies.com. Please allow extra time prior to the call to visit the site.
An online archive of the webcast will be available on the Company’s web site for thirty (30) days following the call at www.bktechnologies.com. A replay of the conference call will be available one hour after completion of the call until August 19, 2021 by dialing (877) 481-4010 and international participants should dial (919) 882-2331. All callers must use passcode 42133 to access the replay.
About BK Technologies
BK Technologies Corporation manufactures high-specification, American-made communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies is honored to serve these heroes with reliable equipment when every moment counts. The Company’s common stock trades on the NYSE American market under the symbol “BKTI”. Maintaining its headquarters in West Melbourne, Florida, BK Technologies can be contacted through its web site at www.bktechnologies.com or directly at 1-800-821-2900.