Flux Power(US:FLUX)2023-09-21 23:15Financial Data and Key Metrics Changes - Revenue for fiscal year 2023 increased by 57% to $66.3 million compared to $42.3 million in fiscal year 2022 [20][27] - Gross profit for fiscal year 2023 increased 134% to $17.1 million compared to $7.3 million in fiscal year 2022 [6][14] - Adjusted EBITDA loss decreased 74% to $3.7 million for the year ended June 30, 2023, compared to a loss of $14.1 million for the year ended June 30, 2022 [7][45] - Net loss for fiscal year 2023 decreased to $6.7 million from a net loss of $15.6 million in fiscal year 2022 [29] Business Line Data and Key Metrics Changes - Gross margin improved to 26% in fiscal year 2023 compared to 17% in fiscal year 2022, reflecting higher volume of units sold and lower cost of sales [8][14] - For Q4 2023, gross profit increased to $4.3 million compared to $3 million in Q4 2022, with gross margin at 27% compared to 20% in Q4 2022 [12][26] Market Data and Key Metrics Changes - Customer order backlog increased from $25 million to $29 million as of June 30, 2023, reflecting continued lithium adoption [21] - The company added three new customers in Q4 2023 and a total of eight new customers in fiscal year 2023 [9] Company Strategy and Development Direction - The company focuses on achieving cash flow breakeven while expanding its product lineup and service network [8][30] - Long-term strategy revolves around building scale to sell products to large fleets and exploring partnerships to leverage revenue growth [22][31] - The company is implementing AI features into its SkyBMS telematics platform to enhance fleet management and operational efficiencies [32][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards near-term profitability while balancing revenue growth and cost control initiatives [47][48] - The company anticipates continued growth driven by strong demand for sustainable energy solutions and the acquisition of new customers [31][57] Other Important Information - Research and development expenses decreased to $4.9 million in fiscal year 2023 from $7.1 million in fiscal year 2022 [15] - A new $15 million credit facility from Gibraltar Business Capital was established to support working capital needs and planned business growth [21][46] Q&A Session Summary Question: Can you provide insights on the order activity and what is driving it? - Management noted strong order activity driven by increased demand in various product lines, particularly from Delta and Air Canada, with pent-up demand from supply chain disruptions [37] Question: Can you share details about the new customers added in Q4? - Management indicated that two new customers were added in the Pacific Northwest, focusing on larger packs and expanding into adjacent markets [40][55] Question: What are the expected benefits from exploring partnership opportunities? - Management highlighted the potential for partnerships to enhance capabilities, improve technology, and expand market reach, with ongoing discussions about licensing and technology collaborations [41][75] Question: How is the company managing inventory levels? - Management mentioned efforts to reduce inventory levels and optimize cash flow, with a focus on improving inventory management practices [61] Question: What is the outlook for revenue in the upcoming fiscal year? - Management expressed cautious optimism for continued revenue growth, supported by letters of intent from major customers and the rollout of new heavy-duty models [72][88]