TechPrecision Corporation reported its financial results for the second quarter of fiscal 2025, revealing a revenue increase of 12% to $8.946 million compared to $7.970 million in the same period last year. For the six months ended September 30, 2024, total revenue reached $16.932 million, a 10% rise from $15.341 million in the prior year. Despite the revenue growth, the company experienced a net loss of $601, or $0.06 per share, for the quarter, compared to a net loss of $528, also $0.06 per share, in the previous year. The six-month net loss was $2.061 million, up from $1.056 million in the same period last year.
The financial performance reflects a mixed operational landscape. The company's subsidiary, Ranor, saw a revenue increase of 7% to $4.790 million, while Stadco's revenue surged by 17% to $4.223 million, driven by a favorable project mix. However, the overall gross profit decreased slightly to $1.014 million, down from $1.035 million, primarily due to increased production costs and under-absorbed overhead at Stadco. The gross margin for the quarter was 11%, down from 13% a year earlier.
In terms of strategic developments, TechPrecision has been navigating significant challenges, including a recent termination of its acquisition of Votaw Precision Technologies, which resulted in a breakup fee paid in stock. The company also amended its loan agreements with Berkshire Bank multiple times, extending the maturity dates of its revolving loans and adjusting borrowing limits. As of September 30, 2024, TechPrecision had total outstanding debt of $7.154 million, with all long-term debt classified as current due to covenant violations.
Operationally, TechPrecision reported a total of 9,662,525 shares outstanding as of January 17, 2025. The company is focusing on improving profitability at Stadco, which has been a significant contributor to its losses. The company is exploring various means to strengthen its liquidity position, including potential financing options and cost management strategies. The outlook remains cautious, with substantial doubt raised about the company's ability to continue as a going concern over the next year, contingent on renewing its revolver loan or securing alternative financing.
Overall, while TechPrecision has shown revenue growth, the ongoing operational challenges and financial losses highlight the need for strategic adjustments and improved performance in its subsidiaries to ensure long-term viability.
About TECHPRECISION CORP
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