logo-loader
Surge Components Inc

Surge Components rockets after posting surge in fiscal 1Q revenue and profit

A surge in both revenue and profit in the fiscal first quarter was driven by improved sales

circuit board
Founded in 1981, Surge has grown into a top supplier of electronic component products

Surge Components Inc (OTCMKTS:SPRS), a supplier of electronic products and components, on Monday reported a surge in both its revenue and profit in the fiscal first quarter, driven by improved sales.

The news triggered a sharp rise in the company’s share price, which popped by 46% to close at $2.75 Monday.

In the three months until February 28, the Deer Park, New York company’s net income jumped to $691,297, or $0.13 per share, compared to $33,057, or $0.01 per share, in the year-ago quarter. Its sales, meanwhile, climbed by 20% to $8.4 million, up from $7 million in the year-ago quarter.

READ: IPO Roundup: ConversionPoint Holdings files for an IPO, while Pinterest Inc plans to raise $1.2 billion

In a statement, Surge’s CEO Ira Levy attributed the robust performance to an influx of more profitable customers. “Surge is off to an excellent start to 2019,” Levy said in a statement. “We delivered year-over-year growth in net sales of 20.4% and a 28.1% increase in gross profit in the first quarter. Driven by a strong sales pipeline of more profitable customers, we also generated a 27.6% gross profit margin.”

Looking ahead, Levy is focused on positioning Surge, which makes capacitors, discrete semi-conductors, switches and audible devices, as a top supplier of electronic products and components.

In the wake of the launch of a new sales program in Brazil, Surge’s management is now training local sales teams in the region and expects to generate more business there in the coming year. It has also shifted some customer deliveries directly to Hong Kong this year to mitigate the impact of Chinese tariffs on US goods.

In other news, the company’s engineering teams are also continuing to develop a pipeline of products within the US to drive sales.

Founded in 1981, Surge has grown into a top supplier of electronic component products. Its product portfolio includes aluminum electrolytic capacitors, film capacitors, discrete semiconductors and switches.

Contact Ellen Kelleher at [email protected]

Quick facts: Surge Components Inc

Price: $3.25

Market: PINK
Market Cap: $17.26 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Oneview Healthcare taking on the senior living market with...

Oneview Healthcare PLC (ASX:ONE) CEO James Fitter tells Proactive the Ireland-based company is moving into the senior living market, deploying its technology platform with Colorado-based Christian Living communities in the first half of 2020, and with a 'large operator' in Australia, to develop...

3 hours, 48 minutes ago

2 min read