SAN DIEGO, Sept. 18, 2020 (GLOBE NEWSWIRE) -- Franklin Wireless Corp.(FKWL), a market leader in broadband data communications including hardware and software solutions for M2M and the IoT, today announced full-year financial results for the fiscal year ended June 30, 2020.
Financial and Operational Highlights
- Full-year revenue increased 105.9% to $75.1 million
- Full-year operating expenses declined 5.1% to $7.4 million
- Full-year R&D expenses increased by 27% vs. last year
- Full-year net income attributable to parent company increased to $5.6 million, a positive swing of $6.8 million vs. last year
“Our fiscal 2020 financial results reflect Franklin’s ability to capitalize on the surge in demand for wireless connectivity brought on by the Pandemic,” said OC Kim, president of Franklin Wireless. “We were able to expand production to meet unprecedented demand from school districts, large carriers and other partners for advanced networking and connectivity technology as the country shifted to a work-from-home reality amidst the global pandemic. The price-point of our hotspots provide a compelling value proposition for school districts seeking solutions for connecting students at home. Our continued focus on cost controls, including a reduction in SG&A expenses, enabled us to increase full-year net income by $6.8 million. As a result, we ended the fiscal year with a strengthened balance sheet, including $34 million in cash and CD. We continue to be well-positioned to meet demand for 5G technology and other networking solutions, with a loyal and growing customer base that includes two tier 1 U.S. carriers.”
About Franklin Wireless
Franklin Wireless Corp is a leading provider of intelligent wireless solutions including mobile hotspots, routers, trackers, and other devices. Our designs integrate innovative hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT). Our M2M and IoT solutions include embedded modules, modems and gateways built to deliver reliable always-on connectivity supporting a broad spectrum of applications based on fifth generation and fourth generation (5G/4G) wireless technology. For more information. please visit www.franklinwireless.com.
Safe Harbor Statement:
Certain statements in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements.
FRANKLIN WIRELESS CORP.
Consolidated Balance Sheets
| As of June 30, | ||||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 28,161,644 | $ | 6,447,505 | ||||
| Certificates of deposit account | 5,381,918 | 5,380,226 | ||||||
| Accounts receivable | 15,973,537 | 4,138,469 | ||||||
| Other receivables, net | 61,090 | 40,807 | ||||||
| Inventories, net | 11,783,403 | 1,052,740 | ||||||
| Prepaid expenses and other current assets | 21,588 | 28,042 | ||||||
| Advance payments to vendors | 27,838 | 51,340 | ||||||
| Total current assets | 61,411,018 | 17,139,129 | ||||||
| Property and equipment, net | 220,889 | 131,879 | ||||||
| Intangible assets, net | 1,125,152 | 1,109,911 | ||||||
| Deferred tax assets, non-current | 938,188 | 2,282,975 | ||||||
| Goodwill | 273,285 | 273,285 | ||||||
| Right of use assets | 1,139,670 | – | ||||||
| Other assets | 283,369 | 258,097 | ||||||
| TOTAL ASSETS | $ | 65,391,571 | $ | 21,195,276 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 42,083,255 | $ | 5,672,514 | ||||
| Income tax payable | 34,713 | 654 | ||||||
| Accrued liabilities | 466,021 | 247,658 | ||||||
| Lease liabilities, current | 400,508 | – | ||||||
| Total current liabilities | 42,984,497 | 5,920,826 | ||||||
| Lease liabilities, non-current | 784,233 | – | ||||||
| Notes payable, payroll protection plan loan | 487,300 | – | ||||||
| Total liabilities | 44,256,030 | 5,920,826 | ||||||
| Commitments and contingencies (Note 8) | ||||||||
| Stockholders’ equity: | ||||||||
| Parent Company stockholders’ equity | ||||||||
| Preferred stock, par value $0.001 per share, authorized 10,000,000 shares; No preferred stock issued and outstanding as of June 30, 2020 and 2019 | – | – | ||||||
| Common stock, par value $0.001 per share, authorized 50,000,000 shares; 10,605,912 and 10,570,203 shares issued and outstanding as of June 30, 2020 and 2019, respectively | 14,007 | 13,972 | ||||||
| Additional paid-in capital | 7,475,365 | 7,442,272 | ||||||
| Retained earnings | 18,028,059 | 12,477,441 | ||||||
| Treasury stock, 3,472,286 shares as of June 30, 2020 and 2019 | (4,513,479 | ) | (4,513,479 | ) | ||||
| Accumulated other comprehensive loss | (650,426 | ) | (634,802 | ) | ||||
| Total Parent Company stockholders’ equity | 20,353,526 | 14,785,404 | ||||||
| Non-controlling interests | 782,015 | 489,046 | ||||||
| Total stockholders’ equity | 21,135,541 | 15,274,450 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 65,391,571 | $ | 21,195,276 | ||||
FRANKLIN WIRELESS CORP.
Consolidated Statements of Comprehensive Income (loss)
| Fiscal Years Ended June 30, | ||||||||
| 2020 | 2019 | |||||||
| Net sales | $ | 75,072,298 | $ | 36,468,900 | ||||
| Cost of goods sold | 60,547,813 | 30,729,411 | ||||||
| Gross profit | 14,524,485 | 5,739,489 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 3,699,859 | 4,891,365 | ||||||
| Research and development | 3,746,502 | 2,955,581 | ||||||
| Total operating expenses | 7,446,361 | 7,846,946 | ||||||
| Income (loss) from operations | 7,078,124 | (2,107,457 | ) | |||||
| Other income, net: | ||||||||
| Interest income | 159,749 | 138,462 | ||||||
| Income from governmental subsidy | 16,282 | 64,201 | ||||||
| Other income, net | 44,733 | 2,291 | ||||||
| Total other income, net | 220,764 | 204,954 | ||||||
| Income (loss) before provision (benefit) for income taxes | 7,298,888 | (1,902,503 | ) | |||||
| Income tax provision (benefit) | 1,380,301 | (428,745 | ) | |||||
| Net income (loss) | 5,918,587 | (1,473,758 | ) | |||||
| Less: non-controlling interests in net loss of subsidiary at 48.2% | – | (55,564 | ) | |||||
| Less: non-controlling interests in net income (loss) of subsidiary at 35.8% | 189,105 | (142,070 | ) | |||||
| Less non-controlling interests in net income of subsidiary at 33.7% | 178,864 | – | ||||||
| Net income (loss) attributable to Parent Company | $ | 5,550,618 | $ | (1,276,124 | ) | |||
| Basic earnings (loss) per share attributable to Parent Company stockholders | $ | 0.52 | $ | (0.12 | ) | |||
| Diluted earnings (loss) per share attributable to Parent Company stockholders | $ | 0.52 | $ | (0.12 | ) | |||
| Weighted average common shares outstanding - basic | 10,581,499 | 10,570,203 | ||||||
| Weighted average common shares outstanding - diluted | 10,715,979 | 10,570,203 | ||||||
| Comprehensive income (loss) | ||||||||
| Net income (loss) | $ | 5,918,587 | $ | (1,473,758 | ) | |||
| Translation adjustments | (15,624 | ) | (52,819 | ) | ||||
| Comprehensive income (loss) | 5,902,963 | (1,526,577 | ) | |||||
| Less: comprehensive income (loss) attributable to non-controlling interest | 367,969 | (197,634 | ) | |||||
| Comprehensive income (loss) attributable to controlling interest | $ | 5,534,994 | $ | (1,328,943 | ) | |||