• Significant growth in revenue, up 73% over prior year to $3.6 million (FY20: $2.1 million), demonstrating effectiveness of end-to-end strategy
• Majority of revenue derived from Tier-1 global drone and robotics manufacturers
• 18 new design wins, bringing total design wins across global customers to 32, providing a strong likelihood of future orders
• Launched ICE Cybersecurity and secured first order and in-field implementation from IMOD
• Healthy cash reserves of $4.0 million, providing significant operational runway
25 February 2022 – Mobilicom Limited (Mobilicom or the Company, ASX: MOB) is pleased to release its full year results for the 12 months ended 31 December 2021 – a period which delivered strong growth across key metrics.
In FY21, Mobilicom delivered a 73% increase in revenue to $3.6 million, reflecting the success of its end-to-end go-to-market strategy. In parallel, the Company continued to optimise operating expenses, maintaining a healthy gross margin of 65%.
Commenting on the Company’s progress, Mobilicom CEO, Oren Elkayam, said, “Mobilicom has substantially improved its financial position this year and is well placed for further growth with a growing customer base of leading drone, robotics and autonomous system manufacturers. Our end-to-end strategy has increased revenue from existing customers and enabled us to secure design wins and new customer agreements. Our ability to supply several of the key technology components for drones and robotics is unique, and we are leveraging this expertise to build a reputation as a one-stop solution for the industry.
“During the year, we expanded our product offering to include cybersecurity software. Our ICE cybersecurity product suite provides 360° multi-layer protection against more than 10 different types of cyber-attacks and is generating strong customer interest. We have secured our first commercial order and are progressing through in-field implementation with the Israeli Ministry of Defence (IMOD). Our growing software portfolio complements our hardware product offering and we expect it will provide a recurring revenue stream for the business.
“FY21 has been a pivotal year for the business, and we are incredibly proud of our commercialisation progress. We are delivering against a clear strategy and have a significant growth runway, offering industry-leading products for the fast-growing commercial and government drone and robotics market.” Financial Highlights
Mobilicom delivered a strong financial result in FY21 with total income increasing to $4.4 million, up from $3.0 million in FY20. This increase was driven by strong growth in customer receipts to $3.6 million, and R&D program grants of $0.8 million.
Revenue growth was supported by Mobilicom’s growing customer base of global drone and robotics manufacturers, and increased revenue contribution from existing customers. Repeat customer orders exceeded $2 million for the year, accounting for 58% of total revenue. The Company secured 18 new design wins over the year, bringing total design wins since the start of 2020 to 32 across global customers.
Mobilicom maintained a high gross margin of 65%, despite the impact of COVID-19 and supply chain challenges, reflecting efficient planning and management of component parts and materials. The Company also leveraged its established APAC-based manufacturing capability to ensure consistent product delivery.
In FY21, Mobilicom significantly increased its investment in sales and marketing in Europe and the USA, up 52% over the prior year to $1.7 million ($1.1 million in 2020). Mobilicom reported a net burn from
operating activities of $1.8 million, down 15% over FY20 (net burn of $2.1 million).
In December, Mobilicom was awarded two international R&D grants totaling $0.9 million. These are expected to be realised mostly in 2022. The Company had a confirmed order backlog of $0.5 million as at 31 December 2021 and expects to deliver these orders throughout 2022 while also securing new orders and growing its sales pipeline.
The Company is well-funded to execute its growth strategy with $4.0 million in cash reserves following the completion of a $3.8 million (before costs) Placement to Psagot Investment House, one of Israel’s largest pension fund managers, in May 2021. Mobilicom’s healthy balance sheet provides a long operational runway.
During FY21, Mobilicom secured and delivered repeat orders from its existing Tier-1 strategic customers, including Israeli MOD, Teledyne Flir (S&P500) and Elbit Systems. The Company also received orders from new customers which included ST Engineering, Rafael, Plasan, Smart Shooter, and other leading drones and robotics manufacturers. Design wins also enable additional customer engagement and cross-sell on hardware and cybersecurity.
Mobilicom continued to expand its product offering in FY21, launching its AI-based Immunity Cybersecurity and Encryption (ICE) cybersecurity suite to cater to the growing need for commercial and industrial operators to protect drone platforms and safeguard data and communication channels from
malicious threats and attacks. The ICE cybersecurity suite is the world’s first to be able to detect, prevent and respond to multiple drone/robotics cyber-attacks in real-time without requiring intervention by an operator.
Mobilicom has already secured its first cybersecurity order from the Israeli Ministry of Defence, which includes in-field implementation. The initial $270k order was mostly recognised in FY21, and the Company expects to fulfill the remainder of the order in the first half of FY22.
A new partnership with US-based Triad RF Systems is creating an integrated product line for military and industrial UAV drone and robotics manufacturers. The integrated products will feature enhanced levels of security and performance, incorporating Mobilicom’s multi-function radios with Triad’s high-power radio
solutions to offer the industry’s most cost effective and efficient fully integrated amplified MIMO (multiinput and multi-output) radios for MESH network communications.
In FY22, Mobilicom will continue to target more higher-value customers and secure new Tier-1 customers within the commercial and government drone and robotics market. As the industry’s leading end-to-end provider of smart solutions for drones, robotics and autonomous platforms, Mobilicom has a significant opportunity to increase revenue within a fast-growing addressable market expected to reach US$18 billion by 2026. The Company will continue to expand its complementary software offering, diversifying revenue streams and supporting its unique value proposition as a one-stop
solution. The Company will also continue to focus on increasing sales and marketing activities across its key target markets of the USA, Europe and Israel to support its growth strategy.