- Ondas Holdings ( NASDAQ: ONDS ) stock is down 13% on Monday after reporting heavy operating loss in its Q3 earnings.
- Revenue was more than doubled from last year to $0.6M with gross profit margin improving significantly to 63.2% from 4.8% in a year ago quarter.
- However, operating loss increased to $13.9M vs. $4.9M in Q3 2021, driven by increased investments in operations at Ondas Networks due to the anticipation of product orders and Airobotics' acquisition related expenses.
- Airobotics acquisition is expected to close in Q1 2023. Ondas, further, expects to hold an analyst day shortly thereafter to outline its business plan.
- GAAP EPS stood at -$0.32.
- The company ended the quarter with cash and cash equivalents of $15.3M, beside raising $30M gross proceeds from a convertible notes offering in October 2022. That takes pro forma cash balances to $43M as at the end of Sept. quarter.
- Ondas Networks, told investors that it has secured new initial volume purchase order from Siemens for multi-year delivery program for major Asian railway operator.
- "We expect to begin fulfilling the initial product orders starting in the fourth quarter of 2022 and expect the bulk of the order to be fulfilled in the first half of 2023," said Ondas Networks Founder and President Stewart Kantor.
- Outlook : Q4 cash operating expenses forecasted to remain roughly flat versus the prior quarter for Ondas Holdings, Ondas Networks and American Robotics, excluding professional fees and other expenses related to both the Convertible Note offering and the Airobotics acquisition.
- Seeking Alpha Quant System maintains its long-standing position of Sell on Ondas Holdings ( ONDS ), which sets the stock analysis stand apart from Wall Street's Strong Buy rating .
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Ondas Holdings tumbles on higher operating expenses mar Q3 results