SANTA CLARA, Calif., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (U.S. OTC: BRQSF, "Borqs" or the "Company"), a global provider of embedded software and products for the Internet of Things (IoT), today announced its financial results for the first half of 2024. Interim financial statements were filed today with the SEC.
First-Half 2024 Financial Highlights
| For the six months ended June 30, | ||||
| 2024 | 2023 | vs. H1 2023 | ||
| Revenues ($K) | 16,773 | 14,992 | + 11.9% | |
| Gross Margin | 20.2% | 19.4% | Up 0.8% | |
| Operating expenses ($K) | 7,082 | 11,996 | - 41.0% | |
| Net income (loss) from operations | 15,023 | -28,801 | n/a | |
For the six months ended June 30, 2024, Borqs reported total net revenues of US$16.77 million, reflecting an increase from US$14.99 million in the same period of 2023, an increase of 11.9%, driven by strong performances in both software and hardware segments. The Company achieved a total gross profit of US$3.39 million, up from US$2.91 million in the prior year. This positive performance underscores our commitment to operational efficiency, with total operating expenses decreasing significantly to US$7.08 million from US$12 million from the same period last year, primarily due to a reduction in general and administrative expenses.
As a result of these strategic initiatives and the completed sale of the Company's interests in the solar subsidiary, Borqs recorded a net income of US$15.02 million from operations for the first half of 2024, a remarkable turnaround from a net loss of US$28.80 million in the same period of the previous year. This notable improvement has been supported by gains realized from the disposal of subsidiary interests and the cancellation of shares related to the former subsidiary.
"Our H1 results highlight the significant progress we are making in executing our recently outlined capital structure revamp," said Pat Chan, Chairman & CEO of Borqs. "The strategic actions we implemented in the first half of this year position us for improved profitability and enhanced liquidity going forward. We are encouraged by the positive underlying trends that these results reflect."
About Borqs Technologies, Inc.
Borqs Technologies is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio. Borqs' unique strengths include its Android and Android Wear Licenses which enabled the Company to develop a software IP library covering chipset software, Android enhancements, domain specific usage and system performance optimization, suitable for large and low volume customized products.
Investor relations contact:
E: IR@borqs.com
Disclaimer on Forward Looking Statements:
Certain statements in this release are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncertainties associated with our expectations. Words such as "expects", "believes", "anticipates", "intends", "estimates", "predicts", "seeks", "may", "might", "plan", "possible", "should" and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect our management's current beliefs. Many factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including the possibility that the positive trends as described herein may not continue, and the previously announced contemplated transactions between Borqs and Sasken Technologies, Inc. may not be consummated as described, or at all, and that the positive benefits of the transactions, stock buy-back and the future investment possibilities may not transpire as described or at all. The reader is advised to refer to both companies' filings with their respective securities and exchange authorities for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law and other regulatory requirements, the companies disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
