Business
Optex Systems Holdings, Inc. Announces Period Ended March 28, 2021 Financial Highlights
RICHARDSON, TX / ACCESSWIRE / May 7, 2021 / 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 / May 7, 2021 / 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 three and six-month period ended March 28, 2021.During the three and six months ended March 28, 2021, revenue decreased from our prior year period by $2.7 million and $4.1 million, or 38.9% and 32.1%, and gross margin decreased from our prior year period by $1.2 million and $1.9 million, or 76.7% and 60.7%, respectively, Operating income for the three and six-month period ended March 28, 2021 decreased by $1.2 million and $1.8 million, to a ($0.4) million and ($0.3) million loss, from income of $0.8 million and $1.5 million during the prior year period, respectively.The decrease in gross margin and operating profit during the three and six-month periods are primarily attributable to lower revenue and unfavorable manufacturing overhead on reduced production volume. Our operating segments have substantial fixed manufacturing costs that are not easily adjusted as production levels decline. We have implemented several cost-saving initiatives during the first half, including reductions in force and employee compensation combined with decreases in other discretionary spending. We anticipate the margins will improve as revenues increase and the impact of the first half cost reductions are fully realized.As of March 28, 2021, the Company had working capital of $11.5 million, as compared to $11.7 million as of September 27, 2020. During the six months, we generated operating cash flow of $0.1 million, and spent $0.7 million for the purchase of 374,934 shares against our previously announced stock repurchase plan. We ended the quarter with a strong cash balance of $3.9 million as compared to $4.7 million as of the fiscal year end 2020. As of March 28, 2021, the Company had an outstanding payable balance of $0.4 million against our working line of credit. The line of credit allows for borrowing up to a maximum of $2.25 million. As of March 28, 2021, our outstanding accounts receivable was $2.0 million.Danny Schoening, CEO of Optex Systems Holdings, Inc., commented, \"During this period of reduced activity from our customer base Optex has taken the appropriate actions to correlate spending wit...