Revenue Performance:
- Total revenue fell by 10% year-over-year (YoY) and 16.03% quarter-over-quarter (QoQ) to $6,104,644.
- Product sales decreased by 11%, largely due to variabilities in defense contracts, indicating reliance on these contracts poses revenue risks.
- Contract R&D revenue grew by 17%, indicating diversification as a key strategy to mitigate fluctuations in product sales.
Profitability Metrics:
- Gross profit margin declined to 81% from 86% YoY due to a shift towards lower-margin products and increased distributor sales.
- Operating income stood at $3,783,250, maintaining an operating margin of 62%, which reflects solid operational management despite revenue challenges.
- Net income of $3,575,818 shows a 13% decline YoY but remains healthy as reflected in a net margin of 59%.
Cash Flow Insights:
- Operating cash flow remained healthy at $5,190,660, comfortably exceeding the dividend payout of $4,837,166, highlighting liquidity adequacy.