Borqs Technologies 2021 Revenue Improved 10.5%; Achieved Positive Non-GAAP Adjusted EBITDA
May 06 2022 - 9:00AM
Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs”, or the “Company”),
a global provider of 5G wireless solutions, Internet of Things
(IoT) solutions and innovative clean energy with global operations
in the U.S., India and China, filed its annual report on Form 20-F
for the year ended December 31, 2021 with the SEC on May 2, 2022.
Despite stringent supply chain interruptions and Covid challenges
worldwide, revenues for the year 2021 was $29.56 million which was
10.5% improvement over $26.75 million in 2020.
As reported in the annual report under US GAAP
basis, continuing operations resulted in a net loss of $56.60
million. Significant amounts of the expenses were non-cash charges
of convertible note discounts from the Company’s financing
transactions and debt settlement charges involved in the complete
paid-off of loans from Partners For Growth. Other than such
extraordinary non-operating and non-cash expenses, the Company’s
operations achieved positive adjusted EBITDA during 2021.
The following table presents a reconciliation of
the non-GAAP financial measures of EBITDA and Adjusted EBITDA for
the results of our continuing operations in the year 2021.
|
Year ended Dec 31, 2021 |
|
(US$ in
thousands) |
|
|
Net revenue |
$
29,561 |
Net income (loss) from continuous operations |
(56,602) |
|
|
Interest expense |
11,952 |
Tax (benefit) |
(445) |
Depreciation & amortization |
2,664 |
Other income (non-operational) |
(70) |
Foreign exchange loss |
2,661 |
|
----------- |
EBITDA |
$
(39,840) |
|
|
Write-off of historical inventory (non-cash) |
1,268 |
Write-off and provision of doubtful assets (non-cash) |
1,757 |
Stock-based compensation (non-cash) |
17,533 |
Defaulted debt settlement charges (non-cash) |
17,199 |
One-off consulting expenses for financing activities |
2,100 |
Contingency loss on disposal of subsidiary
(non-cash) |
303 |
Change in fair value for acquisition (non-cash) |
111 |
|
----------- |
Adjusted EBITDA |
$
431 |
|
|
* From 20-F: Interest Expense: During the year
ended December 31, 2021, interest expense of 12 million mainly
consisted of interest expense related to our convertible notes
discount of $9.9 million. The debt discount, together with the
related issuance cost are amortized as interest expense, using the
effective interest method, from the issuance date to the earliest
maturity date. The interest expense was settled using company
stock.
Non-US-GAAP Reconciliation
EBITDA and Adjusted EBITDA are
supplemental non-GAAP financial measures exclusive of
certain items to facilitate management’s review of the
comparability of our core operating results on a period to period
basis because such items are not related to our ongoing core
operating results as viewed by management. EBITDA and Adjusted
EBITDA are not measures of net income or cash flows as determined
by GAAP. We define EBITDA as net income plus income taxes, net
interest expense, depreciation and amortization, and Adjusted
EBITDA as EBITDA minus other non-operation expense.
We believe EBITDA and Adjusted EBITDA are useful
because they allow us to more effectively evaluate our operating
performance and compare the results of our operations from period
to period without regard to our financing methods or capital
structure. We exclude the items listed above in arriving at EBITDA
and Adjusted EBITDA because these amounts can vary substantially
from company to company within our industry depending upon
accounting methods and book values of assets, capital structures
and the method by which the assets were acquired. EBITDA and
Adjusted EBITDA should not be considered as an alternative to, or
more meaningful than, net income as determined in accordance with
GAAP, or as an indicator of our operating performance or liquidity.
Certain items excluded from EBITDA and Adjusted EBITDA are
significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax
structure, as well as the historic costs of depreciable assets,
none of which are components of EBITDA and Adjusted EBITDA. In
prior periods, the Company has excluded other items that it no
longer excludes for purposes of its non-GAAP financial measures.
Our computations of EBITDA and Adjusted EBITDA may not be
comparable to other similarly titled measures of other
companies.
About Borqs Technologies,
Inc.Borqs Technologies is a global leader in software and
products for the IoT, providing customizable, differentiated and
scalable Android-based smart connected devices and cloud service
solutions. Borqs has achieved leadership and customer recognition
as an innovative end-to-end IoT solutions provider leveraging its
strategic chipset partner relationships as well as its broad
software and IP portfolio. Borqs’ unique strengths include its
Android and Android Wear Licenses which enabled the Company to
develop a software IP library covering chipset software, Android
enhancements, domain specific usage and system performance
optimization, suitable for large and low volume customized
products. The Company is also currently in development of 5G
products for phones and hotspots.
Borqs recently acquired controlling interests in
a solar energy storage systems company in the U.S.
Forward-Looking Statements, Non-GAAP
Presentation and Additional InformationThis press release
may include “forward-looking statements” that involve risks and
uncertainties that could cause actual results to differ materially
from what is expected. Words such as “forecasts”, “expects”,
“believes”, “anticipates”, “intends”, “estimates”, “predicts”,
“seeks”, “may”, “might”, “plan”, “possible”, “should”, “estimates”
and variations and similar words and expressions are intended to
identify such forward-looking statements, but the absence of these
words does not mean that a statement is not forward-looking. This
press release also contains non-GAAP financial presentations which
are not the official method of describing financial data as
required by the rules and regulations of the SEC. Such
forward-looking statements and non-GAAP presentations are based on
currently available information and reflect our management’s
current beliefs. Many factors could cause actual events or results
to differ materially from the events and results discussed in the
forward-looking statements and the non-GAAP presentation may not
truly describe the financial conditions, including the possibility
that the positive financial results from business activities as
described herein may not be reached or at all, and the negative
impact of the COVID-19 pandemic on the Company’s supply chain,
revenues and overall results of operations, so the reader is
advised to refer to the Risk Factors sections of the Company’s
filings with the Securities and Exchange Commission for additional
information identifying important factors that could cause actual
results to differ materially from those anticipated in the
forward-looking statements. Except as expressly required by
applicable securities law, the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Contact:
Sandra DouVice President of Corporate
FinanceBorqs Technologies,
Inc.sandra.dou@borqs.net www.borqs.com
Borqs Technologies (NASDAQ:BRQS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Borqs Technologies (NASDAQ:BRQS)
Historical Stock Chart
From Sep 2023 to Sep 2024