SAN JUAN, Puerto Rico, Sept. 11, 2023 (GLOBE NEWSWIRE) — Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or the “Company”), a drone expertise firm integrating robotic {hardware} and software program for army, authorities, and business operations, pronounces income for the primary quarter of fiscal 2024 (three months ending July 30, 2023) forward of its quarterly submitting and supplies income steerage for the second and third quarters of fiscal 2024.
Revenue within the fiscal first quarter for the three months ending July 30, 2023 was $1.75 million. This income is totally from the Company’s Enterprise Division and particularly from its Teal Drones (“Teal”) subsidiary that sells drones predominantly to the army and different public businesses.
Given the beforehand introduced and pending asset sale of the Company’s Consumer Division to Universal Machines, GAAP (Generally Accepted Accounting Principles) guidelines dictate that income from the Company’s Consumer Division be labeled as Discontinued Operations. Revenue from Discontinued Operations will not be reported.
Revenue for the fiscal second quarter (three months ending October 31, 2023) is predicted to be $3.0 million, and income for the fiscal third quarter (three months ending January 31, 2024) is predicted to be $5.0 million. Like the fiscal first quarter preliminary outcomes, solely income from the Company’s Enterprise Division is included in these projected figures. Thus, mixed income from the primary three quarters of fiscal 2024 is predicted to be practically $10 million, from the Company’s Enterprise Division.
The present outlook is supported by roughly $6 million in signed buy orders and are anticipated to be fulfilled by the tip of the fiscal third quarter. The Company anticipates further buy orders over the following 45 days given the present seasonally sturdy interval of federal funds exercise.
“The Teal team brought a brand new product, the Teal 2, from zero revenue to almost $10 million in sales in just 4 months,” commented Red Cat CEO Jeff Thompson. “We expect to be at a $20 million revenue run-rate next quarter, our fiscal Q3.
“We designed the Teal 2 to meet the technical requests and features sought by our target customer, the warfighter, such as advanced proficiency for nighttime operations. We believe we are well positioned as new opportunities arise, such as the Department of Defense’s recently announced Replicator Initiative. The Replicator Initiative intends to purchase thousands of small, smart drones to counter threats from China and other countries. Our team is committed to assisting the DOD achieve these new goals,” concluded Thompson.
About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a drone expertise firm integrating robotic {hardware} and software program for army, authorities, and business operations. Red Cat’s options are designed to “Dominate the Night™” and embrace the Teal 2, a small unmanned system providing the highest-resolution thermal imaging in its class. Learn extra at www.redcat.purple
Forward-Looking Statements
This press launch comprises “forward-looking statements” which might be topic to substantial dangers and uncertainties. All statements, aside from statements of historic truth, contained on this press launch are forward-looking statements. Forward-looking statements contained on this press launch could also be recognized by means of phrases resembling “anticipate,” “imagine,” “ponder,” “may,” “estimate,” “anticipate,” “intend,” “search,” “might,” “would possibly,” “plan,” “potential,” “predict,” “undertaking,” “goal,” “goal,” “ought to,” “will,” “would,” or the adverse of those phrases or different related expressions, though not all forward-looking statements comprise these phrases. Forward-looking statements are based mostly on Red Cat Holdings, Inc.’s present expectations and are topic to inherent uncertainties, dangers and assumptions which might be tough to foretell. Further, sure forward-looking statements are based mostly on assumptions as to future occasions that won’t show to be correct. These and different dangers and uncertainties are described extra totally within the part titled “Risk Factors” within the closing prospectus associated to the general public providing filed with the Securities and Exchange Commission. Forward-looking statements contained on this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no responsibility to update such info besides as required underneath relevant legislation.
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