0001178913-26-002258
SEC filingRevenue grew 6.6% to $61.9M and gross margin improved to 30.6%, but operating losses persisted at -$12.3M due to elevated R&D and inventory buildup.
Revenue for fiscal 2025 increased 6.6% to $61.9 million from $58.1 million in fiscal 2024. The growth was primarily driven by increased orders from customers, reflecting the ramp of design wins secured in prior periods. The company expects that a small number of customers will continue to account for a significant portion of revenues for the foreseeable future, as design wins often lead to concentrated order volumes.
Operating loss narrowed 7.7% to -$12.3 million from -$13.3 million, but remained negative. The improvement was driven by higher gross profit, partially offset by increased operating expenses. Research and development spending rose, reflecting continued investment in new product development. Sales and marketing expenses decreased due to a reduction in headcount and lower costs, partially offset by foreign exchange impacts.
The company maintains a solid balance sheet with no long-term debt. The increase in inventory and accrued expenses, along with advances from customers, contributed to changes in working capital. Management continues to focus on operational efficiency and cost management to improve profitability.
Customer concentration remains a key risk, as a loss of a material design win could lead to a decrease in order volumes and harm financial results. The company expects that a small number of customers will continue to account for a significant portion of revenues. Forward-looking statements involve risks and uncertainties, and actual results may differ materially from expectations.