BK Technologies announces Q3 revenue of $12.8 million, up 8% year-over-year, operating income of $1.0 Million, up 253% year-over-year
BK Technologies Corporation (NYSE American:BKTI) today announced financial and operating results for the third quarter and nine months ended September 30, 2020. The company will host a conference call today, November 12, 2020 at 9:00AM eastern time.
Tim Vitou, BK’s President, commented, “We had a solid third quarter. Revenue grew 8% and operating income surged 253%, benefitting from our recent restructuring and the related expense reductions. Operating margins more than tripled to 8.2%, as third quarter results offer a glimpse at the earnings power in our business model under our new expense structure.”
Mr. Vitou continued, “We are laser-focused on continuing to grow top line revenue and leverage our current cost structure to increase bottom-line profits. We plan to execute against that goal, growing revenue and thereby earnings, at an even higher rate three ways: 1) through increased sales of existing products; 2) through ramping sales of our BKR 5000, launched in Q3 and already off to a good start with a $1.1 million sale in October; and 3) with the launch of the BKR 9000 next year, which addresses a much greater market with exponentially larger contract opportunities. Our existing, newly launched, and future growth engines enable us to create substantial short-term and long-term shareholder value, as third quarter results demonstrate.”
Q3 2020 and Recent Operational Highlights
Announced the market introduction of the BKR 5000 portable radio; the first model in the new BKR Series of APCO Project 25 Land Mobile Radio products and solutions.
Received an order totaling approximately $1.1 million from an agency of the state of Tennessee for BK’s new BKR 5000 Digital P-25 portable radio.
Received an order totaling approximately $1.1 million from the National Interagency Fire Center (NIFC) for BK’s KNG2-Series Digital P-25 portable radios with related accessories.
Awarded a contract for up to $4.2 million from an electric utility agency of the U.S. Department of Energy (DoE) for BK’s KNG2 and KNG Digital P-25 portable and mobile radios with related accessories, which will be deployed at more than 35 sites in the U.S
Third Quarter 2020 Financial Highlights
Revenue totaled approximately $12.8 million, compared with approximately $11.8 million for the third quarter last year.
Operating income totaled approximately $1.0 million compared with operating income of approximately $295,000 for the third quarter last year.
Net income was approximately $678,000, or $0.05 per basic and diluted share, compared with net income of approximately $238,000, or $0.02 per basic and diluted share, for the third quarter last year.
Nine Month 2020 Highlights
Revenue totaled approximately $33.6 million, compared with approximately $32.7 million for the same period last year.
Operating income for the nine months ended September 30, 2020 was approximately $158,000, compared with an operating loss of approximately $2.0 million for the nine-month period last year.
Net loss for the nine months ended September 30, 2020 totaled approximately $817,000, or a loss of $0.07 per basic and diluted share, compared with a net loss of approximately $1.3 million, or $0.10 per basic and diluted share, for the nine-month period last year.
For the nine months ended September 30, 2020, we recognized an unrealized loss of approximately $797,000 on our investment in 1347 Property Insurance Holdings, Inc., compared with an unrealized gain of $186,000 for the same period last year.
As of September 30, 2020, working capital totaled approximately $14.4 million, of which approximately $12.2 million was comprised of cash, cash equivalents and trade receivables. As of December 31, 2019, working capital totaled approximately $14.5 million, of which approximately $8.6 million was comprised of cash, cash equivalents and trade receivables. During the first nine months of 2020, we reduced inventory by approximately $5.0 million, or 37.6% from the start of the year, which was a primary factor enabling us to generate positive cash flow from operations.