33 unchanged sentences
The net revenue increase was primarily driven by increased equipment sales recognized over time and increased parts and component sales, partially offset by a decrease in equipment sales recognized at a point in time.
−Removed: Net revenue for the fourth quarter of fiscal 2024 increased slightly to $20,921,000 compared to $20,871,000 for the quarter ended September 30, 2023.
−Removed: As a percent of sales, gross profit margins increased slightly to 27.7% in fiscal 2024 as compared to 27.6% in fiscal 2023.
−Removed: In the fourth quarter of fiscal 2023, gross profit margin of 31.7% was positively impacted by closing out of certain projects recognized over time where actual results improved over initial estimates.
−Removed: In the fourth quarter of fiscal 2024 gross profit margin was 25.6%.
+Added: Net revenue for the fourth quarter of fiscal 2025 decreased 10.0% to $18,831,000 compared to $20,921,000 for the quarter ended September 30, 2024.
+Added: As a percent of sales, gross profit margins decreased slightly to 27.5% in fiscal 2025 as compared to 27.7% in fiscal 2024.
+Added: In the fourth quarter of fiscal 2025, gross profit margin was 24.2% as compared to 25.6% in the fourth quarter of fiscal 2024.
Product engineering and development expense in fiscal 2025 decreased $555,000 to $2,758,000 from $3,313,000 in fiscal 2024 due to reduced headcount.
Selling, general and administrative (“SG&A”) expenses in fiscal 2025 increased $610,000 to $14,937,000 from $14,327,000 in fiscal 2024.
−Removed: The increase in SG&A expenses was primarily due to increased trade show expenses, professional fees and commissions on higher net revenue.
−Removed: In fiscal 2024, the Company had operating income of $13,687,000 versus $13,425,000 in fiscal 2023.
−Removed: The benefit of increased sales in fiscal 2024 was partially offset by increased SG&A expenses as compared to fiscal 2023.
+Added: The increase in SG&A expenses was primarily due to professional fees and commissions on higher net revenue.
+Added: In fiscal 2025, the Company had operating income of $14,018,000 as compared to $13,687,000 in fiscal 2024 due to increased net revenue.
For the year ended September 30, 2025, the Company had net other income of $6,181,000 compared to $7,043,000 for the year ended September 30, 2024.
Interest and dividend income, net of fees, was $4,373,000 for the year ended September 30, 2025 as compared to $3,435,000 for year ended September 30, 2024.
−Removed: Interest income for the year ended September 30, 2024 as compared to the prior year increased due to higher interest rates earned on increased cash balances and fixed income investments coupled with the Company reallocating a majority of its holdings in equities to fixed income in January 2023.
−Removed: Net realized and unrealized gains on marketable securities were $3,621,000 for the year ended September 30, 2024 versus $3,243,000 for the year ended September 30, 2023.
−Removed: Net realized and unrealized gains in the portfolio were primarily the result of fluctuations in the market value of fixed income securities due to interest rate changes.
−Removed: The effective income tax rate for fiscal 2024 was 29.8% versus 21.9% in fiscal 2023.
+Added: The increase was primarily due to higher interest rates earned on increased cash balances and fixed income investments.
+Added: Net realized and unrealized gains on marketable securities were $1,800,000 for the year ended September 30, 2025 as compared to $3,621,000 for the year ended September 30, 2024.
+Added: The decrease in net realized and unrealized gains in fiscal 2025 was primarily the result of fluctuations in the market value of fixed income securities due to interest rate changes and a shift in purchasing slightly longer duration treasuries and corporate bonds in fiscal 2025.
+Added: The effective income tax rate for fiscal 2025 was 22.5% as compared to 29.8% in fiscal 2024.
The higher income tax rate in fiscal 2024 was driven by increased reserves of $1.2 million for unrecognized tax benefits.
15 unchanged sentences
The Company’s working capital was $197.7 million at September 30, 2025 versus $182.2 million at September 30, 2024.
−Removed: The significant purchases, sales and maturities of marketable securities shown on the consolidated statements of cash flows typically reflect the frequent purchase and sale of United States treasury bills.
Year ended September 30, 2025 compared with the year ended September 30, 2024
+Added: Cash flows provided by operations in fiscal 2025 were $3,068,000 primarily resulting from net income and reduced inventories, and partially offset by the transfer of $15,000,000 from the operating cash account to the investment portfolio in the third quarter of fiscal 2025.
+Added: Contract assets increased $2,869,000 with the timing of inventory build and percentage of completion recognition on sales where revenue is recognized over time.
+Added: The increase in marketable securities of $18,460,000 was due primarily to the transfer of $15,000,000 from the Company’s operating cash account to the investment portfolio during the quarter ended June 30, 2025.
+Added: Inventories decreased by $10,259,000 primarily due to completion and shipment on several large contract orders where revenue is recognized at a point in time as well as increased parts sales coupled with reduced purchases as supplier lead times have come down, and increased allowances.
Cash flows provided by operations in fiscal 2024 were $9,291,000 primarily resulting from net income and reduced inventories, and partially offset by increased contract assets on contract sales where revenue is recognized over time.
1 unchanged sentence
Inventories decreased by $7,765,000 primarily due to completion and shipment on several large contract orders where revenue is recognized at a point in time as well as increased parts sales coupled with reduced purchases as supplier lead times have come down, and increased allowances.
−Removed: Cash flows provided by operations in fiscal 2023 were $10,196,000 primarily resulting from net income and sale of marketable securities, and partially offset by increased inventory.
−Removed: Inventories increased by $15,712,000 primarily due to progress on several large contract orders where revenue is recognized at a point in time, the impact of the inflationary environment on raw material and wage price increases, and stock build to adjust for the increasing lead times from suppliers.
−Removed: Marketable securities decreased $9,364,000 due primarily to the transfer of $10,000,000 from the investment portfolio to cash to fund operating needs of the business during fiscal 2023.
Cash flows used in investing activities for the years ended September 30, 2025 and September 30, 2024, were $1,963,000 and $840,000, respectively, and were primarily related to the capital expenditures for building improvements and manufacturing processing equipment.
Critical Accounting Policies, Estimates and Assumptions
−Removed: The Company believes the following discussion addresses it’s most critical accounting policies, which are those that are most important to the portrayal of the Company’s financial condition and results of operations and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
−Removed: Accounting policies, in addition to the critical accounting policies referenced below, are presented in Note 1 to the Consolidated Financial Statements, “Accounting Policies.”
+Added: The Company believes the following discussion addresses its most critical accounting policies, which are those that are most important to the portrayal of the Company’s financial condition and results of operations and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain.
+Added: Accounting policies, in addition to the critical accounting policies referenced below, are presented in Note 1 to the Consolidated Financial Statements, “Accounting Pronouncements and Policies.” There were no changes to the accounting polices during the year ended September 30, 2025.
Estimates and Assumptions
6 unchanged sentences
The Company accounts for revenues and related expenses under the provisions of ASU No.
−Removed: 2014-09, Revenue from Contracts with Customers (Topic 606), as amended (“ASU No.
+Added: 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”).
Revenues from contracts with customers for the design, manufacture and sale of custom equipment are recognized over time when the performance obligation is satisfied by transferring control of the equipment.
51 unchanged sentences
In March 2024, the Company extended the lease term through August 31, 2025.
+Added: In March 2025, the Company extended the lease term through August 31, 2026.
Off-Balance Sheet Arrangements
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.