Revenue up 80% sequentially and Gross Margin
expansion
Acquisition strategy successfully expanding end
markets and diversifying offerings
Increasing Customer Demand
Mobix Labs, Inc. (Nasdaq: MOBX) (“Mobix Labs”, “Mobix” or the
“Company”), a leader in advanced connectivity solutions, today
announced financial results for its fiscal third quarter ended June
30, 2024.
“We are pleased with the June quarter’s results, closing the
acquisition of RaGE Systems and our growing pipeline of synergistic
M&A opportunities for extending our tech portfolio and end
markets,” said Fabian Battaglia, CEO of Mobix Labs. “Quickly
increasing customer demand and exciting requests for proposals are
expanding the pipeline and proving that customers with
high-reliability needs want to do business with Mobix.”
“We were pleased with our sequential revenue growth of 80%,
gross margin expansion and closing an additional private
placement,” commented Keyvan Samini, President and CFO of Mobix
Labs. “We are pursuing additional financing to fuel our acquisition
strategy and to provide for working capital to fulfill our strong
customer demand.”
Financial Highlights for Third Quarter of 2024
- Revenue: Total revenue grew to $2.1 million in the third
quarter of 2024, an 80% increase from $1.1 million in the second
quarter of 2024.
- Loss from Operations: GAAP loss from operations for the
quarter was $9.3 million, compared to a loss of $8.6 million for
the second quarter of 2024. On a non-GAAP basis, adjusted loss from
operations for the quarter was $4.1 million compared to a loss of
$4.1 million for the second quarter of 2024.
Recent Business Highlights
- Completed the acquisition of RaGE Systems, a leader in radio
frequency and mmWave design and manufacturing services. Another key
milestone for growth and affirmation of Mobix Labs’ strong global
acquisition strategy.
- Announced the intent to acquire J-Mark Connectors Inc. This
acquisition is expected to enhance Mobix Labs’ sales strategy and
boost gross margins, particularly in the high-demand military,
aerospace, and defense sectors. The addition of J-Mark’s expertise
is expected to strengthen Mobix Labs' position, elevate market
presence, enhance customer access, and secure major accounts in the
aerospace and defense industries.
- Issued private placement of pre-funded warrants with gross
proceeds of $4 million, before payment of fees and expenses.
- Participated at the Leidos Supplier Innovation & Technology
Symposium to highlight technologies designed and manufactured for
various high-reliability markets, including wireless
infrastructure, security transport, military, aerospace, and
medical applications. Key technology showcased at the event was the
Mobix Labs’ SMART Edge Device product line.
- Introduced a new family of filtered D-sub connectors designed
to eliminate unwanted electromagnetic interference (EMI) in
defense, aerospace, medical, and commercial applications. These
connectors feature robust construction and superior EMI filtering
capabilities, ensuring optimal performance and reliability in the
most demanding environments.
- Launched latest EMI filtered connectors for defense and
aerospace applications. These versatile connectors can be
customized with planar arrays, ceramic Pi Tubes, or chip capacitors
to meet demanding military specifications, ensuring optimal cost,
quality and performance.
- Announced a strategic partnership with TalkingHeads Wireless
(THW) to develop a new generation of cost-effective,
energy-efficient 5G base stations. THW’s 5G radio solution uses AI
technology to optimize tower energy consumption, while Mobix Labs’
broad portfolio of products including ICs, antennas, and active
optical cables and transceivers delivers significant advantages in
performance, efficiency, cost and size for 5G base stations.
- In collaboration with the U.S. defense sector, Mobix Labs was
selected as a supplier of connectors to be used in the Navy’s
Standard Missile-6 program and has completed its initial product
delivery.
- Mobix Labs electromagnetic filtering products received a BAE
Systems ‘Partner 2 Win’ Gold Tier Award. Mobix Labs was selected
from many suppliers that delivered exceptional performance and
contributions to supply chain success for BAE Systems’ Electronic
Systems sector in 2023.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
U.S. generally accepted accounting principles (GAAP), the Company
uses certain non-GAAP measures of financial performance,
including:
- Adjusted Gross Profit, which is defined as GAAP Gross Profit
excluding amortization of acquisition-related intangible assets,
inventory write-offs and stock-based compensation expense;
- Adjusted Loss from Operations, which is defined as GAAP Loss
from Operations excluding depreciation, amortization of
acquisition-related intangible assets, merger and
acquisition-related expenses, inventory write-offs and stock-based
compensation expense.
The Company’s management believes it is useful to consider these
non-GAAP financial measures, together with the corresponding GAAP
financial measures, as they provide more transparency into current
business trends, exclusive of the effects of certain non-cash
expenses, acquisition-related charges, and items that may not be
present in comparative fiscal periods. Management believes that,
when considered together with reported GAAP financial measures,
these non-GAAP financial measures are useful to investors and
management in understanding the Company’s ongoing operations and
operating trends and in analyzing the Company’s underlying
financial performance.
These non-GAAP financial measures are not intended to be
considered in isolation from, as a substitute for, or superior to,
the comparable GAAP measures. These non-GAAP financial measures may
be different from similarly titled measures used by other
companies. In the future, Mobix may consider whether other items
should also be excluded in calculating the non-GAAP financial
measures it uses. Management believes that the presentation of
these non-GAAP financial measures provides investors with
additional useful information to measure Mobix Labs’ financial and
operating performance. In particular, these measures facilitate
comparison of our operating performance between periods and may
help investors to understand better our operating results.
Internally, management uses these non-GAAP financial measures in
assessing the Company's operating results and in planning and
forecasting. A reconciliation of these non-GAAP financial measures
to the most comparable GAAP measure is contained in the financial
tables to this press release.
Financial Outlook
Consolidated revenues are expected to fall within a range of
$2.6 - $3.2 million in the fiscal fourth quarter of 2024.
Conference Call Information
Event:
Mobix Labs, Inc. Third Quarter 2024
Earnings Call
Date:
Wednesday, August 21, 2024
Time:
2:00 p.m. Pacific Time / 5:00 p.m. Eastern
Time
Webcast:
investors.mobixlabs.com
Dial-in number:
https://register.vevent.com/register/BI89bf294de932451980c72a782d621ccf
Shortly after the completion of the conference call, an archived
version of the webcast will be available on the Company’s investor
relations website at investors.mobixlabs.com.
About Mobix Labs, Inc.
At Mobix Labs, we’re committed to transforming connectivity by
partnering closely with our customers to deliver advanced
semiconductor and wireless systems solutions tailored to their
needs. Based in Irvine, California, we specialize in four key
areas; EMI Interconnect Solutions for secure aerospace and GPS
systems, Active Optical Cables (AOC) for high-speed AI datacenter
interconnects, 5G IC Solutions for mmWave communications, and
Wireless Systems Solutions, including joint design and
manufacturing services for RF technologies, serving customers in
5G, radar, and imaging sensors. Through deep collaboration and
innovation, we’re shaping the future of connectivity. Visit
mobixlabs.com and follow us on LinkedIn.
Mobix Labs, the logo, and SMART™ Edge Device are among the
trademarks of Mobix Labs. Other trademarks are the property of
their respective owners.
Note Regarding Customer Pipeline Statistic
“Customer pipeline” reflects estimated potential future business
based on interest expressed by potential customers for qualified
programs, stated in terms of estimated revenue that may be realized
in one or more future periods. All customer pipeline information
constitutes forward-looking statements. Customer pipeline is not a
proxy for backlog or an estimate of future revenue, nor should it
be considered as any other measure or indicator of financial
performance. Rather, Mobix Labs uses customer pipeline as a
statistical metric to indicate the company’s current view of
relative changes in future potential business across various end
markets. Time horizons vary accordingly, based on product type and
application. Actual business realized depends on ultimate customer
selection, program share, strategic decisions based on expected
revenue, margin and other factors discussed below under
“Forward-Looking Information.”
Forward-looking Information
This press release and the related earnings call contain
“forward-looking statements” regarding the intent, beliefs or
current expectations of the Company for purposes of the federal
securities laws. These forward-looking statements include, but are
not limited to, statements regarding Mobix Labs, Inc. and Mobix
Labs, Inc.’s management team’s expectations, hopes, beliefs,
intentions or strategies regarding the future. The words
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “will,” “would,” “poised” and
similar expressions may identify forward-looking statements, but
the absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements in this presentation
and discussion may include, for example, statements about (i) our
expectations regarding customer demand and requests for proposals
as well as our ability to expand our customer base and product
offerings; (ii) our financial outlook, including expectations
regarding revenue growth, adjusted gross margin and adjusted
operating margin; (iii) our ability to secure additional financing
and any strategic initiatives, specifically with respect to
synergistic product acquisitions; (iv) our expectations regarding
our intent to acquire J-Mark Connectors Inc. and any other possible
acquisitions; (v) our expectations regarding future market
conditions and the growth of the market, including our expectations
regarding the serviceable addressable market; (vi) any future
product enhancements or developments as well as customer reception
of our products; (vii) our ability to secure additional orders,
including in connection with the U.S. defense program; (viii) the
impact of any strategic partnerships on our business. These
forward-looking statements are based on information available as of
the date of this presentation and discussion, and current
expectations, forecasts and assumptions, and involve a number of
judgments, risks and uncertainties. Accordingly, forward-looking
statements should not be relied upon as representing our views as
of any subsequent date, and we undertake no obligations to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws. In addition, these forward-looking
statements and the information in this press release and the
earnings call are qualified in their entirety by cautionary
statements and risk factor disclosures contained in the Company’s
Securities and Exchange Commission (“SEC”) filings, including the
Company’s Registration Statement on Form S-1 filed on August 12,
2024, its Quarterly Report on Form 10-Q for the quarter ended March
31, 2024, its Quarterly Report on Form 10-Q for the quarter ended
March 31, 2024 and any subsequent SEC filings. All forward-looking
statements in this press release are based on information available
to us on the date hereof, and we assume no obligation to update
such statements.
As a result of a number of known and unknown risks and
uncertainties, our actual results or performance may be materially
different from those expressed or implied by these forward-looking
statements. Some factors that could cause actual results to differ
include (i) the risk that the price of our securities may be
volatile due to a variety of factors, including changes in the
highly competitive industries in which we operate, variations in
performance across competitors, changes in laws, regulations,
technologies, the global supply chain, and macro-economic and
social environments affecting our business; (ii) our ability to
regain compliance and maintain our listing of securities on Nasdaq;
(iii) the risks concerning our ability to continue as a going
concern; (iv) the inability to meet future capital requirements and
risks related to our ability to raise additional capital including
potential dilution to our stockholders; (v) the risk that we are
unable to successfully commercialize our products and solutions, or
experience significant delays in doing so; (vi) the risk that we
may not be able to generate income from operations in the
foreseeable future; (vii) the risk that we experience difficulties
in managing our growth and expanding operations; (viii) the risk
that we may not be able to consummate planned strategic
acquisitions, or fully realize anticipated benefits or capture
synergies from past or future acquisitions or investments; (ix) the
risk that we may be unable to successfully defend ourselves in
ongoing litigation or that additional actions may be commenced
against us; (x) the risk that our patent applications may not be
approved or may take longer than expected, and we may incur
substantial costs in enforcing and protecting our intellectual
property; (xi) the risk of being an early stage company and that
our limited operating history may make it difficult to evaluate our
future prospects and the risks and challenges that we may
encounter; (xii) the risk that we cannot predict whether we will
maintain revenue growth; (xiii) the risk that the markets for our
semiconductor products and solutions are highly competitive; (xiv)
the risk that future sales of our Class A Common Stock may cause
the market price of our Class A Common Stock to drop significantly,
even if our business is doing well; and (xv) inflation and
unfavorable global economic conditions could adversely affect our
business.
Mobix Labs, Inc. Condensed Consolidated Statements of
Operations and Comprehensive Loss (unaudited, in thousands,
except share and per share amounts) Three months
ended June 30, Nine months ended June 30,
2024
2023
2024
2023
Net revenue
$
2,058
$
80
$
3,488
$
791
Costs and expenses Cost of revenue
1,327
285
2,608
1,188
Research and development
1,369
3,159
4,328
9,209
Selling, general and administrative
8,710
6,375
31,731
21,198
Loss from operations
(9,348
)
(9,739
)
(35,179
)
(30,804
)
Interest expense
127
309
1,232
1,186
Change in fair value of earnout liability
(661
)
-
(30,599
)
-
Change in fair value of PIPE make-whole liability
310
-
(122
)
-
Change in fair value of private warrants
(68
)
-
412
-
Change in fair value of SAFEs
-
(30
)
10
528
Merger-related transaction costs expensed
-
-
4,009
-
Other non-operating losses, net
128
-
1,177
-
Loss before income taxes
(9,184
)
(10,018
)
(11,298
)
(32,518
)
Provision (benefit) for income taxes
(1,505
)
(14
)
(2,801
)
18
Net loss and comprehensive loss
(7,679
)
(10,004
)
(8,497
)
(32,536
)
Deemed dividend
-
-
661
-
Net loss available to common stockholders
$
(7,679
)
$
(10,004
)
$
(9,158
)
$
(32,536
)
Net loss per common share: Basic
$
(0.25
)
$
(0.65
)
$
(0.35
)
$
(2.34
)
Diluted
$
(0.25
)
$
(0.65
)
$
(0.36
)
$
(2.34
)
Weighted-average common shares outstanding: Basic
30,552,063
15,335,373
26,350,138
13,907,357
Diluted
30,552,063
15,335,373
26,411,020
13,907,357
Mobix Labs, Inc. Reconciliation of Non-GAAP Financial
Measures (unaudited, in thousands) Three
Months Ended Nine Months Ended June 30, June
30,
2024
2023
2024
2023
Computation of Adjusted Loss from Operations: GAAP loss from
operations
$
(9,348
)
$
(9,739
)
$
(35,179
)
$
(30,804
)
Depreciation
127
112
357
337
Amortization of acquisition related intangible assets
481
210
1,117
631
Merger & acquisition- related expenses
976
27
3,491
71
Inventory write-off
-
-
125
-
Stock-based compensation expense
3,622
4,752
17,768
14,387
Adjusted loss from operations
$
(4,142
)
$
(4,638
)
$
(12,321
)
$
(15,378
)
Three Months Ended Nine Months Ended
June 30, June 30,
2024
2023
2024
2023
GAAP gross profit: GAAP net revenue
$
2,058
$
80
$
3,488
$
791
GAAP cost of revenue
1,327
285
2,608
1,188
GAAP gross profit
$
731
$
(205
)
$
880
$
(397
)
GAAP gross margin %
35.5
%
-256.3
%
25.2
%
-50.2
%
Computation of Adjusted Gross Profit: GAAP gross
profit
$
731
$
(205
)
$
880
$
(397
)
Amortization of acquisition-related intangible assets
72
68
208
204
Inventory write-off
-
-
125
-
Stock-based compensation expense
27
12
27
34
Adjusted Gross Profit
$
830
$
(125
)
$
1,240
$
(159
)
Adjusted Gross Margin %
40.3
%
-156.3
%
35.6
%
-20.1
%
Mobix Labs, Inc. Condensed Consolidated Balance
Sheets (unaudited, in thousands, except share and per share
amounts) June 30, September 30,
2024
2023
ASSETS Current assets Cash
$
205
$
89
Accounts receivable, net
1,478
53
Inventory
1,906
319
Prepaid expenses and other current assets
481
369
Total current assets
4,070
830
Property and equipment, net
1,915
1,859
Intangible assets, net
18,570
5,287
Goodwill
15,206
5,217
Operating lease right-of-use assets
1,086
1,030
Deferred transaction costs
-
4,125
Other assets
430
400
Total assets
$
41,277
$
18,748
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY (DEFICIT) Current
liabilities Accounts payable
$
10,572
$
8,995
Accrued expenses and other current liabilities
8,839
4,519
Deferred purchase consideration
2,466
-
Notes payable
723
1,286
Notes payable - related parties
2,495
3,793
Simple agreements for future equity
-
1,512
Operating lease liabilities, current
406
318
Total current liabilities
25,501
20,423
Earnout liability
2,960
-
PIPE make-whole liability
1,949
-
Deferred tax liability
361
86
Operating lease liabilities, noncurrent
1,139
1,280
Other noncurrent liabilities
831
-
Total liabilities
32,741
21,789
Redeemable convertible preferred stock
-
2,300
Stockholders' deficit Common stock, $0.00001 par
value
-
-
Additional paid-in capital
101,456
78,421
Accumulated deficit
(92,920
)
(83,762
)
Total stockholders' equity (deficit)
8,536
(5,341
)
Total liabilities, redeemable convertible preferred stock and
stockholders' equity (deficit)
$
41,277
$
18,748
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240821190590/en/
Media Contact: Jeff Fox, The Blueshirt Group
jeff@blueshirtgroup.com
Investor Contact: Lori Barker, The Blueshirt Group
lori@blueshirtgroup.com
Mobix Labs (NASDAQ:MOBX)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Mobix Labs (NASDAQ:MOBX)
Historical Stock Chart
Von Dez 2023 bis Dez 2024