Business
Optex Systems Holdings, Inc. Announces First Quarter of Fiscal Year 2020 Financial Highlights
RICHARDSON, TX / ACCESSWIRE / February 10, 2020 / 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 10, 2020 / Optex Systems Holdings, Inc. (OTCQB:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announced financial highlights for its first quarter of the 2020 fiscal year, which ended December 29, 2019.Danny Schoening, CEO of Optex Systems Holdings, Inc., commented, \"As mentioned in our Annual Shareholder Letter, our first quarter is typically the lowest of the year due to reduced production days and decreased government interactions during the holiday season. That said, solicitations and contract activity is high, supporting the continued government military spending. Our market position continues to be the strongest in our company history and we continue to see a strong path towards increases in revenue, gross margin, and earnings over the balance of the year.\"Schoening continued \"Based on our current backlog delivery projections, we are anticipating the highest revenue growth during the second half of the current fiscal year as we begin shipping in late March of this year against our 2018 Improved Commander Weapon Station (ICWS) contract award.\"Our three-month period ending December 29, 2019 was consistent with the prior year three-month period revenue, with slight improvements in gross margin and operating income on changes in product mix. Our backlog as of December 29, 2019 was $22.0 million, a decrease of (10.6%) from the $24.6 million reported as of September 29, 2019. We attribute the decreased backlog to timing of customer orders and contract awards which typically ramp up during the second through fourth fiscal quarters. In January 2020, Optex announced an order for $1.1 million and two new Indefinite Delivery, Indefinite Quantity (IDIQ) type contract awards for periscopes for a combined total of up to $5.9 million over a five-year period. IDIQ contract awards are reflected in backlog only to the extent that individual task orders have been released by the customer pursuant to contract pricing and agreed delivery schedules. We are expecting releases against these new contracts as well as our other existing IDIQ contracts in the near term.Our key performance measures for the three months ended December 29, 2019 and December 30, 2018 are summarized below.Three months ended(Thousands)Metric Dece...