Flux Power Reports Fiscal Second Quarter 2022 Financial Results
Flux Power Holdings reported a 19% revenue increase to $7.7 million for Q2 fiscal 2022, marking the 14th consecutive quarter of year-over-year growth. The company secured $19.8 million in new purchase orders, boosting its backlog to a record $31.4 million. Despite strong demand, the gross profit fell to $1.0 million due to rising input costs, resulting in a net loss of $5.1 million. Flux initiated strategic initiatives to improve profitability and mitigate supply chain disruptions, including increased production capacity and new product designs.
- Revenue increased 19% to $7.7 million in Q2 FY 2022.
- Achieved a record customer order backlog of $31.4 million.
- Secured $19.8 million in new purchase orders.
- Gross profit decreased to $1.0 million from $1.5 million year-over-year.
- Net loss increased to $5.1 million, up from $3.4 million year-over-year.
- Gross margin declined to 13.6% from 23.0% in the same period last year.
Second Quarter 2022 Revenue Increased
Received
Initiated New Strategic Initiatives to Mitigate Global Supply Chain Disruptions & Increase Profitability Across the Portfolio
Management to Host Conference Call Today at
Key Financial & Operational Highlights for the Second Quarter Fiscal Year 2022
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Revenue increased
19% to$7.7 million $6.5 million - Achieved 14th consecutive quarter of year-over-year revenue growth.
-
Received
$19.8 million $14 million September 2021 to pre-purchase inventory to protect growing deliveries to key customers. -
Customer order backlog increased to
$31.4 million December 31, 2021 . -
Initiated Strategic Supply Chain & Profitability Improvement Initiatives to accelerate the path to cash flow breakeven, including:
- Commenced production process improvements to increase capacity, and added an additional production line;
- Introduced new product design features expected to reduce cost, simplify the bill of materials, and improve serviceability;
- Transitioned product lines to a new cell technology, resulting in lower cost and improved supplier reliability;
- Implemented price increases on certain product lines to mitigate the impact of rising input costs;
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Increased inventory to
$19.6 million December 31, 2021 to mitigate the impact of supply chain disruptions and to support timely deliveries.
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Cash and cash equivalents were
$7.9 million December 31, 2021 . The working capital line of credit outstanding balance was$3.5 million December 31, 2021 .
CEO Commentary
“While the second quarter of fiscal 2022 was a challenging one for the company in light of continued global supply chain disruptions, we experienced record customer demand as evidenced by
“Our strategic initiatives encompass new product designs, production process improvements and better supply chain management. Moreover, improvements made to our product portfolio and to our processes should enable us to increase our production capacity, weather the current and future supply chain disruptions and to build a stronger company.
“Looking ahead, in addition to expanding sales of our energy storage solutions to new and existing customers, we are providing stationary energy storage solutions to Beam Global for their solar-powered EV charging stations. Also, we are continuing deployment of our SkyBMS Telematics product for remote fleet management and monitoring. I am happy to report that customer feedback for both of these initiatives has been positive.
“In summary, we believe
Second Quarter Fiscal Year 2022 Financial Results
-
Revenue for the fiscal second quarter of 2022 increased by
19% to$7.7 million $6.5 million -
Gross profit for the fiscal second quarter of 2022 decreased to
$1.0 million $1.5 million 13.6% in the fiscal second quarter of 2022 as compared to23.0% in the fiscal second quarter of 2021. -
Selling & Administrative expenses increased to
$4.0 million $3.1 million -
Research & Development expenses increased to
$2.1 million $1.6 million -
Net Loss for the fiscal second quarter of 2022 increased to
$5.1 million $3.4 million -
Cash was
$7.9 million December 31, 2021 , as compared to$4.7 million June 30, 2021 . Our working capital line of credit outstanding balance was$3.5 million December 31, 2021 . Cash requirements during the quarter were high to support pre-purchasing of increasing sales orders.
Management Commentary
“Although customer demand was strong during the second quarter, our profitability was negatively impacted by continued disruption in our supply chain. We experienced higher costs to obtain key components of our energy solutions and delays in the receipt of such parts which led to manufacturing and shipping delays. To address the unprecedented level of supply chain uncertainty, we elected to build inventory levels of key component parts. This combination of factors increased our operating expenses and reduced gross profit.
“Cash usage in the second quarter of 2022 was also elevated due to global supply chain disruptions leading to high levels of inventory as well as new strategic initiatives that include new product designs, production facility improvements and better supply chain management. We ended the second quarter with
Second Quarter Fiscal Year 2022 Results Conference Call
To access the call, please use the following information:
Date: |
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Time: |
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Toll-free dial-in number: |
1-877-407-4018 |
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International dial-in number: |
1-201-689-8471 |
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Conference ID: |
13726247 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact
The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1523649&tp_key=a303c51997 and via the investor relations section of the Company's website.
A replay of the webcast will be available after
Toll-free replay number: |
1-844-512-2921 |
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International replay number: |
1-412-317-6671 |
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Replay ID: |
13726247 |
About
Forward-Looking Statements
This release contains projections and other "forward-looking statements" relating to Flux Power’s business, that are often identified using "believes," "expects" or similar expressions. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Such forward-looking statements include impact of COVID-19 on Flux Power’s business, results and financial condition; Flux Power’s ability to obtain raw materials and other supplies for its products at competitive prices and on a timely basis, particularly in light of the potential impact of the COVID-19 pandemic on its suppliers and supply chain; the development and success of new products, projected sales, deferral of shipments, Flux Power’s ability to fulfill backlog orders or realize profit from the contracts reflected in backlog sale; Flux Power’s ability to fulfill backlog orders due to changes in orders reflected in backlog sales, Flux Power’s ability to timely obtain UL Listing for its products, Flux Power’s ability to fund its operations, distribution partnerships and business opportunities and the uncertainties of customer acceptance and purchase of current and new products. Actual results could differ from those projected due to numerous factors and uncertainties. Although
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
7,855,000 |
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$ |
4,713,000 |
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Accounts receivable |
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5,184,000 |
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|
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6,097,000 |
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Inventories |
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19,583,000 |
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10,513,000 |
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Other current assets |
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868,000 |
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417,000 |
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Total current assets |
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33,490,000 |
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21,740,000 |
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Right of use asset |
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2,821,000 |
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3,035,000 |
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Property, plant and equipment, net |
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1,627,000 |
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1,356,000 |
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Other assets |
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89,000 |
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131,000 |
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Total assets |
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$ |
38,027,000 |
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$ |
26,262,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
9,239,000 |
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$ |
7,175,000 |
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Accrued expenses |
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2,233,000 |
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2,583,000 |
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Line of credit |
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3,500,000 |
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- |
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Deferred revenue |
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140,000 |
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24,000 |
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Customer deposits |
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- |
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171,000 |
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Office lease payable, current portion |
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469,000 |
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435,000 |
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Accrued interest |
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3,000 |
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2,000 |
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Total current liabilities |
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15,584,000 |
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10,390,000 |
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Office lease payable, less current portion |
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2,621,000 |
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2,866,000 |
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Total liabilities |
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18,205,000 |
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13,256,000 |
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Stockholders’ equity: |
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Preferred stock, |
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- |
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- |
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Common stock, |
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16,000 |
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14,000 |
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Additional paid-in capital |
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95,217,000 |
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79,197,000 |
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Accumulated deficit |
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(75,411,000 |
) |
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(66,205,000 |
) |
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Total stockholders’ equity |
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19,822,000 |
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13,006,000 |
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Total liabilities and stockholders’ equity |
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$ |
38,027,000 |
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$ |
26,262,000 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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Three Months Ended
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Six Months Ended
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2021 |
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2020 |
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2021 |
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2020 |
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Revenues |
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$ |
7,690,000 |
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$ |
6,469,000 |
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$ |
13,961,000 |
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$ |
10,968,000 |
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Cost of sales |
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6,648,000 |
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4,980,000 |
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11,581,000 |
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8,606,000 |
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Gross profit |
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1,042,000 |
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1,489,000 |
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2,380,000 |
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2,362,000 |
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Operating expenses: |
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Selling and administrative |
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4,000,000 |
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3,135,000 |
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7,498,000 |
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6,055,000 |
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Research and development |
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2,088,000 |
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1,594,000 |
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4,055,000 |
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3,101,000 |
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Total operating expenses |
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6,088,000 |
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4,729,000 |
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11,553,000 |
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9,156,000 |
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Operating loss |
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(5,046,000 |
) |
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(3,240,000 |
) |
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(9,173,000 |
) |
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(6,794,000 |
) |
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Interest expense |
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(31,000 |
) |
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(124,000 |
) |
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(34,000 |
) |
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(554,000 |
) |
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Net loss |
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$ |
(5,077,000 |
) |
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$ |
(3,364,000 |
) |
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$ |
(9,207,000 |
) |
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$ |
(7,348,000 |
) |
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Net loss per share - basic and diluted |
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$ |
(0.32 |
) |
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$ |
(0.29 |
) |
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$ |
(0.62 |
) |
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$ |
(0.69 |
) |
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Weighted average number of common shares outstanding - basic and diluted |
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15,987,502 |
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11,633,793 |
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14,895,989 |
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10,647,181 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005941/en/
Media & Investor Relations:
877-505-3589
info@fluxpower.com
External Investor Relations:
949-491-8235
FLUX@mzgroup.us
www.mzgroup.us
Source:
FAQ
What were Flux Power's revenue results for Q2 FY 2022?
What is Flux Power's net loss for the second quarter of fiscal 2022?
How much in new purchase orders did Flux Power receive in Q2 FY 2022?
What was the customer order backlog for Flux Power as of December 31, 2021?
