Optex Systems Holdings, Inc. Announces Financial Highlights for the Three Months Ended December 29, 2024
Rhea-AI Summary
Optex Systems Holdings (NASDAQ:OPXS) reported strong financial results for Q1 FY2025. The company achieved a 17.6% year-over-year revenue increase to $8.2 million and a 65.6% increase in operating income to $916,000. Net income nearly doubled to $844,000 compared to $431,000 in the prior year period.
The company's backlog stood at $42.0 million as of December 29, 2024, down 6.7% from the previous year. Management expects revenue to exceed $38 million for fiscal 2025, maintaining their track record of over 20% compound annual revenue growth over the last four years.
Financial position remains strong with working capital of $15.9 million, $2.5 million in cash, and zero credit facility balance after paying down $1.0 million during the quarter. The increase in revenue was primarily driven by higher demand for periscopes, laser filters, and day windows.
Positive
- Revenue increased 17.6% year-over-year to $8.2 million
- Operating income grew 65.6% to $916,000
- Net income increased 95.8% to $844,000
- Gross margin improved to 26.0% from 24.2%
- Strong working capital position of $15.9 million
- Credit facility balance reduced to zero
- Projected revenue exceeding $38 million for fiscal 2025
Negative
- Backlog decreased 6.7% to $42.0 million compared to prior year
- Lower revenue in commercial optical assemblies segment
News Market Reaction – OPXS
In the trading session that priced this news, OPXS declined 1.39%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
RICHARDSON, TX / ACCESS Newswire / February 10, 2025 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announced financial results for the three months ended December 29, 2024.
Danny Schoening, CEO of Optex Systems Holdings, Inc., commented, "We are pleased that our
Backlog as of December 29, 2024 was
For the three months ended December 29, 2024, our total revenues increased by
Consolidated gross profit for the three months ended December 29, 2024 increased by
Our operating income for the three months ended December 29, 2024 increased by
As of December 29, 2024, Optex Systems Holdings had working capital of
At December 29, 2024, the company had approximately
Our key performance measures for three months ended December 29, 2024 and December 31, 2023 are summarized below.
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| Three months ended |
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Metric |
| Dec 29, 2024 |
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| Dec 31, 2023 |
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| % Change |
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Revenue |
| $ | 8,198 |
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| $ | 6,968 |
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| 17.7 | % |
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Gross Profit |
| $ | 2,128 |
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| $ | 1,684 |
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| 26.4 | % |
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Gross Margin % |
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| 26.0 | % |
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| 24.2 | % |
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| 7.4 | % |
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Operating Income |
| $ | 916 |
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| $ | 553 |
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| 65.6 | % |
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Net Income |
| $ | 844 |
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| $ | 431 |
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| 95.8 | % |
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Adjusted EBITDA (non-GAAP) |
| $ | 1,137 |
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| $ | 758 |
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| 50.0 | % |
The table below summarizes our three-month operating results for the periods ended December 29, 2024 and December 31, 2023, in terms of both GAAP net income and non-GAAP Adjusted EBITDA. We believe that including both measures allows the reader better to evaluate our overall performance.
| (Thousands) Three months ended |
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| December 29, 2024 |
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| December 31, 2023 |
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Net Income (GAAP) |
| $ | 844 |
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| $ | 431 |
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Add: |
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Depreciation and Amortization |
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| 129 |
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| 92 |
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Federal Income Tax Expense |
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| 59 |
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| 115 |
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Stock Compensation |
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| 92 |
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| 113 |
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Interest Expense |
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| 13 |
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| 7 |
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Adjusted EBITDA - Non GAAP |
| $ | 1,137 |
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| $ | 758 |
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Adjusted EBITDA has limitations and should not be considered in isolation or a substitute for performance measures calculated under GAAP. This non-GAAP measure excludes certain cash expenses that we are obligated to make. In addition, other companies in our industry may calculate Adjusted EBITDA differently than we do or may not calculate it at all, which limits the usefulness of Adjusted EBITDA as a comparative measure.
Our net income increased by
Highlights of the Consolidated and Segment Results of Operations have been prepared in accordance with GAAP. These financial highlights do not include all information and disclosures required in the consolidated financial statements and footnotes and should be read in conjunction with our Quarterly Report on Form 10Q for the three months ended December 29, 2024 filed with the SEC on February 10, 2025.
Optex Systems Holdings, Inc.
Condensed Consolidated Balance Sheets
| (Thousands, except share |
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| (Unaudited) December 29, 2024 |
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| September 29, 2024 |
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ASSETS |
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Cash and Cash Equivalents |
| $ | 2,491 |
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| $ | 1,009 |
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Accounts Receivable, Net |
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| 1,734 |
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| 3,764 |
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Inventory, Net |
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| 14,674 |
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| 14,863 |
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Contract Asset |
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| 196 |
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| 219 |
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Prepaid Expenses |
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| 265 |
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| 217 |
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Current Assets |
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| 19,360 |
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| 20,072 |
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Property and Equipment, Net |
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| 1,520 |
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| 1,292 |
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Other Assets |
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Deferred Tax Asset |
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| 888 |
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| 947 |
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Intangibles, net |
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| 912 |
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| 951 |
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Right-of-use Asset |
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| 2,103 |
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| 2,233 |
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Security Deposits |
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| 23 |
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| 23 |
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Other Assets |
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| 3,926 |
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| 4,154 |
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Total Assets |
| $ | 24,806 |
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| $ | 25,518 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities |
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Accounts Payable |
| $ | 987 |
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| $ | 1,177 |
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Credit Facility |
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| - |
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| 1,000 |
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Operating Lease Liability |
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| 643 |
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| 638 |
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Federal Income Taxes Payable |
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| 74 |
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| 74 |
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Accrued Expenses |
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| 1,065 |
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| 1,258 |
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Accrued Selling Expense |
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| 224 |
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| 237 |
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Accrued Warranty Costs |
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| 22 |
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| 52 |
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Contract Loss Reserves |
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| 213 |
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| 259 |
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Customer Advance Deposits |
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| 210 |
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| 255 |
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Current Liabilities |
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| 3,438 |
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| 4,950 |
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Other Liabilities |
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Operating Lease Liability, net of current portion |
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| 1,624 |
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| 1,760 |
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Other Liabilities |
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| 1,624 |
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| 1,760 |
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Total Liabilities |
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| 5,062 |
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| 6,710 |
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Commitments and Contingencies |
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| - |
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| - |
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Stockholders' Equity |
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Common Stock - ( |
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| 7 |
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| 7 |
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Additional Paid in Capital |
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| 21,557 |
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| 21,465 |
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Accumulated Deficit |
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| (1,820 | ) |
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| (2,664 |
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Stockholders' Equity |
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| 19,744 |
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| 18,808 |
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Total Liabilities and Stockholders' Equity |
| $ | 24,806 |
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| $ | 25,518 |
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The accompanying notes in our Quarterly Report on Form 10Q for the three months ended December 29, 2024 filed with the SEC on February 10, 2025 are an integral part of these financial statements.
Optex Systems Holdings, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
| (Thousands, except share and per share data) |
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| Three months ended |
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| December 29, 2024 |
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| December 31, 2023 |
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Revenue |
| $ | 8,198 |
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| $ | 6,968 |
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Cost of Sales |
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| 6,070 |
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| 5,284 |
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Gross Profit |
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| 2,128 |
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| 1,684 |
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General and Administrative Expense |
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| 1,212 |
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| 1,131 |
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Operating Income |
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| 916 |
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| 553 |
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Interest Expense |
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| (13 | ) |
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| (7 |
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Income Before Taxes |
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| 903 |
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| 546 |
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Income Tax Expense, net |
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| 59 |
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| 115 |
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Net income |
| $ | 844 |
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| $ | 431 |
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Basic income per share |
| $ | 0.12 |
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| $ | 0.06 |
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Weighted Average Common Shares Outstanding - basic |
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| 6,813,938 |
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| 6,666,290 |
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Diluted income per share |
| $ | 0.12 |
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| $ | 0.06 |
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Weighted Average Common Shares Outstanding - diluted |
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| 6,912,594 |
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| 6,721,661 |
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The accompanying notes in our Quarterly Report on Form 10Q for the three months ended December 29, 2024 filed with the SEC on February 10, 2025 are an integral part of these financial statements.
ABOUT OPTEX SYSTEMS
Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2015 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com.
Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions.
These forward-looking statements represent our expectations, beliefs, intentions or strategies concerning future events, including, but not limited to, any statements regarding growth strategy; product and development programs; financial performance and financial condition (including revenue, net income, profit margins and working capital); customer demand; orders and backlog; expected timing of contract deliveries to customers and corresponding revenue recognition; increases in the cost of materials and labor; costs remaining to fulfill contracts; contract loss reserves; labor shortages; follow-on orders; supply chain challenges; the continuation of historical trends; the sufficiency of our cash balances for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations; and the economy in general or the future of the defense industry.
These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control.
You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties.
Contact:
IR@optexsys.com
1-972-764-5718
SOURCE: Optex Systems Holdings, Inc.
View the original press release on ACCESS Newswire