Sarcos brings in $1.3M, loses $28.7M during Q2 2023

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Sarcos Technology and Robotics Corporation, which designs, develops, and manufactures a range of robotic systems which include solar, subsea, and aviation robots, has announced its Q2 2023, which ended on June 30, earnings. The company brought in $1.3 million in revenue and had a net loss of $28.7 million during the quarter.

During Q2, Sarcos formed a new Advanced Technologies software business division to drive emerging AI Software-as-a-Service (SaaS) revenue opportunities. This division is bolstered by the company’s expanded contract with the Air Force Research Laboratory (AFRL) for continued development of AI-driven technologies.

Sarcos also announced it signed an agreement with Blattner Company to develop its autonomous robotics solar construction system further. The companies plan to evaluate and further refine the system’s technology, functionality, and safety through a series of field trials over the next several years.

The company has had losses along with its wins recently. In May, Sarcos replaced its previous president and CEO, Kiva Allgood, with its new interim president and CEO Laura Peterson. A month later, in June, Sarcos announced it would put into effect a reverse stock split of its issued common stock at a ratio of 1-for-6. The stock split, which became effective at the beginning of July, was intended to increase the price per share of Sarcos’ common stock to allow it to stay in compliance with the $1.00 minimum bid price requirement for listing on the Nasdaq.

In July, Sarcos announced a number of changes to the company that aims to grow revenue and leverage strategic opportunities that show the greatest market traction and meet customer demand. 

These changes included focusing on robotic systems for subsea, aviation, and the solar end market, despite its beginnings making robotic exoskeletons, optimizing its manufacturing facilities by consolidating its Pittsburgh manufacturing facility into its Salt Lake City location, and laying off a fourth of its employees. Sarcos expects the new structure to decrease its monthly average cash usage from around $6.5 million to just $3 million by Q1 of 2024. 

In connection with the restructuring announcement, the company incurred charges of $5.1 million in Q2 of 2023, including $4.4 million due to the write-down of inventory and $0.7 million related to the impairment of certain fixed assets.

Next quarter, Sarcos expects its revenue will range between $1.1 and $1.4 million. It also expects additional restructuring expenses related to reducing headcount to total around $6.0 million. 

In March 2022, Sarcos acquired RE2 Robotics, a Pittsburgh-based developer of autonomous and teleoperated mobile robotic systems, for $100 million. This acquisition allows Sarcos to better target sectors like aviation, construction, medical, and subsea.