Tue, May 13, 11:28 AM (61 days ago)
**BK Technologies Corporation (BKTI) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $19.1 million, up 4.5% from Q1 2024 ($18.2 million). - **Net Income:** $2.1 million, a significant increase from $0.7 million in Q1 2024. - **Earnings per Share (EPS):** $0.60 basic and $0.55 diluted, compared to $0.19 for Q1 2024. - **Gross Profit Margin:** 47.0%, up from 34.5% in Q1 2024. - **Operating Income:** $2.9 million, compared to $1.0 million in Q1 2024. - **Cash Flow:** $2.1 million from operations, reversing a $0.8 million outflow in Q1 2024. **Key Metrics and Trends:** - **Sales Mix:** Improved product and accessories sales mix contributed to higher margins. - **Cost Reduction:** Full impact of material cost improvements from manufacturing transition to East West Manufacturing, LLC. - **SG&A Expenses:** Increased by 13.7% to $6.0 million, due to new product introduction costs and RSU issuance expenses. - **Tax Expense:** $670,000, compared to $21,000 in Q1 2024, reflecting higher pre-tax income. - **Working Capital:** $24.6 million, with $19.1 million in cash and receivables. **Uncertainties and Future Operations:** - **Geopolitical Risks:** Ongoing conflicts and trade tensions could impact supply chains and customer demand. - **Economic Conditions:** Inflation, interest rates, and potential recessions pose risks to financial markets and capital access. - **Credit Facility:** $6 million revolving line of credit with Fifth Third Bank, unused as of Q1 2025. - **Internal Controls:** Material weakness in income tax provision controls, with remediation plans in progress. **Segment Performance:** - **Land Mobile Radio (LMR) Products and Solutions:** Single reportable segment, focusing on public safety communications. **Conclusion:** BK Technologies Corporation showed strong Q1 2025 performance with increased revenue, profitability, and cash flow. However, geopolitical and economic uncertainties, along with internal control weaknesses, present challenges for future operations. The company's strategic initiatives, including new product introductions and cost reduction efforts, aim to mitigate these risks and drive continued growth.