Tel-Instrument Electronics reports Q2 financial results

Tel-Instrument Electronics Corp. (NYSE American: TIK), a designer and manufacturer of avionics test and measurement solutions, has reported a net loss of USD 2.9 million on revenues of USD 1.8 million for the second quarter of fiscal year 2018, the company said.

This loss included a USD 2.1 million accrual for punitive damages in the Aeroflex litigation. The company also announced the completion of a USD 3 million preferred stock financing that closed on November 14, 2017.

For the quarter ended September 30, 2017, total net sales decreased USD 3,288,864 (64.8%) to USD 1,787,165, as compared to USD 5,076,029 for the quarter ended September 30, 2016. Avionics government sales decreased USD 3,310,071 (76.3%) to USD 1,028,693 for the quarter ended September 30, 2017, as compared to USD 4,338,764 for the quarter ended September 30, 2016.

The decrease in sales is mostly attributed to the decrease in shipment of the US Army TS-4530A Kits and Sets, and the CRAFT and ITATS units associated with the US Navy programs, which contracts have now been completed. Commercial sales increased USD 21,207 (2.9%) to USD 758,472 for the quarter ended September 30, 2017 as compared to USD 737,265 for the quarter ended September 30, 2016. This increase is attributed to the increased sales of the TR-220 partially offset by a decrease in sales of the T-30D and lower part sales.

For the quarter ended September 30, 2017, total gross margin decreased USD 1,425,718 (78.1) to USD 399,870 as compared to USD 1,825,588 for the quarter ended September 30, 2016, primarily as a result of the much lower volume levels as well as labor and overhead variances as a result of the lower volume. The gross margin percentage for the three months ended September 30, 2017 was 22.4%, as compared to 36.0% for the three months ended September 30, 2016.

Tel-Instrument is a 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, visit website at www.telinstrument.com.