BK Technologies Announces Fourth Quarter and Year-End 2022 Results
BK Technologies Corporation (NYSE American:BKTI) (the "Company" or "BK Technologies") today announced financial and operating results for the fourth quarter and year ended December 31, 2022. The Company will host a conference call today, March 16, 2023 at 9:00 a.m. Eastern Time.
Fourth Quarter 2022 Financial and Operational Update
- $20.3 million in revenue in the quarter driven by solid demand for BKR 5000
- Continued strong interest in BKR 5000 contributed to total backlog of $27 million at December 31, 2022
- Exceeded internal targets with the delivery of more than 11,200 radios in the fourth quarter as radio production continued to ramp up
- Q4 gross margins improved sequentially compared to Q3 2022 as shipments increased, material costs continue to normalize and the Company works through the higher cost inventory
- BKR 9000 was delivered to the FCC for testing and certification during the quarter; the Company is seeing strong pre-order activity for the BKR 9000
- Successfully launched its new SaaS business line, InteropONE, the only Push-To-Talk Over Cellular (PTToC) service that enables interoperability between different technologies and service providers and facilitates on-demand group communications for any smartphone user
- Board suspends quarterly dividend in order to direct all available resources to fuel the Company's growth
"2022 was a year of tremendous progress for BK Technologies as evidenced by solid revenue growth, record bookings activity and the delivery of more than 25,000 radios, representing a 12% delivery increase as compared to 2021," stated John Suzuki CEO of BK Technologies. "Our improved delivery metric is particularly notable given that we began 2022 faced with unprecedented component shortages and supply chain delays which significantly impacted our production and delivery timelines throughout 2022. However, our team was nimble throughout the year and proactively managed through those global supply chain challenges to close 2022 with fourth quarter delivery levels surpassing our internal targets.
"Our BKR 5000 line of portable communication technology saw strong demand throughout the year, adding customers from a variety of local, state and federal entities and we're seeing a great deal of interest and pre-order activity for our BKR 9000 multiband radio, which is currently undergoing the FCC approval process. In our SaaS business unit, the fourth quarter marked the launch of InteropONE, our first public safety service, which is the only Push-To-Talk Over Cellular (PTToC) service that enables interoperability between different technologies and service providers and facilitates on-demand group communications for any smartphone user.We believe this service has tremendous potential as a solution for first responders arriving at planned events or emergencies who need to efficiently create ad-hoc onsite group communications.
"As we begin moving through 2023, we are energized by the opportunities we're seeing in the marketplace for our portable communications technology and SaaS services. We're focused on converting our order backlog to revenue while improving our gross margins, as we provide our essential communications solutions to public safety and first responder agencies nationwide."
Kyle Cerminara, Chairman of the Board of Directors of BK Technologies and CEO of Fundamental Global stated, "We exit 2022 with a $27 million backlog, over twice the $13 million at the close of 2021, reflecting the strong market recognition of our BKR product line. We believe we're well positioned for growth as we move through 2023."