Flux Power’s Q1 FY24 Revenues Drop 17% YoY as Energy Storage Shipments Defer
The company’s net loss narrowed by a marginal 1.3% to $2.11 million
Lithium-ion storage solutions provider Flux Power Holdings recorded a net loss of $2.11 million for the first quarter (Q1) of the fiscal year (FY) 2023-24, a marginal 1.3% year-over-year (YoY) improvement from $2.14 million.
The improvement in net income reflected the company’s increased gross profit, offset by increased operating and interest expenses.
The revenue for Q1 decreased by 17% YoY to $14.8 million from $17.8 million, primarily driven by shipment deferrals and delays in receiving anticipated orders, leading to a drop in energy storage pack sales.
The company said the extended lead times for certain model lines of major original equipment manufacturers, forklift timing delays, seasonality, and product mix resulted in shipment deferrals.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) loss decreased by 24% YoY to $1.2 million from a loss of $1.5 million, mainly due to improved gross margins.
As of September 2023, the company’s order backlog declined to $21.8 million from $28.5 million as of June due to delays in receiving anticipated orders.
As a step to strengthen its capital structure, Flux Power secured a new credit facility worth $15 million from Gibraltar Business Capital, including expansion provisions to $20 million, to fund working capital and repay the existing credit facility with Silicon Valley Bank.
Ron Dutt, Chief Executive Officer of Flux Power, said, “Revenue for the first quarter of 2024 decreased 17% to $14.8 million compared to $17.8 million in the first fiscal quarter of 2023. Due to fewer units of lithium-ion packs sold during the current quarter as a result of ongoing shipment deferrals related to [Oak] (ph) OEM forklift delivery delays along with some seasonal reduction in orders.”
“Beyond our backlog of open orders, we’re working on a pipeline of high probability orders of well over $100 million, which does stretch beyond the current fiscal year ending June 30,” he added.
Flux Power’s net loss for Q4 FY23 was $1.5 million compared with a net loss of $2.7 million in Q4 of FY22, a YoY improvement of 44%. The improvement was principally driven by increased gross profit and slightly offset by increased operating and interest expenses.