Vishay Precision Group Inc

Segment Performance:

The Sensors segment revenue of $29.4 million in the first fiscal quarter of 2024 decreased 19.9% from $36.7 million in the first fiscal quarter of 2023, and decreased 14.1% compared to $34.3 million in the fourth fiscal quarter of 2023. The year-over-year decrease was primarily attributable to lower sales of precision resistors in the Test and Measurement market and lower sales of precision resistors and strain gages in the Avionics, Military and Space ("AMS") market. Sequentially, the decrease primarily reflected lower revenue of precision resistors in the Test and Measurement and AMS end markets.

Gross profit margin for the Sensors segment was 36.5% for the first fiscal quarter of 2024. Gross profit margin decreased compared to 41.2% in the first fiscal quarter of 2023, and decreased compared to 40.2% in the fourth fiscal quarter of 2023. The year-over-year decline in gross profit margin was primarily due to lower sales volume. The sequential decrease was due to lower sales volume, partially offset by improved efficiencies.

The Weighing Solutions segment revenue of $28.8 million in the first fiscal quarter of 2024 decreased 9.5% compared to $31.9 million in the first fiscal quarter of 2023 and was 5.2% lower than $30.4 million in the fourth fiscal quarter of 2023. The year-over-year and sequential decreases in revenues were mainly attributable to lower OEM sales of force sensors in our Other markets for precision agriculture and construction applications and lower sales of force sensors in our Industrial Weighing market, partially offset by increased sales in the Transportation market.

Gross profit margin for the Weighing Solutions segment was 39.1% for the first fiscal quarter of 2024, which increased compared to 34.9% in the first fiscal quarter of 2023, and increased compared to 35.6% in the fourth fiscal quarter of 2023. The year-over-year increase in gross profit margin was primarily due to favorable product mix, cost reduction programs and favorable foreign currency exchange, partially offset by lower sales volume. Sequentially, the increase in gross profit margin reflected a reduction of inventory in the fourth quarter which did not repeat in the first quarter, as well as cost reduction programs which were partially offset by lower sales volume.

The Measurement Systems segment revenue of $22.5 million in the first fiscal quarter of 2024 increased 11.1% year-over-year from $20.3 million in the first fiscal quarter of 2023 and was 9.3% lower than $24.8 million in the fourth fiscal quarter of 2023. The year-over-year increase was primarily attributable to increased revenue in the Steel market as higher sales of KELK products were partially offset by lower sales of Dynamic Systems Inc. systems. Sequentially, the decrease in revenue was primarily due to the lower sales of Diversified Technical Systems ("DTS") products in the AMS and Transportation markets, partially offset by higher sales in the Steel market.

Gross profit margin for the Measurement Systems segment was 58.1%, compared to 53.9% (or 54.1% adjusted to exclude $49.0 thousand of purchase accounting adjustment related to the DTS acquisition), in the first fiscal quarter of 2023, and 56.0% in the fourth fiscal quarter of 2023. The year-over-year increase in adjusted gross profit margin* was primarily attributable to higher sales volume and favorable product mix. The sequentially higher adjusted gross profit margin* reflected favorable product mix and inventory adjustments which was partially offset by lower sales volume.