Company: BKTI
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001437749-25-016253
Chunk: 38

Company: BK Technologies Corp
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 general and administrative expenses 

     (31.7
     )

     (29.1
     )

      Other income (expense) 

     (0.6
     )

     (1.6
     )

      Income before income taxes 

     14.7

     3.8

      Income tax (expense) 

     (3.5
     )

     (0.1
     )

      Net income 

     11.2
     %

     3.7
     %

(1) Amounts may not foot due to rounding

       20

Net Sales

For the first quarter ended March 31, 2025, net sales increased 4.5% to approximately $19.1 million, compared with approximately $18.2 million for the same quarter of fiscal year 2024. Customer demand and orders for our products continued to be strong, reflecting the acceptance by the marketplace for our BKR series radio products.

Sales for the first quarter ended March 31, 2025, were attributed primarily to Federal, state and local public safety opportunities. From a product perspective, the primary contributor to orders and shipments during the first quarter was our BKR series radios and related accessories. The BKR Series is envisioned as a comprehensive line of new products, which includes new models such as the BKR 9000, which achieved first sales in the second quarter of 2023.

We believe that the BKR Series products should increase our addressable market by expanding the number of Federal, state and local public safety customers that may purchase our products. However, the timing and size of orders from agencies at all levels can be unpredictable and subject to budgets, priorities, and other factors.

While the potential impacts of the current administration's tariff policies, material shortages, lead-times, high inflation and ongoing geopolitical conflicts in Ukraine and the Middle East and other geopolitical events remain uncertain in coming months and quarters, such effects have the potential to adversely impact our customers and our supply chain. Such negative effects on our customers and suppliers could adversely affect our future sales, gross profit margins, operations and financial results.

Cost of Products and Gross Profit Margin

Gross profit margins as a percentage of sales for the first quarter ended March 31, 2025, were approximately 47.0% compared with 34.5% for the same quarter of fiscal year 2024.  Our cost of products and gross profit margins are primarily