GuruFocus -
- Revenue: $3.6 million for Q4 2024, up 149% from Q4 2023.
- Royalties: $642,000 in Q4 2024, a 69% increase from Q4 2023; $2 million for fiscal year 2024, up 34% from 2023.
- Adjusted EBITDA: $450,000 for Q4 2024, compared to a loss of $324,000 in Q4 2023.
- Net Income from Continuing Operations: $588,000 for Q4 2024.
- Gross Margin: 40% in Q4 2024, up from 29% in Q4 2023.
- SG&A Expenses: $1.3 million for Q4 2024, a 26% increase from Q4 2023.
- Cash and Cash Equivalents: $4.8 million as of September 30, 2024.
- Net Working Capital Surplus: $7.2 million as of September 30, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- EnWave Corp (NWVCF) reported a strong Q4 2024 performance with quarterly revenue of $3.6 million, a significant increase from Q3.
- The company achieved a robust gross margin of approximately 40% in Q4 2024.
- Royalties for the fiscal year 2024 increased by $500,000 to $2 million, indicating growth in the company's diversified royalty portfolio.
- Successful global settlements were reached in a civil claim, resulting in the transfer of patents to EnWave Corp (NWVCF), strengthening their intellectual property position.
- New patentable innovations have been developed, potentially extending royalty collection well into 2044, showcasing EnWave Corp (NWVCF)'s commitment to technological advancement.
- EnWave Corp (NWVCF) fell short of its targeted new REV machine sales for fiscal year 2024.
- The company experienced a slow first half of the year, which they aim to avoid in fiscal 2025.
- SG&A expenses, including R&D, increased by 26% in Q4 2024, primarily due to higher legal fees, travel costs, and marketing expenses.
- Despite a strong pipeline, operational execution and closing of deals remain critical challenges for EnWave Corp (NWVCF).
- The company is still in the process of securing two international sales hires, which could impact their ability to expand their opportunity pipeline effectively.
A: Brent Charleton, CEO, highlighted that EnWave generated quarterly revenue of $3.6 million, royalties of $642,000, and adjusted EBITDA of $450,000, all improvements from Q3. Net income from continuing operations was $588,000, with a robust gross margin of about 40%.
Q: What were the key achievements in terms of royalty partnerships and machine installations?
A: Brent Charleton, CEO, mentioned successful commissioning of three large-scale REV machines at BranchOut Food's facility in Peru, with BranchOut projecting significant revenue growth. Additionally, Bounty Fresh in the Philippines is developing a premium chicken powder product, potentially requiring more REV machinery.
Q: How did EnWave's royalty revenue perform in Q4 2024 compared to the previous year?
A: Dylan Murray, CFO, reported third-party royalty revenue of $642,000 in Q4 2024, a 69% increase from $381,000 in Q4 2023. For the fiscal year, royalties were $2 million, up 34% from the previous year, driven by increased exclusivity payments and partner product sales.
Q: What strategic steps is EnWave taking to expand its sales pipeline?
A: Brent Charleton, CEO, stated that EnWave has been actively participating in major industry trade shows globally, leading to over 100 new qualified leads. The company is also in the process of hiring two international sales positions to further expand its opportunity pipeline.
Q: What is the status of EnWave's intellectual property and legal matters?
A: Brent Charleton, CEO, announced the successful settlement of a civil claim against former employees, resulting in the transfer of patents to EnWave. The company is also developing new patentable innovations to enhance technology efficiencies and expects these to extend royalty collections into 2044.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.