Overview

• Company posted net loss of $4.9 mln as gross margin fell and expenses rose

• Results impacted by product obsolescence, engineering overruns, and shipment delays

• US avionics test equipment maker's fiscal 2025 revenue rose 6% yr/yr

• Co is approximately one year behind in its SEC reporting and plans to catch up as soon as possible

Outlook

• Tel-Instrument projects strong revenue growth and profitability from Q2 of current fiscal yr

• Company expects Navy ECP KIT production to begin in July 2026, boosting annual revenue by $5 mln

• Tel-Instrument says cash flow expected to improve as Navy KIT production begins next month

Result Drivers

• PRODUCT OBSOLESCENCE - Co said main CRAFT test set went obsolete, severely impacting sales revenues

• ENGINEERING COST OVERRUNS - Cost of finishing engineering for CRAFT ECP significantly exceeded budgeted levels

• SHIPMENT DELAYS - Expected CRAFT and Navy ECP unit shipments were delayed due to extensive Navy platform testing

• SEC REPORTING DELAYED - As a result of the product obsolescence, engineering overruns, and shipment delays

Company press release: ID:nBw6597NRa

Key Details

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.