Investor Conference Call on March 1, 2018 at 8:00 a.m. EST.
Revenue in 2017 was $91.6 million; an 8.9% increase from the prior year.
Gross profit grew to $28.3 million in 2017, compared to $23.5 million in 2016.
Adjusted EBITDA was $5.0 million in fiscal 2017, compared to Adjusted EBITDA of $1.8 million in the prior year.
Revenue and gross profit increased in the fourth quarter of 2017 by 21.8% and 24.6%, respectively, as compared to the same period in fiscal 2016.
Adjusted EBITDA in the fourth quarter of 2017 was $1.3 million, representing the eighth consecutive positive quarter.
Toronto, CANADA, February 28, 2018 – Baylin Technologies Inc. (TSX: BYL) (the “Company” or “Baylin”), a diversified leading global wireless technology management company that focuses on research, design, development, management and sales of passive and active RF products and services, today announced its financial results for the three and twelve months ended December 31, 2017. All figures are stated in Canadian dollars (“CAD”) unless otherwise noted.
Key highlights for the twelve months ended December 31, 2017:
- Revenue grew to $91.6 million in fiscal 2017, an increase of 8.9% over the prior year.
- Gross profit grew to $28.3 million in fiscal 2017, an increase of 20.6% compared to gross margin in fiscal 2016 (See Non-GAAP Measures on page 2 of the Company’s management’s, discussion and analysis (“MD&A”) which is available on SEDAR at www.sedar.com).
- Adjusted EBITDA was $5.0 million in fiscal 2017, compared to Adjusted EBITDA of $1.8 million in the prior year. Certain non-recurring and one-time expenses (“non-recurring items”) of $2.6 million were incurred in fiscal 2017 (see “Non-GAAP Measures” on page 2 of the MD&A).
- Net loss was $4.2 million in fiscal 2017. Net loss, adjusted for non-recurring items was $1.6 million (see “Non-GAAP Measures” on page 2 of the MD&A).
- Liquidity improved by issuing common shares in the capital of the Company for gross proceeds of $19.8 million. Cash and cash equivalents increased from $18.5 million in fiscal 2016 to $35.2 million in fiscal 2017.
- The Base Station and Small Cell sales team expanded through the hire of four additional sales people with antenna industry experience in this market. The reconstructed sales team has already made several positive inroads with new customers, which includes new master purchase agreements and new product approvals. These changes resulted in a 34.8% increase in revenue from infrastructure products (“Infrastructure”) over the prior year.
Key highlights for the three months ended December 31, 2017 include the following:
- Revenue and gross profit increased in the most recent quarter by 21.8% and 24.6%, respectively, as compared to the same period in fiscal 2016.
- Adjusted EBITDA in the fourth quarter of 2017 was $1.3 million, representing the eighth consecutive positive quarter, compared to Adjusted EBITDA of $0.1 million in the fourth quarter of fiscal 2016.
Randy Dewey, President and Chief Executive Officer commented, “We are very pleased with the Company’s financial results for 2017. As we reported in Q3, Q4 is typically not as strong as Q3, however, revenue increased by 21.8% compared to the same period in fiscal 2016 and we have taken the positive momentum created in the second half of 2017 into 2018.”
SELECTED FINANCIAL INFORMATION
The table below discloses selected financial information related to income and balance sheet items over the past three fiscal years.
The table below discloses selected financial information for the fourth quarter of fiscal 2017 compared to the prior year period.
Revenue in the fourth quarter of fiscal 2017 was $24.4 million, representing a 21.8% increase over the fourth quarter of fiscal 2016. Each of Baylin’s product lines demonstrated quarter-over-quarter growth, led by DAS, Small Cell and BSA which grew by 130%.
The Company’s complete audited consolidated financial statements and management’s discussion & analysis (“MD&A”) for the three and twelve months ended December 31, 2017 are available on SEDAR at www.sedar.com.
Management considers the long-term outlook of Baylin’s market expansion opportunities combined with the impact of cost reductions over the last two and a half years to be encouraging. The fundamental core elements of the business continue to trend in a positive direction.
As previously reported, in 2017 we ceased operations at our facility in Tiberias, Israel. We remain, however, committed to investing in research and development (“R&D”) and anticipate quarter-over-quarter spending to increase in 2018 as we continue to add new products into our product road map which are being developed in Ottawa, Canada.
We produced and delivered our first base station antenna to market in the fourth quarter of 2017. We have developed two additional base stations antennas that will start shipping in the first quarter of 2018. During 2017, new sales personnel joined the Infrastructure group in an effort to align more closely with our end customer and add knowledge and skills to our DAS, Base Station and Small Cell sales team. We anticipate that our Small Cell product offering will expand in 2018 and we expect to add several new significant customers as a result.
Revenue from the networking product line increased in 2017 compared to the prior year and we expect this trend to continue in 2018 as new platforms begin ramping up and efforts continue to expand the customer base.
Asia Pacific’s outlook remains stable with consistent revenues from existing customers combined with continued efforts to identify new opportunities to further reduce our reliance on a major customer. It is expected that revenue in the first quarter of 2018 will benefit from several product launches of a major Asia Pacific customer.
A continued focus on controlling spending, optimizing manufacturing efficiencies and managing liquidity will continue in 2018 in an effort to hold the margin gains we have achieved over the last three years.
On January 17, 2018, Baylin acquired the radio frequency, terrestrial microwave and antenna equipment divisions of Advantech Wireless Inc. We expect that this strategic acquisition will accelerate growth by broadening our product offering and providing access to new verticals and geographies. Management will continue to explore opportunities to increase the scale of our business through strategic, accretive acquisitions in 2018.
“The addition of Advantech’s RF and Microwave divisions is a transformational acquisition for Baylin that will enable us to accelerate growth by broadening our product offering and providing us access to new verticals and geographies”, said Randy Dewey, Baylin’s President and CEO.
Baylin will hold a conference call on March 1st, 2018, at 8:00 a.m. (ET) to discuss its financial results for the three and twelve months ended December 31, 2017. The call will be hosted by Randy Dewey, President and Chief Executive Officer, and Michael Wolfe, Chief Financial Officer. All interested parties are invited to participate.
DATE: March 1st, 2018
TIME: 8:00 a.m. (ET)
DIAL IN NUMBER: 888-231-8191 647-427-7450
CONFERENCE ID#: 9692219
WEBCAST DETAILS – URL (EN):
Certain statements in this Press Release constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of the Company, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward looking statements. The forward-looking statements in this Press Release include, but are not limited to, statements regarding the Company’s expected product pipeline, plans to expand the Company’s business into new markets, the Company’s ability to achieve organizational efficiencies, and other statements regarding the Company’s plans and expectations in 2018. These statements reflect our current views regarding future events and operating performance and are based on information currently available to us, and speak only as of the date of this Press Release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Those assumptions and risks include, but are not limited to, the Company’s ability to successfully allocate capital as needed and to develop new products, as well as the fact that our results of operations and business outlook are subject to significant risk, volatility and uncertainty. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including the factors identified in the “Risk Factors” section of the Company’s Annual Information Form dated March 1, 2018. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, we do not intend and do not assume any obligation to update these forward-looking statements.
This press release includes a number of measures that are not prescribed by Canadian generally accepted accounting principles (“GAAP”) and as such may not be comparable to similar measures presented by other companies. We believe these measures are commonly employed to measure performance in our industry and are used by analysts, investors, lenders and interested parties to evaluate financial performance and our ability to incur and service debt to support our business activities. The measures we use are specifically defined (see “Non-GAAP Measures” on page 2 of the Company’s management, discussion and analysis filed on SEDAR on February 28, 2018, which is available on SEDAR at www.sedar.com).
While we believe that non-GAAP measures are helpful supplemental information, they should not be considered in isolation as an alternative to net income, cash flows generated by operating, investing or financing activities, or other financial statement data presented in accordance with GAAP.
Baylin (TSX: BYL) is a diversified leading global wireless technology management company. Baylin focuses on research, design, development, manufacturing and sales of passive and active RF products and services. We aspire to meet our customers’ needs and anticipate the direction of the market.
SOURCE Baylin Technologies Inc.
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