Wuma Technology (ISPR.US) announced its Q1 financial report for fiscal year 24. Revenue from atomization products increased by 116.8% to US$17.3 million.
Zhitong Finance APP learned that Ispire Technology Inc. (ISPR.US) released its financial results for the first quarter of fiscal year 2024 as of September 30, 2023, and reported them in Form 10-Q on November 14, 2023. Submitted a quarterly report. According to the report, the company’s total revenue increased by 59.1%, reaching US$42.9 million; gross profit increased by 43.7%, reaching US$6.9 million. Atomization product revenue increased by 116.8%, reaching US$17.3 million. E-cigarette products Revenue increased 34.8% to $25.5 million.
Michael Wang, Co-CEO of Wuma Technology, said: “Revenue from vaping and e-cigarette products increased by 116.8% and 34.8% respectively compared with the same period last year. As we continue to redefine the vaping experience, we consistently provide products that meet customer preferences. High quality and ground-breaking products and our commercial strategy has been effectively executed.”
Looking forward to future business development, Wuma Technology expects revenue from atomization products in fiscal year 2024 to be between US$80 million and US$90 million, an increase of 100% to 125% compared with fiscal year 2023. Revenue from e-cigarette products in 2024 is expected to be between $100 million and $110 million, an increase of 33% to 47% compared to fiscal 2023.
The following are details of Wuma Technology’s financial results for the first quarter of fiscal year 2024:
Wuma Technology announces financial results for the first quarter of fiscal 2024
Total revenue increased by 59.1% to US$42.9 million; gross profit increased by 43.7% to US$6.9 million.
Revenue from cannabis vaping products increased 116.8% to $17.3 million.
E-cigarette product revenue increased 34.8% to $25.5 million.
Los Angeles, California, November 14, 2023 – Ispire Technology Inc. (NASDAQ: ISPR) (“Ispire Technology” or the “Company”), a leader in vaping technology, provides high-quality, innovative products with best-in-class performance , today announced financial results for the first quarter of fiscal 2024 ended September 30, 2023, and filed its quarterly report on Form 10-Q on November 14, 2023.
First Quarter Fiscal Year 2024 Financial Results
Revenue increased 59.1% to $42.9 million, compared with $26.9 million in the same period in 2023. By product, e-cigarette product revenue in the first quarter of fiscal 2024 was US$25.5 million, and cannabis vaping product revenue was US$17.3 million;
Gross profit increased by 43.7% to US$6.9 million, compared with US$4.8 million in the same period in 2023.
Gross profit margin dropped to 16.1% from 17.8% in the same period in 2023.
Total operating expenses increased 29.8% to $7.8 million, compared with total operating expenses of $6.0 million for the same period in 2023.
Net loss was US$1.4 million, compared with a net loss of US$2 million in the same period in 2023.
Michael Wang, Co-CEO of Wuma Technology, said: “
In the first quarter of fiscal 2024, our financial performance continued to achieve strong growth, with total revenue increasing 59.1% year-on-year, and revenue from cannabis vaporization and e-cigarette products increased 116.8% and 34.8% respectively compared with the same period last year. This growth reflects our strategic expansion into the U.S. market and the overwhelming response to our best-in-class products. Our latest innovation, Ispire ONE™, is actively marketed at industry trade shows and is already transforming the user experience and setting new industry standards in consumer safety and operational efficiency. Our business strategy has been effectively executed as we continue to redefine the vaping experience and consistently deliver high-quality and groundbreaking products that align with customer preferences. “
“We remain confident in maintaining our position as a leading precision dosing technology company as we not only secure our position in existing markets but also expand into new geographies, quickly adapting to growing market demands. Established in Malaysia The new manufacturing facility marks a strategic step into the Southeast Asian market and prepares us for scaled production operations. As we progress through this fiscal year, we are on track to not only achieve, but exceed our focus on cannabis vaping chemical and e-cigarette product revenue forecasts.” Michael Wang concluded.
Daniel Machock, Chief Financial Officer of Wuma Technology, added, “In the first quarter of fiscal 2024, Wuma Technology’s revenue scale continued to rise, with revenue from cannabis vaping products increasing from US$8 million in the same period last year to US$17.3 million. Cigarette product revenue climbed to US$25.3 million from US$18.9 million last year. Our business strategy has been continuously and effectively executed, and we have achieved strong financial and operational results, which reflects the increasing market position of our brands. As we continue to balance growth with operational efficiency, we remain committed to maintaining sound financial discipline and creating value for our shareholders.”
Liquidity and funding sources
As of September 30, 2023, Wuma Technology had cash and cash equivalents of US$25.7 million and working capital of US$27.6 million.
Wuma Technology believes that its current cash and cash flow from operating activities, as well as the proceeds from the initial public offering, will meet its working capital needs for the next 12 months.
Fiscal Year 2024 Outlook
Wuma Technology’s outlook for cannabis vaping and e-cigarette products in fiscal year 2024, which ends on June 30, 2024, is as follows. Revenue from cannabis vaping products is expected to be between $80 million and $90 million in 2024, an increase of 100% to 125% compared to fiscal 2023. Revenue from e-cigarette products in 2024 is expected to be between $100 million and $110 million, an increase of 33% to 47% compared to fiscal 2023.
Earnings conference call
The company will hold a performance conference call at 22:15 on November 14, 2023 (Tuesday), Beijing time, to discuss the performance of the first quarter of fiscal year 2024.
Details of the conference call are as follows:
It is recommended to access or dial in 15 minutes before the start of the conference call to facilitate registration.
About Wuma Technology
Wuma Technology is engaged in the research and development, design, commercialization, sales, marketing and distribution of branded e-cigarettes and cannabis vaping products. The company owns or has licensed from related parties more than 200 invention/design patents worldwide. Wuma Technology’s tobacco products are sold under the Aspire brand, primarily through its distribution network worldwide (except for the United States, China and Russia). Vaping Technology currently only sells its cannabis vaping hardware in the United States, and has recently launched marketing campaigns in Canada and Europe (primarily the EU).
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This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These statements are intended to be protected by the safe harbor created by the foregoing provisions. Forward-looking statements are based on certain assumptions and describe the Company’s future plans, strategies and expectations, which generally can be identified by the use of words such as “believe,” “expect,” “may,” “will,” “should,” “would,” and “could” , “seek”, “intend”, “plan”, “goal”, “project”, “estimate”, “anticipate”, “strategy”, “future”, “may” and other forward-looking words to identify, although not all Forward-looking statements contain these identifying words. All statements other than historical facts, including statements regarding the Company’s strategy, prospects, financial condition, operations, costs, plans and objectives, are forward-looking statements. Important factors that could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements include, but are not limited to: the Company’s business strategy, the ability to market Ispire ONE, the success of Ispire ONE if its objectives are achieved, and the success of its customers from Ispire ONE the ability to achieve anticipated benefits and the success of their products in the market; that Ispire ONE is proven to be safe; risks and uncertainties described in “Management Discussion and Analysis of Results.” You should not rely solely on forward-looking statements as predictions of future events. The forward-looking statements in this press release relate only to events or information as of the date hereof. We undertake no obligation to update or revise any forward-looking statement after the date of this press release, whether as a result of new information, future events or otherwise, or to reflect unanticipated events, except as required by law. You should read this press release in its entirety with the understanding that our actual future results may differ materially from those we anticipate.
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