Virco(VIRC) - 2025 Q3 - Quarterly Report

Revenue and Orders - The Company recognized approximately $9 million in additional revenue from disaster recovery orders in Q1 2024 compared to Q1 2023, with further orders of$4 million and $6 million delivered in Q2 and Q3, respectively [89]. - For the three-month period ended October 31, 2024, the Company experienced a 13$25 million at October 31, 2024, down from $42.6 million in the prior year [91]. Financial Performance - Net income for the three months ended October 31, 2024, was$8.4 million on sales of $82.6 million, compared to net income of$10.2 million on sales of $84.3 million in the prior year [97]. - Sales for the nine-month period ended October 31, 2024, increased by approximately$11.3 million or 5.0% compared to the same period in the prior year, driven by increased volume and product mix [102]. - Gross margin for the first nine months ended October 31, 2024, was 45.1%, up from 44.1% in the prior year, due to increased production levels and stable raw material costs [103]. - Selling, general and administrative expenses for the nine months ended October 31, 2024, increased to 30.0% of sales from 28.9% in the prior year, attributed to higher variable selling and service expenses [104]. Cash and Tax - The Company had $38.9 million in cash and no borrowings under its line of credit as of October 31, 2024, compared to$4.9 million in cash and approximately $3.7 million in borrowings at the same date in 2023 [92]. - The effective income tax rate for the nine months ended October 31, 2024, was 24.4$33 million [93].