Byrna sees dramatic jump in fiscal 2Q revenue and net income fired by its flagship Byrna HD

Byrna Technologies Inc (NASDAQ:BYRN) (CSE:BYRN) posted fiscal second-quarter results that delivered strong net income and revenue growth fired by the popularity of the company’s flagship Byrna HD non-lethal personal security device.  For the period ended May 31, 2021, the Andover, Massachusetts-based company reported revenue of $13.4 million, compared to $1.2 million in the fiscal second quarter of 2020.  The firm chalked up the impressive bump in revenue to strong order growth for the Byrna HD, “aided by favorable media attention and an increase in quarterly production volumes.”  READ: Byrna Technologies conducts 'less-lethal' security training at Sony Pictures studios in California The Byrna HD, is a handgun-like device that dispenses chemical irritants. The small, lightweight 0.68 caliber device is equipped with a five-round magazine capable of accurately hitting a target at up to 60 feet — without causing serious injury. Its chemical payload is designed to burn an assailant’s eyes and respiratory system. The company reported GAAP net income of $2 million in the fiscal 2Q, compared to a net loss of $8.1 million in the same period a year earlier. Non-GAAP net income was $3 million, compared to a non-GAAP net loss of $0.8 million in the fiscal 2Q of 2020. Byrna reported EBITDA or earnings before interest, taxes, depreciation and amortization of $3.3 million in the quarter, compared to a loss of $0.7 million for the same quarter a year earlier. "The year-over-year growth in revenues reflects the expansion of consumer awareness and demand for our Byrna HD non-lethal personal security device, coupled with our increased focus on marketing and advertising," said Byrna CEO Bryan Ganz. "We also demonstrated continued bottom-line improvement, as we generated positive GAAP net income for the first time in company history. This marks our first quarter reporting positive GAAP net income and our third consecutive quarter of positive non-GAAP net income," he added. The company said that gross profit margin for the quarter was 56.4% compared to 43.4% in the prior-year period. “This increase was driven by higher production volumes,” noted Byrna. Operating expenses were $5.5 million in the second quarter of 2021, up from $1.4 million in the prior-year period. The increase reflects greater investment in corporate infrastructure to support the company's rapid growth driven largely by the addition of key management positions over the last 12 months. Byrna had cash of $5.3 million, including $0.9 million of restricted cash, which is released as orders are fulfilled. The company had total assets of $22 million and $1.5 million drawn on a bank line of credit. Bright outlook For the fiscal year 2021 ending on November 30, Byrna projected revenue of $38 to $41 million, reflecting year-over-year growth of around 138% at the mid-point of the range, based on the company's current order flow and the growth expected from the planned introduction of new products; the planned opening of a dedicated Amazon store; and the anticipated increase in dealer sales. “Gross profit margin is expected to moderate in the third quarter due to the projected increase in lower margin dealer sales,” said the company, while adding that in the fourth quarter, however, it expects gross margins to benefit from the planned introduction of new higher-margin products including the Byrna SD, Byrna LE and the shoulder-fired launchers acquired in the Mission acquisition. “We expect to begin offering the Byrna SD, an update of the Byrna HD with an improved trigger, an enhanced sighting system and honeycomb grips, later this quarter,” said the company. The Byrna SD is already in production in the company’s Fort Wayne, Indiana manufacturing facility. The Byrna LE, which the firm expects to release in the 4Q, features a completely new valve system, resulting in increased muzzle velocity, an improved sighting system, a 7+1 magazine and extreme cold weather capabilities. The Byrna TCR, or tactical compact rifle, is targeted for introduction in late 2021/early 2022, while the Byrna M-4 is targeted for introduction in 2022. It will have a 120-shot capacity in law enforcement form, and will be able to use either CO2 cartridges or compressed air for propulsion. Contact the author Uttara Choudhury at uttara@proactiveinvestors.com Follow her on Twitter: @UttaraProactive