Full Year 2022 Financial Highlights:
● Net revenue of
● Gross margin of 23.6% compared to 34.1% in 2021.
● Net loss of
● Improved working capital through a 25.0% reduction in inventories and a 77.2% reduction in accounts payable.
Recent Business Highlights
● Executed a 20% cost reduction plan accelerate path to profitability
● Expanded e-commerce offering on OfficeDepot.com with launch of eight Motorola home networking products expanding the WiFi 6 Motorola Mesh portfolio to one of the largest e-commerce platforms in the office supply segment
● Expanded e-commerce footprint with the launch of Motorola home network devices on HomeDepot.com bringing Motorola-branded networking solutions directly to home improvement shoppers across
● Launched Support+, a premium support subscription, available to app users beginning in
Q4 2022 Financial Highlights:
● Net revenue of
● Gross margin of 19.9% compared to 22.3% in Q3 2022
● Net loss of
● Non-GAAP Adjusted EBITDA of
● Improved working capital through a 26.0% reduction in inventories and 75.0% reduction in accounts payable since
Patel continued, “2022 revenues were down 9% year over year. Across the industry, demand for consumer electronics softened in the fourth quarter and brick-and-mortar retailers took actions to absorb higher inventories that had been amassed to offset supply chain challenges. Importantly, we are maintaining our market leadership on Amazon.com and recent launches with premier online retailers including HomeDepot.com, OfficeDepot.com, Lenovo.com, Lowes.com and others, expands our online presence and more strongly aligns our distribution points with consumer purchasing preferences.”
Patel concluded, “Looking ahead to 2023, our working capital has improved, our cost structure is leaner and we are preparing to launch our high-value Support+ subscription offering, which we believe could lead to higher gross margins as the offering scales.”
Full Year 2022 Financial Summary
Net revenue in 2022 was
Net loss in 2022 was
Non-GAAP Adjusted EBITDA in 2022 was
Fourth Quarter 2022 Financial Summary
Net revenue in the fourth quarter of 2022 was
Net loss in the fourth quarter of 2022 was
Non-GAAP Adjusted EBITDA in the fourth quarter of 2022 was
At the end of the fourth quarter of 2022, the company had
Inventory at the end of Q4 2022 was
As
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles in
We use these non-GAAP financial measures in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, and evaluating short-term and long-term operating trends in our operations. We believe that these measures provide an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals.
Minim believes that these non-GAAP financial measures are also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis.
These non-GAAP financial measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.
Conference Call Details Date/Time:
Minim will host a conference call today,
A recording of the call will be made available following the conference call through the investor information section of the company’s website.
About Minim
Minim, Inc. (NASDAQ: MINM) was born in 1977 as a networking company and now delivers intelligent software to protect and improve the WiFi connections we depend on to work, learn, and live. Minim’s cloud platform powers intuitive apps and a variety of routers, helping customers take control of their connected experience and privacy. Headquartered in
MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of
About Motorola Strategic Brand Partnerships
For over 90 years, the Motorola brand has been known around the world for high quality, innovative and trusted products. Motorola’s
Forward-Looking Statements
This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the
Investor Relations Contact:
james@haydenir.com
(646) 755-7412
Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
ASSETS | ||||||||||
2022 | 2021 | |||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 530 | $ | 12,570 | ||||||
Restricted cash | 500 | 500 | ||||||||
Accounts receivable, net | 2,759 | 4,881 | ||||||||
Inventories, net | 25,415 | 33,891 | ||||||||
Prepaid expenses and other current assets | 361 | 588 | ||||||||
Total current assets | 29,565 | 52,430 | ||||||||
Equipment, net | 637 | 763 | ||||||||
Operating lease right-of-use assets, net | 173 | 242 | ||||||||
- | 59 | |||||||||
Intangible assets, net | 73 | 262 | ||||||||
Other assets | 512 | 545 | ||||||||
Total assets | $ | 30,960 | $ | 54,301 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities | ||||||||||
Bank credit line | $ | 4,759 | $ | 5,065 | ||||||
Accounts payable | 2,837 | 12,458 | ||||||||
Current maturities of government loan | 1,000 | 34 | ||||||||
Current maturities of operating lease liabilities | 151 | 143 | ||||||||
Accrued expenses | 4,441 | 5,280 | ||||||||
Deferred revenue, current | 634 | 292 | ||||||||
Total current liabilities | $ | 13,822 | $ | 23,272 | ||||||
Operating lease liabilities, less current maturities | 22 | 99 | ||||||||
Deferred revenue, noncurrent | 772 | 443 | ||||||||
Total liabilities | $ | 14,616 | $ | 23,814 | ||||||
Stockholders' equity | ||||||||||
Common stock: Authorized: 60,000,000 shares at | ||||||||||
value; issued and outstanding: 46,949,240 shares at | ||||||||||
2022 and 45,885,043 shares at | 469 | 459 | ||||||||
Additional paid in capital | 90,710 | 89,313 | ||||||||
Accumulated deficit | (74,835 | ) | (59,285 | ) | ||||||
Total stockholders' equity | 16,344 | 30,487 | ||||||||
Total liabilities and stockholders' equity | $ | 30,960 | $ | 54,301 | ||||||
Consolidated Statement of Operations | ||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
Net sales | $ | 10,626 | $ | 10,476 | $ | 50,622 | $ | 55,423 | ||||||||||
Cost of goods sold | 8,513 | 5,633 | 38,696 | 36,505 | ||||||||||||||
Gross profit | 2,113 | 4,843 | 11,926 | 18,918 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Selling and marketing | 3,736 | 3,865 | 15,023 | 13,748 | ||||||||||||||
General and administrative | 1,132 | 1,114 | 6,124 | 4,890 | ||||||||||||||
Research and development | 1,598 | 1,601 | 5,825 | 6,164 | ||||||||||||||
Total operating expenses | 6,466 | 6,580 | 26,972 | 24,802 | ||||||||||||||
Sale of trademark, net | - | - | - | (3,956 | ) | |||||||||||||
Operating loss | (4,353 | ) | (1,737 | ) | (15,046 | ) | (1,928 | ) | ||||||||||
Other income (expense): | ||||||||||||||||||
Interest expense, net | (130 | ) | (39 | ) | (394 | ) | (226 | ) | ||||||||||
Other, net | - | - | 2 | 20 | ||||||||||||||
Total other income (expense) | (130 | ) | (39 | ) | (392 | ) | (206 | ) | ||||||||||
Loss before income taxes | (4,483 | ) | (1,776 | ) | (15,438 | ) | (2,134 | ) | ||||||||||
Income taxes | 39 | 23 | 112 | 64 | ||||||||||||||
Net loss | $ | (4,522 | ) | $ | (1,799 | ) | $ | (15,550 | ) | $ | (2,198 | ) | ||||||
Net loss per share: | ||||||||||||||||||
Basic and diluted | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.34 | ) | $ | (0.06 | ) | ||||||
Weighted average common and common equivalent shares: | ||||||||||||||||||
Basic and diluted | 46,700 | 45,862 | 46,399 | 39,761 | ||||||||||||||
Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(in thousands) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||
Net loss, as reported | $ | (4,522 | ) | $ | (1,799 | ) | $ | (15,550 | ) | $ | (2,198 | ) | |||||
Add: Interest income (expense), net, as reported | 130 | 39 | 394 | 226 | |||||||||||||
Add: Income tax, as reported | 39 | 23 | 112 | 64 | |||||||||||||
Add: Depreciation and Amortization | 227 | 208 | 868 | 957 | |||||||||||||
EBITDA | (4,126 | ) | (1,529 | ) | (14,176 | ) | (951 | ) | |||||||||
Adjustments to EBITDA: | |||||||||||||||||
Add: Stock-based compensation expense | 199 | 223 | 1,171 | 997 | |||||||||||||
Add: Executive severance expense | - | - | 243 | - | |||||||||||||
Add: Sale of trademark, net | - | - | - | (3,956 | ) | ||||||||||||
Total adjustments | 199 | 223 | 1,414 | (2,959 | ) | ||||||||||||
Non-GAAP-based Adjusted EBITDA | $ | (3,927 | ) | $ | (1,306 | ) | $ | (12,762 | ) | $ | (3,910 | ) | |||||
Source: Minim
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