Mobilicom Ltd (MOB)

[WeTheMarket]

Mobilicom Reports 2023 Year-End Financial Results
March 26 2024
https://ih.advfn.com/stock-market/NASDAQ/mobilicom-MOB/stock-news/93549314/mobilicom-reports-2023-year-end-financial-results

Mobilicom Limited (Nasdaq: MOB, MOBBW) (“Mobilicom” or “Company”), a provider of cybersecurity and robust solutions for drones and robotics, today announced financial results for the year ended December 31, 2023.

Recent Operational Highlights:

- Received initial production-scale order in Q3 2023 followed by additional quantity-increase order in Q4 2023 from U.S. Tier-1 drone manufacturer which delivers to the U.S. Department of Defense (“DOD”)
- Chosen by the U.S.DOD for Soldiers' Next Generation Wearable Tactical AI-Enhanced Mission Kits
- Secured $900,000 initial production-scale order from global Tier-1 Israeli-based manufacturer for loitering (kamikaze) drones platform
- Secured initial production-scale order from another global Tier-1 Israeli-based manufacturer for use by the Israeli Defense Forces
- Secured license-based order for ICE Cybersecurity from Israel’s Ministry of Defense for its small-sized drone program
- Launched MCU-70, cybersecure SDR Product with high size-to-performance ratio addressing new target market for mid-sized long-range UAVs

2023 Financial Highlights:

- Revenues increased 43% year-over-year to $2.3 million driven by repeat orders
- Gross margin remained high, at 59% compared to 62% in 2022, reflects our strong IP and know-how
- Confirmed order backlog of $1.4 million expected to be fulfilled in first half of 2024
- Strong cash position of $8.4 million with narrowing monthly burn rate affords Mobilicom a long cash runway to implement its strategic plans, capture market share, and ramp revenues
- Completed $2.95 million capital raise in January 2024 adding to strong cash position at year-end
- EBITDA decreased from approximately $(3.2) million as of December 31, 2022 to approximately $(4.2) million as of December 31, 2023.

“2023 was a transformative year for Mobilicom marked by several initial commercial scale orders from large global defense manufacturers. Our cybersecure systems are now integrated into drones and robotics purchased by the U.S. Department of Defense, Israel’s Ministry of Defense and others” stated Mobilicom CEO and Founder Oren Elkayam. “Our revenue growth, driven by our design win customer- based expansion demonstrates Mobilicom ability to deliver end-to-end systems that operate effectively under the most difficult conditions.”

“During the year, we expanded our U.S. market presence and business activities, product line and market segments. We’ve had great traction with our newly launched MCU-70, a cybersecure software defined radio that expands our reach into mid-sized and long-range unmanned aerial vehicles (UAVs) that delivers a superior size-to-performance ratio. Our solutions are now used in a broad range of systems from mini and small-sized drones to high-speed mid-range drone and robotics.”

“We foresee a strong financial start for 2024 based on our $1.4 million sales backlog. We anticipate additional repeat orders as well as new contracts to drive 2024 revenues. We believe that with $8.4 million in cash at the end of 2023 plus the recent $3 million fund raise in January, we are well positioned to continue to innovate, grow, and become a leading provider of cybersecure solutions for the global small-sized drone and robotics industry.”

Key Sales and Contracts by Region:

United States

U.S. DoD/Leading robotics manufacturer: The U.S. DoD chose Mobilicom’s SkyHopper to be integrated into the soldiers’ next-generation wearable tactical AI-enhanced mission kits made by a leading robotics manufacturer for the U.S. defense industry, and will be integrated into the RAID System, a fully integrated communications and common control solution for uncrewed systems on land and air.
Repeat initial commercial-scale order from a U.S. Tier-1 defense manufacturer: Mobilicom received a follow-on order from a U.S.-based Tier-1 customer for its SkyHopper PRO, an essential component of the customer’s drone platform manufactured for the U.S. defense industry and other U.S. federal agencies.
Initial $150,000 order for high-payload long-range drones: This design win and initial order for two products—Mobile Ground Control Stations and the SkyHopper Pro V datalinks, is with a new customer, an innovative drone designer and manufacturer that serves commercial and defense customers in the U.S. and globally. Mobilicom’s systems will be integrated into high-payload long- range drones that are set for intensive commercial demonstrations to leading defense and commercial end users across the U.S.
Tier-1 customer purchases: One of the world’s large manufacturers of small-sized drones and robotics has integrated Mobilicom’s SkyHopper PRO into its new small-sized drone platform and placed an initial commercial-scale order. The customer’s small-sized drones are being manufactured for the U.S. DoD.

Europe

Initial order from one of Europe’s largest defense contractors: The customer is integrating two of Mobilicom’s products—the Mobile Ground Control Station and MCU Mesh networking into a paired, networked ground vehicle and drone system. This Tier-1 company serves the European market where NATO countries have increased their defense budgets significantly in response to the Russia-Ukraine conflict.

Israel and ROW

$900,000 initial production-scale order from Tier-1 customer: An Israel-based Tier-1 global defense and drone manufacturer, one of the largest loitering munitions providers in the world, moved from design to initial commercial-phase with Mobilicom’s SkyHopper, which is integrated into its loitering munitions. Shipments commenced in Q4 2023 and continued into Q1 2024. Driven by the high replacement rates of loitering munitions, Mobilicom expects follow-on orders and further demand.
United Arab Emirates (UAE): Mobilicom secured a repeat order for its robust end-to-end solutions from a leading UAE government organization. The customer purchased Mobilicom’s entire product offering, including hardware and software.
Israel Ministry of Defense: The Company’s ICE Cybersecurity software drone solution was purchased by Israel’s Ministry of Defense to be used in small-sized drones for reconnaissance, surveillance, and intelligence gathering. The initial order was fully delivered in January 2024, with additional orders and deliveries expected in Q2 2024 and beyond.
Initial production-scale order from another Israeli-based global Tier-1 manufacturer: Mobilicom secured a new initial production-scale order for its SkyHopper Pro Lite from Israel’s major aerospace and aviation manufacturer for loitering drones to be deployed by the Israel Defense Forces. This follows a successful integration and testing of SkyHopper Pro in loitering drones. This order is planned to ship in Q1 2024 and is expected to be followed by larger purchases as the manufacturer demonstrates the drones to other potential customers worldwide including the U.S. DoD.
Leading global provider of autonomous and remote-controlled armor technology selected Mobilicom solutions: Based on a previous design win, Mobilicom’s Mobile Ground Control Station 10” Pro, MCU Mesh Networking, and SkyHopper are being installed into autonomous and remote-controlled electric vehicles for the homeland security and defense markets.

About Mobilicom

Mobilicom is a leading provider of cybersecure robust solutions for the rapidly growing defense and commercial drones and robotics market. Mobilicom’s large portfolio of field-proven technologies includes cybersecurity, software, hardware, and professional services that power, connect, guide, and secure drones and robotics. Through deployments across the globe with over 50 customers, including the world’s largest drone manufacturers, Mobilicom’s end-to-end solutions are used in mission-critical functions.

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