Mon, Sep 30, 8:02 PM (90 days ago)
Franklin Wireless Corp. reported a significant decline in net sales for the fiscal year ending June 30, 2024, totaling $30,797, a decrease of 33% from $45,949 in 2023. This decline was primarily attributed to reduced demand from major carriers. Gross profit also fell by 50% to $3,508, compared to $7,021 in the previous year, reflecting increased production costs and competitive pricing pressures. Operating expenses rose slightly to $9,448, leading to a loss from operations of $5,940. The net loss attributable to shareholders increased to $3,964, or $0.34 per share, compared to a loss of $2,863, or $0.24 per share in 2023. The company continues to face risks including reliance on key customers, competitive pressures, and potential legal liabilities. Future outlook remains uncertain, with expectations of fluctuating revenues and the need for additional financing for product development. Franklin Wireless maintains a strong liquidity position with cash and short-term investments of approximately $37,458. The management emphasizes ongoing efforts to innovate and adapt to changing market demands.