Results of Operations
Inrad Optics is a vertically integrated manufacturer specializing in glass, crystal, and metal based optical components and assemblies. Manufacturing capabilities include super-precision optical surfacing, precision diamond turning, the ability to handle large substrates, proprietary optical contacting processes, thin film coatings, and high resolution in-process metrology. The Company built its reputation on the growth and fabrication of UV filter crystals and non-linear crystals and devices. Today, product offerings include optical components and assemblies for the ultraviolet to infrared range, and bent crystal assemblies for x-ray applications.
Inrad Optics’ customers include leading corporations in semiconductor wafer inspection, industrial and scientific process control and metrology, defense, space, and laser systems sectors, as well as the U.S. Government, National Laboratories and universities and institutions worldwide.
All R&D, engineering, manufacturing and administrative operations are undertaken in our 42,000 square foot facility in Northvale, New Jersey.
Sales Revenue
Sales for the three months ended June 30, 2022, were $2.7 million, a decrease of $0.2 million or 4.9% compared to $2.9 million, for the three months ended June 30, 2021. For the six months ended June 30, 2022, sales were $5.2 million, a decrease of 8.6%, or $0.5 million, compared to sales of $5.7 million for the six months ended June 30, 2021.
For the three months ended June 30, 2022 and 2021, sales to the defense/aerospace market were $0.8 million and $1.1 million, respectively. For the six months ended June 30, 2022 and 2021, sales to the defense/aerospace market were $1.6 million and $2.2 million, respectively. The decrease in sales in the three months and six months ended June 30, 2022, of $0.3 million, or 26.7%, and $0.6 million, or 27.8%, respectively, reflect reduced demand for defense-based products.
Process control and metrology (“PC&M”) sales were $1.7 million for the three months ended June 30, 2022, an increase of $0.5 million, or 45.4%, from $1.2 million for the three months ended June 30, 2021, reflecting stronger sales in the semiconductor industry. For the six months ended June 30, 2022, sales increased 38.2% or $0.9 million to $3.1 million from $2.2 million for the six months ended June 30, 2021. Sales in the PC&M market continue to increase due to strong demand in the semiconductor industry.
For the three months ended June 30, 2022 and 2021, sales to customers in the laser systems market were $39,000 and $0.3 million, respectively. The decrease of $0.3 million, or 86.0%, reflects the decrease in sales of products for legacy replacement materials. Sales for the six months ended June 30, 2022 and 2021, were $0.1 million and $0.3 million, respectively. Products sold into this market segment largely consist of legacy materials for replacement units and small volume buys.
Sales to customers in the Scientific/R&D market were $0.2 million and $0.4 million for the three months ended June 30, 2022 and 2021, respectively, a decrease of $0.2 million, or 41.1%. The decrease reflects reduced demand from national laboratories. For the six-month period ending June 30, 2022, sales decreased $0.4 million to $0.4 million, compared to $0.8 million for six months ended June 30, 2021. The decrease in sales for the six-month period ended June 30, 2022, reflects reduced demand for certain products in this market and completion of a federal government R&D contract in the beginning of 2021.
For each of the three months ended June 30, 2022 and 2021, three customers represented 10% or more of sales. For the six months ended June 30, 2022, three customers represented 10% or more of sales compared to two customers representing 10.0% of sales for the six months ended June 30, 2021.
The Company’s top five customers represented 63.8% of sales the three-month period ended June 30, 2022, compared to 57.4% of sales in the same period in 2021. For the six-month period ended June 30, 2022 and 2021, the Company’s top five customers represented 64.2% and 50.0% of sales, respectively.
Orders booked during the first six months of 2022, totaled $13.9 million, compared to $9.1 million for the same period last year. Order backlog at June 30, 2022 and 2021, was $21.1 million and $9.4 million, respectively.