SCI Engineered Materials, Inc. reported total revenue of $22.87 million for the fiscal year ending December 31, 2024, a decrease of 18.3% from $27.98 million in 2023. The decline in revenue was primarily attributed to lower costs of a key raw material, particularly in the third quarter of 2024, along with a shift in product mix and a slight decrease in volume. Despite the drop in revenue, the company achieved a gross profit of $5.07 million, down from $5.25 million in the previous year, while gross margin improved to 22.2% from 18.8% due to favorable raw material costs.
Operating expenses increased to $3.02 million in 2024 from $2.76 million in 2023, driven by higher compensation costs and professional fees. The company reported income from operations of $2.04 million, down from $2.49 million in the prior year. Net income for 2024 was $1.86 million, compared to $2.19 million in 2023, reflecting the impact of lower gross profit and increased expenses, although this was partially offset by higher interest income.
In terms of strategic developments, SCI Engineered Materials has focused on niche markets that leverage its expertise in custom powder solutions, including applications for defense personnel and first responders. The company has also made investments in new product initiatives, such as conductive metal oxides for sputtering applications, and continues to enhance its manufacturing capabilities. As of December 31, 2024, the company maintained a stable workforce of 23 full-time employees, consistent with the previous year.
The company’s largest customer accounted for approximately 74% of total revenue in 2024, down from 78% in 2023, indicating a slight diversification in its customer base. SCI Engineered Materials is actively pursuing geographic expansion and enhancing its marketing reach through various channels, including participation in international trade shows. The company reported cash on hand of $6.75 million at year-end, an increase from $5.67 million in 2023, and total debt outstanding was zero, reflecting a strong liquidity position.
Looking ahead, SCI Engineered Materials anticipates continued challenges from inflation, supply chain disruptions, and geopolitical uncertainties, particularly regarding raw material sourcing. The company remains committed to investing in research and development to accelerate product time-to-market and enhance its competitive position in the PVD materials industry. Management believes that ongoing strategic initiatives will support future growth, although they caution that no assurances can be made regarding sustained profitability.
About SCI Engineered Materials, Inc.
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