Executive Summary

Q4 FY2025 was mixed: net sales fell 22% YoY to $3.13M while bookings surged 301% to $8.92M, driving backlog up 62% YoY to $18.11M; the company posted a net loss of $0.37M ($-0.18/sh) amid lower beginning backlog and increased rework in the quarter .
Management flagged a near-term air pocket with “soft revenues” expected in Q1 FY2026, improvement late in Q2 FY2026, and a steadier run-rate by Q3 FY2026; bookings are expected to lag sales in coming quarters despite robust end-market commentary for AMRAAM and HIMARS .
Preliminary April update guided a Q4 loss of ~$0.1–$0.2M; the final Q4 net loss was larger at $0.37M, reflecting revenue softness and additional items (including a $0.1M inventory reserve noted in the preliminary update) .
No Wall Street consensus was available for Q4 FY2025 (thin coverage). We anchor on company-reported figures and S&P Global confirms the absence of consensus for EPS and revenue (consensus unavailable; values retrieved from S&P Global)*.

What Went Well and What Went Wrong

What Went Well
- Bookings momentum: “Net bookings increased 301% to $8.92 million” in Q4, boosting backlog to $18.11M (+62% YoY), positioning future revenue conversion when production schedules normalize .
- Defense program demand tailwinds: “We continue to see positive comments related to future production levels for both the AMRAAM and HIMARS programs,” including RTX noting AMRAAM production “scheduled to double in calendar year 2025,” and a HIMARS follow-on award likely driving supplemental orders in coming quarters .
- New product pipeline: “We continue to see increased interest in new product development, including silicon carbide,” with prototypes in customer testing—potential incremental revenue streams longer term .
What Went Wrong
- Revenue and margin compression: Q4 net sales declined 22% YoY to $3.13M; gross profit fell to $0.58M and operating income swung to a $(0.17)M loss as lower opening backlog and rework pressured conversion and mix .
- Final results below preliminary loss range: preliminary Q4 net loss guided to ~$0.1–$0.2M; final Q4 net loss was $(0.37)M (additional drags beyond the inventory reserve cited in the preliminary update) .
- Quality/supply disruptions earlier in FY2025: a plating supplier issue in Q2 drove scrapping of >2,000 parts, depressing revenue and inflating costs; while Q3 improved, Q4 also saw “increased level of rework,” highlighting execution risk in the near term .

Financial Results

Metric	Q4 FY2024 (Feb 29, 2024)	Q2 FY2025 (Aug 31, 2024)	Q3 FY2025 (Nov 30, 2024)	Q4 FY2025 (Feb 28, 2025)
Revenue ($M)	$4.004	$3.581	$3.369	$3.131
Gross Profit ($M)	$1.226	$0.738	$1.001	$0.577
Gross Margin (%)	30.6% (calc from $1.226/$4.004)	20.6% (calc from $0.738/$3.581)	29.7% (calc from $1.001/$3.369)	18.4% (calc from $0.577/$3.131)
Operating Income ($M)	$0.368	$0.050	$0.326	$(0.171)
Net Income ($M)	$5.685 (non-recurring gains in FY2024)	$0.017	$0.266	$(0.374)
Diluted EPS ($)	$2.73	$0.01	$0.13	$(0.18)

Notes: FY2024 benefited from a $2.24M bargain purchase gain and a $3.02M tax valuation allowance release; Q4 FY2025 margin pressure driven by lower opening backlog and increased rework .

KPIs and Backlog/Bookings

KPI	Q4 FY2024	Q2 FY2025	Q3 FY2025	Q4 FY2025
Bookings ($M)	$2.23	$1.75	$8.05	$8.92
Backlog ($M, period-end)	$11.21	$7.57	$12.28	$18.11
Book-to-Bill (x)	0.56x (calc $2.23/$4.004)	0.49x (calc $1.75/$3.581)	2.39x (calc $8.05/$3.369)	2.85x (calc $8.92/$3.131)

Estimates vs. Actuals (Q4 FY2025)

Metric	Consensus	Actual
Revenue ($M)	N/A*	$3.131
EPS ($)	N/A*	$(0.18)

*Values retrieved from S&P Global.

Guidance Changes

Metric/Topic	Period	Previous Guidance/Commentary	Current Guidance/Commentary	Change
Revenue cadence	FY2026 Q1–Q3	None	“Soft revenues in Q1 FY2026… sales to pick up at the end of Q2… steadier level in Q3”	Introduced qualitative outlook
Bookings outlook	4Q CY2024 to FY2025	On Oct 15, 2024: expected $7–$12M bookings by calendar year-end (incl. potential end-of-life order)	Q4 FY2025 bookings $8.92M; FY2025 bookings $20.76M; next few quarters bookings expected to lag sales	Achieved within range; updated trajectory (bookings lag)
Defense program demand (AMRAAM/HIMARS)	CY2025–next few quarters	None	RTX CEO said AMRAAM production “scheduled to double in CY2025”; HIMARS follow-on award implies supplemental orders in next few quarters; strong foreign demand	Positive end-market outlook added
Quality/operations	Near term	Q2 issue with plating supplier drove scrappage of >2,000 parts	Q4 cited “increased level of rework”; near-term execution focus	Continued operational scrutiny

Earnings Call Themes & Trends

No earnings call transcript was available for Q4 FY2025. Themes below synthesize company disclosures across Q2–Q4 FY2025.

Topic	Previous Mentions (Q2, Q3 FY2025)	Current Period (Q4 FY2025)	Trend
Supply chain/quality	Q2: plating supplier issue causing scrapping of >2,000 parts; Q3: operational recovery, adjusted OI view	“Increased level of rework” affected Q4; lower beginning backlog constrained revenue	Stabilizing but execution-sensitive
Bookings/backlog	Q2: bookings down; expected large orders; Q3: bookings $8.05M, backlog $12.28M	Bookings $8.92M; backlog $18.11M; bookings to lag sales near term	Bookings surge; conversion timing shifts
Defense program demand	Limited prior specificity; expectation for orders from largest programs	AMRAAM doubling in CY2025 per RTX; HIMARS follow-on award supports supplemental orders; strong foreign demand	Strengthening end-market signals
New products (SiC)	Interest, prototypes in testing (Q2/Q3)	Continued interest; optimism for added revenue sources	Steady progress
Macro/government	Risk disclosures around spending, Ukraine, rates (Q2/Q3)	Similar risk framing in Q4 release	Unchanged risk posture

Management Commentary

“We expect soft revenues in the first quarter of fiscal year 2026… and for sales to pick up at the end of the fiscal second quarter, before reaching a steadier level in the fiscal third quarter.”
“We continue to see positive comments related to future production levels for both the AMRAAM and HIMARS programs. The CEO of RTX recently stated that AMRAAM production was scheduled to double in calendar year 2025… HIMARS continues to perform well in Ukraine… Lockheed was just awarded a follow-on contract… which should lead to a supplemental order within the next few quarters.”
“We continue to see increased interest in new product development, including silicon carbide. We have developed various prototypes for testing by potential customers and continue to be optimistic about creating additional revenue sources.”
Q2 operational disruption: “An issue with a plating supplier… resulted in fully reserving over 2,000 parts… scrapping the parts caused a loss of revenue while incurring the cost…”
Q4 operational note: revenue decline “primarily due to… lower backlog at the beginning of the fiscal 2025 third quarter… along with an increased level of rework in the fourth quarter” (April preliminary update) .

Q&A Highlights

No analyst Q&A was available for Q4 FY2025. Company disclosures clarified:

Preliminary to final delta: final Q4 net loss ($0.37M) larger than preliminary loss range (~$0.1–$0.2M), consistent with revenue softness and rework/inventory reserve commentary .
Near-term revenue cadence and bookings-to-sales timing as the key drivers for FY2026 Q1–Q3 .

Estimates Context

S&P Global shows no consensus for Q4 FY2025 EPS or revenue; the company appears thinly covered by the Street. We therefore benchmark to reported results (consensus unavailable; values retrieved from S&P Global)*.
Implication: Estimate revisions are unlikely to be a near-term catalyst; stock likely trades on order/backlog disclosures and defense production updates rather than “beat/miss” optics .