Reduction in SKU Complexity
The company reduced the number of SKUs by 83% over the last 18 months, leading to improved efficiency in manufacturing and better demand planning.
Improved Financial Performance
Dialight generated $5.5 million in operating profit for the first half of the year, compared to $4.2 million for the full previous year, showing significant improvement.
Cash Generation and Debt Reduction
The company reduced its net debt from $24 million to $10.5 million by the end of the half, aided by a $13.9 million operating cash flow.
Increase in Gross Margin
Gross margin improved by 10 percentage points over the last two years, reaching 38% in the most recent half.
Resolution with Sanmina Corporation
Dialight settled its outstanding liability with Sanmina Corporation for $5.65 million, less than the expected $6 million.