Summary

• Since our initial write-up on BK Technologies, things have been progressing well and in line with our expectations.
• BKTI now expects to hit $170M in revenue at 60% gross margins and 35% EBITDA margins, while generating $55M in free cash flow.
• From a capital allocation standpoint, they are planning to direct future cash flows toward internal investments first (radios, software, and technology), M&A afterward, and returns to shareholders last.

Atai ("Value" in Japanese) Capital Management is a long-only, concentrated, unlevered fund run through separately managed accounts (SMAs). They employ a repeatable small-cap-focused value strategy and are based in Fort Worth, Texas. Note: This account is not managed or monitored by Atai Capital Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Atai's official channels.