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Financial report summary
?Management Discussion
- For the three months ended December 31, 2023, revenue increased by $4.1 million or 20.7% compared to the same period in the prior year, primarily driven by an increase of $5.1 million of combined Fiber Optic Gyroscope and QMEMS revenue compared to the same period in the prior year, offset by $0.9 million of forecasted sales related to a FOG development program for which the corresponding revenue was not recognized during the three months ended December 31, 2023.
- Gross profit is revenue less cost of revenue. Cost of revenue consists of raw materials, compensation expense, depreciation, amortization, accretion expense, and other manufacturing overhead costs, expenses associated with excess and obsolete inventories, and product warranty costs. Historically, gross profit as a percentage of revenue, which we refer to as gross margin, has fluctuated significantly due to revenue and production volumes over fixed manufacturing costs, product mix, manufacturing yields, and inventory charges (e.g., scrap factors, excess and obsolete, inventory valuation adjustments).
- For the three months ended December 31, 2023, gross profit increased by $1.7 million or 39.0% and gross margin increased from 21.9% to 25.2% compared to the same period in the prior year, driven by improvement on sales volume flow-through, reduction in direct material inflation and variable costs, plus execution on production efficiencies and reduction in inventory adjustments, offset by unfavorable margin flow-through on increased sales volume and unfavorable commercial mix.