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Syntec Optics Holdings, Inc. (OPTX) reported a net loss of $0.34 million for the second quarter of fiscal 2025, a significant decline from a net income of $0.28 million in the same period last year. The company’s net sales reached $6.6 million, reflecting a 6.4% decrease from $7 million a year prior. This financial performance contrasts sharply with a 22.2% gain in share value since its earnings report, compared to the S&P 500’s 2.5% decline.
For the quarter ended June 30, 2025, Syntec’s gross profit fell to $1.6 million, a 26.5% reduction, and gross margin declined to 24% from 31% year-over-year. The cost of goods sold increased to 76% of revenue, highlighting rising material costs. Additionally, customer concentration remained notable, with three customers constituting 43% of quarterly revenues, down from 53% the previous year.
Management attributed the revenue decline to a $1 million contraction in the consumer market, partially offset by gains in communications and defense sectors. Despite challenges, the company is focusing on expanding its manufacturing capabilities in Rochester, New York, and continuing efforts for inorganic growth through strategic acquisitions.
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