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Franklin Wireless Reports 106% Increase in Full-Year Revenue to $75.0 Million
[September 18, 2020]

Franklin Wireless Reports 106% Increase in Full-Year Revenue to $75.0 Million


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.

Contact:
Franklin Wireless Corp.
+1 858 623 0000
bill.bauer@franklinwireless.com
             
             
             

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)
         

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