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Tel-Instrument Electronics Corp. Reports Financial Results For First Quarter FY 2025

. Posted in About Us

Tel-Instrument Electronics Corp. Reports Financial Results

For First Quarter FY 2025

East Rutherford, NJ – August 14, 2024 – Tel-Instrument Electronics Corp. (“Tel-Instrument,” “TIC,” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported a net income of $42K ($0.02) per basic and per diluted share, on revenues of $2.8 million for the first quarter of 2025 fiscal year, ended June 30, 2024.

Notes On First Quarter:

·   Revenues for the first quarter were $2.8 million, as compared to $2.9 million in the year-ago quarter.

·   The gross margin percentage decreased to 26% versus 45% the year-ago period due to low margin CRAFT ECP invoices.

·   Operating expenses decreased by $200K, a 23% decline versus the year ago level as a result of funded engineering projects.

·   Net income was $42K or $(0.02) per share, compared to net income of $295K or $0.07 per share in the year-ago quarter.

·   CRAFT ECP Test Readiness Review (“TRR”) was completed in April 2024.

·   Bookings backlog was $7 million at the end of the first quarter.

Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented, “We are expecting strong growth for the balance of FY 2025 due to the success of the SDR-OMNI and SDR-OMNI/MI and the expected commencement of MADL and CRAFT ECP production later this year. The successful completion of the Navy TRR was important as it was a key milestone in the development process, and it generated a large progress billing which bolstered our cash position. CRAFT ECP production is projected to commence in the fourth quarter of this fiscal year and should generate annual revenues of around $5 million. We were thrilled that Airbus selected our SDR-OMNI commercial test set for use in its world-wide manufacturing operations after an extensive technical evaluation. Additional volume orders were received from Airbus in the second quarter, and we continue to gain traction in the commercial marketplace. We are even more excited about the prospects for the SDR-OMNI/MIL which has the potential to replace thousands of obsolete test sets currently in use by the U.S. military and our NATO allies. The SDR-OMNI/MIL is the only multi-purpose avionic test set in the market that meets Class 1 military environmental specifications. While DOD procurement for new test sets tends to be an extended process, the SDR-OMNI/MIL has the potential to generate millions of dollars of annual revenues. The Lockheed Martin F-35 MADL Test Set development program has been completed and we are currently in negotiations to supply up to 119 MADL test sets this year.”

About Tel-Instrument Electronics Corp.

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.

This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are:  changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances.  A number of these factors are discussed in the Company’s previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the “Act”) protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

Pauline Romeo



Tel-Instrument Electronics Corp.



(201) 933-1600 (Ext 309)

TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS





June 30,

2024





March 31, 2024









(unaudited)













ASSETS



















 




















 
Current assets:



















 
Cash



$

149,550





$

132,013





 
Accounts receivable, net





1,763,680







1,110,548





 
Inventories, net





5,208,229







5,411,644





 
Prepaid expenses and other current assets





213,024







214,161





 
Total current assets





7,334,483







6,868,366





 




















 
Equipment and leasehold improvements, net





64,165







73,195





 
Operating lease right-of-use assets





1,272,700







1,324,463





 
Deferred tax asset, net





2,439,427







2,450,657





 
Other long-term assets





35,109







35,109





 
Total assets



$

11,145,884





$

10,751,790





 




















 
LIABILITIES & STOCKHOLDERS’ EQUITY



















 




















 
Current liabilities:



















 
Accounts payable



$

1,242,906





$

1,276,935





 
Accrued expenses ‐vacation pay, payroll and payroll withholdings





265,948







248,713





 
Deferred revenues - current portion





57,778







72,803





 
Operating lease liabilities – current portion





204,064







210,111





 
Accrued expenses - other





179,748







120,027





 
Line of credit





1,000,000







690,000





 
Promissory notes – related parties





80,500







-





 
Total current liabilities





3,030,944







2,618,589





 




















 
Operating lease liabilities – long-term





1,068,636







1,114,352





 
Other long term liabilities





43,524







45,501





 
Deferred revenues – long-term





104,963







119,721





 




















 
Total liabilities





4,248,067







3,898,163





 




















 
Commitments and contingencies



















 




















 
Stockholders’ equity:



















 
Preferred stock, 1,000,000 shares authorized, par value $0.10 per share



















 
Preferred stock, 500,000 shares 8% Cumulative Series A Convertible Preferred

authorized, issued and outstanding, respectively par value $0.10 per share





4,175,998







4,115,998





 
Preferred stock, 320,000 shares 8% Cumulative Series B Convertible Preferred

authorized, 233,334 and 233,334 issued and outstanding, par value $0.10 per share





1,732,701







1,704,701





 
Preferred stock, 166,667 shares 8% Cumulative Series C Convertible Preferred

authorized; 53,500 and 53,500 issued, and outstanding, par value $0.10 per share





341,635







335,215





 
Common stock, 7,000,000 shares authorized, par value $0.10 per share,

3,255,887 and 3,255,887 shares issued and outstanding, respectively





325,586







325,586





 
Additional paid-in capital





6,286,607







6,379,085





 
Accumulated deficit





(5,964,710

)





(6,006,958

)

   
Total stockholders’ equity





6,897,817







6,853,627





 
Total liabilities and stockholders’ equity



$

11,145,884





$

10,751,790





 
TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)





Three Months Ended







June 30, 2024





June 30, 2023





















Net sales



$

2,842,176





$

2,866,929



Cost of sales





2,096,274







1,572,380





















Gross margin





745,902







1,294,549





















Operating expenses:

















Selling, general and administrative





542,340







584,858



Engineering, research, and development





131,638







289,441



Total operating expenses





673,978







874,299





















Income from operations





71,924







420,250





















Other (expense) income:

















Interest income





11







39,289



Interest expense – other





(18,457

)





(13,455

)

Interest expense – judgement





-







(70,245

)

Total other net expense





(18,446

)





(44,411

)



















Income before income taxes





53,478







375,839





















Income tax expense





11,230







80,547





















Net income





42,248







295,292





















Preferred dividends





(94,420

)





(80,000

)



















Net income (loss) attributable to common shareholders



$

(52,172

)



$

215,292





















Basic net (loss) income per common share



$

(0.02

)



$

0.07



Diluted net (loss) income per common share



$

(0.02

)



$

0.06





















Weighted average shares outstanding:

















Basic





3,255,887







3,255,887



Diluted





3,255,887







5,215,665



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