ADM Tronics Unlimited, Inc (ADMT)

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REVENUES AND GROSS MARGINS

Revenues increased $1,662,522, or 58% from the prior year, which resulted from increases of $1,318,148 in the engineering segment, $10,141 in the electronics segment and $334,233 in the chemical segment. The increases in the chemical division and electronics division resulted from an increased customer base. The increase in engineering services was primarily the result of several projects for one customer.

The decrease in gross profit in the electronic segment and increase in gross profit in the chemical segment resulted from changes in the mix of products sold.

The increase in gross profit in the engineering segment resulted from better utilization of labor due to the increased revenue from new projects for one customer.

OPERATING INCOME (LOSS)

Income from operations for the years ended March 31, 2016 and 2015 was $262,983 and $249,949 respectively, an increase of $13,034 or 5%.

Selling, general and administrative expenses increased by $566,410, or 53%, from $1,073,342 to $1,639,752, mainly due to increased royalties and commissions of $80,801, and increased salaries and wages of $61,636, increased contract services of $223,460, increased professional fees of $32,525, increased computer expenses of $54,229, increased insurance expenses of $38,582, and increased bad debt of $45,165.

NET INCOME AND NET LOSS PER SHARE

Net income for the fiscal years ended March 31, 2016 and 2015 was $1,118,338 or $0.02 per share and $358,790 or $0.01 per share, respectively.