Wed, May 15, 11:03 AM (220 days ago)
DecisionPoint Systems, Inc. reported a net loss of $832,000 for Q1 2024, a significant decline from the net income of $866,000 in Q1 2023. The company's net sales decreased by 5.3% to $25.6 million, primarily driven by a 32.4% drop in hardware and software sales. However, service sales rose by 111.4%, attributed to the acquisition of Macro Integration Services, Inc. in April 2023. Gross profit remained stable at $6 million, but operating expenses surged 42.1% to $6.9 million due to increased sales, marketing, and general administrative costs, including $0.5 million in merger-related expenses. Cash flow from operations improved to $3.2 million, largely due to effective accounts receivable management. The company’s liquidity remains strong with $5.8 million in cash and $10 million available under its credit line. However, the anticipated merger with Barcoding Derby Buyer, Inc., and related uncertainties pose potential risks.