PLYMOUTH, MN -- Innovex today reported fiscal third-quarter revenue of $10.7 million, up 20% sequentially on higher flat panel display shipments.

For the period ended July 4, the net loss was $8.7 million, down 95% from last year. Revenue was down 34% from a year ago.

For the quarter, FPD product revenue made up 76% of the net sales; actuator flex circuit revenue was 20%; and integrated circuit packaging application, network system and other application revenue was 4%. FPD revenue by 65% quarter-over-quarter, while AFC sales decreased 37%.

At quarter's end, backlogs were $6 million. Gross margins improved by six percentage points compared to the second quarter, but were negatively impacted by lower-than-expected revenue and low capacity utilization.

Cash used by operating activities was $1.3 million. Days sales outstanding fell from 43 days in the second quarter to 24 days in the third quarter.

In a statement, the company said cash constraints have limited revenues. “Although we were able to make marginal improvement in the operating profit on essentially flat quarter to quarter revenue excluding pass through material, leaving $1.8 million of shippable revenue on the backlog at the end of the quarter was a disappointment. Limited working capital as well as operating inefficiencies contributed to this shortfall,” said Terry Dauenhauer, president and chief executive.

“We also had a significant revenue opportunity from our AFC customers which we were not able to take advantage of during the quarter due to limited working capital resulting from restrictive payment terms from a few of our suppliers. The good news is that the demand is improving."