BK Technologies Corporation BKTI reported adjusted earnings per share (EPS) of 55 cents in the second quarter of 2024 against the year-ago period’s adjusted loss per share of 25 cents.

GAAP EPS for the quarter was 47 cents against the year-ago period’s loss per share of 39 cents.

Revenues in Detail

BK Technologies registered revenues of $20.3 million in the second quarter, up 6.6% year over year.

Per management, the revenue uptick was attributed primarily to the shipments of BKR 9000 radio products and partially due to increased radio accessory sales.

Order Backlog

Order backlog was $26.9 million at the end of Jun 30, 2024, compared with $24 million at the end of Jun 30, 2023. This reflected the growing market demand for the company’s products.

CalFire recorded a purchase order totaling more than $15 million for BKR5000, KNG mobiles and a first purchase of BKR9000 multiband radios as part of their on-going product life-cycle replacement program.

Per management, demand for BK Technologies’ BKR 9000 continued to increase, as evidenced by a $1.1 million order in the second quarter from the Mississippi Forestry Commission.

BK Technologies Corporation Price, Consensus and EPS Surprise

BK Technologies Corporation price-consensus-eps-surprise-chart | BK Technologies Corporation Quote

BK Technologies Gross Margin

In the quarter under review, BK Technologies’ gross profit margin was 37.3% compared with 27.4% in the year-ago period. This reflects the favorable impact of production cost-reduction initiatives implemented throughout 2023 and 2024.

Operating Expenses Analysis

Selling, general and administrative expenses declined 7.8% to $5.5 million.

Profitability

Operating income totaled $2 million against the year-ago period’s operating loss of $0.8 million.

In the second quarter, BK Technologies’ net income was $1.7 million against the year-ago period’s net loss of $1.3 million.

Adjusted EBITDA in the reported quarter was a profit of $2.5 million against the year-ago period’s loss of $0.8 million.

Liquidity & Debt Management

BK Technologies exited second-quarter 2024 with cash and cash equivalents of $2.9 million compared with $3.3 million at the first-quarter end.

Cumulative net cash provided by operating activities at the end of second-quarter 2024 was $2.9 million compared with $1.5 million a year ago.

Guidance

Management has initiated its outlook for 2024 adjusted EPS.

For 2024, the adjusted EPS is expected to be $1.77.

Our Take

BK Technologies exited the second quarter of 2024 with encouraging top-line and bottom-line results. Robust purchase orders for products were also promising. The gross operating margin expansion during the reported quarter bodes well. The receipt of a patent by the company during the quarter also raises our optimism.