03:50 PM EST, 12/05/2024 (MT Newswires) -- Reko International Group ( RKIGF ) , a diversified, technology-driven manufacturing company, was at last look trading up near 3.5% from 52 week low levels on Thursday even as it reported a drop in basis earnings per share for the first quarter of its fiscal 2025 year on lower revenues. But it pointed to foreign exchange losses impacting earnings in the latest Q1, while it cited lower sales recognition and lower overall backlog as factors impacting revenues.

Net earnings for the quarter ended October 31, 2024, were $88,000, or $0.02 per share, compared to $311,000, or $0.05 per share, in the same quarter last year. It said the latest quarter includes a year over year net foreign exchange loss of $544,000, or $0.10 per share. Excluding this, earnings improved by $0.07 per share compared to the prior year.

Consolidated sales for the quarter decreased by 25.3% to $10.238 million compared to the same period last year. It said sales in certain areas of the business are influenced by the number of active projects, the value of awards, and the timing of project milestones, which can vary significantly by job, sector and by customer. During the first quarter, a higher proportion of projects were at earlier stages of completion, contributing to lower sales recognition relative to the previous year. Additionally, while project kick-offs from automotive customers showed some improvement compared to the latter half of fiscal 2024, the overall backlog at the start of this fiscal year was lower than at the beginning of the previous year in that sector.

Of note, the company said quarterly net income improved by $3.547 million and $0.64 per share over the fourth quarter of the prior fiscal year. Reko had an improved cash position of $2.4 million over prior quarter and $6.1 million over first quarter of fiscal 2024.

"This quarter's performance highlights meaningful progress, with improved financial results compared to recent quarters," said CEO Diane Reko. "These results indicate that our strategic initiatives are beginning to translate into financial gains, and we are confident this momentum will continue. We remain committed to driving growth through operational excellence and expanding into high-opportunity markets."

Price: 3.00, Change: +0.10, Percent Change: +3.45