BK Technologies Announces Third Quarter 2024 Results

BK Technologies Corporation today announced financial and operating results for the third quarter and nine months ended September 30, 2024. The Company will host a conference call today, November 14, 2024, at 9:00 a.m. Eastern Time.

Third Quarter 2024 Financial and Operational Update

• Revenue of $20.2 million was consistent with revenue in the third quarter of 2023.
• Gross margin of 38.8% improved as compared to gross margin of 31.9% in the same period last year and improved sequentially as compared to gross margin of 37.3% in the second quarter of 2024.
• Company achieved GAAP earnings $0.67 per basic and $0.63 per diluted share; non-GAAP adjusted earnings1 of $0.75 per basic and $0.71 per diluted share.
• Order backlog was $27.0 million at September 30, 2024, compared to $21.8 million at September 30, 2023 and to $26.9 million at June 30, 2024. The Company anticipates that the majority of this backlog will be delivered over the next two quarters.
• Raises full year 2024 GAAP earnings target to exceed $1.65 per share from previous target of $1.50 per share and increases target full year non-GAAP earnings per share1 to $1.92 per share from previous target of $1.77 per share.

John Suzuki, CEO of BK Technologies commented,

As we move into the final quarter of 2024, our performance to date has been largely in line with the expectations we outlined at the start of the year, specifically as related to the strategic outsourcing of our manufacturing operations, our focus on cost containment and the ongoing shift in our revenue mix, which are driving significant improvements in gross margin performance and profitability.
We continue to see strong demand and order activity for our BKR 5000 and our new BKR 9000 multiband radio, as reflected in our backlog of $27 million at the close of the quarter. Of note, we recently announced a purchase order valued at $3.3 million from the Florida Forest Service for the BKR 9000 multiband radio. We’re pleased to continue our support of this long-term customer as they plan to deploy our latest portable radio technology. During the third quarter, our outsourcing program with East West Manufacturing was completed. With this transition, we are already seeing the lower production expenses favorably impact our gross margin performance and we expect to see continued margin improvement moving forward as we fully realize the benefits of the East West partnership. We have made solid progress throughout 2024 supporting existing and new customers with our essential portable communications technology. With our visibility today, we now expect full year 2024 GAAP earnings per share to exceed $1.65 per share, an increase from our previous target of $1.50 per share. Likewise, we now expect non-GAAP EPS to exceed $1.921 per share, up from our previous target of $1.77 per share, with full year 2024 revenues consistent with full year 2023. As we move through the close of this year, we remain focused on accelerating the BKR 9000 adoption rate, winning new customers and growing our market share.