Tue, May 14, 8:39 PM (270 days ago)
TSS, Inc. reported significant revenue growth for Q1 2024, with total revenues reaching $15.9 million, a 142% increase from $6.6 million in Q1 2023. This surge was driven primarily by a substantial rise in procurement services revenue, which jumped from $1.7 million to $11.6 million. However, the cost of revenue as a percentage of total revenue increased to 83% from 74%, due to the higher proportion of lower-margin procurement services. Gross profit improved by 59% to $2.7 million, but the gross margin decreased to 17% from 26% in Q1 2023. Operating income rose to $253,000 from a loss of $665,000 in the previous year, despite a 6% increase in selling, general, and administrative expenses. Net income was $15,000, reversing a net loss of $786,000 in Q1 2023. Cash flow from operating activities was positive at $2.6 million, compared to a cash outflow of $13.5 million in Q1 2023. The company renewed its $1.5 million revolving credit facility with Susser Bank, maintaining a minimum liquidity requirement of $1.5 million. Management expects continued profitability and improved supply chain conditions through 2024.