BK Technologies Announces Second Quarter 2024 Results

BK Technologies Corporation (NYSE American: BKTI) (the “Company,” “BK Technologies”) today announced financial and operating results for the second quarter and six months ended June 30, 2024. The Company will host a conference call today, August 8, 2024, at 9:00 a.m. Eastern Time.

Second Quarter 2024 Financial and Operational Update

• Revenue increased 7% to $20.3 million, compared with $19.0 million for the second quarter of 2023
• Gross margin improved to 37.3%, as compared to the 27.4% in second quarter 2023
• Company achieved GAAP earnings per share of $0.47; non-GAAP earnings of $0.56(1) per basic and $0.55 per diluted share
• Order backlog was $26.9 million at June 30, 2024, compared to $24.0 million at June 30, 2023
• Re-affirms target full year 2024 GAAP earnings to exceed $1.50 per share; target full year non-
• GAAP earnings per share of $1.77(2)
• United States Patent and Trademark Office (USPTO) issued BK Technologies a patent for covering aspects of its unique voice dispatch interoperability solution, InteropONE™, which establishes a unified common operating communications platform between federal, state and local public safety agencies for planned and emergency response events.

John Suzuki, CEO of BK Technologies commented,

“Our second quarter results reflect solid progress as demonstrated by revenue growth, improved gross margin, and lower operating expenses resulting in significantly enhanced profitability with GAAP earnings per share of $0.47. Our backlog at the close of the second quarter rose to $27 million, reflecting the growing market demand for our products. CalFire led the demand with purchase orders totaling over $15 million for BKR 5000, KNG mobiles and a first purchase of BKR 9000 multiband radios as part of their on-going product life-cycle replacement program. Interest for our BKR 9000 continues to increase, as evidenced by a $1.1 million order in the quarter from the Mississippi Forestry Commission.

“I am pleased to report that the majority of the BKR 5000 radios shipped in the second quarter were manufactured by our partner, East West Manufacturing, and we just completed the transition of the KNG mobile radio. The focus is now turning to the full transfer of BKR 9000 production by the end of the third quarter, which will complete the transition for the outsourcing program. Our decision to adopt an outsourced manufacturing model has already resulted in lower product costs which has had a positive impact on our margin performance, and we expect further cost reductions to drive continued margin improvement moving forward. This asset light model will also help us focus our resources on engineering, product development, and marketing.”

Mr. Suzuki concluded, “We’re pleased to have delivered strong performance in the second quarter and we are enthusiastic about the order activity we’re seeing. As we begin to move through the back half of 2024, we remain confident in our ability to achieve our targeted full year GAAP EPS exceeding $1.50, or non-GAAP EPS exceeding $1.77, and are intently focused on driving continued market adoption of the BKR 9000 multiband portable radio.