Byrna Technologies Inc. (NASDAQ:BYRN) Q1 2023 Earnings Conference Call March 14, 2023 9:00 AM ET

Company Participants

Bryan Ganz - Chief Executive Officer

David North - Chief Financial Officer

Conference Call Participants

Jeff Van Sinderen - B. Riley Securities

James McIlree - Dawson James

Ryan Rackley - Raymond James

Operator

Greetings, and welcome to the Byrna Technologies First Quarter 2023 Earnings Conference Call and Webcast. As a reminder, this conference call is being recorded and all participants are in a listen-only mode.

Before turning the call over to Bryan Ganz, Byrna Technologies’ Chief Executive Officer, I will read the safe harbor statement. Some discussions made today include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Byrna’s most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The Company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.

As this call will include references to non-GAAP results, please see the press release in the Investors section of our website, ir.bynra.com for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results.

I'll now turn the call over to Mr. Bryan Ganz. Please go ahead.

Bryan Ganz

Thank you. Good morning, everyone, and thank you for joining us for Byrna’s fiscal year 2023 first quarter earnings call. Our CFO, David North, will be discussing our Q1 results; after which I will provide some additional color on the quarter.

I'd like to start by turning the call over to David, so that he can discuss our results and financial performance for the first quarter. David and I will be taking questions at the conclusion of the presentation. David?

David North

Thanks, Bryan, and thanks all who have joined us today. Let's start with a review of the income statement for the first fiscal quarter.

Revenues for the first quarter of 2023 were $8.4 million, that's a 5.4% increase over the $8.0 million for last year's first quarter. Gross profit increased 13.7% to $5.2 million from $4.6 million in last year's first quarter, while gross margin, which is gross profit as a percentage of sales, improved to 62.4% of net revenue from 57.8% in last year's first quarter. The improvement in gross profit as a percentage of sales is primarily due to realization of significant cost reductions and switching from air freight to ocean freight and to lower cost suppliers for raw materials.