BK Technologies reports Q1 EPS 19c vs. (37c) last year

Reports Q1 revenue $18.2M vs. $18.7M last year. John Suzuki, CEO of BK Technologies commented, “Our first quarter performance provided a solid start to 2024 highlighted by improved profitability with earnings per share of $0.19 and continued strong demand for our radios with backlog increasing to $19 million. First quarter 2024 revenue of $18.2 million was essentially consistent with first quarter 2023 revenue of $18.7 million and increased 12% sequentially compared to fourth quarter 2023 “During the first quarter, we successfully transferred production of the BKR 5000 to East West Manufacturing, and reduced our inventory by approximately $1.4 million. The East West production line in Juarez, Mexico is fully operational and is currently manufacturing BKR 5000 radios for shipment in the second quarter. Our Melbourne BKR 5000 production line has now ceased all activities. I would like to thank our Melbourne employees who worked through their notice period to ensure we met our first quarter production and shipment goals. Transfer work continues as we now turn our focus to the transition of our KNG single band mobile and BKR 9000 multiband portable radios to East West. “As our outsourced production model ramps, we expect our inventory levels to continue to drop while we realize meaningful long-term reductions in manufacturing costs and reallocate our internal resources to what we do best – new product design and development. To that end, we’re excited to announce the start of a new product development program, the BKR 9500 multiband mobile radio. The BKR 9500 will be designed for installation in first responder vehicles and will be marketed as the companion radio to our BKR 9000 multiband portable radio. Given the market interest we’re seeing for the BKR 9000, we believe that a bundled multiband portable and mobile offering at the right price point will be well received in the marketplace. We expect the BKR 9500 will start contributing revenue in 2027. With wildland fire season in full swing and our historically stronger second and third quarters ahead of us, we remain confident in our previously stated target of $1.50 per share for the full year. For the balance of 2024, we will remain focused on the manufacturing transition and on increasing the BKR 9000 multiband portable radio adoption to achieve improved margin performance, continued reductions in operating expenses and enhanced profitability for our shareholders.”