Surge Components reports Q3 EPS 12c vs. 6c last year
Reports Q3 revenue $8.1M vs. $9.3M last year. Ira Levy, President and CEO of Surge commented, "I am pleased with the Company's strong execution in the third quarter. Driven by disciplined cost management and an ongoing commitment to servicing higher margin customers, Surge's gross profit grew 14.6% and gross margins increased to 29.9% versus 22.7% in the year ago period. Our continued discipline around tightly managing expenses and in mitigating the impact of tariffs on our business also contributed to strengthened profitability. While profits were strong, net sales declined 12.9% in the third quarter due to a reduction in sales demand from certain customers in our Surge business and the loss of a customer in our Challenge division. Despite the decline in the quarter, we delivered a solid 6.1% increase in net sales in the first nine months, a testament to the strength of our diversified global sales channels. We also have a strong pipeline of new opportunities focused on the expansion of our international footprint that we expect to launch in the coming months. Our patent pending new pinpoint alarm system is also continuing to perform well in market testing and we remain in active dialogue with the patent office regarding the approval process. As we look ahead, we remain committed to maximizing profitability on a global scale through our world class supply chain and innovative pipeline of new products, which continue to drive customer acquisition. We believe we are well positioned for continued success and to deliver long-term value for our shareholders."