Tel-Instrument Electronics Corp. (“Tel-Instrument,” “TIC,” or
the “Company”) (OTCQB: TIKK), a leading designer and manufacturer
of avionics test and measurement solutions, today reported a net
income of $342K on revenues of $8.8 million for the 2024 fiscal
year ended March 31, 2024.
Highlights include:
- Revenues for the fiscal year ended March 31, 2024, increased
$178K, or 2%, versus the prior fiscal year.
- Gross margin for the 2024 fiscal year was 46.6%, or 11.3
percentage points increase over the prior fiscal year.
- Operating expenses decreased by $666K, or 17% year-over-year,
due primarily to client funded engineering projects.
- Operating income was $737K as compared to an operating loss of
$898K in the prior fiscal year.
- Net income was $342K, compared to a net loss of $388K in the
prior fiscal year.
- Working capital increased $1.2 million or 39% to $4.3 million
as compared to the prior fiscal year.
- Backlog increased $640K from the prior year end to $7.2 million
as of March 31, 2024.
- Recent receipt of Airbus order for SDR/OMNI.
Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO
commented, “The 2024 fiscal year was very difficult due to parts
shortages that significantly impacted production. This parts
procurement issues are gradually easing, and we expect strong
growth in fiscal year 2025. We are extremely excited by the
prospects of the SDR-OMNI and the SDR-OMNI/MIL. We were pleased
that Airbus selected our SDR-OMNI test set for use in its
world-wide manufacturing operations after an extensive technical
evaluation. We are even more excited about the prospects for the
SDR-OMNI/MIL which has the potential to replace thousands of
obsolete test sets currently in use by the U.S. military. The
SDR-OMNI and SDR-OMNI/MIL are the only multi-purpose avionic test
set in the market that meets Class 1 military environmental
specification. We are confident that these two multi-purpose test
sets provide market leading capabilities. We are also introducing a
GPS simulator software application this summer.
The CRAFT ECP contract will be critical for the Company as this
is expected to generate five million dollars of annual production
revenues, starting when the engineering work is completed. TIC
successfully completed the Test Readiness Review (“TRR”) in April
2024. The next major milestone is the Production Readiness Review
that is scheduled for later this year. We expect to start shipping
upgraded Navy production units in the fourth quarter of FY
2025.
The Lockheed Martin F-35 MADL Test Set development program has
been completed. We are currently in negotiations to supply up to
119 MADL test sets this year.
About Tel-Instrument Electronics
Corp.
Tel-Instrument is a leading designer and manufacturer of
avionics test and measurement solutions for the global commercial
air transport, general aviation, and government/military aerospace
and defense markets. Tel-Instrument provides instruments to test,
measure, calibrate, and repair a wide range of airborne navigation
and communication equipment. For further information please visit
our website at www.telinstrument.com.
This press release includes statements that are not historical
in nature and may be characterized as “forward-looking statements,”
including those related to future financial and operating results,
benefits, and synergies of the combined companies, statements
concerning the Company’s outlook, pricing trends, and forces within
the industry, the completion dates of capital projects, expected
sales growth, cost reduction strategies, and their results,
long-term goals of the Company and other statements of
expectations, beliefs, future plans and strategies, anticipated
events or trends, and similar expressions concerning matters that
are not historical facts. All predictions as to future results
contain a measure of uncertainty and, accordingly, actual results
could differ materially. Among the factors which could cause a
difference are: changes in the general economy; changes in demand
for the Company’s products or in the cost and availability of its
raw materials; the actions of its competitors; the success of our
customers; technological change; changes in employee relations;
government regulations; litigation, including its inherent
uncertainty; difficulties in plant operations and materials;
transportation, environmental matters; and other unforeseen
circumstances. A number of these factors are discussed in the
Company’s previous filings with the U.S. Securities and Exchange
Commission. The Company disclaims any intention or obligation to
update any forward-looking statements as a result of developments
occurring after the date of this press release. The safe harbor for
forward-looking statements contained in the Securities Litigation
Reform Act of 1995 (the “Act”) protects companies from liability
for their forward-looking statements if they comply with the
requirements of the Act.
TEL-INSTRUMENT ELECTRONICS
CORP.
Consolidated Balance
Sheets
Audited
ASSETS
March 31, 2024
March 31, 2023
Current assets:
Cash
$
132,013
$
3,839,398
Accounts receivable, net
1,110,548
900,881
Inventories, net
5,411,644
3,586,065
Restricted cash to support appeal bond
-
2,011,083
Prepaid expenses and other current
assets
214,161
817,625
Total current assets
6,868,366
11,155,052
Equipment and leasehold improvements,
net
73,195
85,167
Operating lease right-of-use assets
1,324,463
1,526,551
Deferred tax asset, net
2,450,657
2,627,935
Other assets
35,109
35,109
Total assets
$
10,751,790
$
15,429,814
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Line of credit
$
690,000
$
690,000
Operating lease liabilities - current
portion
210,111
202,087
Accounts payable
1,276,935
322,582
Deferred revenues - current portion
72,803
123,117
Accrued expenses - vacation pay, payroll
and payroll withholdings
248,713
240,034
Accrued legal damages
-
6,360,698
Accrued expenses - other
120,027
157,896
Total current liabilities
2,618,589
8,096,414
Operating lease liabilities –
long-term
1,114,352
1,324,464
Other long term liabilities
45,501
53,416
Deferred revenues – long-term
119,721
173,883
Total liabilities
3,898,163
9,648,177
Commitments and contingencies
Stockholders’ equity
Preferred stock, 1,000,000 shares
authorized, par value $0.10 per share
Preferred stock, 500,000 shares 8%
Cumulative Series A Convertible Preferred
authorized, issued and outstanding,
respectively par value $0.10 per share
4,115,998
3,875,998
Preferred stock, 320,000 shares 8%
Cumulative Series B Convertible Preferred
authorized; 233,334 and 166,667 issued and
outstanding, par value $0.10 per share
1,704,701
1,207,367
Preferred stock, 166,667 shares 8%
Cumulative Series C Convertible Preferred
authorized; 53,500 and 0 issued, and
outstanding, par value $0.10 per share
335,215
-
Common stock, 7,000,000 shares authorized,
par value $.10 per share,
3,255,887 and 3,255,887 shares issued and
outstanding, respectively
325,586
325,586
Additional paid-in capital
6,379,085
6,721,535
Accumulated deficit
(6,006,958
)
(6,348,849
Total stockholders’
equity
6,853,627
5,781,637
Total liabilities and stockholders’
equity
$
10,751,790
$
15,429,814
TEL-INSTRUMENT ELECTRONICS
CORP.
Consolidated Statements of
Operations
Audited
For the years ended March
31,
2024
2023
Net sales
$
8,809,087
$
8,631,157
Cost of sales
4,791,734
5,582,407
Gross margin
4,017,353
3,048,750
Operating expenses:
Selling, general and administrative
2,114,945
2,098,684
Litigation expenses
9,870
33,988
Engineering, research, and development
1,155,750
1,814,198
Total operating expenses
3,280,565
3,946,870
Income (loss) from operations
736,788
(898,120
)
Other income (expense):
Interest income
24,642
17,188
Interest expense
(70,086
)
(157
)
Interest expense – judgment
(198,535
)
(263,425
)
Other income, net
27,025
627,832
Total other (expense) income
(216,954
)
381,438
Income (loss) before income taxes
519,834
(516,682
)
Provision (benefit) for income taxes
177,943
(128,137
)
Net income (loss)
341,891
(388,545
)
Preferred dividends
(351,549
)
(320,000
)
Net loss attributable to common
shareholders
$
(9,658
)
$
(708,545
)
Basic loss per common share
$
(0.00
)
$
(0.22
)
Diluted loss per common share
$
(0.00
)
$
(0.22
)
Weighted average number of shares
outstanding
Basic and Diluted
3,255,887
3,255,887
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Pauline Romeo Tel-Instrument Electronics Corp. (201) 933-1600
(Ext 309)