Aug 27, 2026 earnings call — China exit and major program wins
Reported over $60 million in new program awards in the fourth quarter of fiscal 2026.
Revenue $0.1B · EPS $-0.26
Key quotes
"During the quarter, we completed our wind-down of our manufacturing operations in China, shifting more production to our expanding facilities in the U.S. and Vietnam."
"During the fourth quarter of fiscal 2026 alone, we secured more than $60 million in new program awards."
"Supply chain financing constraints forced us to delay approximately $10 million of shipments during the quarter, but underlying customer demand remains strong."
Analyst Q&A 3
Sizes and timing of three new wins
Q (Matthew Dhane · Tieton Capital Management): The analyst asked the size of the largest and smallest of the three $60 million new wins and timing for each. He also asked how the Mexico pipeline compares to a year ago and for more details on the new partnership/consignment model.
A: Management said the three wins are: a data center program that will be $40 million to $45 million per year in Mexico, a construction product about $5 million to $10 million that starts in Spokane and moves to Arkansas in fiscal 2027, and a $15 million industrial power management program to be built in Arkansas. They said timing is: the data center will contribute substantial revenue in the second quarter of fiscal 2027, the construction program will show a couple million in the first 6 months of fiscal year 2027, and the power management program will be fully ramped by the third or possibly the start of the fourth quarter of fiscal 2027. They said the sales funnel has improved drastically versus a year ago and described working with customers on capital sharing and consigned models, citing an 18-month-old consigned model in Mississippi as a successful example.
"That will be $40 million to $45 million per year increase in production in our Mexico facility." — Brett Larsen (CEO)
Sources of additional capital
Q (Sheldon Grodsky · Grodsky Associates): The analyst asked what additional sources of capital the company is pursuing to support growth. He then asked what unencumbered assets the company has.
A: Management said they are working with customers to share the capital load and are pursuing various financing activities, including using unencumbered assets as collateral. When asked about what is unencumbered, they said their foreign assets are available and that there is little available domestically under the current lending group, though they are exploring opportunities from the foreign assets.
"We're actively, as mentioned, working with our customers to help share that capital load." — Brett Larsen (CEO)
Supplier payment terms and China exit costs
Q (George Melas · MKH Management): The analyst asked to confirm adjusted results and to explain the supply-chain financing constraint and the $10 million delayed shipments. He also asked about the Mississippi consigned program demand, whether the company is targeting different clients, the source of the data center win, and China exit cost timing and amounts.
A: Anthony said adjusted net income was about a $2.7 million loss. Brett said suppliers are reducing the days they extend on payables, forcing earlier payments and reducing flexibility, which created liquidity pressure and contributed to delayed shipments that shift revenue into future quarters. He said the Mississippi consigned program now faces softer market demand for that customer's product but proved the consigned model can work and may be pursued for other opportunities, and he said the $4 million China savings is representative of the run rate for the first 3 quarters of fiscal '26.
"We're seeing in the market is that suppliers are cracking down on the number of days that they'll extend to us in payables." — Brett Larsen (CEO)