TechPrecision .(US:TPCS)2020-11-13 00:39Financial Data and Key Metrics Changes - The company reported a 53% increase in net sales for Q2 2021, reaching $4.7 million compared to $3.1 million in the same quarter a year ago [6][9] - Gross profit for Q2 2021 was $1.1 million, an increase of $700,000 from the previous year, with gross margin improving to 23.9% [10] - Net income for Q2 2021 was $271,000, or $0.01 per share, compared to a net income of $155,000 for the six months ended September 30, 2020 [11][12] Business Line Data and Key Metrics Changes - Sales in the defense sector increased by $363,000, while sales to the precision industrial sector rose by $1.3 million compared to the same quarter last year [9] - For the six months ended September 30, 2020, revenue increased by 8% to $8 million, driven by an increase in sales to the precision industrial sector [11] Market Data and Key Metrics Changes - The sales order backlog was reported at $14.8 million as of September 30, 2020, with over $5.1 million in new orders booked during Q2 2021 [7] - The company continues to see significant opportunities in the defense sector, particularly from prime defense contractors [7] Company Strategy and Development Direction - The company is focused on serving the U.S. defense industry, specifically in naval submarine manufacturing, with meaningful opportunities anticipated in the nuclear submarine business [14] - The U.S. Navy awarded a $9.47 billion contract modification related to the Columbia Class, indicating strong future demand in the defense sector [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about carrying improvements in revenues and margins into the remainder of fiscal year 2021 [6] - There are uncertainties regarding the order flow due to COVID-19, but management hopes for a resolution as the situation improves [24][25] Other Important Information - The company reported cash on hand of $1.1 million and total debt of $3.9 million as of September 30, 2020, with net debt increasing to $2.8 million [13] - Management refrained from discussing ongoing due diligence and negotiations regarding a proposed acquisition [16] Q&A Session Summary Question: Has the company added any backlog since the end of the quarter? - Yes, it has been added [20][21] Question: Is the backlog meaningful? - Yes, it is meaningful [21] Question: Can you provide an idea of how meaningful the backlog is? - Management stated they are not allowed to discuss that [22] Question: Do you believe the order flow has finally broken the logjam, particularly for the Columbia Class? - Management indicated uncertainty but expressed hope for improvement as COVID-19 impacts lessen [23][25] Question: Will there be a call to discuss the acquisition when able? - Management reiterated they cannot discuss the acquisition at this time [27]