ANDOVER,
Mass., Sept. 26, 2023 /PRNewswire/ -- Byrna
Technologies Inc. ("Byrna" or the "Company") (Nasdaq:
BYRN), a technology company, specializing in the development,
manufacture, and sale of innovative non-lethal personal security
solutions, today reported select preliminary financial results for
the fiscal third quarter ended August 31,
2023.
Preliminary Third Quarter Results
Based on preliminary
unaudited results, the Company expects total revenue for the fiscal
third quarter of 2023 to be $7.1
million compared to $12.4
million in the fiscal third quarter of 2022. The decrease in
revenue is primarily attributed to challenges in the Company's
direct-to-consumer (DTC) marketing efforts, resulting from
advertising bans on Meta and Google platforms.
The Company also estimates that its gross margins will be 45%
compared to 55% in the prior year period. This decline is primarily
due to one-time increases in reserves for excess and obsolete
inventory, totaling approximately $650,000. Excluding these one-time adjustments,
gross margins would have remained consistent with the prior year
period.
Management Commentary
"In the fiscal third quarter we
continued to face reduced web traffic as a result of the ongoing
advertising ban implemented by Meta and Google, but we believe that
we have begun to turn the corner in recent weeks," said Byrna CEO
Bryan Ganz. "While Meta's stance
remains unchanged for the time being, we have received permission
from Google to advertise on YouTube, and the initial results have
been encouraging. Our new partnership with Sean Hannity has also provided a demonstrable
increase in web traffic over the last few weeks, which we expect to
positively influence our performance in the fiscal fourth quarter
and going forward. By engaging in high-value collaborations and
exploring alternative advertising opportunities, we are now back on
the right path to regaining our website traffic, which will lead to
improved sales results over time. Despite the temporary marketing
challenges, we are making substantial progress with our internal
operations and remain confident that Byrna is well-positioned for
long-term, sustainable growth."
Conference Call
Byrna plans to report its full
financial results for the fiscal third quarter in October, which
will be accompanied by a conference call to discuss the results and
address questions from investors and analysts. The conference call
details will be announced prior to the event.
About Byrna Technologies Inc.
Byrna is a
technology company specializing in the development, manufacture,
and sale of innovative non-lethal personal security solutions. For
more information on the Company, please visit the corporate
website here or the Company's investor relations
site here. The Company is the manufacturer of the Byrna® SD
personal security device, a state-of-the-art handheld CO2 powered
launcher designed to provide a non-lethal alternative to a firearm
for the consumer, private security, and law enforcement markets. To
purchase Byrna products, visit the Company's e-commerce store.
Forward-Looking Statements
This news release
contains "forward-looking statements" within the meaning of the
securities laws. All statements contained in this news release,
other than statements of current and historical fact, are
forward-looking. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans," "expects,"
"intends," "anticipates," and "believes" and statements that
certain actions, events or results "may," "could," "would,"
"should," "might," "occur," or "be achieved," or "will be taken."
Forward-looking statements include descriptions of currently
occurring matters which may continue in the future. Forward-looking
statements in this news release include but are not limited to our
statements related to preliminary revenue and margin results for
the third fiscal quarter of 2023, the expected benefits of the
Company's partnership with Sean
Hannity, including expected impact on fourth quarter
revenue, the impact of marketing bans on direct-to-consumer sales,
whether Meta will continue to ban advertisement of Byrna products,
and whether Google will continue to allow advertising on YouTube.
Forward-looking statements are not, and cannot be, a guarantee of
future results or events. Forward-looking statements are based on,
among other things, opinions, assumptions, estimates, and analyses
that, while considered reasonable by the Company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies, and other factors
that may cause actual results and events to be materially different
from those expressed or implied.
Any number of risk factors could affect our actual results
and cause them to differ materially from those expressed or implied
by the forward-looking statements in this news release, including,
but not limited to, disappointing market responses to current or
future products or services; prolonged, new, or exacerbated
disruption of our supply chain; the further or prolonged disruption
of new product development; production or distribution or delays in
entry or penetration of sales channels due to inventory
constraints, competitive factors, pandemic-related factors, civil
unrest, increased shipping costs or freight interruptions;
prototype, parts and material shortages, particularly of parts
sourced from limited or sole source providers; determinations by
third party controlled distribution channels, including Amazon, not
to carry or reduce inventory of the Company's products;
determinations by advertisers to prohibit marketing of some or all
Byrna products; the loss of marketing partners; potential
cancellations of existing or future orders including as a result of
any fulfillment delays, introduction of competing products,
negative publicity, or other factors; product design defects or
recalls; litigation, enforcement proceedings or other regulatory or
legal developments; changes in consumer or political sentiment
affecting product demand; regulatory factors including the impact
of commerce and trade laws and regulations; import-export related
matters or sanctions or embargos that could affect the Company's
supply chain or markets; delays in planned operations related to
licensing, registration or permit requirements; and future
restrictions on the Company's cash resources, increased costs and
other events that could potentially reduce demand for the Company's
products or result in order cancellations. The order in which these
factors appear should not be construed to indicate their relative
importance or priority. We caution that these factors may not be
exhaustive; accordingly, any forward-looking statements contained
herein should not be relied upon as a prediction of actual results.
Investors should carefully consider these and other relevant
factors, including those risk factors in Part I, Item 1A, ("Risk
Factors") in the Company's most
recent Form 10-K, should understand it is impossible
to predict or identify all such factors or risks, should not
consider the foregoing list, or the risks identified in the
Company's SEC filings, to be a complete discussion of all potential
risks or uncertainties, and should not place undue reliance on
forward-looking information. The Company assumes no obligation to
update or revise any forward-looking information, except as
required by applicable law.
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SOURCE Byrna Technologies Inc.