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FRANKLIN WIRELESS CORP [FKWL], a leading provider of wireless communication devices, has announced its financial results for the fiscal year ended June 30, 2023. The company reported a net loss of $2.9 million for the year. However, despite the loss, Franklin Wireless Corp achieved annual revenue of $45.9 million, showcasing its commitment to growth and expansion in the highly competitive wireless market.
Franklin Wireless Corp's financial performance for the year was characterized by a decline in net sales, which amounted to $45.9 million, compared to $24 million in the previous year. The cost of goods sold also increased to $38.9 million, resulting in a gross profit of $7 million. Operating expenses, including selling, general, and administrative expenses, as well as research and development costs, amounted to $9.4 million. This led to a loss from operations of $2.3 million.
Despite the challenging market conditions, Franklin Wireless Corp's revenue grew by approximately 91% compared to the previous year. This growth can be attributed to the company's focus on expanding its product portfolio and capturing new market opportunities. The increase in revenue was driven by strong demand for the company's wireless communication devices.
Franklin Wireless Corp's balance sheet reflects a stable financial position, with total assets of $56.9 million and total liabilities of $16.5 million as of June 30, 2023. The company has a strong cash position, with cash and cash equivalents of $12.2 million and short-term investments of $26.7 million. Additionally, the company has maintained a healthy stockholders' equity of $40.4 million.
Franklin Wireless Corp reported a basic and diluted loss per share of $0.24 for the fiscal year 2023, compared to a loss per share of $0.32 in the previous year. The decrease in loss per share can be attributed to the company's efforts to streamline its operations and reduce expenses. The weighted average common shares outstanding for the year were 11.7 million.
Looking ahead, Franklin Wireless Corp remains focused on its growth strategy, aiming to leverage emerging technologies and market trends to enhance its product offerings and expand its customer base. The company will continue to invest in research and development to drive innovation and maintain its competitive edge in the wireless communication industry.
Despite facing challenges, Franklin Wireless Corp has shown resilience and determination in navigating the competitive wireless communication market. The company's focus on revenue growth and financial stability has positioned it for future success. By capitalizing on market opportunities and staying ahead of industry trends, Franklin Wireless Corp is well-positioned to achieve long-term sustainable growth.