LGL Group Q2 net loss widens on higher costs, stock-based compensation
LGL•Overview
- U.S. electronic instruments maker's Q2 revenue grew 25% yr/yr, driven by higher product shipments
- Net loss for Q2 widened, mainly due to increased engineering and administrative expenses
- Company completed rights offering in July, raising $41.8 mln and boosting cash to over $86 mln
Result drivers
- Electronic instruments shipments - Revenue growth was mainly driven by higher product shipments in the Electronic Instruments segment as backlog orders converted to revenue
- Pricing mix impacts - Gross margin declined due to changes in product and pricing mix, including volume-based pricing for a single customer with increased order volume
- Higher operating expenses - Net loss widened mainly due to higher engineering, selling, and administrative expenses, including increased stock-based compensation and professional service fees
Outlook and backlog
- Company says most of its $3.6 mln backlog will ship in the next 90 days
- LGL Group sees continued strong demand in aerospace, defense and commercial applications
