ZTEST Electronics Inc. Announces Fiscal Q3 2025 Results

Rhea-AI Summary

ZTEST Electronics reported Q3 2025 financial results with revenues of $2.1M, showing a decline from Q3 2024's record $2.6M. Nine-month revenues reached $6.2M, down from $7.0M in the prior year but remaining 59% ahead of March 2023. The company maintained strong gross margins at 39.6%, generated EBITDA of $424K, and reported net income of $256K. Cash position strengthened to $3.9M, with working capital of $4.6M. ZTEST initiated a share buyback program (NCIB) on April 1, 2025, repurchasing 296,500 shares. Management cited international tariff uncertainties while noting potential demand improvement signals, maintaining focus on operational execution and shareholder value.

Positive

• Strong cash position with $3.9M, up from $2.7M in June 2024
• Healthy working capital of $4.6M, improved from $3.6M
• Maintained solid gross margin at 39.6%
• Low long-term debt of only $73K
• Implementation of share buyback program with 296,500 shares repurchased
• Nine-month revenues remain 59% ahead of March 2023 levels

Negative

• Q3 2025 revenue declined to $2.1M from $2.6M in Q3 2024
• Nine-month revenue decreased to $6.2M from $7.0M year-over-year
• Gross margin percentage dropped to 39.6% from 42.8% year-over-year
• Net income declined to $256K from $531K in Q3 2024
• Operating cash flow decreased to $392K from $676K year-over-year

NORTH YORK, ON / ACCESS Newswire / May 30, 2025 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTC PINK:ZTSTF) announces Q3 2025 revenues of $2,105,297, a slight increase over the immediate proceeding quarter, but a decline from the record $2,625,282 reported for Q3 2024. Revenues for the nine months ended March 2025 were $6,205,665 as compared to $6,964,685 in the prior year.

While managing through headwinds mentioned in previous quarterly commentary, the Company takes some solace in the fact that revenues for the nine-month period remain almost 59% ahead of March 2023, that gross margin percentages have been maintained, that liquidity has been further enhanced, and that cash flows from operations remain strong.

Financial Highlights		Three months ended
(in thousands of dollars, except per share amounts)		Mar 31 2025				Mar 31 2024
Revenue			2,105				2,625
Gross Margin			834				1,124
Gross Margin as a % of Revenue			39.6	%			42.8	%
EBITDA			424				788
Net Income			256				531
Basic Net Income per share			0.007				0.017
Operating Cash Flow			392				676

Financial Position		As at
(in thousands of dollars)		Mar 31 2025				Jun 30 2024
Cash			3,867				2,776
Working Capital			4,648				3,593
Long-term Debt			73				121
Shareholders' Equity			5,550				4,497

The Company's management and Board of Directors is continually evaluating capital allocation strategies including M&A opportunities. While no such strategic transaction is imminent, management also recognized that an opportunity exists to take advantage of what it perceives to be an under-valuation of its own securities. An NCIB commenced on April 1, 2025, and to date the Company has repurchased 296,500 common shares.

Steve Smith, CEO commented, "Our ability to adapt to the shifting environment is reflected in our consistent operating margin and compelling cash generation. There are subtle indications that demand may soon start to increase, however we remain diligent, due to the uncertainties spawned by new and possible international tariffs. Ultimately, we continue to be centered on operational execution and driving shareholder value."

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 ZTEST Electronics (ZTSTF) Q3 2025 revenue and earnings?

ZTEST Electronics reported Q3 2025 revenue of $2.1M and net income of $256K, with earnings per share of $0.007.

How much cash does ZTEST Electronics (ZTSTF) have as of March 2025?

ZTEST Electronics reported a cash position of $3.87M as of March 31, 2025, up from $2.78M in June 2024.

What is ZTEST Electronics (ZTSTF) share buyback program?

ZTEST Electronics initiated an NCIB (share buyback) on April 1, 2025, and has repurchased 296,500 common shares to date.

How did ZTEST Electronics (ZTSTF) Q3 2025 results compare to Q3 2024?

ZTEST's Q3 2025 revenue declined to $2.1M from $2.6M in Q3 2024, with net income decreasing to $256K from $531K.

What is ZTEST Electronics (ZTSTF) current debt level?

As of March 31, 2025, ZTEST Electronics reported a low long-term debt of $73K, down from $121K in June 2024.