Electro-Sensors, Inc. reported a net sales increase of 9.6% for the fiscal year ending December 31, 2024, reaching $9.373 million, up from $8.555 million in 2023. The growth was primarily attributed to higher sales of the HazardPRO wireless sensors and systems, particularly in agricultural applications. The company's gross profit also rose by 7.9% to $4.582 million, although the gross margin slightly decreased to 48.9% from 49.6% due to rising raw material and labor costs. Net income for the year was $446,000, a significant increase of 62.2% compared to $275,000 in the previous year, resulting in earnings per share of $0.13, up from $0.08.
In terms of operational changes, Electro-Sensors experienced a 7.3% increase in total operating expenses, which rose to $4.586 million from $4.273 million in 2023. This increase was driven by additional headcount and stock-based compensation. Notably, selling and marketing expenses increased by 8.2% to $1.441 million, while general and administrative expenses rose by 8.3% to $2.132 million. Research and development expenses also saw a slight increase of 4.1% to $1.013 million. Despite these increases, operating loss improved to $4, down from $28 in 2023, reflecting the positive impact of higher sales.
Electro-Sensors continues to expand its market presence, with international sales accounting for approximately 11.5% of total revenue, up from 10.3% in the prior year. The company sells its products through a combination of internal sales teams and distributors across various countries, including Canada, Mexico, and several nations in Europe and Asia. The company maintains a workforce of 40 full-time employees, with a focus on enhancing employee relations and maintaining a competitive workplace culture.
Looking ahead, Electro-Sensors plans to invest in research and development to introduce new products and enhance existing offerings. The company is also exploring potential acquisitions and strategic investments to further its growth strategy. However, it acknowledges challenges related to supply chain dynamics, including unexpected price increases and labor market conditions, which could impact operational efficiency and profit margins. The company believes its current cash reserves and operational cash flow will be sufficient to meet its financial needs over the next 12 months.
About ELECTRO SENSORS INC
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