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KWESST Micro Systems Announces Q3 2024 Financial Results
Ottawa, Ontario--(Newsfile Corp. - August 15, 2024) - KWESST Micro Systems Inc. (TSXV: KWE) (TSXV...
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[{"type":"text","content":"KWESST Micro Systems Announces Q3 2024 Financial ResultsOttawa, Ontario--(Newsfile Corp. - August 15, 2024) - KWESST Micro Systems Inc. (TSXV: KWE) (TSXV: KWE.WT.U) (NASDAQ: KWE) (NASDAQ: KWESW) (\"KWESST\" or the \"Company\") is pleased to announce the highlights of its fiscal 2024 (\"Fiscal 2024\") third quarter (\"Q3\") results. This announcement is a summary only and should be read in conjunction with KWESST's unaudited condensed consolidated financial statements and related management discussion and analysis, for the three- and nine-month period ended June 30, 2024 (\"Q3 2024 FS\"). Q3 2024 FS have been filed on SEDAR and EDGAR.Highlights for the Period:KWESST's commitment to execution of our strategy, our strong focus on cash management and capital allocation, and the beginning of KWESST's pivot from development stage to revenue ramp-up is evidenced by the following key metrics for the period:revenue for Q3 increased by 119% over the same period last year, driven by the DSEF government contract;Land C4ISR sub-contract awarded and work commenced in June 2024; sales and marketing expenses for Q3 and year to date (\"YTD\") were reduced 69% and 51%, respectively over the same periods last year; andoverall YTD Fiscal 2024 cash used in operations was reduced by $4.5 million (39%) over the same period last year.In Q3 and YTD Fiscal 2024, KWESST's total revenue increased by $0.2 million and $0.3 million, respectively, and gross profit increased by 11% for the three-month period versus the comparable prior year period, and for YTD Fiscal 2024, we earned $0.2 million or gross margin of 24%, compared to $0.2 million or gross margin of 39% in the same prior period. The increase in Q3 revenue was mainly due to the ongoing DSEF government contract with our industry partners. KWESST's Q3 operating loss decreased by 26% compared to the prior year period mainly due to a decrease in G&A and marketing spending, whereas its YTD Fiscal 2024 operating loss increased by 1% compared to the prior year period mainly due to increased research and development costs and personnel costs offset by a decrease in sales and marketing expenses.KWESST's Fiscal 2024, along with its Fiscal 2023 performance reflects the Company's strategy of focused investments in key areas to drive revenue growth: securing large defense contracts, and the commercialization...