The following is a summary of the GSE Systems, Inc. (GVP) Q4 2023 Earnings Call Transcript:
Financial Performance:
GSE reported a slight drop in Q4 revenue to $10.2 million due to lower billable hours during the holiday season.
Operating expenses were down by 22%, resulting in gross profit of $2.6 million, equivalent to 25.5% of revenue.
The company's net loss widened to $2.3 million, up from $2 million in Q3 2023 and $1.5 million in Q4 2022.
At the end of Q4, GSE's backlog stood at $34.5 million, lower than the $37.6 million of Q3 2023.
Cash reserves were at $2.3 million at the end of Q4 2023, compared to $6.2 million in Q3, and $9.1 million at the end of Q4 2022.
Business Progress:
GSE successfully streamlined and realigned the company to focus on higher-margin businesses throughout 2023.
The Performance engineering division recorded new orders worth $37.6 million in 2023, up by 70% from 2022.
The Workforce Solutions business is adapting to changes brought about by the shift towards remote work.
The company's total order flow for fiscal 2023 was $47.3 million and anticipates more orders in the coming quarters, which should improve cash flow.
GSE sees potential in utilizing nuclear energy for AI, cloud computing, and Bitcoin mining.
More details: GSE Systems IR
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