RICHARDSON, TX - Optex Systems Holdings, Inc. (NASDAQ:OPXS), a manufacturer of precision optical sighting systems, has announced a significant increase in revenue and profit for the quarter ending December 31, 2023. The company, which serves both military and commercial markets globally, reported a 72.5% rise in total revenues compared to the same period the previous year.
The increase in revenue amounted to $2.9 million, with the Optex Systems segment experiencing a 109.6% increase, and the Applied Optics Center segment seeing a 47.6% rise in external revenue. The company's gross profit also saw a substantial increase, rising by 134.9% to $1.7 million, primarily due to higher revenue and improved absorption of fixed costs related to increased production volume.
Optex Systems recorded an operating income of $0.6 million for the quarter, a significant turnaround from the operating loss of $0.3 million reported in the prior year. The improvement in operating income was primarily due to the increased revenue and gross profit, despite a rise in general and administrative expenses.
The company's working capital as of December 31, 2023, was $13.0 million, slightly down from $13.5 million as of October 1, 2023. Optex Systems generated $2.3 million in operating cash during the quarter, paid down $1.0 million against its line of credit, and invested $0.1 million in property and equipment acquisitions. Additionally, the company's inventory increased by $0.5 million to support new program awards and anticipated revenue growth over the next nine months.
Optex Systems reported a backlog of $45.0 million as of December 31, 2023, a 12.2% increase from January 1, 2023. However, the company booked $10.1 million in new orders during the quarter, a 9.8% decrease from the prior year period.
Net income for the quarter was $0.4 million, compared to a net loss of $0.2 million for the same period last year. Adjusted EBITDA, a non-GAAP financial measure, was $0.8 million, an increase from a negative $0.2 million in the previous year.
The company also announced an acquisition subsequent to the quarter's end. On January 18, 2024, Optex Systems acquired intellectual property and technical and marketing information related to the Speedtracker Mach product line from RUB Aluminium s.r.o., using $1 million in cash.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.