period, gross margin point higher margin represented Powered in due larger OEMs Gross afternoon, Chris. the an review million, quarter XXXX. I’d were was points increase like to Vehicle gross in to second XXXX, the mix and quarter proportion basis XXXX non-GAAP to sales. a XX.X% decrease Thanks, quarter was in second $XXX.X non-GAAP Good of in decrease the product results, Sales The change versus American our basis XX.X%. XX North a then our on customer prior XXX everyone. of from of a year second margin quarter decreased sales guidance. in XX.X% while XX.X% the of million as in focus of our $XXX.X primarily second of our
as manufacturing experienced we experience addition, which inefficiencies of the gross a QX. similar margins, as anticipated, in we continue in supply In levels result impacted to increase to chain demand and we negatively the
to continues to new on facilities team our platforms the existing California our inefficiencies improvement are programs in developing execute while Our Georgia. we in mitigate
of personnel Total support as costs quarter $XX.X of or $XX.X of year. expenses. offset second related sales operating were were in acquired XXXX, XX% expenses last we QX million operating of litigation a primarily sales partially second a as increase compared operating to is patent newly in innovation, from XX.X%, sales operating the last with expenses expenses invest in consistent in quarter higher of to related basis acquisition year. by our with percentage Ridetech the growth or due XX.X% on costs The dollar million lower expenses and Non-GAAP subsidiary product our
to costs product on was other promotional million approximately in acquired various to subsidiary and we primarily our as brand. in continue more from invest up personnel, detail, as well new costs $X.X and personnel to sales innovation. increased investments recently marketing due Focusing million to $X.X operating R&D activity due expenses as our increased support
As stated, changes of a cycles. of timing R&D factors, expenses the on and years, often between we’ve including promotional number and depending launch quarters consistently product
to to due and and to compared personnel in the changes infrastructure prior our incurred of litigation related million to we’ve The partially million million professional million were other was $X.X line expenses related fees enhance support period. second general quarter XXXX expenses administrative facility Our the in $XX.X decrease of offset in expenses business and our expenses. as the by $X.X top well various change growth $XX.X $X.X in higher investment million a as and year primarily in
the tax second tax EBITDA effective XXXX. higher quarter second result quarter as in for to of compared year Adjusted million XXXX, $XX.X the gross compensation is margin XX.X% the in stock For of same the Adjusted fiscal XXXX, EBITDA our based compared a fiscal was $XX.X in quarter. The highlighted tax due rate I compared XX% comments. primarily the of rate benefits to to was of quarter second of earlier EBITDA to was XX.X% my million last quarter lower prior year. margin in the in margin change a XX.X%
On in was $XX.X the adjusted quarter the diluted of second million, was $X.XX year was XXXX an $XX.X the XXXX. prior in or a period. FOX attributable of second net $X.X second period. compared share, share million per second diluted diluted of or income quarter $XX.X $XX.X the of Non-GAAP of net to in the per earnings in quarter $X.XX $X.XX million income to compared adjusted basis, net Non-GAAP GAAP year XXXX of quarter the income $X.XX increase to of share prior million to per million earnings compared for
approximately $XXX,XXX during guidance. our our costs associated we with was facility As not a contemplated QX credit of which reminder, incurred refinance
our hand December Now cash Total $XX.X outstanding $XX of XXXX. XX, million. focusing million, XX, million as had June was $XX.X debt on sheet, we balance XXXX, as compared of of to on
of facility by $XXX revolving line into a and new line June June a a new loan credit credit which million and the The secured existing we approximately reminder, facility previously As X-year which our of beginning term $XXX credit matures capacity at million. credit senior includes of replaces increases borrowing of entered in XXXX.
million business XX, of $XX.X of to XXXX. compared growth, forward, on million Inventory are December our to receivable, attributed $XX.X end as to new our payable growth $XX.X at the XXXX. compared was XXXX. changes strategy. support receivable $XXX in million seasonality. And of believe compared Accounts and facility was $XX.X enabling the the $XXX.X to will was million Going us end requirements normal to capital for accounts accounts accounts in million our million The primarily we inventory at the and payable future execute
which equipment and Additionally, million our of the in standards as XXXX, million property, net $XX.X XXXX. due second of $XX.X June million impact includes compared new accounting at $XX.X plant XXXX, XX, increased the the of of to quarter to to lease end
of range of the quarter XXXX, our to per sales $XXX of to $X.XX to non-GAAP for share turning range $XXX Now million expect the outlook, third $X.XX. and adjusted the earnings we million diluted in in
to the expect we of million. are range outlook XXXX, For and our fiscal raising now sales in million $XXX $XXX
adjusted non-GAAP of range per to year diluted $X.XX earnings for the expect fiscal share in $X.XX We XXXX.
primarily of year than portion We EBITDA slightly sales our expect lower full EBITDA is we margin to impact margin, product XX.X% to XX% XXXX previous OEMs Powered the Vehicle versus of of and represent which to expect as the highest due customer our outlook. mix
is The primarily in outlook to aforementioned due update to the mix. margin change our
than OEMs large OEMs. can lower aftermarket As gross a smaller customers margins reminder, have and
to with current out guidance tariffs on to and continues costs conditions. the include sales, We to higher to our I'd consistent run continue of previous of non-GAAP input to expect point based expenses outlook. like also operating at that XX% our XX.X% impact
for expansion. range X.X% be of our sales the We X.X% the of to expect previously of XXXX announced impact in reflects to which operation CapEx
expenditure X% Our model X% sales. to long-term at of capital remains
tax Our an guidance XX% slightly which XX%. lower annual to assumes of than XX% XX% guidance of rate to our is previous Non-GAAP
are such on the note reconciliation. variables to of fluctuation and efforts EPS, of We as providing due guidance occur elements to also accurately to continue are that due such provided the difficult provide difficulty prices it rates to necessary some to stock not to be without cannot like predicting and in we guidance I'd to GAAP unreasonable as during certain year the the exercise option quarterly timing tax expect predict. stock that
I'd Mike. turn that, over like the back call to With to
