Syntec swings to profit as sales climb

Syntec Optics, the Rochester-based provider of precision optical components deployed across a range of industry verticals, has posted sales of $8.3 million in the June quarter - up 26 per cent year-on-year to reach an all-time high.

That rate of growth was driven primarily by applications in communications, defense, and consumer markets, with the company’s management team confident that the period will come to mark an “inflection point” in financial performance.

Having recently noted significant bookings activity in fusion and AI data center infrastructure, the “increasingly balanced” revenue mix is said to reflect continued execution of a diversification strategy.

With profit margins also up, Syntec was able to post a pre-tax income of $0.25 million for the three months ending June 30, compared with a pre-tax loss of $0.34 million a year ago.

Cash position improved

In recent months the 180-person company has also raised $21 million from investors, used to smarten up the balance sheet by eliminating a $6.8 million revolving line of credit and increasing cash assets to $14 million set to aid investment in production capabilities.

Syntec CFO Dean Rudy said that the latest quarter had seen the firm strengthen its financial situation at a time when market opportunities were expanding, and he expects revenues to keep ticking up through the end of this year.

Recent business highlights include increased production throughput on low-Earth orbit (LEO) satellite optics, a 40 per cent jump in orders for components used in laser missile guidance systems, and a $4.6 million order supporting critical care diagnostics.

Matt Carey, Syntec’s VP of business development and delivery, added: “One of the most encouraging trends we're seeing is that customers continue expanding Syntec's participation within their technology platforms.

“Rather than simply winning isolated new programs, we're increasing the number of products we manufacture for existing customers while simultaneously entering adjacent technologies.

“That expansion reflects years of investment in building one of the industry's broadest vertically integrated optical manufacturing capabilities.”

Rudy and Carey expect sales to rise in the September quarter thanks largely to momentum in biomedical applications and AR/VR cameras, and to reach between $8.75 million and $9.25 million in the December quarter as shipments for LEO satellite optics, optical interconnects, and fusion development kick in.