- Record revenue quarter of $5.1 million
- Gross Margin expands 640 basis points sequentially over prior
quarter
Please note, changes have been made to the Q1 2023 column of the
EBITDA Reconciliation financial table.
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Guerrilla RF, Inc. (OTCQX: GUER), a
leading provider of state-of-the-art RF and microwave
semiconductors, today announced results for the first quarter 2024
ended March 31, 2024. The Company achieved record revenues of $5.1
million for the first quarter 2024, a 59.4% increase as compared to
the first quarter of 2023. (Graphic: Business Wire)
The updated release reads:
GUERRILLA RF REPORTS RECORD FIRST QUARTER
2024 RESULTS AND GROSS MARGIN EXPANSION
- Record revenue quarter of $5.1 million
- Gross Margin expands 640 basis points sequentially over prior
quarter
Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of
state-of-the-art RF and microwave semiconductors, today announced
results for the first quarter 2024 ended March 31, 2024. The
Company achieved record revenues of $5.1 million for the first
quarter 2024, a 59.4% increase as compared to the first quarter of
2023.
“Following a challenging 2023, we accelerated our momentum by
increasing revenue as a result of our strong foothold in the
Automotive market and deeper penetration in the 5G Infrastructure
market with previously announced satellite communications and point
to multi-point communications shipments,” said Ryan Pratt, Founder
and CEO. “This was an excellent quarter with over $5.1 million in
revenue and a backlog increase of 27.7% from Q1 2023. We believe we
are on target to achieve the $21.0 to $26.0 million revenue
guidance we previously provided.”
Corporate Highlights
- Completed a $5.0 million private placement, with net cash
proceeds of approximately $3.0 million after deduction of expenses
and conversion of existing debt. We plan to use the new capital to
accelerate the Company’s growth and strengthen its competitive
position through new market penetration, expanded product
offerings, additional R&D initiatives, and new capital
equipment.
- Announced the acquisition of strategic GaN product portfolio
and intellectual property of Gallium Semiconductor. We believe this
acquisition will accelerate our penetration into this market by an
estimated two years.
- Extended maturity of primary credit facility to 2026.
- Management reiterates 2024 revenue guidance of $21.0 to $26.0
million.
Financial Highlights
- Revenue for the first quarter of fiscal 2024 increased 59.4% as
compared to the first quarter of fiscal 2023.
- Quarterly revenues increased 8.5% to $5.1 million, up from $4.7
million recorded in the fourth quarter 2023.
- Gross margin for the first quarter of fiscal 2024 was 63.2% of
revenues as compared to 56.6% for the first quarter of fiscal 2023
and up 640 basis points from Q4 2023.
- Operating loss for the first quarter of fiscal 2024 was $1.8
million as compared to $3.7 million for the first quarter of fiscal
2023.
- Net cash used in operating activities reduced to $0.8 million
(a $5.0 million reduction from first quarter 2023) as a result of
increased sales, margin expansion and expense management
efforts.
- Adjusted EBITDA loss (a non-GAAP measure) was $1.1 million for
the first quarter of fiscal 2024. See EBITDA Reconciliation
below.
- Backlog (a non-GAAP measure) increased at the end of the first
quarter of fiscal 2024 to $8.3 million as compared to $6.5 million
at the end of the first quarter of fiscal 2023.
- Cash balance as of March 31, 2024, was approximately $3.6
million compared to $0.8 million as of December 31, 2023.
Financial Results for Three Months Ended March 31,
2024
- Revenues were $5.1 million, as compared to $3.2 million in the
prior year period.
- R&D expenses decreased to $2.3 million, as compared to $2.6
million for the prior year period.
- Sales and marketing expenses remained flat at $1.4 million, as
compared to the prior year period.
- General and administrative expenses decreased slightly to $1.5
million, as compared to the prior year period.
GUERRILLA RF, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
Guerrilla RF, Inc.
Balance Sheet
March 31, 2024
December 31, 2023
Assets
Unaudited
Cash
$
3,600,710
$
781,318
Accounts receivable, net
2,819,814
2,079,111
Inventories
1,773,596
1,533,592
Prepaid expenses
540,911
458,313
Total Current Assets
8,735,031
4,852,334
Operating right-of-use assets
10,209,384
10,500,620
Property, plant, and equipment, net
3,332,955
3,659,084
Total Assets
$
22,277,370
$
19,012,038
Liabilities and Stockholders' Equity
(Deficit)
Accounts payable and accrued expenses
$
3,590,654
$
2,099,537
Short-term debt
2,839,529
1,628,667
Derivative liabilities
-
158,000
Operating lease, current portion
731,952
745,969
Finance lease, current portion
939,975
978,543
Convertible notes
-
78,905
Convertible notes - related parties
-
700,189
Notes payable, current portion
-
10,948,668
Total Current Liabilities
8,102,110
17,338,478
Long-term debt
634,717
698,600
Operating lease
5,994,557
6,176,508
Finance lease
1,394,430
1,593,979
Notes payable
10,178,238
-
Total Liabilities
26,304,052
25,807,565
Common stock
995
789
Additional paid in capital
42,384,337
36,243,146
Accumulated deficit
(46,412,014
)
(43,039,462
)
Total Stockholders' Equity (Deficit)
(4,026,682
)
(6,795,527
)
Total Liabilities and Stockholders'
Equity (Deficit)
$
22,277,370
$
19,012,038
Guerrilla RF, Inc.
Profit and Loss Statement
Q1
2024
Q1
2023
Unaudited
Product revenue
$
5,089,773
$
3,040,409
Royalties and non-recurring engineering
revenue
1,476
190,479
Total
5,091,249
3,230,888
Direct product cost
1,870,675
1,403,345
Gross Profit
3,220,574
1,827,543
Operating Expenses:
Research and development
2,251,533
2,586,169
Sales and marketing
1,352,909
1,361,949
General and administrative
1,454,695
1,546,163
Total operating expenses
5,059,137
5,494,281
Operating loss
(1,838,563
)
(3,666,738
)
Interest expense
(1,684,787
)
(341,857
)
Change in fair value of derivative
liabilities
158,000
-
Other income (expense)
(7,202
)
7,177
Total other income (expense), net
(1,533,989
)
(334,680
)
Net loss
$
(3,372,552
)
$
(4,001,418
)
EBITDA and Adjusted EBITDA Reconciliation
References to “EBITDA” mean net loss, before considering
interest expense, provision for income taxes, depreciation and
amortization. References to Adjusted EBITDA excludes irregular or
non-recurring items and are not directly
related to the Company’s core operating performance. EBITDA
and Adjusted EBITDA are not measures of financial performance under
U.S. GAAP. Management believes EBITDA and
Adjusted EBITDA, in addition to operating profit, net income and
other U.S. GAAP measures, are useful to investors to evaluate the
Company’s results because they exclude certain items that may, or
could, have a disproportionate positive or negative impact on our
results for any particular period. Investors should
recognize that EBITDA and Adjusted EBITDA might not be comparable
to similarly-titled measures of other companies. These measures
should be considered in addition to, and not as a substitute for or
superior to, any measure of performance prepared in accordance with
U.S. GAAP. A reconciliation of non-U.S. GAAP EBITDA and Adjusted
EBITDA to the most directly comparable U.S. GAAP measure in
accordance with SEC Regulation G follows:
Guerrilla RF, Inc.
EBITDA Reconciliation
Q1
2024
Q1
2023
Net Loss
$
(3,372,552
)
$
(4,001,418
)
Interest expense
1,684,787
341,857
Depreciation and amortization
366,281
398,321
EBITDA
(1,321,484
)
(3,261,240
)
Share-based compensation
396,197
268,640
Change in fair value of derivative
liabilities
(158,000
)
-
Adjusted EBITDA
$
(1,083,287
)
$
(2,992,600
)
About Guerrilla RF, Inc.
Founded in 2013, Guerrilla RF, Inc., develops and manufactures
high-performance, state-of-the-art radio frequency (RF) and
microwave semiconductors for wireless OEMs in multiple high-growth
market segments, including network infrastructure for 5G/4G macro
and small cell base stations, SATCOM, cellular repeaters/DAS,
automotive telematics, military communications, navigation, and
high-fidelity wireless audio. The Company has an extensive
portfolio of 100+ high-performance RF and microwave semiconductor
devices with 50+ new products in development. As one of the
fastest-growing semiconductor firms in the industry, Guerrilla RF
drives innovation through its R&D to commercialization
initiatives and focuses on product excellence and custom solutions
to underserved markets. The Company has shipped over 200 million
devices and has repeatedly been included in Inc. Magazine’s annual
"Inc. 5000" list. Guerrilla RF recently made the top "Inc. 500"
list for the second year in a row. For more information, please
visit https://guerrilla-rf.com or follow the Company on Twitter and
LinkedIn.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and the Private Securities Litigation Reform Act of 1995, which
statements are inherently subject to risks and uncertainties.
Forward-looking statements include projections, predictions,
expectations, or beliefs about future events or results or
otherwise are not statements of historical fact. Such statements
are often characterized by the use of qualifying words (and their
derivatives) such as “expect,” “believe,” “estimate,” “plan,”
“project,” “anticipate,” or other statements concerning opinions or
judgments of the Company and its management about future events.
You should not place undue reliance on forward-looking statements
because they involve known and unknown risks, uncertainties, and
assumptions that are difficult or impossible to predict and, in
some cases, beyond the Company’s control. Actual results may differ
materially from those in the forward-looking statements as a result
of several factors, including those described in the Company’s
filings with the SEC available at www.sec.gov. Forward-looking
statements speak only as of the date they are made. The Company
undertakes no obligation to revise or update information in this
release to reflect events or circumstances in the future, even if
new information becomes available.
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Sam Funchess, VP of Corporate Development ir@guerrilla-rf.com +1
336 510 7840