Guerrilla RF, an industry leader that offers innovative radio frequency and microwave communications solutions, recently announced its financial and operational results for the quarter ending September 30, 2023.
“Our Q3 revenue experienced a 51.7% year-over-year increase to $3.4 million, as we grew our sales in the automotive sector,” said Ryan Pratt, founder and CEO. “We continue to experience expanding product sales in the automotive sector and other growth markets. Our customer commitment remains strong, with a backlog of $6.0 million at the end of Q3 compared to $3.3 million at the end of Q3 last year.”
Mr. Pratt continued, “We continue to focus on expense control to reach operating cash flow break even mid-2024. Net cash used in operating activities was reduced by approximately $800,000 to $2.3 million for the third quarter from $3.1 million for the second quarter 2023.”
Q3 2023 Financial Highlights:
- For the three months ending September 30, 2023, revenues were $3.4 million, up from $2.2 million in the year-ago quarter. Revenue growth was driven by automotive market strength.
- Net cash used in operational activities fell $800,000 to $2.3 million from $3.1 million the prior quarter.
- After quarter end, the Company borrowed $1.25 million from a credit facility.
- Third-quarter fiscal 2023 product revenue growth was 65.9% higher than in 2022. Automotive traction drove growth.
- The third-quarter fiscal 2023 gross profit margin was 55.7% of revenues, down from 57.1% in 2022. Compared to last year, product mix variations contributed less to contribution margins.
- R&D spending rose 32.3% to $2.8 million from $2.1 million last year and 4.6% quarter-over-quarter. The growth is due to sustained investment in new product development, Gallium arsenide (GaAs) build-out, and GaN R&D. They believe these efforts are setting the groundwork for future Company products.
- The fiscal 2023 third-quarter operating deficit was $3.7 million, up from $3.3 million in 2022. The quarterly R&D ($678 thousand) and sales and marketing ($254 thousand) investments increased by $932 thousand compared to the previous year.
- The fiscal 2023 and 2022 third quarter net loss per share was $0.62 and $0.66, respectively.
- The third quarter of fiscal 2023 saw backlog rise to $6.0 million from $3.3 million in 2022 and $5.6 million in 2023.
- At September 30, 2023, cash balance was $0.9 million, down from $2.1 million in fiscal 2022's third quarter. The Company later borrowed $1.25 million from an existing lending facility.
Corporate Highlights:
- Management forecasts 2023 sales between $14.7 and $15.2 million.
- Management forecasts 2024 revenue between $21.0 and $26.0 million.
- Continued expense reduction should allow the Company to reach operational cash flow breakeven by mid-2024, excluding interest and other non-operating and non-recurring expenses.
- A tier 1 SATCOM company placed the first production purchase order (PO) and shipping. Most of the $360,000 PO should be shipped by year's end. The Company estimates SATCOM 2024 revenues to exceed $1.0 million and market opportunity to exceed $560 million.
Click here for more information on Guerrilla RF.
