Wed, Aug 14, 7:26 PM (153 days ago)
For the quarter ended June 30, 2024, Syntec Optics Holdings, Inc. reported a decline in net sales to $7,006,000, down 8.9% from $7,692,296 in the same period last year. This decline was attributed to reduced sales across medical, consumer, and defense sectors, partially offset by growth in communications. Gross profit also decreased by 8.5% to $2,174,327, maintaining a gross margin of 31%. General and administrative expenses surged by 25.3% to $2,015,783, impacting operating income, which fell to $158,544 from $767,364. Net income dropped significantly, down 50.4% to $281,843, reflecting challenges in revenue generation and increased operational costs. Cash flow from operations turned negative, with $1,983,883 used in the first half of 2024 compared to a positive cash flow in 2023. The company also faced compliance issues with its line of credit, requiring a waiver due to a breach of financial covenants. Overall, Syntec's financial health shows signs of strain amid fluctuating demand and rising costs, raising uncertainties for future operations. The company plans to enhance its market position through potential acquisitions and product innovations in the optics sector.