Flux Power Holdings, Inc., a developer of advanced lithium-ion energy storage solutions for the electrification of commercial and industrial equipment, today announced combined purchase orders from new and existing customers in excess of $64 million in the fiscal year June 30, 2022, which was more than 82% over the order volume for fiscal year June 30, 2021.
While not an exact measure, we estimate that purchase orders indicate future revenue potential from new customers in the fiscal year 2022 was 26% of revenue, with the remaining 74% from repeat customers. Our strategy reflects a “relationship”, not transactional, business with our customers that provides ongoing new purchase needs and service requirements.
Ron Dutt, Flux Power Chief Executive Officer, commented, “We believe new purchase orders in our fiscal year 2022 are a strong indicator of our potential to reach $70 million in annual revenue run rate in the near term. Our strategic initiatives to accelerate backlog conversion to shipments and increase inventory turns are also driving revenue results and gross margins that will lead toward profitability. Additional momentum is being driven by the accelerating “economy-wide” renewable energy transition. The recently passed Inflation Reduction Act includes tax and other incentives that are aimed at significantly accelerating the adoption of zero-emission technologies for commercial vehicles. We believe our products will benefit as electrification extends to material handling and other equipment supported by Flux as customers transition their entire fleets to clean energy solutions.
“Looking closer at our customer breakdown, we are building a strong portfolio of nearly 74% “ongoing, repeat” customers in fiscal 2022. We believe the combination of repeat customer orders and continued acquisition of new customer business can drive revenue growth to $100 million and beyond in the next several years. We are seeing strong growth from both the material handling equipment sector and the airport ground support equipment sector. Additional interest from the emerging robotic material handling equipment vertical is also driving demand as these customers look to improve their productivity and equipment integration.
With record new order growth, an expanding customer base and accelerating clean energy demand, we believe our growth trajectory in the fiscal year 2022 is on track for another record revenue year. We look forward to providing additional insight and results of our full fiscal year financial results on our upcoming earnings call,” concluded Dutt.