Boston, MA 06/20/2014 (wallstreetpr) – Virco Mfg. Corporation (NASDAQ:VIRC) announced its first quarter results for the period ended April 30, 2014.
Virco Mfg. Corporation (NASDAQ:VIRC)’s first quarter results highlight the growing trend that the company has been following since the last winter. It reported an increase of 18.3% in revenue as compared to the results of the previous year. Revenue this was around $24 million, $4 million more than the prior year’s. The company demonstrated growth in internal efficiencies and saw the potential of stabilization of funding in its main market of publicly funded educational institutions.
The furniture designer, producer and distributor also reported a decline in its pre- tax operating loss in the first quarter of the year. Results improved as the loss declined to around $3.8 million, from the previous year’s approximate figure of $4.5 million. The company however believes that operating losses in the first and fourth quarter are typical on account of the fact that these are seasonally light periods of the year.
Q1’14 versus Q1’13 Results
The Virco Mfg. Corporation (NASDAQ:VIRC) reported net sales in the reported quarter to be $23.5 million. This marks a significant increase in net sales over last year which was reported to be $19.9 million. Cost of sales also surged from $13 million to $15 million, amounting to a gross profit of $8 million this year. Last year, the company had reported a gross profit of $6.4 million. A net loss of approximately $3.8 million was reported in the first quarter of 2014, which is comparable to the net loss of $4.4 million in the first quarter of 2013.
Virco Mfg. Corporation (NASDAQ:VIRC) has been engaged in cost cutting since the fall of 2011, and the company has cut down the workforce by almost 35% over the period. These efforts are in line with its efforts to increase gross margins. It has reported improved gross margins of 29.4%, 32.2% and 34.8% in 2012, 2013 and 2014 respectively.
