News: Microelectronics
28 September 2023
Guerrilla RF updates revenue guidance, targeting 30% growth in 2023 and 40% in 2024
Guerrilla RF Inc (GRF) of Greensboro, NC, USA — which develops and manufactures radio-frequency integrated circuits (RFICs) and monolithic microwave integrated circuits (MMICs) for wireless applications — has revised its guidance for third-quarter 2023 revenue from $3–3.5m to $3.3–3.5m. Full-year 2023 revenue is now expected to exceed $15m ($14.6–15.4m), up about 30% on 2022.
Full-year 2024 revenue is expected to grow by 40% year-on-year to $21–26m, as previously announced design wins continue to ramp. Those design wins are expected to generate over $7m in annualized ongoing program revenue for 2024 and increasing through 2028. Also, gross margin should grow to over 60% for full-year 2024 as fixed costs are absorbed more efficiently.
During Q3/2023, Guerrilla RF announced a further advance of $1.5m under its existing credit facility and the initial advance of $1.75m under a new $4m loan facility with Salem Investment Partners LP. Guerrilla RF says that this new facility allows it to capture additional revenue upside, which has resulted in backlog rising to $6.11m as of 15 September, up 21.8% from $5.48m at the end of June 2023 and up 35.8% on $4.5m at the end of 2022, positioning the firm for its largest revenue quarter in its history.
In conjunction with securing additional funding to support its growth, management has continued to focus on reducing expenses that do not directly support increased near-term sales and/or gross margins. The firm has implemented cost savings, including voluntary salary reductions, further reducing salary expenses through attrition, elimination of non-essential expenses and other efforts. This is expected to reduce annualized expenses by $3–5m within the next several quarters. Guerrilla RF expects to substantially achieve breakeven on an operating basis, i.e. excluding interest expense, other non-operating expenses and non-recurring expenses, beginning second-quarter 2024 as revenues are expected to exceed $6m per quarter and fixed costs are absorbed more efficiently.
“Since 2013, Guerrilla RF has been investing in products, delivering high-performance RF solutions to demanding markets that value performance,” says founder & CEO Ryan Pratt. “However, as the market environment has changed, it has become clear that profitability is more important than all-out growth. We have shifted our strategy accordingly to achieve breakeven status, beginning with the second quarter of 2024,” he adds. “In light of anticipated 2024 revenue and operational profitability, management believes the company is significantly undervalued at approximately one times anticipated 2024 revenue.”
