LGL Group Q3 revenue rises on higher net sales
LGL•LGL Group’s third-quarter revenue rose 32.1% year over year, driven by higher net sales and increased net investment income, but the company posted a $45,000 net loss versus a profit a year earlier. It completed a July rights offering that raised $41.5 million net and said its $6.5 million Electronic Instruments backlog provides visibility into the fourth quarter.
1. Revenue and results
LGL Group’s third-quarter revenue rose 32.1% year over year on higher net sales and increased net investment income, reflecting larger invested balances. The company posted a net loss of $45,000, compared with a profit in the same quarter last year. Gross margin fell due to changes in product and pricing mix associated with volume-based pricing, while engineering, selling and administrative expenses increased.
2. Offering and outlook
In July, the company completed a rights offering, issuing 6,062,714 shares for net proceeds of $41.5 million. LGL Group said its $6.5 million backlog in Electronic Instruments provides visibility into the fourth quarter.
