Executive Summary

Q1 2015 revenue was $449.9k, down ~10% YoY from $499.8k; net loss was $(7.6)k vs $(6.0)k YoY, while pre-tax loss widened to $(89.5)k, implying a sizable tax benefit that narrowed the bottom-line loss .
Sequentially vs Q3 2014, revenue improved (Q1’15 $449.9k vs Q3’14 $380.4k) and the net loss narrowed sharply (Q1’15 $(7.6)k vs Q3’14 $(93.8)k) .
Balance sheet remains clean: cash $545.8k, no long-term debt as of March 31, 2015; equity $2.92M .
No formal guidance and no earnings call; Wall Street consensus (S&P Global) was not available for ELST, limiting estimate-based beats/misses analysis .

What Went Well and What Went Wrong

What Went Well

Sequential topline and bottom-line improvement: revenue rose to $449.9k from $380.4k in Q3’14, and net loss narrowed to $(7.6)k from $(93.8)k .
Solid balance sheet with no long-term debt and $545.8k in cash at quarter-end, supporting liquidity while the company operates near breakeven at the net income line .
Shares outstanding stable at 5.16M, limiting dilution risk for existing holders .

What Went Wrong

YoY decline: revenue fell from $499.8k in Q1’14 to $449.9k in Q1’15; gross revenues similarly fell from $502.4k to $452.6k .
Pre-tax performance deteriorated: pre-tax loss widened to $(89.5)k from $(6.2)k YoY, even though net loss stayed roughly flat—implying a material tax benefit this quarter .
Absent guidance and no earnings call or extended commentary reduce transparency on demand drivers, pipeline visibility, or cost actions .

Financial Results

Income Statement (selected)

Metric	Q1 2014	Q3 2014	Q1 2015
Revenue (Sales, $)	$499,824	$380,408	$449,872
Gross Revenues ($)	$502,373	N/A	$452,629
Net Income (Loss, $)	$(5,950)	$(93,804)	$(7,600)
Net Income (Loss) Before Tax ($)	$(6,190)	$(96,464)	$(89,451)
Diluted EPS ($)	$(0.00)	$(0.02)	$(0.00)
Weighted Avg Shares (basic/diluted)	5,158,667	5,158,667	5,158,667

Notes:

YoY revenue declined and pre-tax loss widened; sequential revenue and net income improved versus Q3’14 .
No S&P Global consensus estimates were available for ELST this quarter; estimate comparison is not presented.

Balance Sheet Snapshot

Metric	Dec 31, 2014	Mar 31, 2015
Cash & Cash Equivalents ($)	$637,086	$545,767
Total Current Assets ($)	$2,871,245	$2,793,464
Property & Equipment, net ($)	$91,907	$96,557
Total Assets ($)	$3,047,553	$2,924,622
Total Current Liabilities ($)	$87,365	$61,486
Long-term Debt ($)	-0-	-0-
Stockholders’ Equity ($)	$2,960,188	$2,924,622

No segments or additional KPIs were provided in the company’s Q1 2015 release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	Q2 2015 and FY 2015	None issued	None issued	Maintained (no formal guidance)

No guidance was issued in the Q1 2015 press release, and no call transcript or supplemental materials were available to indicate changes .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2014, Q3 2014)	Current Period (Q1 2015)	Trend
Revenue trajectory	Q1’14 sales $499.8k; Q3’14 sales $380.4k, negative YoY in Q3	Q1’15 sales $449.9k; down YoY, up vs Q3’14	Mixed: YoY down, sequentially up
Profitability	Q1’14 net loss $(6.0)k; Q3’14 net loss $(93.8)k	Q1’15 net loss $(7.6)k; pre-tax loss widened YoY	Bottom line near breakeven; pre-tax deterioration YoY
Commentary/visibility	No call/limited narrative in releases	No call/limited narrative	Unchanged: limited disclosure
Balance sheet	No debt noted; stable shares	No debt; cash $545.8k; shares flat	Stable liquidity/capital structure

No AI/technology initiatives, supply chain, tariff/macro, or regulatory themes were discussed in available materials; disclosures were limited to financial summaries .

Management Commentary

The Q1 2015 communication was a brief press release announcing sales and results “for the three month period ending March 31, 2015,” without qualitative commentary on demand, cost actions, or outlook .
No prepared remarks beyond tabular financials; no strategic updates or product commentary were provided in the release .

Important quotes:

“today announced sales and results of operations for the three month period ending March 31, 2015.”

Q&A Highlights

No earnings call transcript or Q&A was available for Q1 2015 [List: 0 transcripts found]. The company did not provide a forum for additional guidance or clarifications beyond the press release .

Estimates Context

S&P Global/Capital IQ consensus estimates were not available for ELST for Q1 2015 at the time of this analysis, so we cannot assess beats/misses versus Street expectations. This is consistent with limited micro-cap coverage and the absence of an earnings call .

Key Takeaways for Investors

Topline declined YoY but improved sequentially; sustaining sequential gains will be key to returning to consistent profitability .
The sharp widening in pre-tax loss YoY versus a near-flat net loss suggests a material tax benefit; underlying pre-tax performance needs monitoring .
Liquidity appears adequate for current scale (cash $545.8k, no long-term debt), providing a cushion while the company seeks demand recovery .
Lack of guidance and no call constrain visibility; investors should look for subsequent quarter updates (orders, pipeline, or product catalysts) to gauge trajectory .
With shares stable and no leverage, incremental changes in revenue can have outsized impact on quarterly net income; execution on sales could quickly move results positive .
In the absence of Street estimates, trading may be driven by absolute progress (sales growth, pre-tax profitability) and any future disclosures that improve visibility .
Near term: watch for consecutive quarters of revenue growth and evidence that pre-tax losses narrow without reliance on tax benefits; medium term: assess whether cost structure and product positioning can support breakeven-to-positive operating results at current revenue levels .

ELECTRONIC SYSTEMS TECHNOLOGY INC (ELST)·Q1 2015 Earnings Summary