Ispire Technology Inc., (Nasdaq : ISPR), reported an increased net loss in its second fiscal quarter despite a decent growth of revenue and margin improvements.
Los Angeles-based firm posted an $8 million net loss for the quarter that ended Dec. 31 2024, as opposed to a loss of $4 million in the same time period last year.
The revenue increased by 0.3% from 41.7 to 41.80 million dollars. Gross profit increased by 23.5%, to $7.7million. Gross margins grew to 18.5%, from 15% the previous quarter.
Operating expenses for the company increased by 48%, to $15 million. This was largely due to an increase in general and administrative costs. These rose from $8.8 to $13 millions, a jump of $13 million over a year earlier.
Ispire has reported that it is making progress with its expansion plans, especially in Africa. Michael Wang (co-CEO) reports that the BrkFst Brand is now present in more than 500 retail stores across South Africa, Nigeria and major chains Pick n Pay & Forecourts.
Wang stated that the company plans to open more than 2, 000 stores within six months by forming strategic alliances.
Ispire’s IKE Tech partnership also heard from FDA, confirming that the FDA would accept Ispire’s PMTA component submission as well and prioritize review. According to estimates, the U.S. electronic nicotine delivery system market represents approximately $11 Billion in potential revenue, and an additional $7 Billion could be generated by alternative markets.
Jim McCormick (CFO) said last month that Ispire’s announcement of a $10 million share buyback “underscores Ispire’s potential for the long term and our commitment in creating value to shareholders.”
In Malaysia, the company has also made progress with regulatory approvals. They have obtained licenses for nicotine export and import as it plans to increase production to 70 lines in a new plant.
Ispire said it relocated certain operations in Malaysia following the end of quarter. The move will reduce operating expenses annually by an estimated $8 million.