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