Byrna Technologies sees self-defense weapon hit the bullseye with strong sales

• Developed Byrna HD, which dispenses chemical irritants from a handgun-like personal security device
• Also offers the 40mm Blunt Impact Projectile line of products which use pain compliance to control a target
• Receives recurring revenue from selling ammunition, cartridges, chemical irritant payloads and training rounds

What Byrna Technologies does:

Byrna Technologies Inc (CSE:BYRN) (OTCMKTS:BYRN), formerly Security Devices International, is a non-lethal defense technology company that manufactures and sells less-than-lethal security devices and ammunition.

The Andover, Massachusetts-based company developed the Byrna HD, a handgun-like device that dispenses chemical irritants. The small, lightweight 0.68 caliber device is equipped with a five-round magazine capable of accurately hitting a target at up to 60 feet — without causing serious injury. Its chemical payload is designed to burn an assailant’s eyes and respiratory system.

Byrna’s product mix includes the 40 millimeter (mm) Blunt Impact Projectile (BIP) line of products that use pain compliance to control a target. The company has developed eight versions of the standard BIP, seven of which contain a payload and one of which is a cheaper cost, training round. A payload is an internal medium within the BIP, holding an irritant like pepper spray powder or tear gas.

Founded in 2005, Byrna operates in Canada and the US, and its products are used by the military, correctional services, police agencies, private security companies and individuals looking for personal security.

In addition to tapping the red-hot market for security devices, the company also draws large recurring revenue from selling ammunition, cartridges, chemical irritant payloads and training rounds. Smaller recurring revenue comes from laser sight adds, holsters and spare magazines.

How is it doing:

Byrna has a robust intellectual property portfolio covering a wide array of designs for non-lethal technologies. It currently has seven US patents and four international patents. It also has 13 patents which are pending and nine registered designs along with a US trademark.

On April 13, Byrna reported fiscal first quarter revenue of US$8.9 million for the three months ended February 28, 2021, compared to US$149,000 in the same period of 2020, while adjusted income was US$421,000, a turnaround from a loss of US$1.7 million. Gross margin was 53.3%, compared to -19.5%.

At the end of February, Byrna had cash of US$4.1 million, including US$2.2 million of restricted cash, which is released as backorders are fulfilled.

Looking ahead, the company projects revenue between US$33 million and US$38 million for the fiscal year ending November 30, 2021. That would be good for year-over-year growth of roughly 100% to 130%, based on order backlog, order flow and projected growth. 

The significant increase in sales was driven by both strong order growth for the flagship Byrna HD device and a reduction in the order backlog resulting from an increase in quarterly production volume, the company said.

Having worked through its ecommerce order backlog, the company is turning its attention to opening an Amazon store and enhancing its dealer program. Additionally, it’s “Learn Safe” school safety program is getting up and running with an inaugural School Safety Training Program taking place in Texas on April 13.

The company is also introducing new products, including the Byrna HD XL and the Byrna HD Boost, both of which provide greater velocity than the original. They also both use the more common 12-gram CO2 cartridge (as opposed to the 8-gram cartridge used in the Byrna HD), meaning users will be able to fire more projectiles on a single CO2 cartridge, thereby bringing down the CO2 cost per round by 40%. The company said it also plans to introduce a new lower-cost, biodegradable projectile.

This summer, Byrna plans to begin offering its Byrna LE for Law Enforcement and firearm enthusiasts, which will have an even greater velocity than the Byrna HD XL, an improved sighting system, a seven-round magazine and extreme cold weather capabilities. 

Early in 2022, the company plans to introduce the Byrna CP, a compact launcher designed for those that would like to carry their Byrna in a more discrete manner and for those with smaller hands.

Inflection points:

• Launch of Amazon store
• Introduction of Byrna HD XL, Byrna HD Boost and Byrna LE
• Build out of its dealer network

What the boss says:

Commenting with the release of its fiscal 1Q results, Byrna CEO Bryan Ganz commented: “[Our revenue growth] reflects the large increase in consumer demand for our Byrna HD non-lethal personal security device that began during the second half of 2020. It was gratifying to also see steady improvement in our bottom-line performance.”

“Sadly, our nation continues to be traumatized by tragic events and civil unrest that can cause people to be afraid to go about their daily lives,” Ganz said. “Our mission is to provide both civilians and law enforcement professionals with a safe and effective alternative to lethal firearms that enable our customers to safely and effectively protect themselves, their families and their communities and in so doing, gain the confidence and sense of security that can only come from being in control of one’s environment, allowing anyone to live life unafraid, to live life to the fullest — to ‘Live Safe!’” 

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors