4 unchanged sentences
Our dividend policy is subject to change at any time, and future dividends will be subject to Board approval and subject to the company’s results of operations, cash and marketable security balances, our forecasts of future cash requirements, and other factors our Board may deem relevant.
−Removed: We had approximately 54 shareholders of record as of April 12, 2023.
+Added: We had 52 shareholders of record as of March 31, 2024.
There are also several thousand beneficial holders of our common stock in “street name,” whose shares of record are held by banks, brokers, and other financial institutions.
2 unchanged sentences
Stock Repurchase Program
−Removed: We repurchased 1,000 shares in fiscal 2023 and 2,888 shares in fiscal 2022.
−Removed: The Stock Repurchase Program may be modified or discontinued at any time without notice, and our Board of Directors has resolved to forgo stock buybacks for five years if, under Government policies, such a voluntary agreement would result in preferential treatment for grants under the CHIPS and Science Act of 2022.
+Added: We did not repurchase any shares in fiscal 2024.
+Added: We repurchased 264 shares in fiscal 2023.
+Added: The Stock Repurchase Program may be modified or discontinued at any time without notice.
MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
19 unchanged sentences
We also consider the likelihood that we will be required to sell the securities prior to maturity based on our financial condition and anticipated cash flows.
−Removed: If any of these conditions and estimates change in the future, or, if different estimates are used, the fair value of the investments may change significantly and could result in other-than-temporary decline in value, which could have an adverse impact on our results of operations.
+Added: If any of these conditions and estimates change in the future, or, if different estimates are used, the fair value of the investments may change significantly and could result in an other-than-temporary decline in value, which could have an adverse impact on our results of operations.
Inventory Valuation
21 unchanged sentences
Selling, general, and administrative
+Added: Credit loss expense
Total expenses
3 unchanged sentences
Provision for income taxes
−Removed: Total revenue for fiscal 2023 increased 42% compared to fiscal 2022 due to a 44% increase in product sales, partially offset by a 6% decrease in contract research and development revenue.
−Removed: The increase in product sales was primarily due to increased purchases by existing customers, and sales increased in most of our markets and product lines.
−Removed: The decrease in contract research and development revenue was due to the completion of certain contracts.
−Removed: Gross profit as a percentage of revenue increased to 79% for fiscal 2023 from 77% for fiscal 2022.
−Removed: The increase was primarily due to economies of scale from increased production and increased prices, partially offset by increased material and labor costs.
−Removed: Total expenses increased 4% for fiscal 2023 compared to fiscal 2022 due primarily to a 34% increase in selling, general, and administrative expense, partially offset by a 12% decrease in research and development expense.
−Removed: The decrease in research and development expense was primarily due to the reallocation of resources to revenue-generating activities.
−Removed: The increase in selling, general, and administrative expense was primarily due to staffing changes and increased employee compensation.
−Removed: Interest income for fiscal 2023 increased 24% due to an increase in our available-for-sale securities and an increase in the average interest rates on those securities.
−Removed: Our effective tax rate for fiscal 2023 decreased to 16% of income before taxes from 17% for fiscal 2022.
−Removed: The decrease was due to $197,008 in investment tax credits under the CHIPS and Science Act of 2022.
−Removed: Such credits require qualifying investments, and eligibility criteria are subject to changes in Federal tax policies.
−Removed: Therefore, our effective tax rate in fiscal 2023 may not be indicative of the rate for future periods.
−Removed: The 56% increase in net income in fiscal 2023 compared to the prior year was primarily due to increased product sales, increased gross profit margin, and increased interest income.
+Added: Total revenue for fiscal 2024 decreased 22% compared to fiscal 2023 due to a 21% decrease in product sales and a 45% decrease in contract research and development revenue.
+Added: The decrease in product sales was primarily due to decreased purchases by existing customers due to the downturn in the semiconductor industry.
+Added: The decrease in contract research and development revenue was due to fewer research and development contracts in fiscal 2024 compared to the prior year.
+Added: Gross profit as a percentage of revenue decreased to 77% for fiscal 2024 from 79% for fiscal 2023.
+Added: The decrease was due to increases in material, labor, and production overhead costs.
+Added: Total expenses decreased 1% for fiscal 2024 compared to fiscal 2023 due to a 10% decrease in selling, general, and administrative expense, partially offset by a 6% increase in research and development expense.
+Added: The increase in research and development expense was due to increased new product development activities.
+Added: The decrease in selling, general, and administrative expense was primarily due to decreased performance-based accruals.
+Added: Interest income for fiscal 2024 increased 35% due to increased yields on marketable securities purchased in fiscal 2024.
+Added: Our effective tax rate was 16% for fiscal 2024 and fiscal 2023 compared to the statutory tax rate of 21%.
+Added: Our lower effective tax rate was primarily due to Federal tax credits and deductions.
+Added: The 25% decrease in net income for fiscal 2024 compared to the prior year was primarily due to decreased revenue, partially offset by decreased expenses and increased interest income.
Liquidity and Capital Resources
2 unchanged sentences
Cash and cash equivalents were $10,283,550 as of March 31, 2024, compared to $1,669,896 as of March 31, 2023.
−Removed: The $8,779,614 decrease in cash and cash equivalents was due to $19,344,004 net cash used in financing activities and $8,527,108 net cash used by investing activities, partially offset by $19,091,498 in net cash provided by operating activities.
+Added: The $8,613,654 increase in cash and cash equivalents was due to $18,247,411 of net cash provided by operating activities and $9,580,084 of net cash provided by investing activities, partially offset by $19,213,841 of net cash used in financing activities.
Operating Activities
−Removed: Net cash provided by operating activities related to product sales and research and development contract revenue as our primary source of working capital for fiscal 2023 and 2022.
−Removed: Net cash provided by operating activities was $19,091,498 for fiscal 2023 and $12,503,679 for fiscal 2022.
−Removed: Accounts receivable increased $1,818,515 primarily due to increased product sales and the timing of sales to customers.
−Removed: Inventory increased $1,328,375 primarily due to our decisions to increase inventories to support increased product sales and to mitigate supply-chain risks.
+Added: Net cash provided by operating activities related to product sales and research and development contract revenue was our primary source of working capital for fiscal 2024 and 2023.
+Added: Net cash provided by operating activities was $18,247,411 for fiscal 2024 compared to $19,091,498 for fiscal 2023.
+Added: Accounts receivable decreased $3,368,997 during fiscal 2024 due to decreased revenue and the timing of customer payments.
+Added: Inventory increased $741,575 during fiscal 2024 primarily due to our decision to increase raw material and finished goods inventories in anticipation of a semiconductor industry recovery.
+Added: This will enable us to quickly respond to sales opportunities and to mitigate supply-chain risks.
+Added: Accounts payables and accrued expenses decreased $964,152 during fiscal 2024 due to decreased performance-based accrual and the timing of purchases and vendor payments.
Investing Activities
−Removed: Net cash used in investing activities in fiscal 2023 was due to marketable securities purchases of $28,441,317 and fixed assets purchases of $935,791, partially offset by marketable securities maturations of $20,750,000 and the receipt of a $100,000 tenant-improvement allowance.
−Removed: The $935,791 of fixed asset purchases in fiscal 2023 was a significant increase from $484,579 in fiscal 2022.
−Removed: Purchases in fiscal 2023 and 2022 were primarily for capital equipment to increase our production throughput and capacity and were financed with cash provided by operating activities.
−Removed: Our capital expenditures can vary significantly from year to year depending on our needs and equipment purchasing opportunities.
+Added: Net cash provided by investing activities in fiscal 2024 consisted of $15,700,000 in proceeds from maturities of marketable securities, partially offset by $16,731 of fixed asset purchases and $6,103,185 of marketable securities purchases.
+Added: Our capital expenditures can vary significantly from year to year depending on our needs, strategic goals, and equipment purchasing opportunities.
+Added: We are currently planning $4,000,000 to $5,000,000 of investments during fiscal years 2025 and 2026 to increase our production capacity and capabilities.
+Added: These plans are subject to change.
+Added: We expect to finance future capital equipment purchases with a combination of cash provided by operating activities and marketable security maturities.
Financing Activities
−Removed: Net cash used in financing activities in fiscal 2023 was due to $19,323,304 in cash dividends to shareholders and $20,700 of common stock repurchases.
+Added: Net cash used in financing activities in fiscal 2024 consisted of $19,331,304 of cash dividends paid to shareholders, partially offset by $117,463 in proceeds from the exercise of stock options.
In addition to cash dividends to shareholders paid in fiscal 2024, on May 1, 2024, we announced that our Board had declared a cash dividend of $1.00 per share of Common Stock, or $4,833,676 based on shares outstanding as of April 26, 2024, to be paid May 31, 2024.
2 unchanged sentences
Furthermore, dividends may be modified or discontinued at any time without notice.
+Added: Labor Practices
+Added: In the past fiscal year, we significantly increased average pay to attract, retain, and motivate top-performing employees despite a tight labor market.
+Added: These increased compensation costs are allocated to cost of sales and expenses in our income statements.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
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.