Virtra Inc (NASDAQ:VTSI) Tops Analysts’ Expectations

Virtra Inc (NASDAQ:VTSI) stock rallies 41.30% (As on April 2, 11:30:41 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. Gross profit increased 58% to $8.4 million from $5.3 million in the fourth quarter of 2022. Gross profit margin was 83%, an increase compared to 61% in the fourth quarter of 2022. Net operating expense was $5.8 million, compared to $3.4 million in the fourth quarter of 2022. The increase in net operating expense was associated with additional staffing and the opening of the Company’s Orlando facility. Operating income increased by $0.7 million to $2.6 million from $1.9 million in the fourth quarter of 2022. Net income was $2.8 million, an improvement compared to net income of $1.4 million, in the fourth quarter of 2022. Adjusted EBITDA, a non-GAAP metric, was $2.2 million, compared to $1.9 million in the fourth quarter of 2022.

VTSI in the fourth quarter of FY 23 has reported the adjusted earnings per share of 25 cents, beating the analysts’ estimates for the adjusted earnings per share of 15 cents. The company had reported the adjusted revenue growth of 16 percent to $10.1 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $10.027 million. The increase in revenue was driven by continued demand for training solutions with government customers, both domestically and internationally.

Meanwhile, the company’s success has been the result of strategic changes we’ve implemented across our business, particularly in enhancing our internal operations. Last year, the company had successfully upgraded our machine shop and consolidated production into a single facility, implemented a new ERP system, and revised the processes for scalability. With that backlog down to $19.4 million entering 2024, growing bookings and the pipeline will be critical to the growth trajectory going forward. The company has also restructured the sales team, introducing new methodologies, adopting a territory-based approach, and revising the compensation structure. VTSI expect that the technological innovations the company made in 2023 will drive further interest from the core law enforcement market and the military sector. The introduction of V-XR, the extended reality training platform, has been met with great interest, with a very positive market reception setting us up for strong delivery volume starting in the next few months.

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