MINNETONKA, Minn., May 12, 2025 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the first quarter ended March 31, 2025. First quarter revenue of $2,239,000 Gross Margin of 48.4% Cash and investments of approximately $10.0 millionUnaudited; in thousands, except per share data Q1 FY25 Q1 FY24 Change Net Sales $ 2,239 $ 2,244 (0.2) % Gross Margin 48.4 % ...

Financial Performance - Net sales for Q1 2025 were $2,239, a decrease of $5, or 0.2%, from $2,244 in Q1 2024, primarily due to reduced sales of HazardPRO wireless products [57]. - Gross profit for Q1 2025 was $1,084, an increase of $4, or 0.4%, with a gross margin of 48.4%, up from 48.1% in Q1 2024 [58]. - Total operating expenses increased by $73, or 6.2%, to $1,253 in Q1 2025, rising as a percentage of net sales to 56.0% from 52.6% [60]. - Net non-operating income decreased by $28, or 24.1%, in Q1 2025 due to lower interest income from Treasury Bills [61]. - Loss before income tax benefit was $81 in Q1 2025, a decrease of $97 compared to income before income taxes of $16 in Q1 2024 [62]. Cash Flow and Liquidity - Cash and cash equivalents were $9,918 at March 31, 2025, down from $9,948 at December 31, 2024, primarily due to decreased cash from operating activities [65]. - Cash used in operating activities was $30 in Q1 2025, compared to cash from operating activities of $202 in Q1 2024, a decrease of $232 [66]. - The company believes its ongoing cash requirements will be met through existing cash and cash generated from operations for at least the next 12 months [67]. Strategic Outlook - The company is exploring growth opportunities through internal product development and external technology partnerships or acquisitions [70]. - Supply chain dynamics may negatively impact operations and profit margins due to unexpected price increases and delivery delays [68].

Core Insights - Electro-Sensors, Inc. reported record annual revenue of $9.373 million for the year ended December 31, 2024, representing a 9.6% increase from $8.555 million in 2023, primarily driven by higher sales of HazardPRO wireless sensors in agricultural applications [2][3][6] - The company's gross margin decreased slightly to 48.9% from 49.6% year-over-year, reflecting a reduction of 70 basis points [2][6] - Operating income improved significantly, with a loss of $4 thousand in FY24 compared to a loss of $28 thousand in FY23, indicating an 85.7% improvement [2][5] - Net income for FY24 was $446 thousand, up from $275 thousand in FY23, marking a substantial increase [5][6] - Earnings per share (diluted) rose to $0.13 from $0.08, reflecting a 62.5% increase [2][7] Financial Performance - Net sales increased to $9,373,000 in FY24 from $8,555,000 in FY23, a growth of 9.6% [2][5] - Gross profit for FY24 was $4,582,000, compared to $4,245,000 in FY23 [5] - Operating expenses rose to $4,586,000 in FY24 from $4,273,000 in FY23 [5] - Non-operating income increased to $440,000 in FY24 from $406,000 in FY23 [5] Balance Sheet Highlights - Total assets as of December 31, 2024, were $14,885,000, up from $14,445,000 in 2023 [8][9] - Cash and investments increased to $10,004,000 in FY24 from $9,926,000 in FY23 [8] - Stockholders' equity rose to $14,333,000 in FY24 from $13,755,000 in FY23 [9] Market Position - The company experienced growth in both wired and wireless product families, with HazardPRO wireless products growing at a faster rate than traditional wired products [3] - International sales accounted for 11.5% of net sales in FY24, up from 10.3% in FY23 [2]

Financial Performance - Net sales for 2024 were $9,373, an increase of $818, or 9.6%, from $8,555 in 2023, driven by higher sales of HazardPRO wireless sensors and systems for agricultural applications [78]. - Gross profit for 2024 increased $337, or 7.9%, to $4,582 from $4,245 in 2023, with a gross margin of 48.9% compared to 49.6% in 2023 [79]. - Net income for 2024 was $446, an increase of $171, or 62.2%, compared to $275 in 2023, with basic and diluted earnings per share of $0.13 and $0.08, respectively [86]. - Operating loss was $4 in 2024 compared to $28 in 2023, a decrease of $24, or 85.7% [81]. - Total assets increased to $14,885,000 in 2024 from $14,445,000 in 2023, representing a growth of 3.0% [116]. - Total stockholders' equity grew to $14,333,000 in 2024, up from $13,755,000 in 2023, marking a 4.2% increase [116]. Expenses and Costs - Total operating expenses increased $313, or 7.3%, to $4,586 in 2024 from $4,273 in 2023, but decreased as a percentage of net sales to 48.9% from 50.0% [80]. - Selling and marketing expenses increased $109, or 8.2%, to $1,441 in 2024 from $1,332 in 2023, but decreased as a percentage of net sales to 15.4% from 15.6% [84]. - Research and development expenses increased $40, or 4.1%, to $1,013 in 2024 compared to $973 in 2023, but decreased as a percentage of net sales to 10.8% from 11.4% [84]. - Total advertising expense was $42,000 in 2024, down from $46,000 in 2023, reflecting a decrease of approximately 8.7% [149]. - Cash generated from operating activities was $129 in 2024, a decrease of $192 from $321 in 2023, primarily due to increased inventory and decreased accounts payable [89]. Cash and Liquidity - Cash and cash equivalents were $9,948 and $9,870 at December 31, 2024 and 2023, respectively, with working capital increasing to $12,922 from $12,449 [88]. - Cash and cash equivalents at year-end increased to $9,948,000 in 2024 from $9,870,000 in 2023, a rise of 0.8% [121]. - Total inventories rose to $1,964,000 in 2024 from $1,751,000 in 2023, marking an increase of approximately 12.2% [169]. Strategic Plans and Investments - The company believes ongoing cash usage requirements will be primarily for capital expenditures, potential acquisitions, and research and development [92]. - The company plans to continue making strategic investments to enhance product development and market reach [125]. Internal Controls and Governance - As of December 31, 2024, the Company's internal controls over financial reporting were deemed effective, following the COSO framework [205]. - The management has assessed the effectiveness of internal control over financial reporting as of December 31, 2024, confirming its reliability [205]. - There were no changes in the Company's internal control over financial reporting during the fourth quarter of fiscal year 2024 that materially affected its effectiveness [206]. - The Company has adopted a Code of Ethics and Business Conduct applicable to all officers and employees [212]. - The Company has established insider trading policies to promote compliance with relevant laws and regulations [214]. Stock and Compensation - The Company reported basic earnings per share (EPS) of $0.13 for 2024, compared to $0.08 for 2023, indicating a 62.5% increase [156]. - The company recognized stock-based compensation expense of $46 million in 2024, up from $38 million in 2023, with unrecognized compensation expense related to stock options at $115 million [179]. - The Company has 290,000 securities available for issuance under equity compensation plans, with a weighted average exercise price of $4.03 [220]. - The company granted 35,000 restricted stock units in 2023, with 21,000 units vesting in 2024, leaving 84,000 unvested as of December 31, 2024 [183]. Tax and Regulatory Matters - The company reported a total federal and state income tax provision of $(10) million in 2024, compared to $103 million in 2023, reflecting a significant decrease due to R&D credits [193]. - The Company has a valuation allowance on deferred tax assets of $311,000 in 2024, up from $279,000 in 2023, reflecting an increase of about 11.5% [151]. Meeting and Shareholder Information - The Company will hold its Annual Meeting of Shareholders on April 23, 2025 [210].

Core Insights - Electro-Sensors, Inc. reported a quarterly revenue of $2,512,000 for Q3 2024, representing a 22.1% increase compared to the same period last year [1][2] - The company's gross margin improved to 50.4%, up from 48.3% in Q3 2023, indicating better cost management and pricing strategies [2][3] - Operating income for Q3 2024 was $173,000, a significant turnaround from an operating loss of $26,000 in Q3 2023, reflecting a 765.4% increase [2][4] Financial Performance - Net sales for the nine-month period ended September 30, 2024, increased by 11.8% to $6,973,000 from $6,239,000 in the prior-year period [2][4] - The income before income taxes for Q3 2024 was $290,000, up 249.4% from $83,000 in Q3 2023 [2][4] - Earnings per share (diluted) for Q3 2024 was $0.07, compared to $0.00 in the same quarter last year, marking a 100% increase [2][5] Operational Highlights - Sales growth was driven by both wired sensor products and wireless HazardPRO™ products, primarily due to increased demand in industrial automation and agricultural applications [3] - The improvement in gross margin was attributed to a stabilizing supply chain and price adjustments made earlier in the year [3] - The company reported cash and investments of approximately $10.3 million as of September 30, 2024, compared to $9.9 million at the end of 2023 [6][9] Company Overview - Electro-Sensors, Inc. specializes in designing and manufacturing machine monitoring sensors and hazard monitoring systems, serving various industries [9] - The company is ISO9001:2015 certified and emphasizes customer service and technical support [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 1 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 000-09587 ELECTRO-SENSORS, INC. (Exact name of registrant as specified in its charter) Minnesota 41-0943459 (State or other j ...

Core Insights - Electro-Sensors, Inc. reported a quarterly revenue of $2,217,000 for Q2 2024, reflecting a 3.7% increase compared to the same period in the previous year [1][2][3] - The company's gross margin for Q2 2024 was 47.2%, down from 50.0% in Q2 2023, primarily due to rising material and labor costs [2][3] - The company experienced an operating loss of $107,000 in Q2 2024, compared to an operating income of $44,000 in Q2 2023, marking a significant decline [2][4] Financial Performance - Net sales for the first half of 2024 reached $4,461,000, a 6.7% increase from $4,182,000 in the same period of 2023 [2][5] - The gross profit for the first six months of 2024 was $2,127,000, slightly up from $2,090,000 in the prior year, despite a decrease in gross margin [5] - The net income for Q2 2024 was a loss of $4,000, compared to a net income of $116,000 in Q2 2023 [4][5] Operational Highlights - The increase in sales was primarily driven by the demand for HazardPROTM wireless hazard monitoring systems, which are valued for their ease of installation and cost-effectiveness [3] - The company maintains cash and investments of approximately $9.9 million as of June 30, 2024, showing stability in liquidity [1][6] - Total assets as of June 30, 2024, were reported at $14,467,000, a slight increase from $14,445,000 at the end of 2023 [6][8] Company Overview - Electro-Sensors, Inc. specializes in designing and manufacturing machine monitoring sensors and hazard monitoring systems, serving various industries [8] - The company is ISO9001:2015 certified, emphasizing its commitment to quality and customer service [8]

Financial Performance - Net sales for Q2 2024 were $2,217, an increase of $80, or 3.7%, from $2,137 in Q2 2023[44] - Gross profit for Q2 2024 was $1,047, a decrease of $21, or 2.0%, compared to Q2 2023, with a gross margin of 47.2%[45] - Total operating expenses for Q2 2024 increased by $130, or 12.7%, to $1,154, representing 52.0% of net sales[47] - Net non-operating income increased by $15, or 16.0%, for Q2 2024 compared to Q2 2023, driven by higher interest income[51] - Income before income tax expense was $2 for Q2 2024, a decrease of $136 compared to $138 in Q2 2023[52] Cash Position - Cash and cash equivalents were $9,888 at June 30, 2024, reflecting an increase from $9,870 at December 31, 2023[55] Operating Expenses - The company experienced a 12.7% increase in total operating expenses for the six months ended June 30, 2024, compared to the same period in 2023[47] Taxation - The effective tax rate for the six-month period ended June 30, 2024, was 61.1%, compared to 22.6% in the same period of 2023[54] Growth Strategy - The company is actively seeking growth opportunities through technology partnerships and potential acquisitions[59] Operational Challenges - Supply chain disruptions and labor market challenges are impacting the company's operations and may affect sales and profit margins[57]

Financial Performance - Net sales for Q1 2024 were $2,244, an increase of $199, or 9.7%, from $2,045 in Q1 2023, driven by larger orders for facility upgrades and increased sales of wired and wireless systems [61]. - Gross profit for Q1 2024 was $1,080, an increase of $58, or 5.7%, with a gross margin decrease to 48.1% from 50.0% in Q1 2023 due to rising material and labor costs [62]. - Total operating expenses for Q1 2024 were $1,180, an increase of $20, or 1.7%, but decreased as a percentage of net sales to 52.6% from 56.7% in Q1 2023 [63]. - Net non-operating income increased by $23, or 24.7%, in Q1 2024 compared to Q1 2023, attributed to higher interest income from Treasury Bills [64]. - Income before income tax expense was $16 in Q1 2024, an increase of $61 compared to a loss of $45 in Q1 2023, driven by higher revenues and increased interest income [65]. Cash Flow - Cash and cash equivalents were $10,072 at March 31, 2024, up from $9,870 at December 31, 2023, primarily due to increased cash from operating activities [68]. - Cash from operating activities was $202 for Q1 2024, compared to cash used of $112 in Q1 2023, reflecting increased net income and decreased trade receivables [69]. Taxation - The effective tax rate for Q1 2024 was 31%, compared to 2.2% in Q1 2023, due to changes in deferred taxes [66]. Operational Challenges - The company is facing supply chain disruptions and price increases for components, which may affect gross margins and timely deliveries [72]. Strategic Growth - The company continues to seek growth opportunities through internal product development and external acquisitions, with a special committee exploring strategic alternatives [73].

MINNETONKA, Minn., March 21, 2024 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the year ended December 31, 2023. Annual revenue of $8.6 million, down 5.2% over prior year Gross Margin of 49.6% Cash and investments of $9.9 million Table in thousands, except per share data FY22 FY21 Change Net Sales $8,555 $9,029 (5.2) % Gross Margin 49.6 % 53.6 %(400) bps Operating Income (Los ...