Optex Systems Holdings, Inc. Reports Impressive Surge in Revenue and Profit for Q4 2023
Optex Systems Holdings, Inc. (NASDAQ:OPXS), a precision optical sighting systems manufacturer, has revealed a noteworthy surge in revenue and profit for the quarter ending December 31, 2023.
The company, which caters to military and commercial markets worldwide, reported a staggering 72.5% increase in total revenues compared to the same period last year. This increase translates to $2.9 million, with the Optex Systems segment experiencing a significant 109.6% rise, while the Applied Optics Center segment witnessed a 47.6% boost in external revenue.
In addition, Optex Systems’ gross profit also saw a substantial rise, jumping by an impressive 134.9% to $1.7 million. This surge can be attributed primarily to higher revenue and better absorption of fixed costs related to increased production volume.
Optex Systems achieved an operating income of $0.6 million for the quarter, an impressive turnaround from the operating loss of $0.3 million reported the previous year. The improvement in operating income can be credited to the increased revenue and gross profit, despite facing a rise in general and administrative expenses. As of December 31, 2023, the company’s working capital stood at $13.0 million, slightly down from $13.5 million on October 1, 2023.
During the quarter, Optex Systems generated $2.3 million in operating cash, paying down $1.0 million against its line of credit and investing $0.1 million in property and equipment acquisitions. Furthermore, 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, marking a 12.2% increase from January 1, 2023. However, the company saw a 9.8% decrease in new orders during the quarter, booking $10.1 million compared to the previous year’s period. Net income for the quarter was $0.4 million, a significant improvement from a net loss of $0.2 million during the same period last year. Additionally, the company reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $0.8 million, an increase from a negative $0.2 million in the previous year.
In a recent development, Optex Systems announced an acquisition subsequent to the end of the quarter. On January 18, 2024, the company acquired intellectual property, technical, and marketing information related to the Speedtracker Mach product line from RUB Aluminium s.r.o. using $1 million in cash.
Analyst comment
Positive news: Optex Systems Holdings, Inc. (NASDAQ: OPXS) reported a significant surge in revenue and profit for Q4 2023, with a staggering 72.5% increase in total revenues. The company’s gross profit jumped by 134.9% to $1.7 million, and operating income improved to $0.6 million from a loss of $0.3 million. Optex Systems also acquired intellectual property, technical, and marketing information, signaling potential growth opportunities. The company’s backlog increased by 12.2% to $45.0 million. With strong financial performance and strategic acquisitions, the market is likely to respond positively to Optex Systems’ performance.
