Optex Systems Holdings Inc. (OPXS)

[littlefish]

Margins generally should go higher on higher revs although Im guessing when we get to roughly 25-27% area we will be close to maximum GMs but that is a wild guess.

Remember they only had $23.5 mill backlog as of Dec 30 2018 when the Q ended so orders continue accelerating for them given almost halfway thru this Q they’ve grown to $28.2 mill backlog and theyve probably done over $3 mill in revs this Q already given the projected $7+ mill revs they should realize for his current Q2.

They could easily have received about $8 mill in new orders halfway thru the Q. Also note this recent order is for just this year so Im speculating is better margin given the very quick turnaround time for a DLA order.

Also some of those older less profitable contracts have rolled off allowing for more of this newer work to show also helping lift margins more as we move forward.

So we have higher revs helping margins and newer more profitable work ramping too helping margins against a backdrop of orders still comfortably outpacing revenues by a wide margin halfway thru the Q and thru recent history.

This was yet again a record operational quarter for them and next Q should be easily better still given the sequential revs ramp. It’s no wonder theyre starting to potentially feel a little squeezed to fund operations if the acceleration continues to ramp up. Some of the work is longer lead time although this new announce sounds like something they can quickly turn around given the short timeframe to realize the work.

All in my opinion only, back to lurking. A few posters on Ihub cause me unwanted stress even if on ignore.

Happy and Healthy New Year to you and yours BTW.