BK Technologies reports Q2 EPS 55c vs. (25c) last year

Reports Q2 revenue $20.3M vs. $19M last year. John Suzuki, CEO of BK Technologies commented, “Our second quarter results reflect solid progress as demonstrated by revenue growth, improved gross margin, and lower operating expenses resulting in significantly enhanced profitability with GAAP earnings per share of $0.47. Our backlog at the close of the second quarter rose to $27 million, reflecting the growing market demand for our products. CalFire led the demand with purchase orders totaling over $15 Million for BKR 5000, KNG mobiles and a first purchase of BKR 9000 multiband radios as part of their on-going product life-cycle replacement program. Interest for our BKR 9000 continues to increase, as evidenced by a $1.1 million order in the quarter from the Mississippi Forestry Commission. I am pleased to report that the majority of the BKR 5000 radios shipped in the second quarter were manufactured by our partner, East West Manufacturing, and we just completed the transition of the KNG mobile radio. The focus is now turning to the full transfer of BKR 9000 production by the end of the third quarter, which will complete the transition for the outsourcing program. Our decision to adopt an outsourced manufacturing model has already resulted in lower product costs which has had a positive impact on our margin performance, and we expect further cost reductions to drive continued margin improvement moving forward. This asset light model will also help us focus our resources on engineering, product development, and marketing. We’re pleased to have delivered strong performance in the second quarter and we are enthusiastic about the order activity we’re seeing. As we begin to move through the back half of 2024, we remain confident in our ability to achieve our targeted full year GAAP EPS exceeding $1.50, or non-GAAP EPS exceeding $1.77, and are intently focused on driving continued market adoption of the BKR 9000 multiband portable radio.”