Mobix Labs(MOBX) - 2024 Q1 - Quarterly Results

Q2 2024 Financial and Business Highlights Financial Performance Mobix Labs reported a significant sequential revenue increase of over 300% to $1.1 million in Q2 2024, with GAAP loss from operations improving to $8.56 million from $17.27 million in the prior quarter, while non-GAAP loss from operations remained relatively stable at $4.08 million Q2 2024 vs Q1 2024 Financial Highlights | Metric | Q2 2024 | Q1 2024 | Sequential Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1.1 million | $0.29 million | +302% | | GAAP Loss from Operations | ($8.56 million) | ($17.27 million) | Improvement | | Non-GAAP Loss from Operations | ($4.08 million) | ($4.21 million) | Stable | Business and Strategic Developments The company executed several key strategic initiatives, highlighted by the signing of a definitive agreement to acquire RaGE Systems, which is expected to expand its technology portfolio and market reach, alongside a global distribution agreement with Arrow Electronics, the launch of a new high-power RF switch, securing a $100 million equity line of credit, and winning multiple contracts in the defense sector - Signed a definitive agreement to acquire RaGE Systems to accelerate its technology portfolio in next-generation wireless communications and diversify its product offerings[1][2][4] - Entered into a global distribution agreement with Arrow Electronics, initially focusing on Mobix Labs' Electromagnetic Interference (EMI) Filtering products for the defense and aerospace markets[4] - Secured an equity line of credit providing access to up to $100 million from B. Riley Principal Capital II, LLC to support growth and strategic acquisitions[2][9] - Key product and contract wins include: - Launched the MBX3110 SP10T high-power RF switch for the land mobile radio (LMR) market - Began selling proprietary filtering products to GE HealthCare and PerkinElmer - Awarded contracts for connectivity solutions for the Tomahawk Missile System, Javelin Missile System, and M-1 Abrams Tank[9] Financial Outlook Contingent upon the closing of the RaGE Systems acquisition, Mobix Labs projects continued revenue growth through the second half of fiscal 2024, expecting net revenues to be in the range of $1.8 to $2.2 million for the third quarter and $2.6 to $3.2 million for the fourth quarter Fiscal 2024 Revenue Outlook (Subject to RaGE acquisition closing) | Fiscal Quarter | Expected Net Revenue Range | | :--- | :--- | | Q3 2024 | $1.8 - $2.2 million | | Q4 2024 | $2.6 - $3.2 million | Financial Statements Condensed Consolidated Statements of Operations For the three months ended March 31, 2024, Mobix Labs reported net revenue of $1.145 million, a substantial increase from $32 thousand in the prior-year period, and recorded a net loss of $1.753 million, or ($0.09) per basic share, a significant improvement compared to a net loss of $13.142 million, or ($0.94) per basic share, in the same quarter of 2023 Statement of Operations Highlights (Three Months Ended March 31) | Metric (in thousands, except per share) | 2024 | 2023 | | :--- | :--- | :--- | | Net revenue | $1,145 | $32 | | Loss from operations | ($8,562) | ($11,839) | | Net loss | ($1,753) | ($13,142) | | Net loss per common share (Basic) | ($0.09) | ($0.94) | Reconciliation of GAAP to Non-GAAP Measures The company provided reconciliations for key non-GAAP metrics, adjusting the GAAP loss from operations of $8.56 million for items including stock-based compensation ($1.44 million) and merger-related expenses ($2.40 million) to arrive at a non-GAAP loss from operations of $4.08 million, with the non-GAAP gross margin for the quarter at 33.7%, a significant improvement from the negative margin in the prior-year period Reconciliation to Non-GAAP Loss from Operations (Q2 2024, in thousands) | Description | Amount | | :--- | :--- | | GAAP loss from operations | ($8,562) | | Stock-based compensation expense | $1,441 | | Merger and acquisition-related expenses | $2,398 | | Other adjustments (Depreciation, Amortization, etc.) | $641 | | Non-GAAP loss from operations | ($4,082) | GAAP vs. Non-GAAP Gross Margin (Q2 2024) | Metric | Amount | Percentage | | :--- | :--- | :--- | | GAAP gross profit | $193 thousand | 16.9% | | Non-GAAP gross profit | $386 thousand | 33.7% | Condensed Consolidated Balance Sheets As of March 31, 2024, Mobix Labs reported total assets of $29.5 million and total liabilities of $25.3 million, with total stockholders' equity turning positive to $4.15 million from a deficit of $5.34 million at the end of fiscal year 2023, and cash increasing significantly to $2.99 million from $89 thousand Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Cash | $2,993 | $89 | | Total Assets | $29,497 | $18,748 | | Total Liabilities | $25,344 | $21,789 | | Total Stockholders' Equity (Deficit) | $4,153 | ($5,341) | Other Information About Mobix Labs, Inc. Based in Irvine, California, Mobix Labs is a fabless semiconductor company that develops and delivers mmWave 5G and C-Band wireless solutions, along with connectivity and filtering products, serving next-generation communication systems in the aerospace, military, and high-reliability medical markets - Mobix Labs is a fabless semiconductor company focused on next-generation connectivity solutions for wired, wireless 5G, military, defense, aerospace, and medical industries[1][12] Forward-Looking Statements and Risk Factors The report contains forward-looking statements regarding the company's future expectations, including the anticipated closing and benefits of the RaGE Systems acquisition, financial outlook, and market conditions, and details significant risk factors that could impact performance, such as security price volatility, capital requirements, competition, supply chain issues, and the challenges of being an early-stage company - The press release includes forward-looking statements concerning the RaGE Systems acquisition, the B. Riley equity line, financial outlook, and future product development[13] - Key risks identified include security price volatility, inability to meet future capital needs, challenges in commercializing products, competition, and the company's limited operating history[14] Conference Call Information The company hosted its second quarter 2024 earnings conference call on Tuesday, May 14, 2024, at 2:00 p.m. Pacific Time, with details for accessing the webcast and a replay provided on the company's investor relations website - The earnings conference call was held on May 14, 2024, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time[11]