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Optex Systems' (OPXS) Earnings Surge Y/Y in June Quarter
OPXSOptex Systems (OPXS) ZACKS·2024-08-14 18:01

Core Insights - Optex Systems Holdings, Inc. reported a significant improvement in earnings for the quarter ended June 30, 2024, with an EPS of 18 cents, up from 9 cents in the same period last year [1] - Revenues for the quarter reached 9.1million,reflectinga26.39.1 million, reflecting a 26.3% increase from 7.2 million in the comparable quarter of the previous year [1] Revenue Performance - The robust quarterly performance was driven by increased deliveries in the Optex Richardson segment and the Applied Optics Center segment, with the Richardson segment contributing a revenue increase of 1.6millionandtheAppliedOpticsCenteradding1.6 million and the Applied Optics Center adding 0.3 million [2] - The growth in military product demand offset a decline in commercial optical assemblies [2] Profitability Metrics - Gross profit surged by 68.3% to 2.9millionfrom2.9 million from 1.7 million in the previous year, with gross margin expanding to 31.8% from 23.9% [3] - Operating income more than doubled, increasing by 114.8% to 1.6millionfrom1.6 million from 0.8 million in the prior-year quarter, while net income rose 118.9% to 1.3millionfrom1.3 million from 0.6 million [4] - Adjusted EBITDA nearly doubled to 1.8millionforthequarter,comparedto1.8 million for the quarter, compared to 0.9 million in the same period last year [4] Backlog and Future Outlook - The company's backlog as of June 30, 2024, was 45.6million,a9.645.6 million, a 9.6% increase from 41.6 million as of July 2, 2023, indicating a positive outlook for continued revenue growth [5] Financial Position - As of June 30, 2024, cash and cash equivalents decreased to 0.5millionfrom0.5 million from 1.2 million as of October 1, 2023, while total assets increased to 24.9millionfrom24.9 million from 22.2 million [6] - Stockholders' equity improved to 17.7millionfrom17.7 million from 14.9 million as of October 1, 2023 [7] - Operating cash flows for the nine months ended June 30, 2024, were reported at 1million[7]StrategicInvestmentsDuringtheninemonthsendedJune30,2024,thecompanyinvested1 million [7] Strategic Investments - During the nine months ended June 30, 2024, the company invested 1 million in the acquisition of intellectual property to strengthen its product offerings and maintain a competitive edge in the defense sector [8]