Mobix Labs, Inc. Announces Second Quarter 2024 Financial Results
Mobix Labs (Nasdaq: MOBX) announced its financial results for Q2 2024, showcasing a 302% revenue increase to $1.1 million from the previous quarter's $0.29 million. The company reported a GAAP loss from operations of $8.56 million, down from $17.27 million in Q1 2024. Notably, Mobix Labs entered a definitive agreement to acquire RaGE Systems, aiming to diversify its product portfolio and expand into new markets. Additional highlights include a global distribution agreement with Arrow Electronics and the launch of the MBX3110 SP10T high-power RF switch. The company secured a $100 million equity line of credit and expects Q3 2024 revenues between $1.8-$2.2 million, and Q4 2024 revenues between $2.6-$3.2 million.
- Revenue increased by 302% from $0.29 million in Q1 2024 to $1.1 million.
- Entered a definitive agreement to acquire RaGE Systems, expected to be accretive.
- Signed a global distribution agreement with Arrow Electronics.
- Launched the MBX3110 SP10T high-power RF switch.
- Secured an equity line of credit up to $100 million.
- Anticipated Q3 2024 revenues between $1.8-$2.2 million.
- Anticipated Q4 2024 revenues between $2.6-$3.2 million.
- Appointed Michael J. Long to the board of directors.
- Awarded multiple defense contracts, including projects for Tomahawk and Javelin Missile Systems, and M-1 Abrams Tank.
- GAAP loss from operations was $8.56 million in Q2 2024.
- Non-GAAP loss from operations was $4.08 million, slightly improved compared to Q1 2024's $4.21 million.
- Significant operational losses despite revenue growth.
Insights
Mobix Labs' second-quarter financial results reveal a remarkable revenue growth of
The company's equity line of credit of up to
The forward-looking guidance of net revenues ranging from
In conclusion, while the revenue growth and future outlook appear promising, the company’s continued operational losses and dependence on non-GAAP metrics for a favorable portrayal warrant cautious optimism.
Mobix Labs is focusing on next-generation connectivity solutions across various sectors including wireless 5G, military, aerospace and medical industries. The acquisition of RaGE Systems, which promises to be immediately accretive, is poised to enhance Mobix Labs’ technology portfolio, particularly in wireless communications. This synergy could position Mobix Labs as a key player in expanding markets and diversifying its product offerings.
The recent global distribution agreement with Arrow Electronics, targeting Mobix Labs’ Electromagnetic Interference (EMI) Filtering products, leverages Arrow's strong presence in the defense and aerospace markets. This could significantly broaden Mobix Labs' reach and enhance product adoption.
Moreover, the launch of the MBX3110 SP10T high-power RF switch is noteworthy. This CMOS-based switch is designed for the land mobile radio (LMR) market, important for first responders and military personnel. The technological advancements in this product could drive demand in critical communication applications.
Overall, the technological advancements and strategic partnerships indicate a strong potential for growth and market penetration, though execution and integration of new acquisitions will be critical to success.
Mobix Labs’ strategic moves, including the acquisition of RaGE Systems and the distribution agreement with Arrow Electronics, highlight a clear strategy to diversify and strengthen their market presence. The semiconductor industry, particularly in 5G and defense, is highly competitive and these steps are geared towards gaining a larger market share.
The company’s entry into agreements with Gulfstream Aerospace, GE HealthCare and PerkinElmer for their electromagnetic filtering products signifies a deliberate effort to tap into high-value markets. This diversification can serve as a buffer against market volatility in any single sector.
The awarding of contracts for military systems like the Tomahawk Missile System and the Javelin Missile System underscores Mobix Labs’ capabilities in providing critical components for high-value defense projects. This could translate into steady revenue streams, fostering long-term growth and stability.
For retail investors, understanding the potential market expansion and revenue stability from diversified end markets is essential. The company's success hinges on effective execution and sustaining its innovative edge in a rapidly evolving industry.
Quarterly Revenue up more than
Successfully signed definitive agreement to acquire RaGE Systems
Acquisition strategy successfully expanding end markets and diversifying offerings
“I am excited about March quarter’s execution on foundational milestones including our entering into a definitive agreement for the synergistic acquisition of RaGE Systems, which is expected to be immediately accretive,” said Fabian Battaglia, CEO of Mobix Labs. “Looking ahead, we have set the stage for Mobix Labs’ continued best-in-class innovative solutions to capture opportunities in the wireless, connectivity and electromagnetic filtering industries, which we expect will create a versatile company that serves diverse end markets.”
“We were pleased with our revenue growth of over
Financial Highlights for Fiscal Second Quarter of 2024
-
Revenue: Total revenue grew to
$1.1 million 302% increase from$0.29 million -
Loss from Operations: GAAP loss from operations for the quarter was
$8.56 million $17.27 million $4.08 million $4.21 million
Recent Business Highlights
- Entered into a definitive agreement to acquire RaGE Systems, which is expected to close later this month, to accelerate industry-leading tech portfolio in next-generation wireless communications, expanding Mobix Labs’ markets and diversifying product portfolio.
- Announced a global distribution agreement with Arrow Electronics (“Arrow”), a global provider of technology products and services specializing in electronic components, enterprise computing and intelligent solutions. Under the agreement, Arrow will initially focus on Mobix Labs’ Electromagnetic Interference (EMI) Filtering products, leveraging the strength of Arrow’s presence in the defense and aerospace markets.
- Launched the MBX3110 SP10T high-power radio frequency (RF) switch. This CMOS-based single-pole/ten-throw (SP10T) switch is engineered to meet the demanding requirements of the land mobile radio (LMR) market, including critical communications for first responders, firefighters, law enforcement, and military personnel.
-
Secured an equity line of credit with B. Riley Principal Capital II, LLC which provides that upon the satisfaction of certain conditions, Mobix Labs will have access to up to
$100 million - Sole source supplying custom filtered connectors used by Gulfstream Aerospace Corp. Gulfstream designs, develops, manufactures, markets, services and supports the world’s most technologically advanced business-jet aircraft.
- Began selling proprietary electromagnetic filtering products to GE HealthCare and PerkinElmer for use in pharmaceutical diagnostics and digital imaging solutions.
- Announced MMS Technical Sales, Inc. (“MMS”) as new manufacturer representative for electromagnetic filtering products in the New England and Upstate New York territories.
- Announced delivery of key military connectivity solutions, including filtered connector parts in connection with the Tomahawk Missile System.
- Awarded guidance system component contract in connection with the Javelin Missile System.
- Awarded M-1 Abrams Tank Army contract for filtered connectors.
- Appointed electronics industry veteran Michael J. “Mike” Long to its board of directors.
Financial Outlook
Subject to the closing of the Rage acquisition, we expect net revenues within a range of approximately
Non-GAAP Measures
The Company's results are determined in accordance with
These non-GAAP measures include the following: Non-GAAP loss from operations and non-GAAP gross margin. Each of these metrics reflects certain adjustments. Non-GAAP loss from operations excludes depreciation, amortization, merger and acquisition-related expenses, inventory write-offs and stock-based compensation expenses. Non-GAAP gross margin excludes amortization of acquisition-related intangible assets, inventory write-offs and stock-based compensation expenses.
These non-GAAP measures provide the Company with an understanding of the results from the primary operations of its business. The Company uses these metrics because management believes they provide more comparable measures to evaluate period-over-period operating performance since they exclude special items that are not indicative of the Company's core business or operations. These measures may be useful to an investor in evaluating the underlying operating performance of the Company's business.
Because all companies do not use identical calculations, the Company's presentation of these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the tables herein.
Conference Call Information
Event: |
|
Mobix Labs, Inc. Second Quarter 2024 Earnings Call |
Date: |
|
Tuesday, May 14, 2024 |
Time: |
|
2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time |
Webcast: |
|
|
Dial-in number: |
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(646) 307-1963 // (800) 715-9871 Pin #: 6233081 |
Shortly after the completion of the conference call, an archived version of the webcast will be available on the Company’s investor relations website at investors.mobixlabs.com.
About Mobix Labs, Inc
Based in
Forward-looking Information
This press release and the related earnings call contain “forward-looking statements” regarding the intent, beliefs or current expectations of the Company for purposes of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding Mobix Labs, Inc. and Mobix Labs, Inc.’s management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would,” “poised” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this presentation and discussion may include, for example, statements about (i) our agreement to acquire RaGE Systems and the anticipated timing of closing, as well as any projections or expectations related to its financial performance or its benefit to us; (ii) our expectations related to the amount of proceeds available to us pursuant to our equity line of credit with B. Riley Principal Capital II, LLC; (iii) our financial outlook; (iv) future market conditions and (v) any future product enhancements or developments. These forward-looking statements are based on information available as of the date of this presentation and discussion, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we undertake no obligations to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. In addition, these forward-looking statements and the information in this press release and the earnings call are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission filings, including the Company’s Registration Statement on Form S-1 filed on May 2, 2024. All forward-looking statements in this press release are based on information available to us on the date hereof, and we assume no obligation to update such statements.
As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include (i) the risk that the price of our securities may be volatile due to a variety of factors, including changes in the highly competitive industries in which we operate, variations in performance across competitors, changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business; (ii) the inability to meet future capital requirements and risks related to our ability to raise additional capital including potential dilution to our stockholders; (iii) the risk that we are unable to successfully commercialize our products and solutions, or experience significant delays in doing so; (iv) the risk that we may not be able to generate income from operations in the foreseeable future; (v) the risks concerning our ability to continue as a going concern; (vi) the risk that we experience difficulties in managing our growth and expanding operations; (vii) the risk that we may not be able to consummate planned strategic acquisitions, or fully realize anticipated benefits from past or future acquisitions or investments; (viii) the risk that litigation may be commenced against us; (ix) the risk that our patent applications may not be approved or may take longer than expected, and we may incur substantial costs in enforcing and protecting our intellectual property; (x) the risk of being an early stage company and that our limited operating history may make it difficult to evaluate our future prospects and the risks and challenges that we may encounter; (xi) the risk that we cannot predict whether we will maintain revenue growth; (xii) the risk that the markets for our semiconductor products and solutions are highly competitive; (xiii) the risk that we may not satisfy the conditions to utilize the committed equity facility with B. Riley Principal Capital II, LLC; (xiv) our inability to predict the actual gross proceeds we may receive pursuant to the committed equity facility with B. Riley Principal Capital II, LLC; (xv) the risk that future sales of our Class A Common Stock may cause the market price of our Class A Common Stock to drop significantly, even if our business is doing well; (xvi) the inability to maintain our listing of securities on Nasdaq; (xvii) the impact of health epidemics, such as the COVID-19 pandemic, on our business and industry and the actions we may take in response thereto and to other geopolitical concerns; and (xviii) inflation and unfavorable global economic conditions could adversely affect our business.
| Mobix Labs, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
| (unaudited, in thousands, except share and per share amounts) | ||||||||||||||||
| Three months ended March 31, | Six months ended March 31, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Net revenue | ||||||||||||||||
| Product sales | $ |
1,145 |
|
$ |
32 |
|
$ |
1,430 |
|
$ |
711 |
|
||||
| Costs and expenses | ||||||||||||||||
| Cost of revenue |
|
952 |
|
|
209 |
|
|
1,281 |
|
|
903 |
|
||||
| Research and development |
|
1,397 |
|
|
2,633 |
|
|
2,959 |
|
|
6,050 |
|
||||
| Selling, general and administrative |
|
7,358 |
|
|
9,029 |
|
|
23,021 |
|
|
14,823 |
|
||||
| Loss from operations |
|
(8,562 |
) |
|
(11,839 |
) |
|
(25,831 |
) |
|
(21,065 |
) |
||||
| Interest expense |
|
248 |
|
|
794 |
|
|
1,105 |
|
|
877 |
|
||||
| Change in fair value of earn-out liability |
|
(5,174 |
) |
|
- |
|
|
(29,938 |
) |
|
- |
|
||||
| Change in fair value of PIPE make-whole liability |
|
(3,336 |
) |
|
- |
|
|
(432 |
) |
|
- |
|
||||
| Change in fair value of private warrants |
|
420 |
|
|
- |
|
|
480 |
|
|
- |
|
||||
| Change in fair value of SAFEs |
|
- |
|
|
508 |
|
|
10 |
|
|
558 |
|
||||
| Merger-related transaction costs expensed |
|
- |
|
|
- |
|
|
4,009 |
|
|
- |
|
||||
| Other non-operating losses, net |
|
1,049 |
|
|
- |
|
|
1,049 |
|
|
- |
|
||||
| Loss before income taxes |
|
(1,769 |
) |
|
(13,141 |
) |
|
(2,114 |
) |
|
(22,500 |
) |
||||
| Provision (benefit) for income taxes |
|
(16 |
) |
|
1 |
|
|
(1,296 |
) |
|
32 |
|
||||
| Net loss and comprehensive loss |
|
(1,753 |
) |
|
(13,142 |
) |
|
(818 |
) |
|
(22,532 |
) |
||||
| Deemed dividend |
|
661 |
|
|
- |
|
|
661 |
|
|
- |
|
||||
| Net loss available to common stockholders | $ |
(2,414 |
) |
$ |
(13,142 |
) |
$ |
(1,479 |
) |
$ |
(22,532 |
) |
||||
| Net loss per common share: | ||||||||||||||||
| Basic | $ |
(0.09 |
) |
$ |
(0.94 |
) |
$ |
(0.06 |
) |
$ |
(1.71 |
) |
||||
| Diluted | $ |
(0.21 |
) |
$ |
(0.94 |
) |
$ |
(0.10 |
) |
$ |
(1.71 |
) |
||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic |
|
28,045,995 |
|
|
14,025,304 |
|
|
24,259,035 |
|
|
13,189,879 |
|
||||
| Diluted |
|
29,199,253 |
|
|
14,025,304 |
|
|
24,914,569 |
|
|
13,189,879 |
|
||||
| Mobix Labs, Inc. | ||||||||||||||||
| Reconciliation of GAAP Loss from Operations to Non-GAAP Loss from Operations | ||||||||||||||||
| (unaudited, in thousands) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Computation of non-GAAP loss from operations: | ||||||||||||||||
| GAAP loss from operations | $ |
(8,562 |
) |
$ |
(11,839 |
) |
$ |
(25,831 |
) |
$ |
(21,065 |
) |
||||
| Depreciation |
|
117 |
|
|
112 |
|
|
230 |
|
|
225 |
|
||||
| Amortization of acquisition related intangible assets |
|
399 |
|
|
210 |
|
|
636 |
|
|
421 |
|
||||
| Merger and acquisition-related expenses |
|
2,398 |
|
|
11 |
|
|
2,515 |
|
|
44 |
|
||||
| Inventory write-off |
|
125 |
|
|
- |
|
|
125 |
|
|
- |
|
||||
| Stock-based compensation expense |
|
1,441 |
|
|
5,779 |
|
|
14,146 |
|
|
9,635 |
|
||||
| Non-GAAP loss from operations | $ |
(4,082 |
) |
$ |
(5,727 |
) |
$ |
(8,179 |
) |
$ |
(10,740 |
) |
||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
| GAAP gross profit: | ||||||||||||||||
| GAAP net revenue | $ |
1,145 |
|
$ |
32 |
|
$ |
1,430 |
|
$ |
711 |
|
||||
| GAAP cost of revenue | 952 |
|
209 |
|
1,281 |
|
903 |
|
||||||||
| GAAP gross profit | $ |
193 |
|
$ |
(177 |
) |
$ |
149 |
|
$ |
(192 |
) |
||||
| GAAP gross margin % |
|
16.9 |
% |
|
-553.1 |
% |
|
10.4 |
% |
|
-27.0 |
% |
||||
| Computation of non-GAAP gross profit: | ||||||||||||||||
| GAAP gross profit | $ |
193 |
|
$ |
(177 |
) |
$ |
149 |
|
$ |
(192 |
) |
||||
| Amortization of acquisition-related intangible assets |
|
68 |
|
|
68 |
|
|
136 |
|
|
136 |
|
||||
| Inventory write-off |
|
125 |
|
|
- |
|
|
125 |
|
|
- |
|
||||
| Stock-based compensation expense |
|
- |
|
|
11 |
|
|
- |
|
|
22 |
|
||||
| Non-GAAP gross profit | $ |
386 |
|
$ |
(98 |
) |
$ |
410 |
|
$ |
(34 |
) |
||||
| Non-GAAP gross margin % |
|
33.7 |
% |
|
-306.3 |
% |
|
28.7 |
% |
|
-4.8 |
% |
||||
| Mobix Labs, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (unaudited, in thousands) | ||||||||
March 31, |
September 30, |
|||||||
2024 |
2023 |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ |
2,993 |
|
$ |
89 |
|
||
| Accounts receivable, net |
|
461 |
|
|
53 |
|
||
| Inventory |
|
361 |
|
|
319 |
|
||
| Prepaid expenses and other current assets |
|
633 |
|
|
369 |
|
||
| Total current assets |
|
4,448 |
|
|
830 |
|
||
| Property and equipment, net |
|
1,763 |
|
|
1,859 |
|
||
| Intangible assets, net |
|
11,151 |
|
|
5,287 |
|
||
| Goodwill |
|
10,759 |
|
|
5,217 |
|
||
| Operating lease right-of-use assets |
|
946 |
|
|
1,030 |
|
||
| Deferred transaction costs |
|
- |
|
|
4,125 |
|
||
| Other assets |
|
430 |
|
|
400 |
|
||
| Total assets | $ |
29,497 |
|
$ |
18,748 |
|
||
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||||||
| AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ |
6,693 |
|
$ |
8,995 |
|
||
| Accrued expenses and other current liabilities |
|
7,036 |
|
|
4,519 |
|
||
| Deferred purchase consideration |
|
803 |
|
|
- |
|
||
| Notes payable |
|
400 |
|
|
1,286 |
|
||
| Notes payable - related parties |
|
2,763 |
|
|
3,793 |
|
||
| Simple agreements for future equity |
|
- |
|
|
1,512 |
|
||
| Operating lease liabilities, current |
|
332 |
|
|
318 |
|
||
| Total current liabilities |
|
18,027 |
|
|
20,423 |
|
||
| Earn-out liability |
|
3,621 |
|
|
- |
|
||
| PIPE derivative liability |
|
1,639 |
|
|
- |
|
||
| Deferred tax liability |
|
176 |
|
|
86 |
|
||
| Operating lease liabilities, noncurrent |
|
1,109 |
|
|
1,280 |
|
||
| Other noncurrent liabilities |
|
772 |
|
|
- |
|
||
| Total liabilities |
|
25,344 |
|
|
21,789 |
|
||
| Commitments and contingencies | ||||||||
| Redeemable convertible preferred stock |
|
- |
|
|
2,300 |
|
||
| Stockholders' equity (deficit) | ||||||||
| Common stock |
|
- |
|
|
- |
|
||
| Additional paid-in capital |
|
89,394 |
|
|
78,421 |
|
||
| Accumulated deficit |
|
(85,241 |
) |
|
(83,762 |
) |
||
| Total stockholders' equity (deficit) |
|
4,153 |
|
|
(5,341 |
) |
||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ |
29,497 |
|
$ |
18,748 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514670739/en/
Media Contact:
Jeff Fox, The Blueshirt Group
jeff@blueshirtgroup.com
Investor Contact:
Lori Barker, The Blueshirt Group
lori@blueshirtgroup.com
Source: Mobix Labs, Inc.
FAQ
What was Mobix Labs' revenue growth in Q2 2024?
What is the expected revenue range for Mobix Labs in Q3 2024?
What financial loss did Mobix Labs report for Q2 2024?
What is the significance of Mobix Labs' acquisition of RaGE Systems?
Did Mobix Labs secure any financial agreements recently?
What new product did Mobix Labs launch in Q2 2024?
What was the non-GAAP loss from operations for Mobix Labs in Q2 2024?
