BK Technologies Announces Third Quarter 2021 Results
BK Technologies Corporation (NYSE American: BKTI) (the “Company” or “BK”) today announced financial and operating results for the third quarter and nine months ended September 30, 2021. The Company will host a conference call today, November 11, 2021, at 9:00 AM eastern time.
Recent Financial and Operational Highlights:
• Third quarter revenue of $12.6 million decreased slightly as compared to revenue of $12.8 million in the third quarter of 2020.
• The Company experienced increased order activity for third quarter driven by strong demand for its new BKR 5000 Digital P25 portable communications technology (“BKR 5000”)
• The Company enters fourth quarter with backlog at highest level in five years and more than double the $5.9 million backlog at December 31, 2020, due to a combination of strong order activity coupled with extended product delivery schedules associated with supply chain constraints
• High backlog positions Company to achieve sequential revenue growth in the typically seasonally slow fourth quarter and provides momentum looking into 2022
John Suzuki, BK’s Chief Executive Officer, commented, “We continue to see strong demand and order activity for our BKR 5000, from a variety of state and federal agencies as they upgrade their portable communications technology. The BKR 5000 enables the highest level of dependable communications technology and is especially well suited to mission critical fire & rescue operations, as well as forestry and land management across large geographic footprints.
“The reliable, real-time capabilities of our radios are generating tremendous marketplace interest and we experienced robust order activity during the third quarter. However, we, like many others in our industry and beyond, continue to face material shortages and increased lead times related to nationwide supply chain constraints. These supply chain issues have continued to impact our ability to convert customer orders to shipments. We are working closely with our vendors and logistics partners as we navigate this challenging time, and we have also strengthened our supply chain management to drive proactive measures to fulfill demand and service our customers. Additionally, our inventory has increased as a result of the unpredictability of the supply chain, however, when the supply chain stabilizes we anticipate returning to more normalized inventory levels.
“With our product portfolio today, we believe we are in a strong position to continuing winning new contracts and customers. Looking forward, our balance sheet is strong, providing us with the financial flexibility to explore acquisition opportunities to complement our organic growth ,” Mr. Suzuki concluded.