IEH Corp reported significant financial improvements for the three and six months ended September 30, 2024, compared to the same periods in 2023. Revenue for the third quarter reached $7.34 million, a 52.6% increase from $4.81 million in Q3 2023. For the first half of the fiscal year, revenue totaled $14.45 million, up 52.2% from $9.49 million in the prior year. The growth was driven by a 60% increase in defense revenues and a 137% rise in space revenues, attributed to geopolitical factors and investments in commercial space programs.

Operating income also showed a marked turnaround, with a profit of $173,196 in Q3 2024, compared to an operating loss of $1.12 million in Q3 2023. For the six-month period, operating income was $506,175, a significant recovery from a loss of $2.45 million in the same period last year. Net income for Q3 2024 was $246,443, reversing a net loss of $1.10 million in Q3 2023. Similarly, net income for the first half of 2024 was $639,230, compared to a net loss of $2.42 million in the prior year.

The company’s cash position improved, with cash and cash equivalents increasing to $8.59 million as of September 30, 2024, up from $6.14 million at the end of March 2024. Net cash provided by operating activities for the six months was $2.59 million, a substantial increase from a net cash outflow of $2.26 million in the same period last year.

Cost of products sold for Q3 2024 was $5.61 million, reflecting a 44.1% increase from $3.89 million in Q3 2023. However, selling, general, and administrative expenses decreased by 24.7% to $1.37 million, contributing to improved profitability. Depreciation and amortization expenses also declined, indicating better cost management.

The company reported a backlog of orders of approximately $14.30 million as of September 30, 2024, down from $17.57 million a year earlier. Shareholders’ equity rose to $22.56 million, up from $21.80 million as of March 31, 2024.

In terms of corporate governance, IEH Corp faced ongoing SEC proceedings initiated in August 2022, but the litigation related to the former CFO's resignation was settled without materially affecting the company's financial position. The company continues to monitor risks associated with market conditions and potential capital needs.