Guerrilla RF, a leading provider of state-of-the-art radio frequency (RF) and microwave semiconductors, has announced records of fourth quarter and full year 2023 revenue. It was observed that the fourth quarter 2023 revenue had increased by 93.6% over the same period in 2022, coming in at $4.7 million compared to $2.4 million for the year ago quarter.
Annual revenue for 2023 grew 30.2% to $15.1 million, compared to $11.6 million for 2022 as increased orders from their automotive and wireless infrastructure markets drove the desired growth. Of the company's three markets, automotive grew the most, representing 57% of 2023 revenue due to increased penetration and number of design wins that began shipping. The next highest growth market for the company is Wireless Infrastructure, which includes satellite communications (SATCOM). This market grew to 11% of the company’s 2023 revenue. Wireless Infrastructure revenue growth is expected to accelerate in 2024 and represent a much larger percentage of sales as two previously announced design wins in point-to-multi-point application and SATCOM begin shipping in earnest. Guerrilla's catalog markets represented 32% of 2023 revenue and while revenue in this market is expected to remain stable and even increase, the company anticipates that over time it will decline as a percentage of total revenue as the first two markets continue to scale.
Fourth Quarter and Full Year 2023 Financial Results
- Fourth quarter shipments 99.8% higher than same period in 2022, representing highest quarterly deliveries in 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 fourth quarter 2023 was $2.1 million, an improvement 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 represented 22.1% of our product revenue in 2023 compared to 10.6% in 2022, reflecting positive results of previous R&D investments. New product revenue is for products in production less than three years.
- Fourth quarter bookings exceeded $5.0 million.
- Distribution channel inventory days reached 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, customer orders remained strong with backlog growing to $8.6 million on March 22, 2024.
Corporate Highlights:
- Management expects full year 2024 revenue to be between $21.0 and $26.0 million and gross profit to be between $12.8 and $15.9 million.
- Management believes revenue for Q1 2024 will be between $4.7 and $5.2 million.
- Completed private placement equity financing and debt conversion of approximately $5.0 million in aggregate transaction value subsequent to the fiscal 2023 year. This capital is expected to allow the Company to reach EBITDA breakeven.
- Executed agreement with primary lender to extend loan maturity from April 2024 to January 2026.
- Continued focus on expense reduction and revenue growth is expected to enable the Company to achieve EBITDA breakeven in second quarter 2024.
- Announced initial production purchase order (PO) from a Tier 1 telecommunications provider 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, with total lifetime shipments exceeding 200 million units.
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