Actelis Networks (NASDAQ: ASNS) has marked a significant financial milestone in the second quarter of 2024 by achieving positive EBITDA for the first time since 2022, alongside a notable revenue growth. This achievement underscores the company's potential shift towards sustainable profitability and an enhanced market presence in the competitive IoT and cybersecurity landscapes.
The company's financial results for Q2 2024 highlight a staggering 372% sequential revenue growth from the previous quarter, with total revenues climbing to $3.43 million. This represents an 81% increase compared to the same period last year, reflecting the escalating demand for Actelis' innovative solutions. A remarkable improvement in gross margin to 57% in Q2 2024, up from 30% in the prior quarter, further accentuates the company's financial health.
Actelis' strategic cost reduction efforts have played a crucial role in its turnaround, with operating expenses decreasing by 20% year-over-year. This disciplined approach to spending has led to a dramatically reduced net loss of $78,000 in Q2 2024, a significant improvement from the $1.59 million loss reported in Q2 2023. The highlight of the quarter was the achievement of a positive Non-GAAP adjusted EBITDA of $11,000, the first since 2022.
Parallel to its financial achievements, Actelis has made significant strides in its business operations. The company secured and fulfilled a $2.3 million order from Washington D.C.'s Department of Transportation, reinforcing its foothold in the intelligent transportation sector. Moreover, the successful deployment of its hybrid-fiber, cyber-hardened solution in Bakersfield, CA, showcases the practical utility and advantages of its technology in modernizing urban infrastructure and bolstering security.
The introduction of the GigaLine 800 and GigaLine 900 Multi-Dwelling Unit (MDU) solutions has sparked considerable market interest, with multiple customer trials currently in progress. The company has already received its first order for the GigaLine 800, valued at $160,000, from a contractor associated with a major military carrier, signaling promising prospects for these new product lines.
To fuel its growth trajectory, Actelis strengthened its financial foundation by raising nearly $5 million in June 2024. As of June 30, 2024, the company's shareholders' equity was reported at $1.06 million, and on a pro forma basis, including the recent capital infusion, it reached $3.0 million—exceeding Nasdaq's continued listing requirement of $2.5 million.
Tuvia Barlev, Chairman and CEO of Actelis, expressed optimism about the company's direction, highlighting the collective efforts that have led to this pivotal moment. For more information on Actelis Networks and its innovative solutions, visit https://www.actelis.com.
