Mobix Labs, Inc. Announces Fourth Quarter and Full Year 2024 Financial Results

Revenue up 44% sequentially and significant Gross Margin expansion

Acquisition strategy successfully expanding end markets and diversifying offerings

Increasing Customer Demand

IRVINE, Calif.--(BUSINESS WIRE)--December 19, 2024-- 

Mobix Labs, Inc. (Nasdaq: MOBX) ("Mobix Labs", "Mobix" or the "Company"), a leader in advanced connectivity solutions, today announced financial results for its fiscal fourth quarter and year ended September 30, 2024.

"We are pleased to announce a successful fiscal fourth quarter that caps off Mobix Labs' results as we complete our first year as a public company," said Fabian Battaglia, CEO of Mobix Labs. "I'm proud of our team's execution as we are quickly growing the breadth of our offerings and targeting synergistic accretive acquisitions. Integrating technologies and businesses is part of our core DNA, and shaping tomorrow's connectivity is front and center for Mobix."

"We were pleased with both our revenue growth of 426% for the fiscal year and our gross margin expansion," commented Keyvan Samini, President and CFO of Mobix Labs. "Fiscal 2024 was a transformative year and as we begin 2025, we are pursuing additional financing to fuel our acquisition strategy and to provide for working capital to fulfill our strong customer demand."

Financial Highlights for Fourth Quarter of 2024

   -- 
 Revenue: Total revenue grew to $3.0 million in the fourth quarter of 
      2024, a 44% increase from $2.1 million in the third quarter of 2024. 
 
 
   -- 
 Loss from Operations: GAAP loss from operations for the quarter was 
      $11.2 million, compared to a loss of $9.3 million for the third quarter 
      of 2024. On a non-GAAP basis, adjusted loss from operations for the 
      quarter was $3.6 million compared to a loss of $4.1 million for the third 
      quarter of 2024. 
 

Financial Highlights for Fiscal Year 2024

   -- 
 Revenue: Total revenue grew to $6.4 million in 2024, a 426% increase 
      from $1.2 million in 2023. 
 
 
   -- 
 Loss from Operations: GAAP loss from operations for the year was $46.4 
      million, compared to a loss of $35.5 million in 2023. On a non-GAAP basis, 
      adjusted loss from operations for the year was $16.0 million compared to 
      a loss of $18.7 million in 2023. 
 

Recent Business Highlights

   -- 
 Signed a letter of intent to acquire Spacecraft Components Corp., a 
      leader in high-precision, mission-critical components for aerospace, 
      defense, and commercial applications. They are recognized for their 
      cutting-edge engineering and manufacturing capabilities, which are vital 
      to critical missile technology, submarines, naval ships, oil rigs, 
      railcars, military and commercial jet aircraft, and many other 
      applications. The acquisition would represent a significant strategic 
      milestone for Mobix Labs as it expands its presence into new markets and 
      strengthens its leadership in key industries. 
 
 
   -- 
 EMI Interconnect Solutions announced filtered ARINC connectors, which 
      are setting a new standard in price, performance and customization. Also, 
      EMI announced significant new customers in the aerospace and defense 
      sectors for custom-filtered next-generation high-performance connectors 
      used in flight guidance and cockpit display systems. 
 
 
   -- 
 Wireless Systems achieved strong revenue and increased margins during 
      RaGE Systems' first full quarter with Mobix. Continued production of 
      present-generation radar imaging modules while also developing new 
      generations of products to help our customers explore new product 
      offerings. Also, expanded Multi-Spectral Imaging and Detection ("MSID") 
      programs by adding new capabilities to our customer-supported test 
      facilities and demonstrated new capabilities and functionality for future 
      programs. 
 
 
   -- 
 Expanded relationship with UMASS Lowell in Massachusetts to include 
      research on infrastructure degradation, safety for the rail industry and 
      also SATCOM applications. 
 

Financial Outlook

Net revenues are expected to fall within a range of $3.05 - $3.15 million in the fiscal first quarter of 2025.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP measures of financial performance, including:

   -- 
 Adjusted Gross Profit, which is defined as GAAP Gross Profit excluding 
      amortization of acquisition-related intangible assets, inventory 
      write-offs and stock-based compensation expense; and, 
 
 
   -- 
 Adjusted Loss from Operations, which is defined as GAAP Loss from 
      Operations excluding depreciation, amortization of acquisition-related 
      intangible assets, merger and acquisition-related expenses, inventory 
      write-offs and stock-based compensation expense. 
 

The Company's management believes it is useful to consider these non-GAAP financial measures, together with the corresponding GAAP financial measures, as they provide more transparency into current business trends, exclusive of the effects of certain non-cash expenses, acquisition-related charges, and items that may not be present in comparative fiscal periods. Management believes that, when considered together with reported GAAP financial measures, these non-GAAP financial measures are useful to investors and management in understanding the Company's ongoing operations and operating trends and in analyzing the Company's underlying financial performance.

These non-GAAP financial measures are not intended to be considered in isolation from, as a substitute for, or superior to, the comparable GAAP measures. These non-GAAP financial measures may be different from similarly titled measures used by other companies. In the future, Mobix may consider whether other items should also be excluded in calculating the non-GAAP financial measures it uses. Management believes that the presentation of these non-GAAP financial measures provides investors with additional useful information to measure Mobix Labs' financial and operating performance. In particular, these measures facilitate comparison of our operating performance between periods and may help investors to understand better our operating results. Internally, management uses these non-GAAP financial measures in assessing the Company's operating results and in planning and forecasting. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is contained in the financial tables to this press release.

Conference Call Information

 
Event:             Mobix Labs, Inc. Fourth Quarter 2024 Earnings Call 
Date:              Thursday, December 19, 2024 
Time:              2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time 
Webcast:           investors.mobixlabs.com 
Dial-in number:    https://register.vevent.com/register/BI37e4d59b857d4ae697e3 
                   f80cd43b40d1 
 

Shortly after the completion of the conference call, an archived version of the webcast will be available on the Company's investor relations website at investors.mobixlabs.com.

About Mobix Labs, Inc.

Mobix Labs designs, develops and sells components and systems for advanced wireless and wired connectivity, radio frequency ("RF"), switching and electromagnetic interference ("EMI") filtering technologies. Our solutions are used in the consumer commercial, industrial, automotive, medical, aerospace, defense and other markets. To enhance our product portfolio, we also intend to pursue acquisitions of companies with existing revenue which can be scaled, and which possess technologies that accelerate the speed, accessibility, and efficiency of disruptive or more efficient communications solutions, and which will also allow us to expand into strategically aligned industries. Our wireless systems solutions include products for advanced RF and millimeter wave ("mmWave") 5G communications, mmWave imaging, software defined radio and custom RF integrated circuits ("ICs") targeting the commercial, industrial, and defense and aerospace sectors. Our interconnect products, including EMI filter inserts and filtered and non-filtered connectors, are designed for and are currently used in aerospace, military, defense and medical applications. Our True Xero active optical cables ("AOCs") are designed to meet customer needs for high-quality active optical cable solutions at an affordable price. These innovative technologies are designed for large and rapidly growing markets where there is increasing demand for higher performance communication and filtering systems which utilize an expanding mix of both wireless and connectivity technologies.

Mobix Labs and the logo, are among the trademarks of Mobix Labs. Other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about (i) our expectations regarding customer demand and requests for proposals as well as our ability to expand our customer base and product offerings; (ii) our financial outlook, including expectations regarding revenue growth and adjusted loss from operations; (iii) our ability to secure additional financing and any strategic initiatives, specifically with respect to synergistic product acquisitions; (iv) our expectations regarding our intent to acquire Spacecraft and any other possible acquisitions and (v) the impact of any strategic partnerships on our business, are forward-looking statements. Although Mobix Labs believes that the expectations reflected in the forward-looking statements are reasonable, Mobix Labs cannot guarantee future results, levels of activity, performance, achievements,

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