Virco Manufacturing Corporation $(VIRC)$, a prominent manufacturer and supplier of furniture for educational environments and public spaces in the U.S., reported a net income of $0.7 million for the first quarter ended April 30, 2025. This represents a decrease from the $2.1 million net income reported for the same period last year. The previous year's results were notably impacted by a substantial disaster recovery order, which was counter-seasonal. Despite the reduction in revenue, Virco's gross margin improved significantly, rising to 47.5% from 43.5% in the previous year. This increase was largely due to the lower margins associated with the prior year's disaster recovery order and a higher proportion of orders requiring full service. The company maintains confidence in its ability to manage peak-season deliveries effectively, despite challenges in supply chains elsewhere. Virco's shipments plus backlog declined by 22.9%, reaching $105.6 million. The company also declared a quarterly dividend of $0.025 per share, payable on July 11, 2025, to shareholders of record as of June 20, 2025. First quarter shareholder returns totaled $4.4 million, including buybacks and dividends. Management attributes the slowing demand to typical election-related bond cycles but remains optimistic about navigating potential challenges and opportunities in the coming year.