Business
Optex Systems Holdings, Inc. Announces Financial Results For Three Months Ended January 1, 2023
RICHARDSON, TX / ACCESSWIRE / February 13, 2023 / Optex Systems Holdings, Inc. (OTCQB:OPXS), a leading manufacturer of precision optical sighting systems for
About this update from Optex Systems Holdings, Inc.
[{"type":"text","content":"RICHARDSON, TX / ACCESSWIRE / February 13, 2023 / Optex Systems Holdings, Inc. (OTCQB:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, today announced financial results for the three months ended January 1, 2023.Danny Schoening, CEO of Optex Systems Holdings, Inc., commented, \"As we've previously communicated, our first quarter is seasonally slower given the Government's procurement processes and fewer production days in the quarter. In addition, we continue to work through the supply chain issues we have previously highlighted. Despite these challenges, our backlog has continued to increase and our forecasted Q2-Q4 sales are anticipated to exceed our prior year's performance.\"For the three months ended January 1, 2023, our total revenues decreased by $0.3 million, or 6.9% compared to the prior year three months ended January 2, 2022.We have experienced significant material shortages during the three months ended October 2, 2022 and extending into the first three months of fiscal year 2023 from two significant suppliers of our periscope covers and housings. These shortages affect several of our periscope products at the Optex Richardson segment. The delays in key components, combined with labor shortages during the first quarter of fiscal year 2023 have negatively impacted our production levels and have pushed some expected delivery dates into the second and third quarters of fiscal 2023. We are aggressively seeking alternative sources for these components as well as increasing employee recruitment initiatives and overtime to attempt to mitigate any continuing risks to the periscope line. In addition, one of our major customers for the Applied Optics Center has requested a significant schedule delay, pushing their laser filter unit delivery schedules from the first half into the second half of fiscal year 2023.Consolidated gross profit for the three months ended January 1, 2023 decreased by $106 thousand, or 12.9%, compared to the prior year period. The decrease in profit was primarily attributable to a decrease in consolidated revenue across a relatively fixed direct overhead cost base, changes in revenue mix between the segments, and inflationary material and labor pressure against our long-term fixed price contracts.Operating income for the ...