Bk Technologies Corporation · AMEX:BKTI
Bk Technologies — Q3 2022 Earnings Presentation
15 slides from Bk Technologies's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Earnings Results
BK TECHNOLOGIES THIRD QUARTER 2022 EARNINGS RESULTS NYSE American: BKTI November 3, 2022
Slide 2: Disclosures
DISCLOSURES Forward-Looking Statements This presentation contains certain forward-looking statements that are made pursuant to the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern the Company’s operations, economic performance
Slide 3: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS RECORD ORDER BOOKINGS AS PRODUCTION RAMPS UP • Another record quarter for order bookings of $28 million driven by strong demand for BKR 5000 as customers upgrade portable communications platforms • Record company order bookings of $62.7 million YTD have surpassed FY2021 book
Slide 4: BKR 5000 Continues to See Strong Traction
BKR 5000 CONTINUES TO SEE STRONG TRACTION INCREASING DEMAND FOR BKR LINE: 37% Increase in YTD Bookings at September 30th • Record bookings in 3Q’22/First nine months ‘22 • Second BKR5000 production line added that increases manufacturing capabilities to reduce backlog and respond to continued strong
Slide 5: Hurricane Ian Passes Over Melbourne Facility
HURRICANE IAN PASSES OVER MELBOURNE FACILITY HURRICANE IAN PATHWAY • Emergency procedures ensured no reported injuries and no damage to manufacturing facility MELBOURNE • Operations halted for two days FACILITY • Shipments to customers were delayed; deliveries/pickups temporarily suspended • Some Se
Slide 6: Positioned for Significant Growth
POSITIONED FOR SIGNIFICANT GROWTH RADIO UNITS SHIPPED QUARTERLY Potential to reach 13,050 radios 6,750 Targeting 10,650 radios delivered in Q4 6,100 5,350 3,900 3,900 radios shipped in 2,500 October Q1’22 Q2’22 Q3’22 Q4’22 (Projected) Hurricane Ian impacted September radio shipments and deliveries p
Slide 7: Positioned for Significant Growth
POSITIONED FOR SIGNIFICANT GROWTH RADIO UNITS SHIPPED ANNUALLY 32,000+ 24,600 - 22,500 27,000 2021 2022 2023 (Projected) (Projected) Elevated 2022 backlog and continued 2023 customer demand expected to drive strong increase in year-over-year radio deliveries 7 NYSE American: BKTI
Slide 8: Progress Advancing BKR 9000: Expecting Q4 Launch
PROGRESS ADVANCING BKR 9000: EXPECTING Q4 LAUNCH PROGRESS TOWARDS LAUNCH • August – Started accepting pre-production orders from dealer channel and key customers • September – completed second manufacturing run; encountered some issues which are being addressed • October • Showcased BKR9000 in Dalla
Slide 9: LTE/5G Presents a Large Market Opportunity
LTE/5G PRESENTS A LARGE MARKET OPPORTUNITY PREVIOUS SUCCESSES OPPORTUNITY TODAY LTE LMR+LTE/5G CONNECTING CONNECTING LMR VEHICLES FIRST RESPONDERS P25 CONVENTIONAL/ LMR RADIO, GPS, LAPTOP, IN- LMR RADIO, BODY CAM TRUNKED RADIO CAR VIDEO, VIDEO SENSORS SMARTPHONE • Global SaaS market valued at $131B;
Slide 10: SaaS Business Strategy
SaaS BUSINESS STRATEGY • Focus on differentiation and BK Smartphone practical solutions to market App challenges • Establish market position with InteropONE PTToC Service • Enhance value with BKR Additional product line public safety applications • Expand to additional public safety applications 202
Slide 11: InteropONE: Our New PTToC Service
FirstNet Verizon SouthernLinc Over The Top Non-PTToC InteropONE: PTToC User PTToC User PTToC User PTToC User User OUR NEW PTToC SERVICE • Creates group communication on demand • Works over any cellular carrier network or WiFi WAVE • Patent Pending OnCloud is the only PTToC service that enables group
Slide 12: InteropONE: Not Your Typical PTToC Service
: Not Your Typical PTToC Service POTENTIAL $150M MARKET OPPORTUNITY • ~ 1.9M PTToC subscribers in the public sector in 2022 • InteropONE target market is about 30,000 subscribers or 1.6% of the current subscriber base. • InteropONE prime user pays base subscription rate of $300 annually plus $10 per
Slide 13: Financial Results
FINANCIAL RESULTS 9 months 9 months (in thousands) 3Q’22 3Q’21 ended ended • Revenue decreased 6% to $12 million related to shipment delays associated with Hurricane Ian; 9/30/22 9/30/21 record Q3 bookings of $28 million provide Sales $11,917 $12,626 $30,612 $32,526 momentum Gross Margin 19% 33% 18%
Slide 14: The Future of BK Technologies: Targeting $100M in Revenues by 2025
THE FUTURE OF BK TECHNOLOGIES: TARGETING $100M IN REVENUES BY 2025 • Create a leader in the public safety industry specializing in personal communications devices that maximize safety and efficiency for first responders • BKR 5000 continues to gain traction in the market; BKR 9000 positioned to sign
Slide 15: Q&A
Q&A 15 NYSE American: BKTI 15