Quarterly Revenue Growth
Total revenue for Q4 was $7.65 million, a 5% increase year-over-year and a 23% increase sequentially, driven by stronger product sales and favorable semiconductor industry conditions.
Substantial Increase in Net Income and EPS
Net income for the quarter was $4.9 million, a 27% increase year-over-year, with diluted EPS of $1.02 vs. $0.80 in the prior-year quarter; described as the company's highest earnings since the chip shortages three years ago and sufficient to cover the $1.00 quarterly dividend.
Strong Product Sales, Especially Nondefense
Product sales increased (product sales +6% for the quarter overall), led by a 34% increase in nondefense product sales in the quarter, which more than offset declines in defense-related revenue.
Robust Profitability Metrics
High margins in the quarter: gross margin at 78% (vs. 79% prior-year quarter), operating margin 62%, pretax margin 68% and net margin 64%, indicating strong unit economics and profitability.
Strong Operating Cash Flow and Inventory Management
Cash flow from operations was $16.7 million for the fiscal year, a 16% increase vs. prior year, and cash flow exceeded net income by $1.5 million. Total inventories decreased 5%, driven by reductions in raw materials and WIP while finished goods were intentionally increased to support demand.
Completed Capacity Expansion and New Manufacturing Capabilities
Completed a multi-year expansion and placed the last major equipment cluster into service; fixed asset purchases of $2.19 million for the fiscal year increased capacity and enabled wafer-level chip-scale packaging with atomic-layer precision, positioning the company to support higher-volume and higher-performance products.
New Products and Market Development
Launched a new 0.65 mm wafer-level chip-scale sensor for medical and industrial applications, introduced high-performance TMR sensors, advanced R&D initiatives (next-gen MRAM, hearing-aid/medical sensors), secured a new distributor for isolators (Semitech), and generated leads from major trade shows (Medical Design & Manufacturing West, Sensors Converge, Sensor+Test).