May 8, 2019 bktech

BK Technologies Reports First Quarter 2019 Results

WEST MELBOURNE, Florida – May 8, 2019 – BK Technologies Corporation (NYSE American: BKTI) today announced financial and operating results for the first quarter ended March 31, 2019.

For the first quarter ended March 31, 2019, revenues totaled approximately $7.6 million, compared with approximately $11.7 million for the first quarter last year. Operating loss for the first quarter 2019 totaled approximately $2.3 million, compared with operating income of approximately $748,000 for the first quarter last year. The net loss for the first quarter of 2019 was approximately $1.3 million, or $0.10 per basic and diluted share, compared with a net loss of approximately $443,000, or $0.03 per basic and diluted share, for the same quarter last year.

The net loss for the first quarter 2019 includes unrealized gains on investments in securities totaling approximately $592,000, compared with losses of approximately $1.1 million for the same quarter last year.

The Company had approximately $17.6 million in working capital as of March 31, 2019, of which $12.6 million was comprised of cash, cash equivalents and trade receivables. This compares with working capital of approximately $21.0 million as of December 31, 2018, of which $17.0 million was comprised of cash, cash equivalents and trade receivables.

Tim Vitou, BK’s President, commented, “The first quarter was a challenging start to the year. Impacted by the extended federal government shutdown, sales to federal agencies declined significantly in January and February. Sales to state and local government customers were also soft in the first quarter. Sales growth has been a primary component of our success in recent years, so it was encouraging to note that sales activity rebounded in March. Additionally, we officially launched BK’s first multiband product, the BKR9000, at the International Wireless Communications Exposition (IWCE) in March and received favorable customer reviews. In addition to incremental sales, the new products are anticipated to bolster our gross profit margins.”

Mr. Vitou continued, “The multiband handheld products are just the first step in a comprehensive upgrade and overhaul of our entire product line. Aggressive development is continuing and anticipated to yield additional new products later this year and next year, providing what we believe will be a highly competitive foundation on which we can build growth and shareholder value.”

Conference Call and Webcast

The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, on Thursday, May 9, 2019. Shareholders and other interested parties may participate in the conference call by dialing 844-369-8770 (international/local participants dial 862-298-0840) and asking to be connected to the “BK Technologies Corporation Conference Call” a few minutes before 9:00 a.m. Eastern Time on May 9, 2019. The call will also be webcast at http://www.bktechnologies.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet webcast. An online archive of the webcast will be available on the Company’s website for 30 days following the call at http://www.bktechnologies.com.

A replay of the conference call will be available one hour after the completion of the call until May 19, 2019 by dialing 877-481-4010 PIN# 47102 (international/local participants dial 919-882-2331 PIN# 47102).

About BK Technologies, Inc.

As an American manufacturer for over 70 years, BK Technologies Corporation is a holding company deeply rooted in the public safety communications industry, with its operating subsidiary manufacturing high-specification communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies. Advances include a broad new line of leading digital two way radios compliant with APCO Project 25 specifications. BK Technologies’ products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.bktechnologies.com or directly at 1 800 821 2900. The Company’s common stock trades on the NYSE American market under the symbol “BKTI”.