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Flux Power Holdings, a U.S.-based lithium-ion storage solutions provider, recorded a 61% year-over-year (YoY) growth in revenue on the back of shipments of $42.3 million for the fiscal year (FY) 2022, compared to $26.3 million in FY 2021.
The surge in revenue was driven by sales volumes and higher selling prices, including greater sales to existing and new customers.
The adjusted earnings before interest, tax, depreciation and amortization (EBITDA) loss for FY 2022 amounted to $14.1 million, up 27% from $11.1 million in FY 2021.
The company’s net loss for the current fiscal year increased 22% to $15.6 million compared to $12.8 million in 2021. The increase in losses was a result of higher operating expenses, partially offset by a rise in gross profit and a fall in interest expenses.
Fourth Quarter 2022
The company posted a YoY surge of 83% in revenue at $15.2 million for the fourth quarter (Q4) of FY 2022, compared to $8.3 million in Q4 2021.
The company’s adjusted EBITDA loss totaled $2.2 million for the period, which it recorded a YoY improvement of 37% from $3.5 million in the same quarter last year.
Flux Power’s net loss amounted to $2.7 million for Q4, a YoY decrease of 27% from $3.7 million. The firm reasoned that the reduction in losses reflects gross margin profit from higher revenue.
The company said it received new customer purchase orders of $11.6 million in Q4 from existing and new customers.
Flux Power’s customer backlog reduced to $35 million as of June 30, 2022, compared to $38 million as of March 2022, which the company said was due to improvement measures in sourcing actions to mitigate component shortages.
The CEO said, “During the quarter, global supply chain disruptions have improved, and concurrently we have improved production process improvements and better supply chain management. We have worked to leverage increased pack volumes to re-source steel and board components to low-cost regions and to high-volume local suppliers and also identify more competitive carriers to reduce shipping costs. We plan to ship backlog and reduce inventory levels; as of the end of the fourth quarter, inventory levels had not yet decreased materially, but we anticipate reductions in the current quarter as we get traction on our plan.”
Flux Power posted an 89% YoY surge in revenue at $13.2 million in Q3 2022 against $7 million in the same period last year.
Last October, the company announced the closing of its registered direct offering. It was priced at the market under Nasdaq rules for the sale of 2,142,860 shares of its common stock and warrants to purchase up to an aggregate of 1,071,430 shares of common stock.