Tel-Instrument Electronics Corp. Reports Financial Results For Third Quarter FY 2025

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Tel-Instrument Electronics Corp. (“Tel-Instrument,” “TIC,” or the “Company”), a leading designer and manufacturer of avionics test and measurement solutions, today reported a net loss of $456K ($0.17) per basic and per diluted share, on revenues of $2.97 million for the third quarter of 2025 fiscal year, ended December 31, 2024.

Notes On Third Quarter:

• Revenues for the third quarter were $2.97 million, as compared to $2.4 million in the year-ago quarter. Nine-month revenues of $7.6 million versus $6.8 million in the year-ago period.
• The gross margin percentage decreased to 21% versus 40% the year-ago period primarily attributable to higher CRAFT component costs and accounting adjustments to reflect excess labor hours on the CRAFT ECP program.
• Operating expenses increased by $488K or 68% versus the year ago level as a result of SDR-OMNI sales headcount additions and well as the CRAFT engineering funding being fully utilized and not available to offset employee costs.
• Net loss was $456K or $(0.17) per share, compared to net income of $134K or $0.01 per share in the year-ago quarter.
• Bookings backlog increased to $8.4 million at the end of the third quarter including $900k for the new SDR-OMNI/MIL.
• CRAFT AIMSPO testing successfully completed.

Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented, “The third quarter showed improved revenues, but the gross margins were negatively impacted by poor margins on our CRAFT test set deliveries and CRAFT ECP engineering expenses running well over budgeted levels. The engineering for the CRAFT ECP has been completed and we are expecting AIMSPO certification in March. The CRAFT ECP is currently in Navy platform testing and we are requesting a limited rate initial production (“LRIP”) contract starting in the first quarter of the next fiscal year. Once full-rate production commences, this is expected to increase revenues by around $5 million per year. With the updated PCB’s, production cost for the CRAFT test sets should drop substantially which will help improve margins. The $1.55 million MADL contract will commence full-rate production in the fourth quarter of this fiscal year.

We are making a significant investment in our SDR-OMNI marketing program with the hiring of two dedicated sales professionals. We are making solid headway in both the commercial and military markets with SDR-OMNI and SDR-OMNI/MIL backlog of $1.8 million. We began shipping the initial Airbus units late last quarter as well as SDR-OMNI/MIL units to both domestic and overseas customers. The SDR-OMNI/MIL is the only multi-purpose avionic test set in the market that meets Class 1 military environmental specifications. While DOD procurement for new test sets is normally an extended process, the SDR-OMNI/MIL has the potential to generate millions of dollars of annual revenues as it has been designed to replace thousands of obsolete test sets currently in use by the U.S. military and our NATO allies. We are also looking to add Mode 5 IFF to the SDR-OMNI/MIL which could create another attractive high margin revenue stream.”