MALVERN, PA — Vishay Precision Group, Inc. (NYSE: VPG), a key player in precision measurement and sensing technologies, unveiled its first-quarter financial performance for fiscal year 2024, showing a revenue decline alongside improved gross profit margins. Despite facing a 9.1% decrease in revenues, dropping to $80.8 million compared to the previous year, the company managed to elevate its gross profit margin to 43.4% from 41.9%.
The period witnessed a slight downturn in operating and adjusted operating margins, settling at 8.6% and 10.0%, respectively, down from the previous year’s figures. Diluted net earnings per share also saw a decrease, moving from $0.51 to $0.44, with adjusted diluted net earnings per share at $0.42, compared to $0.52 a year ago.
Despite the revenue slump, VPG highlighted a record high gross margin, a testament to the company’s operational excellence initiatives. Adjusted EBITDA stood at $12.3 million, maintaining a healthy margin of 15.3%. Cash flow from operations reached $6.4 million, with adjusted free cash flow at $4.2 million.
CEO Ziv Shoshani pointed out the revenue was within the anticipated range, attributing the soft demand primarily to the industrial and semiconductor test equipment sectors. However, he remains optimistic about an uptick in demand towards the second half of the year, driven by inventory replenishment and incoming orders from new business development efforts.
Shoshani also underscored the strategic capital allocation during this quarter, including a $2.8 million stock repurchase, reflecting confidence in the company’s financial health. Looking ahead, VPG forecasts second-quarter net revenues to oscillate between $75 million and $85 million, aligning with current market conditions and exchange rates.
Vishay Precision Group’s latest financial snapshot suggests a robust strategic positioning despite market challenges, with strong margins highlighting the effectiveness of its operational improvements. The focus on diversifying end-markets and developing advanced technologies is poised to harness growth opportunities, underpinning VPG’s resilience and forward-looking approach in a fluctuating economic landscape.
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