IEH Corporation reported a positive Q4 2024 with revenue of $6.93 million and net income of $0.43 million, translating to basic earnings per share of $0.18. The quarter delivered YoY revenue growth of approximately 30.8% and QoQ growth of about 35.6%, supported by a gross margin of 15.3% and a net income margin of 6.15%. However, EBITDA remained modestly negative at about $(0.11) million, largely due to sizable financing costs and an unusual line item labeled other expenses in the period. The presence of a markedly large other expenses figure warrants management clarification to determine recurring versus one-off drivers of profitability.
From a liquidity and balance sheet perspective, IEH presents a solid short-term liquidity profile: cash and cash equivalents of $6.14 million, total assets of ~$26.9 million, and a current ratio of 7.36x. Net debt is negative (approximately $(3.55) million), reflecting available cash relative to a modest debt load of about $2.59 million. Operating cash flow was $1.06 million for the quarter, with free cash flow near $0.84 million, underscoring a cash-generating engine even as revenue remains at a relatively small scale for the company’s niche.
Overall, the QQ4 2024 results show tangible top-line and cash-flow improvements versus prior periods, with a meaningful swing into positive net income despite a challenging financing/other-expense backdrop. The valuation backdrop appears modestly favorable given the cash-rich balance sheet and operating cash flow, but investors should closely monitor the sustainability of the gross margin trajectory, the causes behind the large other-expenses line item, and the company’s ability to scale revenue meaningfully in a competitive hardware interconnects market.