TechPrecision Corporation Announces Financial Results for the Quarter Ended June 30, 2024

TechPrecision Corporation, a custom manufacturer of precision, large-scale fabrication components and precision, large-scale machined metal structural components, recently released its financial results for the three months ended June 30, 2024, in a Form 8-K filing with the Securities and Exchange Commission. The company reported consolidated revenue of $8.0 million, representing an 8% increase compared to the same period in fiscal 2024.

According to Alexander Shen, TechPrecision’s Chief Executive Officer, the operating loss during the first quarter of fiscal year 2025 was attributed to challenges related to closing the Votaw Precision Manufacturing transaction. The company recognized a change in fair value of $0.4 million due to a one-time non-cash breakup fee from the termination of the Votaw acquisition, resulting in a direct impact on the bottom line for the quarter.

Shen expressed confidence in customer relationships, noting a backlog of $41.2 million as of June 30, 2024. The company anticipates delivering this backlog over the next one to three fiscal years, focusing on gross margin expansion. Consolidated gross margin, however, experienced a decline primarily due to higher production costs and under-absorbed overhead at Stadco.

Key financial highlights comparing the quarter ended June 30, 2024, to the same period the previous year include:
– Revenue: $8.0 million, up 8% from fiscal 2024.
– Cost of revenue: $7.7 million, a 16% increase due to higher production costs.
– Gross profit: $238,000, down 66% primarily due to increased costs.
– Operating loss: $1.3 million, higher compared to the same period in fiscal 2023.
– Net loss: $1.5 million for the quarter.

Additionally, the Company’s cash and cash equivalents decreased to approximately $44,797 by June 30, 2024, compared to $138,402 as of March 31, 2024. Working capital showed a negative $1.7 million at June 30, 2024, with total debt amounting to $7.5 million.

TechPrecision Corporation will host a conference call on Thursday, November 14, 2024, at 4:30 p.m. Eastern Time to discuss these financial results. The company remains in a quiet period and under restrictions pertaining to a contested proxy contest, limiting commentary on financial matters. For further details and financial information, interested parties can access the full 8-K filing on the Securities and Exchange Commission’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read TechPrecision’s 8K filing here.

TechPrecision Company Profile

TechPrecision Corporation, together with its subsidiaries, manufactures and sells precision, fabricated, and machined metal structural components and systems in the United States. The company operates through two segments, Ranor and Stadco. It provides custom components for ships, submarines, military helicopters, aerospace equipment, components for nuclear power plants, and components for medical systems.