- The share price of ADDvantage Technologies (AEY) jumped more than 30% in intraday trading today. That is why.
The share price of ADDvantage Technologies (AEY) jumped more than 30% in intraday trading today. Investors Respond ADDvantage Technologies Group, Inc. (NASDAQ: AEY) (“ADDvantage Technologies” or the “Company”) today announced record financial results for the three and nine months ended June 30, 2022, the third quarter fiscal 2022.
Financial results for the 3 months ended June 30, 2022
— Sales for the third quarter of the fiscal year reached a record $27.8 million, an increase of $10.8 million, or 63%, compared to $17.0 million last year. The increase is primarily due to a $3.1 million, or 75%, increase in wireless revenue related to 5G tower work, and a $7.7 million, or 60%, increase in Telco revenues due to increased demand for refurbished telecommunications equipment sold by the Telco segment. .
— Gross margin was $8.1 million, or a gross margin of 29%, compared to a gross margin of $4.3 million, or a gross margin of 25%, for the same period l last year. Operating expenses increased by $36,000, or 1%, to $2.5 million, with the slight increase in operating expenses versus a 63% revenue increase reflecting cost reduction initiatives previously announced. And consolidated selling, general, and administrative (SG&A) expenses include general expenses, which include personnel, insurance, professional services, communication, and other cost categories, increased by $0.5 million. , or 16%, to $4.1 million for the three months ended June 30. 2022 compared to $3.6 million for the same period last year. The increase in general and administrative expenses is mainly related to the increase in selling expenses and commissions to support the increase in revenues.
— Net earnings for the quarter were $875,000, or $0.07 per basic and diluted share, compared to a net loss of $2.1 million, or $0.17 per diluted share, for the third quarter of the previous year.
Financial results for the 9 months ended June 30, 2022
— Year-to-date sales reached a record $70.2 million, a 66% increase from $42.4 million last year. Wireless segment revenue increased 61% to $22.1 million and Telco segment revenue increased 68% to $48.1 million.
— Gross margin was $18.5 million, or gross margin of 26%, compared to gross margin of $11.1 million, or gross margin of 26%, for the same period l last year. Operating expenses increased $1.1 million to $7.8 million from $6.7 million for the same period last year. Year-to-date net loss decreased $4.6 million to $2.5 million, or $0.20 per diluted share, from net loss of $7.1 million. dollars, or $0.58 per diluted share last year.
“Our Wireless and Telco segments both recorded double-digit growth, generating record revenues of $27.8 million and overall company profitability of $875,000 in net profit. Recent progress in both segments is encouraging and we see continued cost optimization opportunities, particularly in our Wireless segment, driving further margin expansion as 5G demand continues to accelerate. ”
“5G’s multi-year development opportunity, combined with our strategic positioning as a trusted partner for our carrier customers, is driving demand on both sides of our business. For Wireless, as we grow to meet this demand, we will remain focused on our execution and our offerings. By increasing our scale and maintaining our cost optimization initiative, we hope to improve our wireless margins. Simultaneously, our Telco segment continues to expand its offerings to wireless and optical network operators to support both wireless and broadband connectivity for optical and IP transport.
—Joe Hart, President and CEO