Smartoptics (SMOP) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 2.0% YoY to $58.5M; core-business growth was 19% excluding $8M of 5G revenue from one US customer.

• FY EBITDA margin was 18.0%; operating cash flow reached $11.8M, up from $0.1M in 2022.

Financial highlights

• Q4 revenue fell 20.8% YoY to $13.8M; gross margin rose to 50.5% from 40.0%.

• FY gross profit was $29.3M and gross margin 50.0%, up from 44.2% in 2022.

• Q4 EBITDA was $2.0M, down 26.3% YoY, with a 14.7% margin; EBIT was $1.5M, down 34.9%, with an 11.1% margin.

• FY net income was $7.3M versus $6.8M; basic EPS was $0.076 versus $0.071.

Outlook and guidance

• 2025/26 aspirations: $100M revenue, ~45% gross margin, 17–20% EBITDA margin, and 13–16% EBIT margin.

• Main-market recovery is expected in 2024, particularly a US rebound in H2; planned product launches, LATAM and APAC traction, and major-account pursuits support growth plans.

• Growth priorities include product development, stronger high-end competitiveness, continued core-business growth, and expansion in APAC and LATAM.