the had lines the differentiation, the away I over made first that the Company major we last from will fact thank that two call. express And six test differentiated products we good which our there with, building poor RADAR strength, you and years transition is this the margin gross a outlined by conference business little to joining product for gross during to RADAR that Hi, call, last only that technology very transition Microwave products, margin. Microwave were highly achieved two on with microwave test differentiated but systems. has not
We second the have XXXX, during of progress about we that which we fiscal now have the completed made this XX, finally quarter XXXX. transition, will ended talk and in September
Now to a XXXX, accounting the April to our the in our ASU is explain need was called adopt Company you going results, XXXX-XX. standard Effective standard. to I change into before required X, financial which accounting
is way XXX. referred contracts Another as of is it to saying with revenue customers, ASC which from also commonly
to certain the change this So recognizes products. I for ASC may will be revenue the Company referring and way XXX,
choice. ship customer. no of we percentage That's we but recognize until revenue. much FY do, contracts This of as XXX, we a ASC must So like have revenue revenue of incurs the the recognizing is recognize preferred cost. to we end XXXX, what and on completion way Under and invoice would it I based
the months results are for three that September adjusted have today method the financial of presenting new ending we accounting. this XXXX, XX, for So been
makes that difficult standard. XXXX new the use to However, they didn't the QX FY comparison more because
the I So indeed, you do, clear meaningful comparison. will get in so conference has impact try the that new it standard call hard this to very that a make
So was That's quarter, XX, second from million. let's ending the the quarter which second a sales, of sales was the XXXX, $X.XX FY September with increase start XX% okay? Net XXXX year-ago $X.XXX of million. out FY in revenue XXXX, quarter in
increasing accounting really was the However, to change sales. XX% increase basically Company due that not was and all the this to due
change. flat you were account the So don't accounting into think of when take sales
the Now quarter gross margin gross fiscal XXXX. compares for second margin, XX% XX%. going FY for to the XXXX This the with of were
is ASC gross margin. XXX impact on the there no from Now
one; shown quarters, gross in fully including forward this margins. to fact, that And time. for XX%. the go to even gross we So I three go as margin improvement XX% next above the for point XX% to get in I truly expect from XX% And forward should is above quarters, we that out have last achieved in this the
much had with operating go the $XXX,XXX. will loss $X.XXX loss a XXXX year-ago, a XXX that. impact operating than we that ASC This second net second gross loss, quarter okay? net XXXX of compares The of so quarter And fiscal to net on we the better Then for was million. what have are of and margins zero had let's the of
the components of $XXX,XXX. is that $X,XXX in million improvement to of okay? I mentioned. increase. to due reduction the margins So to $XXX,XXX is the are to in $XXX,XXX that's a losses is $X.XXX reduction vast due improvement, gross in sales the expenses. that $XXX,XXX to a due reduction from four the operating There reduction the
change. So yes, $XXX,XXX. we accounting increased adds is $XXX,XXX to due the sales a bit. And little to That
expense was was sales cause really So improvement really, and was the $X,XXX in performance the improvement margin operating XXX. performance because gross the for the was the fundamentally improvement, improvement, was $XXX,XXX $XXX,XXX ASC only $XXX,XXX Company
the we to need at look the interest earnings, now on other Going net first bottom expenses. line, to
fiscal for second XXXX. quarter the really were with $XX,XXX For year-ago, $XXX,XXX quarter one and is compares interest I they the accrued $XXX,XXX. for of components: two fiscal paying the component raised a money, E second but interest the has expenses due PFG difference the to come to growth; will on back it. That is to X% we're due to This $XX,XXX interest XXXX, X% partner a series. the E for series, we’ve
of of is of rest and in is we $XX,XXX accrued other payments, cash. gives of second this loss the a loss type This over XXXX other net but $XXX,XXX net that of $XXX,XXX fiscal year. the compares XXXX. a operating of However, only quarter that for the loss $XXX,XXX second fiscal cash The loss payment not interest Combining really million with expenses, $X,XXX quarter us with interest payments. the last of incurred and of $XXX,XXX for
recognize have made $XXX,XXX, Now we to also I but is you $XX,XXX and of should loss point that stock-based a out is depreciation that $XX,XXX compensation.
positive is $XX,XXX. we EBITDA So an that have
we last kind And have two of breakeven so seen positive EBITDA for that quarters. the
after the balance Going sheet.
Our still balance weak. sheet is
from increased Our to quarter. the we of cash a a bank. This equity equity cash $XX,XXX a to the And year-ago $XXX,XXX in $X.XXX have $XXX,XXX shareholder by year-ago. shareholder of prior and $XXX,XXX negative million compares
so basically decrease cash decreased is a $XXX,XXX, to $XXX,XXX the from and there. So there
However, equity losses, the all Company the ASC made a improvement from $X.XXX to this can you XXX. due $XX,XXX has how the equity. equity so Because negative is shareholder of to improve
explained. is easily fiscal at we get of That is of too inventory jump, this What out causes in RADAR actual million was way due test sheet $X.XXX we during for as ASC I $X losses quarter equity have on made $XXX,XXX this that year it's that of inventory $XXX,XXX. is of XXX primarily systems. out million So can stems net net to in believe least decrease balance million. of this accounting the that to $X.XX high, our inventory the cash The the and cash we this XXXX.
profitable, And not by fiscal cash we this so only also $X reducing during but were yes, million year. by inventory generating the approximately being by
However, cash is a still concern.
and is which cash do which Navy, prior of expect substantial on then fiscal the order inventory in shippable generate a million XXXX, neighborhood million. And March to year-end large the And $X to reduction, so the XX, we we profits that to the is $X because the of XXX% XXXX. from expect
and However, by test get by on of to from near space the we E achieved $X.X we performance and to enough business. the the plan order. to any get that $XXX,XXX. and improving sales that. of impacted not accounting level, if by now an It's showed change summary, In we matter million, make a and without that's $X.XX million lowering the – To it's execute more the was RADAR operating the gross The board have increase we to Series line of order. our much when bottom a on the matter us we be EBITDA basically XXX margin have breakeven runway, has from so sure allowed expenses. This
my of presentation. So this the of is sort CFO part
where where to And in ends the year-ago, that March, Now a about that of year and and me I'd to people okay? I into it's not Director bit an and July Vice with people. be a the left the polite, profitable little okay? Applications part, the were John there's with a substantial Like we fiscal word explain is supposed And sales not But have and and if. President that orders. team, more. replaced growth Director. the just they sales a a sales Marketing matter that – It's there were and my when. year-ago, a more fiscal like there's Executive year I are We mentioned more not is right I'm expect come let mentioned, second, use that truly, Maybe are
so a change not we And in team sales – in right to do people also the but year. sales didn't right fundamentally, place, put for needed What the sales we is have only strategy. have
we They away a bases. time, have who so the they access into experience, boxes those people. the know been And that know selling a from we are that test military a have long to comes was the that customer. customers, people have contractors, a sales know sales hired solutions. kinds secured sells the prime hired military They strategy from moved team we strategy that that with So true aerospace and those the relationships bases. to have they the needed We people go they the established for of
that came confident tripled very will our And on just have It's and that will system have. matter good ready like this with funnel, the We and that, thank very questions the I'm fiscal you It's I'm of for a a matter test when. to materialize. a would growth. year Board, RADAR I that orders you, since not and And they profitable may for of be if.
