Executive Summary

Q2 FY2025 net revenue was $38.204M, down 6.1% YoY; gross margin was 29.7% vs 30.3% YoY, and EPS was $0.42; operating income was $6.480M and net income $6.095M .
Backlog fell sharply to $27.8M from $50.4M YoY, while cash and marketable securities rose to $143.7M and working capital to $193.2M; the company remains debt-free .
Management did not provide explicit forward guidance; focus remains on market growth and manufacturing efficiency as the company navigates a more traditional market for the remainder of 2025 .
Post-print, press coverage indicated shares rose ~4% since the earnings release; catalysts cited include resilient margins and strong balance sheet despite backlog compression .

What Went Well and What Went Wrong

Gross margin held at 29.7% in Q2 despite higher material costs; SG&A and product engineering expenses fell on lower commissions and reduced headcount .
Net other income increased to $1.756M, supported by $598k gains on marketable securities and higher interest/dividend income, partially offsetting operational headwinds .
Strong liquidity with $143.7M cash and marketable securities; no short- or long-term debt; working capital improved to $193.2M .
Quote: “Although second quarter revenues were slightly lower, our overall six-month year-over-year performance attained approximately $70 million net revenue and $11 million in operating income, a marked increase over fiscal 2024.” — Marc Elliott, President .

Backlog declined to $27.8M from $50.4M YoY, signaling potential moderation in forward demand .
Revenue fell 6.1% YoY to $38.204M on lower point-in-time contract equipment sales and higher material costs pressured margins vs last year .
No explicit forward guidance was issued, adding uncertainty for near-term estimate anchoring .

Metric	Q4 FY2024	Q1 FY2025	Q2 FY2025
Revenue ($USD Millions)	$20.9	$31.416	$38.204
Gross Margin (%)	25.6%	27.6%	29.7%
Operating Income ($USD Millions)	$1.2	$4.624	$6.480
Net Income ($USD Millions)	$1.5	$3.817	$6.095
Diluted EPS ($USD)	—	$0.26	$0.42

Estimates vs Actual (Q2 FY2025)	Consensus	Actual
Revenue ($USD Millions)	N/A*	$38.204
Primary EPS ($USD)	N/A*	$0.42

Values with asterisk retrieved from S&P Global; consensus unavailable for this period.

Segment breakdown

KPIs

KPI	Q4 FY2024	Q1 FY2025	Q2 FY2025
Backlog ($USD Millions)	$56.2 (as of Dec 1, 2024)	$54.4 (as of Dec 31, 2024)	$27.8 (as of Mar 31, 2025)
Cash + Marketable Securities ($USD Millions)	$115.4	$130.1	$143.7
Working Capital ($USD Millions)	$182.2	$186.5	$193.2
Inventory ($USD Millions)	$63.762	$59.668	$55.092
Accounts Receivable ($USD Millions)	$1.980	$3.596	$5.155
Contract Assets ($USD Millions)	$9.339	$7.921	$4.380
Debt	None	None	None

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025	—	None provided	Maintained “no guidance”
Gross Margin	FY2025	—	None provided	Maintained “no guidance”
OpEx	FY2025	—	None provided	Maintained “no guidance”
Tax Rate	FY2025	—	Not guided; Q2 effective rate 26.0% reported	—
Dividends	FY2025	—	None mentioned	—

Note: The company did not issue explicit forward guidance in the Q2 materials; where “—” appears, guidance was not disclosed.

Topic	Previous Mentions (Q4 FY2024)	Previous Mentions (Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Tariffs/Macro/Geopolitics	Cited as risk factors potentially disrupting supply chain and raising costs	Reiterated macro risks and SEC filing compliance timing uncertainties	Continued caution re tariffs, conflicts, supply chain impacts	Persistent caution
Backlog/Demand	Backlog $56.2M supports 1H FY2025 demand	Backlog $54.4M; demand steady	Backlog fell to $27.8M; demand appears moderated	Deteriorating
Mix/Margins	FY2023 benefited from parts; FY2024 Q4 margin softened on aftermarket competition	Gross margin 27.6%; mix shift with less parts	Gross margin 29.7% despite higher material costs	Mixed but resilient
Market Growth & Efficiency	Optimistic FY2025 outlook; focus on market growth	—	Focus on market growth and improved manufacturing efficiency	Continuing
IIJA Tailwind	Benefits from infrastructure funding highlighted	—	—	Stable tailwind
Listing Compliance	Late filing notice/cure plan; NYSE accepted plan	—	Regained compliance; removed from NYSE late filers’ list	Resolved

“Although second quarter revenues were slightly lower, our overall six-month year-over-year performance attained approximately $70 million net revenue and $11 million in operating income, a marked increase over fiscal 2024. As we enter a more traditional market for the remainder of 2025, we will continue to focus on our mission of market growth, and improved manufacturing efficiency while delivering high quality products and services to our customers.” — Marc Elliott, President .
“Our 7.7% year-over-year revenue growth reflected our upward trajectory and solid path forward as we continued to reap the benefits of the IIJA infrastructure funding… Looking forward we remain optimistic for fiscal 2025 as we continue to focus on our mission of market growth while delivering high quality products and services to our customers.” — Marc Elliott, President (FY2024 release) .

No earnings call transcript was available for Q2 FY2025 within company documents; Q&A highlights are not applicable based on accessible sources.

S&P Global consensus for Q2 FY2025 was unavailable for both revenue and EPS; actuals were revenue $38.204M and EPS $0.42. Coverage appears limited for this micro-cap issuer.
Given the lack of explicit guidance and limited analyst coverage, near-term estimates may need to lean on backlog, margin trajectory, and balance sheet strength.

Values retrieved from S&P Global.

Gross margin resilience: 29.7% despite higher material costs; operating income $6.480M and EPS $0.42 in Q2 .
Backlog contraction to $27.8M is the principal watch item; forward demand visibility has narrowed YoY .
Liquidity robust: $143.7M in cash and marketable securities; working capital $193.2M; no debt — ample capacity to navigate cycles and invest .
Inventory normalization to $55.1M and lower contract assets reflect shipment timing and contract progress; accounts receivable climbed to $5.155M .
No explicit guidance — traders should watch near-term orders/backlog updates and margin mix (parts vs contract) for estimate recalibration .
Compliance risk resolved: the company regained NYSE American listing compliance and was removed from late filers’ list, removing an overhang .
Near-term trading: potential for positive reaction tied to strong margins/liquidity; medium-term thesis hinges on demand normalization and rebuilding backlog while sustaining margin discipline .