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Electro-Sensors(ELSE) - 2023 Q2 - Quarterly Report
Electro-SensorsElectro-Sensors(US:ELSE)2023-08-09 16:00

Financial Performance - Net sales for Q2 2023 were $2,137, a decrease of $427, or 16.7%, from $2,564 in Q2 2022[55] - Gross profit for Q2 2023 was $1,068, a decrease of $340, or 24.1%, compared to Q2 2022, with a gross margin of 50.0% down from 54.9%[56] - Total operating expenses decreased by $749, or 42.2%, to $1,024 in Q2 2023, representing 47.9% of net sales, down from 69.2% in Q2 2022[57] - Income before income tax expense was $138 for Q2 2023, an increase of $496 compared to a loss of $358 in Q2 2022[59] - For the three months ended June 30, 2023, the Company reported a GAAP Net Income of $116 million, compared to a loss of $284 million in the same period of 2022[76] - Adjusted Net Income for the three months ended June 30, 2023, was $135 million, down from $255 million in the same period of 2022[76] - For the six months ended June 30, 2023, the GAAP Net Income was $72 million, compared to a loss of $293 million in the same period of 2022[76] - Adjusted Net Income for the six months ended June 30, 2023, was $105 million, down from $321 million in the same period of 2022[76] Cash Flow and Expenses - Cash and cash equivalents were $5,600 at June 30, 2023, down from $7,646 at December 31, 2022[62] - Cash used in operating activities was $136 for the six months ended June 30, 2023, compared to $272 for the same period in 2022[63] - Cash used in investing activities increased to $1,907 for the six months ended June 30, 2023, compared to $9 in the same period in 2022[64] - The Company incurred merger-related expenses of approximately $24 million for the three months ended June 30, 2023, significantly lower than $682 million in the same period of 2022[76] - The Company incurred approximately $42 million in merger-related expenses for the six months ended June 30, 2023, compared to $777 million in the same period of 2022[76] - The income tax benefit of merger-related expenses for the three months ended June 30, 2023, was $(5) million, compared to $(143) million in the same period of 2022[76] - The income tax benefit of merger-related expenses for the six months ended June 30, 2023, was $(9) million, compared to $(163) million in the same period of 2022[76] Strategic Initiatives - The company is exploring growth opportunities through technology partnerships and potential acquisitions following the termination of the merger agreement with Mobile X[68] Operational Challenges - Supply chain disruptions and increased component costs are impacting production efficiency and profit margins[67] Non-Operating Income - Net non-operating income increased by $87, or 1,242.9%, for Q2 2023 compared to Q2 2022, driven by higher interest income[58]