Wireless Telecom Group announces Q2 2017 financial results

Wireless Telecom Group, Inc. (NYSE MKT:WTT) has announced results for the second quarter ended June 30, 2017, the company said.

For the quarter ended June 30, 2017, the Company reported consolidated net revenues of USD 11,933,000, compared to USD 7,610,000 for the same period in 2016, an increase of 57%.

Net revenues in the Network Solutions segment were USD 5,617,000, compared to USD 5,476,000 for the same period in 2016, an increase of 2.6%. Net revenues in the Test & Measurement segment were USD 3,316,000, compared to USD 2,134,000 for the same period in 2016, an increase of 55.4%. Net revenues in the Embedded Solutions segment were USD 3,000,000, our first full quarter of results since its acquisition on February 17, 2017.

The Company also reported consolidated gross profit of USD 3,344,000, or 28% of revenue, for the quarter ended June 30, 2017, compared to USD 3,339,000, or 43.9% of revenue, for the same period in 2016. The 2017 second quarter gross profit was adversely affected by a non-cash inventory impairment charge of USD 1,930,000.

The charge was effected as a result of a review of inventory balances and net realizable value of the inventory following the launch of the Company´s lean manufacturing initiative and the adoption of a strategic product plan focused on product lifecycle acceleration. The lean manufacturing program focuses on inventory reductions, the minimization of product redesign for alternate use, and the acceleration of the evaluation process of slow moving inventory for product redesign and repurpose. This, combined with the demands to focus manufacturing, operations and engineering efforts on the USD 4.2 million, 28% increase in first half sales order flow in our Network Solutions and Test & Measurement segments, dictated the significant write down at the end of the quarter.

For the quarter ended June 30, 2017, gross profit in the Network Solutions segment was USD 1,182,000, or 21%, compared to USD 2,503,000, or 45.7%, for the same period in 2016. Network Solutions gross profit in the current quarter was adversely affected by approximately USD 1.2 million of the total inventory impairment charge.

Gross profit in the Test & Measurement segment was USD 832,000, or 25.1%, for the quarter ended June 30, 2017, compared to USD 836,000, or 39.2%, for the same period in 2016. Test & Measurement gross profit in the current quarter was adversely affected by approximately USD 725,000 of the total inventory impairment charge. Gross profit in the Embedded Solutions segment was USD 1,330,000, or 44.3% for the quarter ended June 30, 2017.

Wireless Telecom Group, Inc., comprised of Boonton Electronics, CommAgility, Microlab and Noisecom, is a global designer and manufacturer of advanced RF and microwave components, modules, systems and instruments.