WEST MELBOURNE, Florida – August 6, 2019 – BK Technologies Corporation (NYSE American: BKTI) today announced financial and operating results for the second quarter and six months ended June 30, 2019.
For the second quarter ended June 30, 2019, revenues totaled approximately $13.3 million, compared with approximately $13.7 million for the second quarter last year. Operating income for the second quarter 2019 totaled approximately $20,000, compared with operating income of approximately $1.3 million for the second quarter last year. The net loss for the second quarter of 2019 was approximately $247,000, or $0.02 per basic and diluted share, compared with net income of approximately $947,000, or $0.07 per basic and diluted share, for the same quarter last year.
The net loss for the second quarter 2019 includes unrealized losses on investments in securities totaling approximately $148,000, compared with losses of approximately $55,000 for the same quarter last year.
The Company had approximately $17.1 million in working capital as of June 30, 2019, of which $12.5 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital of approximately $21.0 million as of December 31, 2018, of which $17.0 million was comprised of cash, cash equivalents and trade receivables.
Tim Vitou, BK’s President, commented, “The second quarter rebounded well from the first quarter with sales increasing 73.9% and gross profit margins improving to near 43% versus first quarter gross profit margins of 31.9%. After the federal government shutdown in the first quarter of 2019, sales in both the federal and state markets have shown renewed strength. We have continued to invest in a comprehensive upgrade and overhaul of our entire product line, which is reflected in our engineering and product development expenses for the first half of the year. We believe these development initiatives should ultimately provide a solid foundation of products with advanced technology and competitive advantages, upon which we can build increased shareholder value.”
For the six months ended June 30, 2019, sales totaled approximately $20.9 million compared with approximately $25.4 million for the same period last year. Operating loss for the six-month period of 2019 totaled approximately $2.3 million, compared with operating income of approximately $2.1 million for the same period last year. Net loss for the six months ended June 30, 2019 totaled approximately $1.6 million, or $0.12 per basic and diluted share, compared with net income of $503,000, or $0.04 per basic and diluted share for the same period last year.
The financial results for the six months ended June 30, 2019 include a gain on investment in securities totaling approximately $444,000, compared with a losses of approximately $1.2 million for the six-month period last year.
Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, on Wednesday, August 7, 2019. Shareholders and other interested parties may participate in the conference call by dialing 844-602-0380 (international/local participants dial 862-298-0970) and asking to be connected to the “BK Technologies Corporation Conference Call” a few minutes before 9:00 a.m. Eastern Time on August 7, 2019. The call will also be webcast at http://www.bktechnologies.com. An online archive of the webcast will be available on the Company’s website for 30 days following the call at http://www.bktechnologies.com.
A replay of the conference call will be available one hour after the completion of the call until August 18, 2019 by dialing 877-481-4010 PIN# 51423 (international/local participants dial 919-882-2331 PIN# 51423).
About BK Technologies, Inc.
BK Technologies Corporation is an American holding company deeply rooted in the public safety communications industry, with its operating subsidiary manufacturing high-specification communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. BK Technologies is honored to serve our every-day heroes with reliable equipment when every moment counts. The Company’s common stock trades on the NYSE American market under the symbol “BKTI”. Maintaining its headquarters in West Melbourne, Florida, BK Technologies can be contacted through its web site at www.bktechnologies.com or directly at 1-800-821-2900.