BK Technologies reports second quarter 2020 results
BK Technologies Corporation (NYSE American: BKTI) today announced financial and operating results for the second quarter and six months ended June 30, 2020.
For the second quarter ended June 30, 2020, revenues totaled approximately $9.9 million, compared with approximately $13.3 million for the second quarter last year. The operating loss for the second quarter of 2020 totaled approximately $36,000, compared with operating income of approximately $20,000 for the second quarter last year. The net loss for the second quarter of 2020 was approximately $302,000, or $0.02 per basic and diluted share, compared with a net loss of approximately $247,000, or $0.02 per basic and diluted share, for the second quarter last year.
The net loss for the second quarter of 2020 included an unrealized loss on investment in securities totaling approximately $200,000, compared with an unrealized loss of approximately $148,000 for the second quarter last year.
The Company had approximately $13.4 million in working capital as of June 30, 2020, of which $10.5 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital of approximately $14.5 million as of December 31, 2019, of which $8.6 million was comprised of cash, cash equivalents and trade receivables. During the six-month period ended June 30, 2020, the Company reduced inventory by approximately $4.0 million (29.5%) and generated cash of approximately $2.3 million.
Tim Vitou, BK’s President, commented, “Despite the challenges and uncertainties in worldwide business and economic conditions, our sales for the first half of 2020 were consistent with last year’s first half, and we narrowed our operating loss by over 60%. We are encouraged that our sales successes included new markets and customers, such as our recently announced contract with an agency of the U.S. Department of Energy. We have also taken actions throughout the company to increase efficiencies and effectiveness while reducing expenses, as evidenced by improved gross profit margins and decreased selling, general and administrative expenses relative to the same periods last year and the preceding quarter of 2020. During the second quarter for 2020, we reduced total operating expenses by almost 25%, a savings of approximately $3.3 million. After our restructuring and the related expense reductions, we believe we have significantly lowered the threshold at which we can generate operating profits.”
Mr. Vitou continued, “We recently achieved an important milestone with the design completion of the first model in our new BKR family of products, which we anticipate will be available for sale during the second half of 2020 and moving forward. Our plans are for the BKR product line to serve as the foundation for our future growth, and include multiband products, which we believe will open new markets to us, and enable us to increase our overall market share.”
Mr. Vitou concluded, “In response to the COVID-19 pandemic we have taken steps to safeguard our staff and address potential changes in our business. A portion of our employees are working remotely, and we have implemented extensive safety measures for those continuing to work in our primary facilities. To-date, one staff member has tested positive for COVID-19. This employee has been quarantined in accordance with accepted safety practices and is working remotely. Throughout the pandemic, as an essential business supporting first responders, we have remained operational. While some of our supply chain partners were temporarily closed in the pandemic’s early stages, most have resumed normal operations and we have been able to procure the materials necessary for manufacturing products and fulfilling customer orders. The outlook for the next several quarters is uncertain as the pandemic progresses. However, our restructured operations and balance sheet with liquidity and minimal debt, we believe, should allow us to withstand current conditions and leave us well positioned once the U.S. and global economies start to improve.”
For the six months ended June 30, 2020, sales totaled approximately $20.8 million, compared with approximately $20.9 million for the same period last year. The operating loss for the six months ended June 30, 2020 improved 61.5% to approximately $884,000, compared with approximately $2.3 million for the six-month period last year. The net loss for the six months ended June 30, 2020 totaled approximately $1.5 million, or $0.12 per basic and diluted share, compared with a net loss of approximately $1.6 million, or $0.12 per basic and diluted share, for the six-month period last year. The financial results for the six months ended June 30, 2020 included an unrealized loss on investment in securities totaling approximately $506,000, compared with an unrealized gain of approximately $444,000 for the six-month period last year.