Virco Manufacturing Corporation $(VIRC)$, a prominent manufacturer and supplier of furniture for educational environments and public spaces in the U.S., reported a net income of $0.7 million for the first quarter ended April 30, 2025. This represents a decrease from the $2.1 million net income reported for the same period last year. The previous year's results were notably impacted by a substantial disaster recovery order, which was counter-seasonal. Despite the reduction in revenue, Virco's gross margin improved significantly, rising to 47.5% from 43.5% in the previous year. This increase was largely due to the lower margins associated with the prior year's disaster recovery order and a higher proportion of orders requiring full service. The company maintains confidence in its ability to manage peak-season deliveries effectively, despite challenges in supply chains elsewhere. Virco's shipments plus backlog declined by 22.9%, reaching $105.6 million. The company also declared a quarterly dividend of $0.025 per share, payable on July 11, 2025, to shareholders of record as of June 20, 2025. First quarter shareholder returns totaled $4.4 million, including buybacks and dividends. Management attributes the slowing demand to typical election-related bond cycles but remains optimistic about navigating potential challenges and opportunities in the coming year.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.