Q1 2024 Earnings Summary
Reported on May 14, 2024 (After Market Close)
Pre-Earnings Price$1.40Last close (May 14, 2024)
Post-Earnings Price$1.21Open (May 15, 2024)
Price Change
$-0.19(-13.57%)
- Strong Revenue Growth: TSSI's first quarter revenue increased by 142% from $6.6 million in Q1 2023 to $15.9 million in Q1 2024. This significant growth indicates strong business momentum.
- Improved Profitability: The company shifted from an operating loss of $665,000 in Q1 2023 to an operating income of $253,000 in Q1 2024, an improvement of $918,000. Net income also improved from a net loss of $786,000 to a positive $15,000.
- Positioned for AI Market Growth: TSSI is experiencing increased demand for its rack integration services driven by the growing AI computing market. The company is expanding its production capacity up to at least 10 times the current volume to meet this demand. This positions TSSI well for continued growth in the rapidly expanding AI sector.
- Declining Gross Profit Margin: The company's gross profit margin decreased to 17% in Q1 2024 from 26% in Q1 2023, indicating potential pressure on profitability and possible increased costs or pricing challenges [0].
- Increased Interest Expenses: Net interest expense nearly doubled to $228,000 in Q1 2024 from $112,000 in Q1 2023 due to financing large transaction receivables in the procurement business. This rise in interest expense could negatively impact net income [0].
- Reduction in High-Margin Businesses: Revenues from the systems integration business decreased by $0.5 million compared to Q1 2023, and the gross profit margin is influenced by the revenue mix. A decline in higher-margin segments could affect overall profitability [0].
- No Available Data
Q: Can you provide details from TSSI's earnings call Q&A?
A: The documents do not contain information on TSSI's earnings call Q&A, so I am unable to provide the requested summary.
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