Wed, Aug 14, 9:04 PM (153 days ago)
Trans-Lux Corporation's Q2 2024 report shows a decline in revenue to $3.5 million, down 16% year-over-year, primarily due to reduced digital product sales and maintenance revenue. The company's total revenue for the six months ending June 30, 2024, decreased by 17% to $6.1 million, with digital product sales dropping 17.2%. The gross margin also contracted, with cost of revenues increasing to 93.6% of sales, compared to 90.5% in the prior year. Operating loss for the quarter widened to $679,000, influenced by rising general and administrative expenses, despite a slight increase in gross income. The net loss for the six months reached $2.1 million, up from $1.7 million in 2023, reflecting persistent operational challenges. Liquidity remains a critical issue, with a working capital deficiency of $16 million as of June 30, 2024, and ongoing defaults on multiple loans. The company is exploring strategies to enhance cash flow, including cost reductions and potential financing options. Overall, Trans-Lux faces significant uncertainties impacting future performance, amid a challenging economic landscape.