ZTEST Electronics Inc. Announces Fiscal Q2 2025 Results

Rhea-AI Summary

ZTEST Electronics (CSE:ZTE)(OTC:ZTSTF) reported Q2 2025 financial results, marking an end to eleven consecutive quarters of year-over-year growth. Q2 revenues reached $2,080,861, down 15% year-over-year, while generating $377,972 in cash from operations.

The company's net income for the quarter was $208,604, with year-to-date figures at $532,724, both trailing previous year's results of $504,329 and $676,213 respectively. Basic EBITDA per share decreased to $0.011 from $0.022 last year, impacted by both lower net income and a 29% increase in outstanding shares.

Despite revenue decline, gross margin percentage showed a marginal increase. The company maintains strong liquidity with working capital of $4,328,785 as of December 31, 2024, and is exploring investment opportunities for growth.

Positive

• Gross margin percentage increased despite revenue decline
• Strong liquidity with $4.3M working capital
• Generated $377,972 cash from operations
• Maintained profitability with $208,604 quarterly net income

Negative

• 15% year-over-year revenue decline
• Net income dropped 59% from previous year
• 29% share dilution
• EBITDA per share halved to $0.011
• Ended 11-quarter growth streak

News Market Reaction

-22.75%

1 alert

-22.75% News Effect

On the day this news was published, ZTSTF declined 22.75%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

NORTH YORK, ON / ACCESS Newswire / February 26, 2025 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTC PINK:ZTSTF) announces Q2 2025 revenues of $2,080,861, as the headwinds we alluded to in previous quarterly reports played a significant role in halting the string of eleven consecutive quarters of year-over-year growth.

Revenue for Q2 2025 was $2,080,861, generating $377,972 in cash from operations and $451,856 after allowing for changes in working capital. Revenues for the six months ended December 2024 were $4,100,368 and operating activities contributed $983,090 to cash reserves.

While revenues for the quarter declined just over 15% year-over-year, the resulting gross margins declined just under 15%. In other words, the gross margin percentage increased marginally despite the revenue decline.

Net income for the quarter was $208,604, raising net income year-to-date to $532,724. Each of these figures trail results from one year prior, which were $504,329 and $676,213 respectively.

Lower net income, in combination with a 29% increase in outstanding shares, reduced basic EBITDA per share from .022 last year to .011 in the most recent quarter. For the six month period basic EBITDA per share was .025 as compared to .034 at December 31, 2023.

On December 31, 2024 the Company had working capital of $4,328,785. It is currently well funded, with strong liquidity and low leverage, and is investigating ways by which it may be able to invest capital to further enhance its growth.

Steve Smith, CEO commented, "Although the uncertain threat of tariffs on imports and exports is adding to market uncertainty, we have begun hearing suggestions of larger future orders. The Company will continue to explore opportunities to solidify and expand its market share and to ensure we are prepared to capitalize when more favourable market conditions return."

About ZTEST Electronics Inc.
ZTEST Electronics Inc., through its wholly owned subsidiary Permatech Electronics Corporation ("Permatech"), offers Electronic Manufacturing Services (EMS) to a wide range of customers. Permatech's offering includes Printed Circuit Board (PCB) Assembly, Materials Management and Testing services. Permatech operates from an ISO 9001:2015 certified facility in North York, Ontario, Canada. Permatech is a contract assembler of complex circuit boards, serving customers in the Medical, Power, Computer, Telecommunications, Wireless, Industrial, Trucking, Wearables and Consumer Electronics markets. It specializes in servicing customers who are looking for high yield and require high quality and rapid-turnaround on low and mid-volume production of high complexity products.

For more information contact: Steve Smith, CEO (604) 837-3751 email: steves@ztest.com

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR+ in Canada (available at www.sedarplus.com).

SOURCE: ZTEST Electronics Inc.

View the original press release on ACCESS Newswire

FAQ

What were ZTSTF's Q2 2025 revenue and net income figures?

ZTSTF reported Q2 2025 revenue of $2,080,861 and net income of $208,604.

How did ZTSTF's Q2 2025 performance compare to the previous year?

Revenue declined 15% year-over-year, while net income decreased from $504,329 to $208,604.

What is ZTSTF's current working capital position as of December 2024?

ZTEST reported working capital of $4,328,785 as of December 31, 2024.

How has ZTSTF's share dilution affected its EBITDA per share in Q2 2025?

A 29% increase in outstanding shares contributed to basic EBITDA per share declining from $0.022 to $0.011.