Overview

• U.S. electronics maker's Q1 sales rose yr/yr, net loss narrowed from prior period

• Gross margin for Q1 improved to 23.3% from 12.4% a year earlier

• Sales growth driven by delayed Orbit Power Group (OPG) shipment and improved Simulator Product Solutions (SPS) bookings, offset by weak Orbit Instrument division

Outlook

• Company expects improved operating results at SPS to continue throughout 2026 if booking trends persist

• Orbit Instrument division expects contract awards in first half of 2026, but timing remains uncertain

• Company says production awards for Q-Vio prototype orders not expected before 2027

Result Drivers

• DELAYED OPG SHIPMENT - A supply chain issue pushed a $1.4 mln Orbit Power Group shipment into Q1, boosting sales and segment profitability

• WEAK ORBIT INSTRUMENT SALES - Contract delays and slow follow-on awards led to lower sales and margins at Orbit Instrument division

• IMPROVED SPS BOOKINGS - Simulator Product Solutions saw higher bookings and sales, supporting improved results despite higher legal fees

Company press release: ID:nGNX76GRzl

Key Details

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