Byrna Technologies Inc (CSE:BYRN) (OTCQB:BYRN) has posted the strongest quarterly revenues in company history at just over US$11 million off the back of “robust demand” for its non-lethal security devices.
During its fiscal 4Q ended November 30, 2020, the Andover, MA-based company delivered total revenue of US$11,029,164 compared to the $500,442 it put up in the comparable year-ago quarter. Gross margins came in at 44.4% compared to 10.7%.
Byrna told shareholders that the increase in revenue was driven by strong growth in orders for its Byrna HD, thanks to increased market awareness of the product, while gross margins were higher as a result of greater production volume.
READ: Byrna Technologies adds veteran marketing executive Luan Pham to its C-suite
Byrna ended the quarter with nearly US$9.6 million in cash.
"Our fourth quarter concluded a transformative year for Byrna Technologies," Bryan Ganz, CEO of Byrna said in the results statement.
"We delivered our strongest revenue quarter by far and, adjusted for certain non-recurring and non-cash charges, generated the first quarter of positive adjusted net income in the company's history. At the same time, we made important enhancements to our corporate platform, both in terms of manufacturing assets and human capital, including the recent addition of a highly experienced chief marketing officer, Luan Pham.”
Ganz noted that the company expects to work through its current order backlog for launcher kits in the next two weeks and return to same-day shipping by the end of March, now that production capacity - boosted by the recent opening of a facility in Fort Wayne, Indiana - is in line with demand.
Byrna saw similar revenue growth during its fiscal 2020 year, when it generated nearly US$16.6 million in revenue compared to just under US$1 million in fiscal 2019.
Ganz said the firm expects revenue from its fiscal first quarter 2021 to be around US$9.2 million.
Technical update
Byrna also updated investors on some technical issues related to its HD launchers. In February 2020, the company identified a limited number of Byrna HD launchers in which the safety wire was not within specification. While no injuries were reported as a result of this technical issue, Byrna alerted its customers through multiple channels including a direct email campaign to Byrna HD owners and a notification posted on the company's website, offering customers the opportunity to return their launchers for a technical service update to correct the issue, free of charge.
Byrna said that within ten days of alerting its customers of this issue, it reached more than 31,000 customers (over 80% of customers) and has received less than 350 submissions for the technical service update.
In the event that it receives a higher number of customer update requests, the company has accrued $195,000 on its balance sheet to cover the potential costs of the technical service update for the period ended November 30, 2020.
“We can confidently state that since Byrna learned of the technical issue on February 12th, every launcher leaving the factory has been reinspected, updated where necessary and retested, and procedures and protocols have been established to prevent a recurrence of this issue,” CEO Ganz told investors. “While the end of quarter reduction in shipments will negatively impact 1Q sales, the company is going into 2Q with an order backlog of approximately $3 million."
Contact Angela at angela@proactiveinvestors.com
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