Giga-Tronics Incorporated (OTCMKTS:GIGA) Stock Moves Up After Announcing Q3 Earnings

Giga-Tronics Incorporated (OTCMKTS:GIGA) in a range after the company released its fiscal Q3 2022 results and for the nine months ending December 25, 2021.

Market Stats

On Tuesday, GIGA stock ended flat at $2.75 with more than 813 shares, compared to its average volume of 3.07K shares. The stock moved within a range of $2.7500 – 2.7500 after opening trading at $2.75.

Earnings Recap

The company had revenue of $22 million, dropping 51% YoY. Micro source filter revenue was down 28% YoY, while RADAR and Electronic Warfare test revenue was down to $164,00 from $1.6 million in fiscal Q3 2021. Gross profit was down from $1.6 million a year ago to $736,000 in fiscal Q3 2022, attributed to the revenue decline. The company reported a net loss attributable to shareholders of $795,000 or $0.29 per share relative to net income of $830,000 or $0.33 per share a year ago.

For the nine months, the company had net revenue of $7.6 million, which is a 26% drop from the year before. However, Microsource revenue was up $245,000, attributed to an increase in YIG filters production with the inclusion of a third production test station. RADAR/EW test revenue dropped YOY to $512,000 from $3.5 million a year ago. So, investors should watch GIGA.

Key Quote

John Regazzi, President and Chief Executive Officer of the Company, said, “We experienced constrained order and shipment activity during the third quarter of fiscal 2022 in both our microwave filter and our RADAR/EW business units. Our business works primarily with the military, and we are subject to procurement timelines set by independent contracting organizations within the Defense Department, making the procurement process less predictable. Additionally, the resurgence of COVID-19 caused unplanned staff shortages at many of the independent contracting agencies and compelled many of the acquisition organizations and their staffs to work remotely, which slowed the evaluation, review and approval processes, resulting in delays of contract awards. While we are disappointed in the booking activity to date in fiscal 2022, as the virus appears to be again receding, we are optimistic that we will benefit when contract award activity resumes at a more regular cadence.”

Traders Corner

GIGA stock is above the 20-Day and 50-Day Moving averages of $2.79 and $3.14 respectively. The stock is trading in the neutral zone with the RSI at 38.