Guerrilla RF continues to eat its way through its capital - it even operated at a loss of $3.7 million during the first quarter 2023 fiscal year.
Greensboro's semiconductor company is growing quickly. It has added team members, upgraded to a larger space, and invested in new product development.
The company's operating expenses in Q1 were close to $5.5 million. This is an increase of more than $1 million over the same period last year. Guerrilla RF revenue, despite it being the second-largest quarter in its history, was only $3.2 million. This resulted in a net loss of $0.62 per share, almost double the $0.34 per-share loss last year.
The $3.2 million revenue represents a 16.4% decline from Q1 FY2022 and a 33% rise from Q4 FY2022. Guerrilla RF explained that the decline was due to a re-normalization of orders. The first quarter of 2020 saw 'unusually large order patterns' as a result of supply chain and markets worries.
"Following the challenging 2022 for semiconductor industry, we kept our momentum by advancing strategic initiatives that position us well for the next decade," said Ryan Pratt (CEO and founder of GuerrillaRF, OTCQX:GUER).
The company celebrated its 10-year anniversary in April.
Guerrilla RF aims to list on a senior exchange such as NASDAQ in Q2. To help achieve its goal, the company, which trades on the Over-the-Counter Market QX tier completed a reverse stock split of six-to-one in mid-April.
The company also reported strategic highlights during the first quarter. These included the completion of an equity financing for $9.2 millions and entry into a new segment in satellite communication.
Guerrilla RF’s operating loss has increased by almost $2 million in the last year. This is due to a growth of 44% in R&D, as well as new employee additions, marketing and sales costs, as well as other costs related to being a publicly traded company. R&D costs increased by $800,000. They went from $1.8m to $2.6m.
The cost of general and administrative expenses also increased by 25.1% from Q1 FY2022 to Q1 FY2023.
At the end of Q1, the company had a cash balance of $1.9 million, down from $4.3 millions in Q4 of FY2023.
Pratt is optimistic about the financial growth of its company despite the decline in revenue and the increased operating costs.
Pratt stated that the quarter was excellent, with revenue of over $3.2m and a backlog up 30% compared to last year. We believe that we are in a good position to grow revenue by double digits in 2023, despite a challenging macroeconomic climate.
Guerrilla RF announced that the preorders it received from its customers in the first quarter would increase the company's top-line revenues throughout the remainder of the year. A Q2 revenue expected between $3.5 and $4 million is the highest estimate.