Supply Chain Challenges Impact First Quarter Results; Expects Strong Organic Growth for the Year
WICHITA, Kan – AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle” or the “Company”), a leading provider of a unified line of industry trusted drones, sensors and software, today announced its financial results for the three months ended March 31, 2022.
Financial Highlights for the Comparable Three-Month Periods Ended March 31, 2022 and March 31, 2021
Commenting on the results, Nicole Fernandez-McGovern, Chief Financial Officer and Executive Vice President of Operations at AgEagle, said, “We are pleased with the growing global demand from our network of over 150 resellers and from direct customers for AgEagle’s expanding line of drones, sensors and software solutions. However, supply chain challenges and inflationary pressures impacted our ability to convert order book sales into reported revenues during the first quarter of this year. We do expect to alleviate our current supply chain issues as we progress through the year through innovation and access to alternative supply channels worldwide. Despite the supply chain challenges impacting the start of the year, we continue to believe that 2022 will prove to be a record year of organic growth for AgEagle.”
Recent and First Quarter 2022 Operational Highlights
Growth in the global drone industry remained robust in the first quarter of 2022, resulting in a number of respected industry research firms predicting highly dynamic market growth ahead. For instance, in Drone Industry Insights’ Drone Application Report 2022, researchers note that the commercial drone market, in particular, will generate over $41.30 billion by 2026, growing at a Compound Annual Growth Rate of 9.4% with top commercial drone applications being in Energy, Construction and Agriculture, and the most popular application methods being mapping & surveying and inspection.
AgEagle Chairman and CEO Barrett Mooney, stated, “Our first quarter results reflect the emphasis we have placed on pioneering new research and development, and on addressing the current market challenges with launching new innovative products. We continue to execute on our key strategic growth initiatives designed to position AgEagle as a trusted and reliable source for an even broader line of autonomous robotics solutions and services moving forward. There is prevailing demand for our products quantified by the volume of orders we continue to receive. I am confident in the groundwork we have laid over this last quarter in creating a solid foundation for continued growth this year.”
For more details relating to the Company’s first quarter 2022 results, please refer to the 10-Q filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov or on AgEagle’s website at www.ageagle.com.
Corporate Update Webcast
Given AgEagle’s leadership team recently held a corporate update webcast on April 12, 2022, the Company will not be holding an update webcast to discuss its financial results for the first quarter ended March 31, 2022. AgEagle’s leadership team anticipates holding a corporate update webcast in August 2022 when the Company expects to report its financial results for the second quarter ended June 30, 2022.
About AgEagle Aerial Systems Inc.
AgEagle and its wholly owned subsidiaries are actively engaged in designing and delivering best-in-class drones, sensors and software that solve important problems for our customers. Founded in 2010, AgEagle was originally formed to pioneer proprietary, professional-grade, fixed-winged drones and aerial imagery-based data collection and analytics solutions for the agriculture industry. Today, AgEagle is a leading provider of full stack drone solutions for commercial and government customers worldwide. For additional information, please visit our website at www.ageagle.com.
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from management’s current expectations include those risks and uncertainties relating to our competitive position, the industry environment, potential growth opportunities, and the effects of regulation and events outside of our control, such as natural disasters, wars, or health epidemics. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions, or circumstances on which any such statement is based, except as required by law.