Wireless Telecom Group has announced financial results for the three months ended September 30, 2022. They reported net revenues of $5.3 million, a decrease of $2.0 million, or 27.7% over the prior year period primarily due to decreased revenue of $1.9 million in our Test & Measurement (“T&M”) segment. Third quarter revenue reflected lower than expected first half bookings caused by the Ukraine conflict disrupting the timing of military and defense spend, as well as general economic uncertainty impacting the closure of deals in our sales funnel in the second quarter.
Gross profit was $2.7 million, a decrease of $1.4 million, or 34.2% over the prior year period due primarily to lower T&M revenues. Gross profit margin declined from 54.8% to 49.9% due primarily to lower absorption of fixed manufacturing costs at T&M.
Tim Whelan, CEO of Wireless Telecom Group stated, “We are focused on our strategic alternatives process and evaluating the return of excess cash to shareholders, and we expect to communicate more about this in the future. With respect to our third quarter, we are exceptionally pleased with the accomplishment of record bookings and contract signatures in the third quarter, which far exceeded initial expectations of $8 to $10 million, and underscores the long-term health of the business.”
Mr. Whelan continued, “Our third quarter saw a recovery from first half customer order uncertainty, and we realized a record quarter of contract signatures of $13.0 million which included multiple large orders initially projected for close prior to June 30, as well as strong bookings in both of our segments. As a result, we have realized significant increases in our backlog which are expected to lead to improving revenues and gross profits in the quarters ahead.”
They have a current order backlog of $12.8 million, an increase of $6.4 million from June 30, 2022.
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