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NORTH YORK, ON / ACCESS Newswire / May 30, 2025 / ZTEST Electronics Inc. ("ZTEST" or the "Company") (CSE:ZTE)(OTC PINK:ZTSTF) announces Q3 2025 revenues of $2,105,297, a slight increase over the immediate proceeding quarter, but a decline from the record $2,625,282 reported for Q3 2024. Revenues for the nine months ended March 2025 were $6,205,665 as compared to $6,964,685 in the prior year.
While managing through headwinds mentioned in previous quarterly commentary, the Company takes some solace in the fact that revenues for the nine-month period remain almost 59% ahead of March 2023, that gross margin percentages have been maintained, that liquidity has been further enhanced, and that cash flows from operations remain strong.
Financial Highlights | Three months ended | |||||||
(in thousands of dollars, except per share amounts) | Mar 31 | Mar 31 | ||||||
Revenue | 2,105 | 2,625 | ||||||
Gross Margin | 834 | 1,124 | ||||||
Gross Margin as a % of Revenue | 39.6 | % | 42.8 | % | ||||
EBITDA | 424 | 788 | ||||||
Net Income | 256 | 531 | ||||||
Basic Net Income per share | 0.007 | 0.017 | ||||||
Operating Cash Flow | 392 | 676 |
Financial Position | As at | |||||||
| Mar 31 | Jun 30 | ||||||
Cash | 3,867 | 2,776 | ||||||
Working Capital | 4,648 | 3,593 | ||||||
Long-term Debt | 73 | 121 | ||||||
Shareholders' Equity | 5,550 | 4,497 |
The Company's management and Board of Directors is continually evaluating capital allocation strategies including M&A opportunities. While no such strategic transaction is imminent, management also recognized that an opportunity exists to take advantage of what it perceives to be an under-valuation of its own securities. An NCIB commenced on April 1, 2025, and to date the Company has repurchased 296,500 common shares.
Steve Smith, CEO commented, "Our ability to adapt to the shifting environment is reflected in our consistent operating margin and compelling cash generation. There are subtle indications that demand may soon start to increase, however we remain diligent, due to the uncertainties spawned by new and possible international tariffs. Ultimately, we continue to be centered on operational execution and driving shareholder value."
About ZTEST Electronics Inc.
ZTEST Electronics Inc., through its wholly owned subsidiary Permatech Electronics Corporation ("Permatech"), offers Electronic Manufacturing Services (EMS) to a wide range of customers. Permatech's offering includes Printed Circuit Board (PCB) Assembly, Materials Management and Testing services. Permatech operates from an ISO 9001:2015 certified facility in North York, Ontario, Canada. Permatech is a contract assembler of complex circuit boards, serving customers in the Medical, Power, Computer, Telecommunications, Wireless, Industrial, Trucking, Wearables and Consumer Electronics markets. It specializes in servicing customers who are looking for high yield and require high quality and rapid-turnaround on low and mid-volume production of high complexity products.