Actelis Networks (NASDAQ: ASNS) has reported a strong performance in the second quarter of 2024, reflecting the company’s notable execution of large contracts and continued strategic growth in the IoT, cybersecurity and networking sectors. The company reported an impressive 372% sequential revenue growth and an 81% year-over-year increase, with revenues reaching $3.43 million in Q2 2024. This growth was largely driven by the accelerated execution of significant deals, including a $2.3 million order from Washington D.C.’s Department of Transportation, contributing to the city’s infrastructure modernization as part of its smart city initiatives.
For the first half of 2024, Actelis’ revenues reached $4.2 million, up from $3.7 million during the same period in 2023. The company’s gross margin also saw a significant improvement, soaring to 57% in Q2 2024, up from 30% in the previous quarter. This was driven by increased revenue, a more profitable geographical mix, and a minimal rise in fixed costs. Year-over-year, Q2 2024 gross margin jumped from 33% in Q2 2023.
Actelis has also successfully reduced operating expenses by 20% in Q2 2024 compared to the previous year, highlighting the effectiveness of its ongoing cost-reduction initiatives. The company reported a net loss of just $78,000 in Q2 2024, a substantial improvement from the $1.59 million net loss in Q2 2023. Additionally, Actelis achieved positive Non-GAAP adjusted EBITDA of $11,000 in the quarter, marking its first positive quarter since 2022.
The company’s strong financial performance is complemented by its recent business achievements. Actelis has secured and delivered a $2.3 million order from Washington D.C.’s Department of Transportation, further establishing its position in the intelligent transportation space. The company has also successfully deployed its hybrid-fiber, cyber-hardened solution in Bakersfield, CA, demonstrating its technology’s ability to enhance urban infrastructure and security.
Moreover, Actelis’ newly launched GigaLine 800 and GigaLine 900 Multi-Dwelling Unit (MDU) solutions are generating significant market interest, with a growing list of customer trials underway. A first order for the GigaLine 800 worth $160,000 from a contractor to a major military carrier was received, marking a major milestone in executing on the new products’ potential.
In addition to these business wins, Actelis has strengthened its liquidity position by raising nearly $5 million in June 2024. As of June 30, 2024, shareholders’ equity stood at $1.06 million, and on a pro forma basis, including this fundraise, shareholders’ equity was $3.0 million—above Nasdaq’s continued listing requirement of $2.5 million.
“We are extremely proud of our progress in the second quarter of 2024,” said Tuvia Barlev, Chairman and CEO of Actelis. “Our team’s relentless efforts have translated into significant customer successes and the successful execution for key customers. We are delivering on the commitments we made to drive growth and innovation, and the results speak to the impact of our strategic initiatives.”
As Actelis continues to build on this momentum, the company remains focused on scaling these successes, expanding its SaaS offerings through strategic partnerships, and continuing to reduce operational costs while maintaining high margins. The significant order from Washington D.C.’s Department of Transportation and the successful deployments in cities like Bakersfield demonstrate not only the strength of Actelis’ technology but also the trust that major urban centers place in the company to modernize and secure their infrastructure.
Looking ahead, Actelis is well-positioned to capitalize on the expanding IoT market, particularly in sectors like intelligent transportation and critical infrastructure. With its strong financial performance, recent business achievements, and ongoing strategic initiatives, Actelis is set to continue driving growth and delivering exceptional value to its customers and investors.
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