News: Microelectronics
19 August 2024
Guerrilla RF’s Q2 revenue grows 61.7% year-on-year to a record $6.1m
For second-quarter 2024, Guerrilla RF Inc (GRF) of Greensboro, NC, USA has reported revenue of $6.1m, up 61.7% on $3.8m a year ago. The firm develops and manufactures radio-frequency integrated circuits (RFICs) and monolithic microwave integrated circuits (MMICs) for wireless OEMs in markets including network infrastructure for 5G/4G macro and small-cell base stations, SATCOM, cellular repeaters/DAS, automotive telematics, military communications, navigation, and high-fidelity wireless audio.
Automotive Market product sales continued to be soft, falling to 31% of total revenue, down from 57% for full-year 2023. Wireless Infrastructure grew to 35% of total revenue, up from 9% for full-year 2023. “Even though we are seeing weakness in the Automotive Market, increased 5G deliveries enabled us to reach a new revenue record of $6.1m,” says founder & CEO Ryan Pratt.
Gross margin rose from 59% a year ago to 65.3%. Operating expenses have been cut further, from $5.66m to $5.19m. This has contributed to operating loss being cut from $3.4m a year ago to $1.2m.
Adjusted EBITDA loss (before interest expense, provision for income taxes, depreciation and amortization) has been cut from $2.68m a year ago to just $0.472m. “The management team is pleased with this progress towards EBITDA breakeven as it targets achieving sustained positive operating cash flow,” says founder & CEO Ryan Pratt. Cash reserves have fallen from $0.78m a year ago to $0.64m.
“During the quarter we continued to execute on our growth plans, releasing 12 new products into production and expanding our opportunities in the Catalog Markets and Infrastructure Markets with the acquisition of a GaN device portfolio,” says Pratt. At the end of April, Guerrilla RF completed the strategic acquisition of the portfolio of gallium nitride power amplifiers and front-end modules of Singapore-based Gallium Semiconductor — which designs and manufactures RF GaN products for 5G mobile communications, aerospace & defense, and industrial, scientific & medical (ISM) applications — opening up opportunities in the telecom, radar and industrial markets.
Product backlog (sales that have been committed to by customers but not yet completed, shipped or invoiced) was $5m at the end of Q2/2024, down from $5.5m a year ago. “We anticipate the Automotive Market weakness to continue throughout 2024 and, as a consequence, are reducing our revenue guidance by 5% to $20–25m for the full-year 2024,” says Pratt. “Having generated $11.2m in revenue for the first half of 2024, I believe we are well positioned to meet our revised revenue guidance of $20–25m for 2024 even though Q3 is historically our softest quarter.”
Since the end of Q2/2024, on 5 August, Guerrilla RF completed a $22m private placement with a single institutional investor, raising net cash proceeds of about $21.6m (after deduction of expenses). “We plan to use the new capital to accelerate the company’s growth, pay down outstanding debt and strengthen our competitive position through investing in new market penetration, expanded product offerings, additional R&D initiatives, and purchases of new capital equipment,” says Pratt.
The firm has also restructured its primary credit facility by reducing the outstanding principal balance and interest rate while extending the maturity until the end of 2028.
Guerrilla RF raises $22m in private placement with institutional investor
Guerrilla RF acquires GaN device portfolio from Gallium Semiconductor
