Business
TechPrecision Corporation Reports Fiscal 2020 Financial Results
Improved profit margins expected in Fiscal 2021WESTMINSTER, MA / ACCESSWIRE / June 11, 2020 / TechPrecision Corporation (OTCQB:TPCS) ("TechPrecision" or "the
About this update from Techprecision Corporation
[{"type":"text","content":"Improved profit margins expected in Fiscal 2021WESTMINSTER, MA / ACCESSWIRE / June 11, 2020 / TechPrecision Corporation (OTCQB:TPCS) (\"TechPrecision\" or \"the Company\"), an industry-leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today reported financial results for the fourth quarter and full year ended March 31, 2020.Fiscal 2020 full year sales were $16.0 million compared to $16.7 million in fiscal 2019. Fourth quarter fiscal 2020 net sales were $4.9 million compared to $4.7 million for the fourth quarter of fiscal 2019. The Company recorded a net loss of $342,000 in fiscal 2020, compared to net income of $1.1 million in fiscal 2019. Fourth quarter fiscal 2020 net income was $48,000 compared to net income of $538,000 in the same quarter a year ago.\"As we discussed at the end of the previous quarter, increased loss provisions of $1.0 million due to learning-curve challenges on a limited number of new projects had an unfavorable impact on fiscal 2020 results,\" stated Alexander Shen, TechPrecision's Chief Executive Officer. \"A number of these units have now been completed, and we expect improved margins going forward as the remaining of these projects approach completion, their costs stabilize, and additional profitable projects come on-line during FY 2021.\"\"In addition, we recorded a $495,000 loss provision in March 2020 for a settlement with former employees in connection with a civil action to recover lost wages under a paid time-off program,\" added Mr. Shen. \"We agreed to settle the claims to avoid the expense and uncertainty of future litigation. The Company will be released from all claims raised in this litigation once the court approves the settlement.\"\"The Company's sales order backlog was $16.8 million on March 31, 2020 compared to $12.6 million the year prior, as approximately $20.1 million of additional orders were booked over the full year of fiscal 2020,\" stated Mr. Shen. \"We continue to replenish backlog and we believe this will provide for a steady revenue stream and profitable margins in fiscal 2021.\"Financial PositionAt March 31, 2020, TechPrecision had $931,000 in cash and cash equivalents. Working capital was $5.6 million compared to working capital of $6.3 million a...