Tel-Instrument Electronics Corp (OTCMKTS:TIKK) Stock Falls After FY 2022 Earnings

The previous week did not end on a strong note for Tel-Instrument Electronics Corp (OTCMKTS:TIKK) investors as the company’s stock suffered from a fairly strong selloff and ended the day with a decline of as much as 4%. Can the new trading week be better one for Tel-Instrument Electronics investors? In order to figure that out it is necessary to take a closer look at the nature of the company’s business and the latest news.

Trading Data     

On Friday, TIKK stock moved down 3.57% to $2.70 with more than 10K shares, compared to its average volume of 570 shares. The stock moved within a range of $2.7000 – 2.9500 after opening trading at $2.80.      

About The Company

The company is one of the biggest operators in the industry related to the designing and manufacturing of avionics test and measurement products. The products that it designs and manufactures are deployed in a range of industries starting from general aviation and commercial air transport to defence sector and government as well as military aviation.

Tel-Instrument Electronics Corp. Reports Net Income of $1.3 Million for FY 2022

As it happens, the company was in the news on Friday after it announced its financial results for the 2022 fiscal year that had ended on March 31, 2022. Although it is clear that investors were not happy at the numbers going by the selloff in the stock, it is important to take a look at the numbers and then make up one’s mind one way or another. Tel-Instrument Electronics managed to generate revenues of $12.9 million for the fiscal year and the net income for the same period stood at $1309738. The net income worked out to earnings per basic share of $0.30 and the earnings per diluted share came in at $0.26.

The revenues went up by $1.4 million year on year and that reflected a rise of 12%. On the other hand, the gross margins for the 2022 fiscal year stood at 44.6% and that reflected a year on year improvement of 3.3 percentage points. Owing to profit sharing measures, the expenses for the 2022 fiscal year went up by as much as $120000. The operating income for the fiscal year went up by as much as $937000. At the end of the fiscal year, Tel-Instrument Electronics had cash balance of as much as $7 million and that was again an improvement on the cash balance of $5.5 million at the end of the previous fiscal year.

Key Quote

Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented, “Despite ongoing supply chain interruptions, TIC was able to improve revenues and profitably and substantially strengthen its balance sheet in the last fiscal year. The fourth quarter was adversely impacted by parts shortages due to vendor lead times doubling and tripling in some cases. This disruption has continued in the first quarter of fiscal year 2023. We have been ordering additional components from our vendors to mitigate the impact of extended lead times and we expect the supply disruptions to lessen in the second quarter of the current fiscal year. “

Technical Data

TIKK stock is trading below the 20-Day and 50-Day Moving averages of $2.96 and $2.96 respectively. Moreover, the stock is trading below the 200-Day moving average of $3.12.