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FORD Nasdaq· Forward Industries, Inc
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FORD Nasdaq· Forward Industries, Inc
Earnings report Q3 2023

FORD Reports Decrease in Revenue in Latest Quarter

Segments of revenue

In the latest quarter, FORD reported total segment revenues of $36.69 million, a decrease from $38.21 million in the previous year. The OEM distribution segment generated $14.00 million in revenue, down from $18.04 million in the previous year. On the other hand, the design segment saw revenue growth, with $22.69 million in revenue compared to $20.17 million in the previous year.

Strengths

Despite the overall decrease in revenue, the design segment showed growth, which partially offset the decline in the OEM distribution segment. This indicates that FORD's design services are in demand and have contributed to the company's revenue. Additionally, FORD's management commented that the decrease in net revenues was primarily driven by pricing pressures from customers in the OEM distribution segment, suggesting that the company is actively managing its pricing strategy to remain competitive.

Challenges

FORD faced challenges in the OEM distribution segment, where revenue declined. The company cited pricing pressures from customers, high product costs, importation costs, logistics costs, and inflation as factors contributing to the decrease in gross profit and gross margin. These challenges highlight the need for FORD to address cost management and pricing strategies in the OEM distribution segment to improve profitability.

Noteworthy

FORD's operating income decreased from $588,000 in the previous year to $160,000 in the latest quarter. This decline was primarily driven by the decrease in revenue in the OEM distribution segment. Additionally, FORD's gross margin declined slightly from 23.0% to 22.8% due to the challenges faced in the OEM distribution segment.

Summary

FORD reported a decrease in revenue in the latest quarter, primarily driven by a decline in the OEM distribution segment. However, the design segment showed revenue growth, indicating demand for FORD's design services. The company faced challenges in the OEM distribution segment, including pricing pressures, high costs, and inflation. FORD's management commented on actively managing pricing strategies to address these challenges. Overall, FORD needs to focus on cost management and pricing strategies in the OEM distribution segment to improve profitability and mitigate the impact of pricing pressures.

Source documents

Form 10-K  filed on Dec 21, 2023
79 pages scanned

Reference data

Company financials Q3 revenue 0
Analyst estimates Q3 EPS missed by NaN%
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