#Japan #Tokyo #Financial Growth #PicoCELA #Wireless Mesh

PicoCELA Reports Impressive Financial Results for FY 2024

Tokyo-based PicoCELA Inc. (Nasdaq: PCLA), a leading provider of enterprise wireless mesh solutions, recently announced their remarkable financial results for the fiscal year that ended on September 30, 2024. The company's performance showcased a significant milestone, recording a 40% year-over-year increase in revenue, which now stands at approximately $5.5 million (¥784 million). This growth reflects an impressive recovery for the company, particularly in the wake of supply chain challenges that have influenced the market.

Revenue Breakdown and Growth Drivers

The company's robust revenue growth primarily stems from its enterprise wireless Wi-Fi equipment segment, which experienced a 34% year-over-year growth. Furthermore, the company's supplementary services, including software-as-a-service and maintenance offerings, grew by a striking 69% year-over-year. According to management, the recovery in equipment production, which had previously been hindered by a global shortage of Wi-Fi chips, played a pivotal role in driving these results. The sharp rise in demand for Wi-Fi chips as the global economy bounces back post-COVID-19 has contributed significantly to the surge in sales.

Management Insights

Hiroshi Furukawa, Ph.D., the CEO and founder of PicoCELA, commented on the recent accomplishments, stating, "This past year was pivotal for PicoCELA as we resumed our upward trajectory in growth. The record revenue figures serve as a testament to the growing recognition of our technology and products within the Japanese market, and we anticipate that our recent move to list on Nasdaq will bolster our visibility on a global scale." His optimism reflects the confidence the company has about future prospects and their innovative offerings.

Key Financial Metrics

Taking a closer look at the fiscal year’s key financial metrics:

• - Revenue: Increased by 40%, reaching $5.5 million compared to $3.9 million in the previous year.
• - Cost of Revenue: Climbed to $2.5 million, a 24.5% increase due to the higher direct costs associated with the increased sales.
• - Selling, General, and Administrative Expenses: Dropped to $6.1 million, suggesting enhanced operational efficiency.
• - Net Loss: Reduced to $3.4 million, compared to $4.4 million for the prior fiscal year, making a clear statement regarding improved financial health.

As of September 30, 2024, PicoCELA reported cash and cash equivalents totaling $3.2 million. Following its initial public offering on January 17, 2025, the company received net proceeds of $5.0 million, further solidifying its financial foundation for upcoming endeavors.

About PicoCELA Inc.

PicoCELA specializes in providing comprehensive enterprise wireless mesh solutions, focusing on the design, manufacturing, installation, and service of mesh Wi-Fi access point devices. Their proprietary technology, the PicoCELA Backhaul Engine, is designed to enhance network installation flexibility while minimizing the need for extensive cabling. Additionally, the PicoManager cloud portal service empowers users by providing insights into network performance and allowing for edge-computing software installation.

The company maintains a forward-looking perspective, declaring, "Our focus is strategically aligned with innovation and customer satisfaction, which will guide our efforts as we embark on new growth opportunities." While boasting impressive year-end results highlights their resilience, PicoCELA's management remains dedicated to refining their strategies to continue driving growth and enhancing their service offerings.

Disclaimer: Forward-looking statements are subject to various uncertainties and risks; results may vary based on market conditions and operational challenges.