Nortech Systems(NSYS) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $26.9 million, a decrease of 21.4% compared to $34.2 million in Q1 2024[6] - Gross profit fell to $3.1 million, down 43.5% from $5.4 million in the same quarter last year[6] - The company reported a net loss of $1.3 million, or $0.48 per diluted share, compared to a net income of $0.8 million in Q1 2024[7] - Adjusted EBITDA for Q1 2025 was a loss of $1.0 million, a decline of 161.1% from $1.6 million in Q1 2024[6] - Net loss for Q1 2025 was $1,316 million, compared to a net income of $765 million in Q1 2024[17] - EBITDA for Q1 2025 was $(1,266) million, down from $1,637 million in Q1 2024[18] - Adjusted EBITDA for Q1 2025 was $(1,000) million, significantly lower than $1,637 million in Q1 2024[18] - Total sales for Q1 2025 were $128.1 million, a decrease from $137.5 million in Q4 2024[20] - Adjusted gross margin for Q1 2025 was 13.1%, down from 16.6% in Q4 2024[20] Operating Expenses and Cash Flow - Operating expenses increased by 9.3% to $4.7 million from $4.3 million in Q1 2024[6] - Cash used in operating activities for Q1 2025 was $(2,930) million, compared to cash provided of $2,828 million in Q1 2024[17] - Cash at the end of Q1 2025 was $1,162 million, down from $4,028 million at the end of Q1 2024[17] - Proceeds from the line of credit in Q1 2025 were $25,970 million, while payments to the line of credit were $22,710 million[17] - Net cash provided by financing activities in Q1 2025 was $3,446 million, compared to $274 million in Q1 2024[17] Backlog and Strategic Initiatives - The company has a 90-day backlog of $26.7 million as of March 31, 2025[7] - The company anticipates clearing the majority of the approval backlog for defense customer transfers during Q2 2025[2] - The company is strategically repositioning its global operations to enhance efficiency and respond to customer needs for near-shoring supply chains[4] Research and Development - Two new patents were issued in the past year, reflecting the company's commitment to R&D in fiber optic technologies[2] Assets - Total assets as of March 31, 2025, were $73.5 million, an increase from $72.4 million at the end of 2024[15] Restructuring Charges - The company incurred $266 million in restructuring charges related to the closure of the Blue Earth facility and staff reductions in Q1 2025[19]