Virco(US:VIRC)2025-06-06 17:12Financial Performance - For the three months ended April 30, 2025, the Company reported a net income of $0.7 million on sales of $33.8 million, a decrease of approximately 27.8% in sales compared to $46.7 million in the same period last year [81]. - Gross margin for the first quarter of 2025 was 47.5%, an increase from 43.5% in the prior year, attributed to a higher proportion of full-service orders [82]. - Selling, general and administrative expenses decreased by approximately $1.3 million compared to the same period last year, primarily due to lower variable selling expenses [83]. - The effective income tax rate for the three months ended April 30, 2025, was 26.4%, compared to 25.5% in the prior year [86]. Backlog and Orders - The Company's backlog as of April 30, 2025, was $70.4 million, down from $88.5 million on April 30, 2024, reflecting a decrease in incoming orders [77]. Share Repurchase - The Company spent $4.0 million to repurchase 348,944 shares of its common stock, with $7.2 million authorized for future repurchases as of April 30, 2025 [91]. Accounts and Inventory - Accounts Receivable decreased by $7.5 million at April 30, 2025, due to decreased shipments and improved collections [88]. - Inventory increased by $2.7 million at April 30, 2025, primarily due to increased material costs during the quarter [88]. Compliance and Future Outlook - The Company believes it will maintain compliance with its financial covenants under the Credit Agreement, despite risks related to economic conditions and raw material costs [92]. - Management cautions that future growth rates are unlikely to match those of the past several years due to various uncertainties, including trade policies and funding for educational institutions [78].