We have worked to leverage increased pack volumes to re-source steel and board components to low-cost regions and to high volume local suppliers and also identify more competitive carriers to reduce shipping costs. “During the quarter, global supply chain disruptions have improved, and concurrently we have improved production process improvements and better supply chain management. Our strategic initiatives to accelerate backlog conversion to shipments and increase inventory turns are also driving revenue results and gross margins that we believe will lead toward profitability. Our reduced backlog has been helped by improvement in sourcing actions to mitigate part shortages and to increase confidence in future supplier performance. “During the quarter ended June 30, 2022, we continued our focus on fulfilling orders to reduce our backlog of $35.0 million as of June 30, 2022, down from $38.6 million in the prior quarter. We believe business from our installed base will represent the future of expanding revenues as these relationships help drive new customers to our technology and owning that technology also ensure our customers have the most updated products and services. Progress with new accounts has been substantial, adding six new customers, several of which have fleet potential and at least six-figure revenue potential. “Our strategic focus on relationship business with an emphasis on price, service and quality, continues to provide ongoing new purchase needs and service requirements. With nearly 74% of revenue from customers with whom we have had long-term relationships in fiscal 2022, we believe the combination of existing customer orders and continued acquisition of new customer business can drive revenue growth in the next several years,” said Ron Dutt, Chief Executive Officer of Flux Power. For fiscal year 2022, order volume increased 83% from the prior year to $65 million. “Ongoing customer demand produced $11.6 million in purchase orders received from new and existing customers during the fourth quarter. Launched in-house automated modular production initiative to manage module SKUs and accommodate diversification among cell suppliers Įxpanded customer base, particularly among Fortune 500 companies. Introduced new product designs to lower costs, simplify part count and cost, and improve serviceability Increased inventory turns from 2.6x to 3.4x during the quarter ended June 30, 2022, reducing inventory to $16.3M Improved manufacturing capacity and production processes (including implementing Lean Manufacturing) to increase throughput, reduce the time to fulfill customer orders and improve gross margins Utilized qualified, lower cost steel suppliers
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