Highway Holdings Reports Strong Fiscal 2022 Third Quarter and Nine-Month Results

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[{"type":"text","content":" HONG KONG--(BUSINESS WIRE)--\nHighway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal 2022 third quarter and nine months ended December 31, 2021 – reflecting strong year-over-year improvement for both periods, despite the ongoing impact of COVID-19 and supply chain and delivery challenges.\n\nNet sales for the fiscal 2022 third quarter increased by 18 percent to $3.0 million from $2.5 million a year ago. Net income for the same period climbed almost three times to $240,000, or $0.06 per diluted share, from $84,000, or $0.02 per diluted share, in the same quarter a year earlier.\n\nFor the nine months, net sales increased by 28 percent to $9.4 million from $7.3 million a year ago. For the same period, net income climbed sharply to $812,000, or $0.19 per diluted share, from $90,000, or $0.02 per diluted share, a year earlier.\n\n“Results for the quarter continued to be impacted by the ongoing global effects of COVID-19. In addition, trade-related issues involving China, the United States and Australia contributed to industry-wide supply chain and raw material challenges. These factors affected the business of our existing customers and caused the delay in commencing the manufacture of a new customer’s products. Production for a new electronic product, as previously reported, was delayed by almost one year due to shortage of electronic components, and we were finally able to commence the first production run during the previous two quarters. Initial orders have now been shipped and delivered. The situation was further compounded by delivery backlogs at U.S. ports,” said Roland Kohl, president and chief executive officer of Highway Holdings.\n\n“Despite the military coup in Myanmar, our factory in that country has been operating smoothly during past two quarters. In fact, there have been fewer issues at our Myanmar facility due to the availability of materials and other Covid-related constraints that have impacted our operations in China,” Kohl added.\n\nGross margin as a percentage of sales for the three months ended December 31, 2021 decreased to 28.6 percent from 34.1 percent a year earlier. Gross margin as a percentage of sales for the nine months was 30.8 percent compared with 31.7 percent last year.\n\nSelling, general and administrative expenses decreased for the quarter by $178,000 and by $129,000 for t...

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