Financial Data and Key Metrics - Q3 revenue was 4.2million,adeclinefrom6.3 million YoY, primarily due to the end of the U.S. Navy Armor contract with Kinetic Protection [4][5] - Gross loss of 0.5million(negative121.2 million (20% of sales) last year, driven by lower revenue and third shift startup costs [7] - Operating loss of 1.5millionversusoperatingincomeof0.1 million last year [10] - Net loss of 1.0millionor0.07 per share compared to net income of 0.2millionor0.01 per diluted share in Q3 2023 [10] - Cash position at the end of Q3 was 4.7million,downfrom8.8 million at the start of 2024 [11] Business Line Data and Key Metrics - The end of the Kinetic Protection contract reduced revenue by approximately 2millionperquarter[5][6]−AmajorcustomerpurchasedsignificantlylessYoYduetoexcessinventory,butordershavenowresumed[4][14]−Recentwinsincludea12 million contract with a semiconductor customer and a 200,000developmentcontractwiththeU.S.Navy[15][19]MarketDataandKeyMetrics−ThecompanyisoptimisticaboutKineticProtectionpotentiallysecuringnewArmorordersforadditionalnavalvesselclassesinfiscal2025[21]−Thesemiconductorcontractisexpectedtoboostrevenueinfiscal2025,withcomponentsusedinhigh−speedrail,windturbines,andEV/HEVapplications[17][18]CompanyStrategyandIndustryCompetition−Thecompanyisfocusedonexpandingmanufacturingcapabilities,includingthesuccessfultrainingofathirdshift[8][14]−Recentcontractwinsandimprovedproductthroughputpositionthecompanyforgrowthinfiscal2025[8][15]−ThecompanyisactivelypursuingSBIRopportunitiesandbiddingonnewapplicationswithvariousU.S.agencies,includingDoDandNASA[22]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−ManagementisoptimisticaboutQ4andfiscal2025,citingimprovedmanufacturingcapabilitiesandrecentcontractwins[8][15]−ThecompanyexpectsgrossmarginstoimproveasvolumesincreaseinQ4andfiscal2025[7]−Thecompanyismovingintoaneweraofexpansionandisoptimisticaboutfuturequarters[25]OtherImportantInformation−Thecompanyreceiveda1.1 million Phase II SBIR award from the Department of Energy for Modular Radiation Shielding [16] - The company is developing Fiber Reinforced Aluminum (FRA) composites, with commercialization expected in fiscal 2025 [23] - A new 5-axis CNC machine is operational, enabling higher production of hermetic packaging and other products [25] Q&A Session Summary - No specific questions or answers were provided during the Q&A session [26][28]
