BK Technologies Announces Financial Results for Quarter, Six Months
Friday, August 03, 2018 | Comments

BK Technologies announced financial and operating results for the second quarter and six months ended June 30.

For the second quarter ended June 30, revenues increased 26.9 percent to about $13.7 million, compared with about $10.8 million for the second quarter of 2017. Operating income for the second quarter of 2018 increased 36.8 percent to approximately $1.3 million, compared with $973,000 for the second quarter last year. Net income for the second quarter of 2018 was about $947,000 compared with $1.3 million for the same quarter in 2017.

The company had about $23.4 million in working capital as of June 30, of which $17.7 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital of about $26.7 million as of Dec. 31, of which $12.7 million was comprised of cash, cash equivalents and trade receivables. As of June 30, the company had no borrowings outstanding under its revolving credit facility.

“Our operating results for the second quarter and six months were encouraging, featuring sales growth, improvement in gross profit margins and strong operating income,” said Tim Vitou, BK’s president. “State public-safety agencies were the primary driver for second quarter sales. They were complemented, however, with solid demand from the federal market, including legacy customers in the wildland fire suppression community. Gross profit margins increased for the second consecutive quarter, derived from manufacturing and quality improvement initiatives, increased volumes and a more favorable mix of product sales. These factors combined to turn last year’s operating loss into $2.1 million of operating income for the first half of this year.”

The company also reduced inventory by about $1.6 million and generated $3.6 million in cash for the first six months of 2018, which has funded accelerated investment in engineering and new product development, leading toward the anticipated introduction of a new line of products later this year, Vitou said.

For the six months ended June 30, sales increased 40 percent to about $25.4 million compared with about $18.1 million for the same period last year. Operating income for the six-month period increased to about $2.1 million, compared with an operating loss of about $233,000 for the same period last year. Net income for the six months ended June 30 totaled $503,000 compared with $50,000 for the same period last year.

The financial results for the six months ended June 30 include a loss on investment in securities totaling about $1.2 million, compared with a gain of about $617,000 for the six-month period last year.

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