Robert Van Voorhis's questions to BK Technologies (BKTI) leadership • Q1 2025
Question
Robert Van Voorhis of Vanatoc Capital questioned the recent increase in SG&A expenses, asking about the long-term target for SG&A as a percentage of revenue and the portion of current SG&A being expensed for new product development like the BKR 9500.
Answer
CFO Scott Malmanger explained that the SG&A structure is largely fixed but will experience some lumpy increases in 2025 due to strategic investments in marketing and R&D. He anticipates achieving operating leverage over the long term as revenue grows. While not providing a specific breakdown, he noted that some, but not all, new product development costs can be capitalized, and directed the analyst to the company's 10-Q filing for more details on engineering expenses.