PLYMOUTH, MN – PCB maker Innovex reported third-quarter revenue rose 22% to $16.2 million for the period ended June 28.

For the quarter, the company’s net loss was $4.5 million, an improvement on a loss of $9.2 million a year ago. The company took restructuring charges of $470,000 in the most recent quarter.

The sales growth was primarily driven by a $4 million revenue increase from a major display customer, an area the firm expects to continue to experience strong growth in the near future.

For the quarter, gross margins improved eight points sequentially on higher revenue. However, gross margins continue to be negative as capacity utilization is below 50%.

Cash from operations was $500,000, up from a loss of $5.3 million in cash in the second quarter.

President and chief executive Terry Dauenhauer said internal yields and scrap levels improved during the quarter but capacity utilization levels are too low. “Although utilization of installed capacity is increasing, the significant underutilization continues to depress overall operating margins. Our challenge is still to fill the available capacity.”