Maris-Tech Announces Financial Results and Net Profit for the Six Months Ended June 30, 2024

Rhea-AI Summary

Maris-Tech (Nasdaq: MTEK), a leader in video and AI-based edge computing technology, reported strong financial results for H1 2024. Highlights include:

- Revenue of $3.4 million, up 620% year-over-year
- Gross profit of $1.9 million, compared to a $0.2 million loss in H1 2023
- Net profit of $132,000, versus a $2.3 million loss in H1 2023
- Earnings per share of $0.02, up from -$0.29 in H1 2023
- Backlog of $10.5 million as of August 28, 2024

The company secured multiple defense sector contracts and entered a strategic collaboration with Renesas Electronics CEO Israel Bar expressed confidence in Maris-Tech's growth trajectory and market positioning.

Positive

• Revenue increased by 620% year-over-year to $3.4 million
• Achieved net profit of $132,000, compared to a $2.3 million loss in H1 2023
• Gross profit improved to $1.9 million from a $0.2 million loss in H1 2023
• Earnings per share turned positive at $0.02, up from -$0.29 in H1 2023
• Backlog increased to $10.5 million as of August 28, 2024
• Secured multiple defense sector purchase orders totaling over $1.7 million
• Entered strategic collaboration with Renesas Electronics

Negative

• Working capital slightly decreased to $7.0 million from $7.3 million at the end of 2023

Financial Analyst

Maris-Tech's H1 2024 results show a remarkable turnaround. Revenue surged 620% to $3.4 million, while the company swung from a net loss to a $132,000 profit. The gross profit margin improved significantly, reaching 55.9%. The backlog of $10.5 million as of August 28 suggests strong future revenue potential.

However, working capital slightly decreased from $7.3 million to $7.0 million. The company's statement about sufficient funds for the next 12 months, relying partly on projected revenue, indicates potential cash flow concerns. Investors should monitor the company's ability to convert its backlog into revenue efficiently.

Tech Expert

Maris-Tech's focus on video and AI-based edge computing for defense applications is paying off. The company's success in securing multiple defense contracts for various platforms (armored vehicles, drones, intelligence gathering) demonstrates the versatility and demand for their technology. The collaboration with Renesas, a major semiconductor manufacturer, could significantly enhance Maris-Tech's technological capabilities and market reach.

The integration of AI algorithms with LightPath's Infrared Cameras shows Maris-Tech's commitment to innovation in AI-embedded optical solutions. This positions the company well in the rapidly growing market for advanced sensing and processing technologies in defense and potentially other sectors.

Market Research Analyst

Maris-Tech's strategic focus on the defense industry is proving successful, as evidenced by the multiple purchase orders received. The global defense market, particularly for advanced technologies like AI and edge computing, is experiencing robust growth. Maris-Tech's products, which enhance situational awareness and operational efficiency, align well with modern military requirements.

The company's entry into Renesas' Preferred Partner Program could open doors to new markets and customers. However, the heavy reliance on defense contracts might expose Maris-Tech to risks associated with government spending fluctuations and geopolitical events. Diversification into other sectors could mitigate this risk and provide additional growth opportunities.

Revenues for the six-months ended June 30, 2024 were approximately $3.4 million, an increase of approximately 620% compared to the same period in 2023

Rehovot, Israel, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Maris-Tech Ltd. (Nasdaq: MTEK, MTEKW) (“Maris- Tech” or the “Company”), a global leader in video and artificial intelligence (AI) based edge computing technology, today announced its financial results for the six months ended June 30, 2024.

Revenues for the six-month ended June 30, 2024, were approximately $3.4 million, an increase of approximately 620% compared to the same six-month period in 2023.

Gross profit for the six-month ended June 30, 2024 was approximately $1.9 million, compared to a gross loss of approximately $0.2 million for the same six-month period in 2023.

Net profit for the six-month ended June 30, 2024 was approximately $132 thousand, compared to a net loss of approximately $2.3 million for the same six-month period in 2023.

Net profit per ordinary share for the six-month period ended June 30, 2024 was $0.02, compared to net loss per ordinary share of $0.29 for the same six-month period in 2023.

Working capital as of June 30, 2024 was approximately $7.0 million, compared to approximately $7.3 million as of December 31, 2023.

We expect that our existing cash and cash equivalents and our short-term bank deposits as of June 30, 2024, together with anticipated revenue from existing customers pursuant to existing purchase orders, as well as projected revenue from new customers, will be sufficient to fund our current operations and satisfy our obligations for the next twelve months.

Our backlog as of June 30, 2024 and August 28, 2024 was approximately $10.0 million and $10.5 million, respectively. We define backlog as the accumulation of all pending orders with a later fulfillment date for which revenue has not been recognized, and we consider valid. The backlog consists of executed purchase orders from new customers and existing customers with which we have had long-standing relationships and from governmental agencies.

Israel Bar, Chief Executive Officer of Maris-Tech, stated, "The first half of 2024 has been a period of significant advancement for Maris-Tech. We've not only achieved record-breaking financial results but also forged strategic partnerships and secured pivotal contracts that position us at the forefront of video edge computing technology. The Company's impressive revenue growth this period validates our strategic focus on the defense industry, demonstrating that Maris-Tech's innovative solutions are significantly enhancing safety and operational efficiency in modern combat scenarios."

Key Highlights for the Six Months Ended June 30, 2024

Strategic Collaboration: Entered into a collaboration with Renesas Electronics Corporation, one of the world’s largest semiconductor manufacturers, and accepted into Renesas’ Preferred Partner Program. We believe this collaboration and Preferred Partner status enables us to spearhead the advancement of edge computing solutions, aligning with both companies’ dedication to innovation across crucial markets.
Defense Sector Growth: Secured multiple defense purchase orders, including a $415,800 purchase order for Jupiter-Nano for armored vehicles, $110,000 purchase order for a Mars-based product for intelligence gathering and other defense applications, $225,000 purchase order for a Uranus-based video payload solution for drone platforms, and $957,000 purchase order for a customized solution that provides armored and autonomous vehicles with enhanced situational awareness.
Optics and Photonics Collaboration: Integrated critical firmware and hardware to support AI algorithms embedded in LightPath's Infrared Cameras showcases our commitment to pushing the boundaries of AI-embedded optical solutions.

Mr. Bar added, "Maris-Tech continues to develop groundbreaking solutions for new projects while expanding into emerging markets and territories. Our focused marketing efforts have resulted in increased interest and new orders from our valued customers. Looking ahead, we are poised for accelerated growth, aiming to penetrate new markets and attract a diverse customer base. We thank our customers, employees, investors and partners for their continued support and trust, which drives us to ‎continuously innovate and grow".

For more information regarding our financial results for the six month period ended June 30, 2024, please see Maris-Tech's Report of Foreign Private Issuer on Form 6-K filed with the U.S. Securities and Exchange Commission (the “SEC”), on August 28, 2024.

About Maris-Tech Ltd.
Maris-Tech is a global leader in video and AI-based Edge Computing technology, pioneering intelligent video transmission solutions that conquer complex encoding-decoding challenges. Our miniature, lightweight, and low-power products deliver high-performance capabilities including raw data processing, seamless transfer, advanced image processing, and AI-driven analytics. Founded by Israel technology sector veterans, Maris-Tech serves leading manufacturers worldwide in defense, aerospace, Intelligence gathering, HLS and communication industries worldwide. We're pushing the boundaries of video transmission and edge computing, driving innovation in mission-critical applications across commercial and defense sectors.

For more information, visit https://www.maris-tech.com/

Forward-Looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect”, “may”, “should”, “could”, “seek, “intend", “plan “, “goal “, “estimate “, “anticipate” or other comparable terms. For example, we are using forward-looking statements when we are discussing our expectation that our existing cash and cash equivalents and our short-term bank deposits as of June 30, 2024, together with anticipated revenue from existing customers pursuant to existing purchase orders, as well as projected revenue from new customers, will be sufficient to fund our current operations and satisfy our obligations for the next twelve months; the future development of products and solutions, new projects and cooperation agreements; the ability of our solutions to significantly enhance safety and operation efficiency in modern combat scenarios; our expansion into emerging markets and territories; and our plans to penetrate new markets and attract a diverse customer base. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully market our products and services, including in the United States; the acceptance of our products and services by customers; our continued ability to pay operating costs and ability to meet demand for our products and services; the amount and nature of competition from other security and telecom products and services; the effects of changes in the cybersecurity and telecom markets; our ability to successfully develop new products and services; our success establishing and maintaining collaborative, strategic alliance agreements, licensing and supplier arrangements; our ability to comply with applicable regulations; and the other risks and uncertainties described in the Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 21, 2024, and our other filings with the SEC. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Investor Relations:
Nir Bussy, CFO
Tel: +972-72-2424022
Nir@maris-tech.com

FAQ

What was Maris-Tech's (MTEK) revenue for the first half of 2024?

Maris-Tech's revenue for the six months ended June 30, 2024, was approximately $3.4 million, representing a 620% increase compared to the same period in 2023.

Did Maris-Tech (MTEK) report a profit or loss for H1 2024?

Maris-Tech reported a net profit of approximately $132,000 for the six months ended June 30, 2024, compared to a net loss of $2.3 million in the same period of 2023.

What was Maris-Tech's (MTEK) earnings per share for H1 2024?

Maris-Tech's net profit per ordinary share for the six-month period ended June 30, 2024, was $0.02, compared to a net loss per ordinary share of $0.29 for the same period in 2023.

What is the current backlog for Maris-Tech (MTEK) as of August 2024?

Maris-Tech's backlog as of August 28, 2024, was approximately $10.5 million.