Guerrilla RF, a leading provider of state-of-the-art radio frequency and microwave semiconductors, has announced record revenue for the fourth quarter and full year 2023. The fourth quarter 2023 revenue increased 95.8% over the same period in 2022, coming in at $4.7 million compared to $2.4 for the year-ago quarter. The annual revenue for 2023 grew 30.2% to $15.1 million, compared to $11.6 million for the financial year 2022. This growth resulted from increased orders from automotive and satellite communications (SATCOM) markets.
Fourth Quarter and Full Year 2023 Financial Results
- Fourth-quarter shipments were 99.8% higher than the same period in 2022, representing the highest quarterly deliveries in the Company’s history.
- The Company reported $15.1 million in revenue for FY23 hitting the upper end of management’s full-year 2023 guidance of between $14.7 and $15.2 million.
- Contribution margin of 70.5% for FY23, compared to 71.5% for FY22, indicating price stability as revenues grow.
- Gross profit margin for Q4 2023 was 56.8% of revenues, 100bps over Q3 2023.
- Fourth quarter operating expense decreased $0.8 million or 14.4% from Q3 2023, reflecting the continued impact of previously announced expense management efforts.
- Operating loss for the fiscal fourth quarter of 2023 was $2.1 million, a decrease of $1.6 million, or 43.2%, as compared to an operating loss of $3.7 million for the third quarter of 2023.
- R&D expenses decreased $0.5 million to $2.3 million from the prior quarter, reflecting the continued impact of previously announced expense management efforts.
- New product revenue reached 22.1% of our product revenue in 2023 compared to less than 1.0% in 2022, reflecting positive results of previous R&D investments. New product revenue is for products in production for less than three years.
- Fourth quarter bookings exceeded $5.1 million, matching the previous Company record in Q1 2023.
- Distribution channel inventory days reached the lowest level in two years at 50.0 days as of December 31, 2023, leading management to believe the inventory overhang is behind the Company.
- Backlog (a non-GAAP measure) remained steady quarter-over-quarter, ending 2023 at $6.0 million; $1.5 million higher compared to $4.5 million at the end of 2022. Subsequent to year-end, backlog reached an all-time high for the Company at $7.9 million on January 12, 2024, due to new orders.
Corporate Highlights:
- Management expects full-year 2024 revenue to be between $21.0 and $26.0 million.
- Preliminary agreement with its primary lender to extend loan maturity into 2025, contingent upon the Company achieving certain milestones in the current quarter.
- Continued focus on expense reduction is expected to enable the Company to achieve the operational cash flow breakeven target in 2024, i.e. excluding interest expense, and other non-operating and non-recurring expenses.
- Announced initial production Purchase order (PO) for point-to-multipoint wireless infrastructure design win.
- Announced first production PO and shipment to the SATCOM market with a PO from a tier 1 SATCOM company. The Company expects 2024 SATCOM revenues to exceed $1.0 million and the total market opportunity to exceed $560 million.
- Guerrilla RF shipped over 36 million units in 2023.
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