Tue, Oct 8, 7:41 PM (121 days ago)
Micropac Industries, Inc. (MPAC) reported significant financial improvements for the third quarter and nine months ended August 24, 2024. Net sales surged to $12,633,000 for the quarter, up 96% year-over-year, and $26,815,000 for the nine months, a 33% increase. The cost of goods sold decreased as a percentage of sales, reflecting enhanced operational efficiency, leading to operating income of $3,583,000 for the quarter, compared to a loss in the prior year. Net income reached $2,971,000, reversing a loss of $530,000 in Q3 2023. Cash flow from operations was positive at $1,151,000, contributing to an increase in cash and equivalents to $11,218,000. The company’s backlog decreased to $29,456,000, indicating potential future revenue challenges. Increased R&D spending supports future growth, though reliance on a few key customers remains a risk. The firm continues to monitor supply chain impacts from COVID-19, and no significant legal issues were reported. Overall, Micropac's financial health appears robust, with positive trends in revenue and profitability, but uncertainties in order timing and customer concentration persist.