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ELECTRONIC SYSTEMS TECHNOLOGY INC (ELST)·Q1 2014 Earnings Summary

Executive Summary

  • Gross revenues grew 20.9% year over year to $0.50M, with sales up 20.9% to $0.50M; Other Revenues increased 28.2% to $2,549 .
  • Net loss narrowed materially to ($5,950), with EPS improving to ($0.00) versus ($0.01) in Q1 2013, reflecting significantly improved operating performance .
  • Liquidity declined sequentially: cash and equivalents fell to $0.68M from $0.90M at year-end, modest declines in total assets and equity, and no long-term debt outstanding .
  • No formal guidance or earnings call transcript found; Wall Street consensus via S&P Global was unavailable for ELST, limiting estimate comparisons .

What Went Well and What Went Wrong

What Went Well

  • Year-over-year top-line momentum: Sales rose 20.9% to $499,824 and gross revenues rose 20.9% to $502,373, indicating improved demand across the ESTeem product line .
  • Loss narrowing: Net loss improved to ($5,950) from ($46,612) YoY; diluted EPS moved from ($0.01) to ($0.00), signaling better cost control and/or mix .
  • Asset investment: Property & equipment (net) rose to $39,600 vs. $31,372 at year-end, suggesting continued investment in operational capabilities .

What Went Wrong

  • Cash burn: Cash and cash equivalents fell to $681,952 from $896,581 at year-end, a decline of $214,629 (approx. 23.9%), indicating use of cash during the quarter .
  • Equity drifted lower: Stockholders’ equity edged down to $3,056,028 from $3,059,733, reflecting the quarterly loss .
  • Limited investor communication: No formal guidance and no earnings call transcript in the document set; press release provided limited qualitative context .

Financial Results

Income Statement Highlights (YoY)

MetricQ1 2013Q1 2014
Sales ($USD)$413,413 $499,824
Other Revenues ($USD)$1,989 $2,549
Gross Revenues ($USD)$415,402 $502,373
Net Income (Loss) ($USD)($46,612) ($5,950)
Diluted EPS ($USD)($0.01) ($0.00)

Margins

MetricQ1 2013Q1 2014
Net Income Margin %(11.2%) (1.2%)

Notes: Net Income Margin % calculated using Net Income (Loss) divided by Gross Revenues; underlying values cited above .

Balance Sheet Highlights (Sequential)

MetricDec 31, 2013Mar 31, 2014
Cash and Cash Equivalents ($USD)$896,581 $681,952
Total Current Assets ($USD)$3,047,690 $3,036,170
Property & Equipment (net) ($USD)$31,372 $39,600
Total Assets ($USD)$3,128,744 $3,117,156
Total Current Liabilities ($USD)$69,011 $61,128
Long-term Debt-0- -0-
Stockholders’ Equity ($USD)$3,059,733 $3,056,028

Segment breakdown: Not disclosed in the press release .
KPIs: Shares outstanding were 5,158,667 in Q1 2014, unchanged YoY .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2014Not provided in prior materials Not provided in press release N/A
MarginsFY 2014Not provided in prior materials Not provided in press release N/A
OpExFY 2014Not provided in prior materials Not provided in press release N/A
OI&EFY 2014Not provided in prior materials Not provided in press release N/A
Tax RateFY 2014Not provided in prior materials Not provided in press release N/A
Segment GuidanceFY 2014Not provided in prior materials Not provided in press release N/A
DividendsFY 2014Not provided in prior materials Not provided in press release N/A

Note: The Q1 2014 press release did not include forward guidance commentary .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current PeriodTrend
AI/technology initiativesNot discussed in available materials Not discussed in the press release N/A
Supply chainNot discussed in available materials Not discussed in the press release N/A
Tariffs/macroNot discussed in available materials Not discussed in the press release N/A
Product performanceNot discussed in available materials Reported sales/gross revenues only; no qualitative detail N/A
Regional trendsNot discussed in available materials Not discussed in the press release N/A

Note: No earnings call transcript found in the document set; the 8-K contains the press release only .

Management Commentary

  • The Q1 2014 press release provides financial metrics but includes no prepared remarks or management quotes; contact information (Mike Eller) is provided for further inquiries .
  • No strategic messaging, operational highlights, or forward-looking statements were included in the press release .

Q&A Highlights

  • No Q&A available; no earnings call transcript found in the document set for Q1 2014 .

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2014 EPS and revenue was unavailable for ELST due to missing coverage/mapping; therefore, estimate comparisons cannot be made .

Key Takeaways for Investors

  • ELST delivered double-digit YoY growth in sales and gross revenues with a sharply narrowed net loss, indicating improved operating performance at a microcap scale .
  • Liquidity declined during the quarter, with cash down approximately 23.9% from year-end; monitoring cash trends remains critical given the company’s size .
  • Balance sheet remains clean with no long-term debt and reduced current liabilities, supporting flexibility despite near-term cash usage .
  • Absence of guidance and lack of a call/transcript limit visibility; follow-up with management may be needed to understand drivers of growth and sustainability .
  • Without consensus estimates, investor expectations are unanchored; narrative likely pivots on continued top-line momentum and further loss reduction .
  • Near-term trading may react to microcap liquidity dynamics and incremental disclosures; medium-term thesis hinges on sustaining demand for ESTeem wireless modems and operational leverage .

Sources: ELST 8-K Item 2.02 and Exhibit 99.1 press release dated May 8–9, 2014 .