Mr. Steve Smith reports

ZTEST ELECTRONICS INC. ANNOUNCES FISCAL Q2 2025 RESULTS

Ztest Electronics Inc. had Q2 (second quarter) 2025 revenues of $2,080,861, as the headwinds the company alluded to in previous quarterly reports played a significant role in halting the string of 11 consecutive quarters of year-over-year growth.

Revenue for Q2 2025 was $2,080,861, generating $377,972 in cash from operations and $451,856 after allowing for changes in working capital. Revenues for the six months ended December, 2024, were $4,100,368 and operating activities contributed $983,090 to cash reserves.

While revenues for the quarter declined just over 15 per cent year over year, the resulting gross margins declined just under 15 per cent. In other words, the gross margin percentage increased marginally despite the revenue decline.

Net income for the quarter was $208,604, raising net income year to date to $532,724. Each of these figures trail results from one year prior, which were $504,329 and $676,213, respectively.

Lower net income, in combination with a 29-per-cent increase in outstanding shares, reduced basic EBITDA (earnings before interest, taxes, depreciation and amortization) per share from 2.2 cents last year to 1.1 cents in the most recent quarter. For the six-month period, basic EBITDA per share was 2.5 cents, as compared with 3.4 cents at Dec. 31, 2023.

On Dec. 31, 2024, the company had working capital of $4,328,785. It is currently well financed, with strong liquidity and low leverage, and is investigating ways by which it may be able to invest capital to further enhance its growth.

Steve Smith, chief executive officer, commented: "Although the uncertain threat of tariffs on imports and exports is adding to market uncertainty, we have begun hearing suggestions of larger future orders. The company will continue to explore opportunities to solidify and expand its market share, and to ensure we are prepared to capitalize when more favourable market conditions return."

About Ztest Electronics Inc.

Ztest Electronics, through its wholly owned subsidiary, Permatech Electronics Corp., offers electronic manufacturing services (EMS) to a wide range of customers. Permatech's offering includes printed circuit board (PCB) assembly, materials management and testing services. Permatech operates from an ISO 9001:2015-certified facility in North York, Ont., Canada. Permatech is a contract assembler of complex circuit boards, serving customers in the medical, power, computer, telecommunications, wireless, industrial, trucking, wearables and consumer electronics markets. It specializes in servicing customers that are looking for high yield, and require high-quality and rapid turnaround on low- and mid-volume production of high-complexity products.

We seek Safe Harbor.