Gross Margin Improves to 41% on 15% lower revenues
Operating expenses reduced by 60%
Operating loss improved 71%
Net income improved 38%
Windsor Mills, MD, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Connexa Sports Technologies Inc. (Nasdaq:YYAI) reported audited operating results for the FY24 period ended April 30, 2024 and provided an update of operations.
For the fiscal year 2024 ended April 30, 2024, the Company reported revenue of $8.4 million compared to $9.9 million in the year-ago period - a decrease of 15 percent. Despite on-going high consumer demand, the revenue shortfall can be directly attributed to inventory availability issues stemming back to the end of Q3. Gross margin continued to improve to 41% driving a 22 percent increase in gross profit for the full year. Coupled with significant decreases in operating expenses, the company reported an operating loss for the year of $6.4M - an improvement of 71 percent over prior year. Correspondingly the company's net income further improved by 38 percent over FY2023.
"The on-going challenges faced by the company since the end of Q3 with inventory availability, for our tennis launcher in particular, drove an unexpected and significant reduction in Q4 sales. Despite this, the underlying Slinger Bag business remains resilient with high levels of consumer demand. The impact of our consistent growth in gross margins, coupled with the reduction in our operating expense base are delivering strong improvements to both operating and net income results." said Mike Ballardie, CEO.
"Within Q4 the company continued its progress by launching its Slinger App on both iOS and Android platforms and by also concluding the acquisition of 20% of Yuanyu Enterprise Management. The Company now expects the balance of this share exchange acquisition to close within the coming weeks subject to Nasdaq approval. As previously announced, at the conclusion of this transaction a change-in-control will take place, with Slinger Bag and all its associated assets and liabilities separating out of Connexa and into a private company" concluded Ballardie.
CONNEXA SPORTS TECHNOLOGIES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS (IN US$)
YEARS ENDED APRIL 30, 2024 AND 2023
| APRIL 30, 2024 | APRIL 30, 2023 | |||||||
| NET SALES | $ | 8,398,049 | $ | 9,922,799 | ||||
| COST OF SALES | 5,004,375 | 7,144,335 | ||||||
| . | ||||||||
| GROSS PROFIT | 3,393,674 | 2,778,464 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling and marketing expenses | 1,565,006 | 1,928,198 | ||||||
| General and administrative expenses | 8,271,823 | 22,743,877 | ||||||
| Research and development costs | - | 65,164 | ||||||
| Total Operating Expenses | 9,836,829 | 24,737,239 | ||||||
| OPERATING LOSS | (6,443,155 | ) | (21,958,775 | ) | ||||
| NON-OPERATING INCOME (EXPENSE) | ||||||||
| Total Non-Operating Income (Expenses) | (9,193,263 | ) | (3,319,050 | ) | ||||
| NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | (15,636,418 | ) | (25,277,825 | ) | ||||
| NET INCOME (LOSS) | $ | (15,636,418 | ) | $ | (71,153,685 | ) | ||
About Connexa Sports Technologies:
Connexa Sports a leading connected sports company delivering products, technologies, and Sport-as-a-Service across a range of sport verticals. Connexa's mission is to reinvent sports through technological innovation driven by an unwavering focus on today's sports consumer.
Contact Information:
investors@connexasports.com
www.connexasports.com
Forward-Looking Statements
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements.
Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in "Item 1A. Risk Factors" in our 10-K filing as of July 27, 2024 and our ability to continue as a going concern. Accordingly, you should not rely on these forward-looking statements, which speak only as of the date of this press release. You should, however, review the factors and risks we describe in the reports we will file from time to time with the SEC after the date of this press release.
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