Optex Systems Holdings, Inc. (OTCBB: OPXS) shares skyrocketed 47.6% toward the end of trading Wednesday to 1.9 cents, after the leading manufacturer of optical sighting systems and assemblies primarily for Department of Defense applications reported quarterly operating results. Volume for the stock was 171,400 shares, at least 10 times its normal daily volume.

During the fiscal quarter that ended April 3, 2011, Optex reported revenues of $3.8 million as compared to $6.3 million in the prior-year, representing a decrease of 40%.

Despite reduced revenues during the period, Optex was able to minimize the impact to net income year-over-year. The revenue decrease in the current quarter was offset by an increase in gross margin percentages over the prior-year periods and the implementation of cost reductions by the Company, including the elimination of intangible amortization expense in the current year due to the write off of the remaining intangibles in the last fiscal quarter of 2010.

EBITDA declined by $0.18 million from $0.2 million for the quarter ended April 3, 2011 to $0.02 million in the current quarter.

Optex COO Danny Schoening commented, “During the six months ended April 3, 2011, we streamlined the Company’s operations in anticipation of lower sales volume as a result of broad-range reductions in U.S. military spending. Although approval of the 2011 Congressional budget was finally passed in mid-April, the current U.S. government spending continues to be based upon appropriations at 2010 levels. The first presidential draft of the fiscal year 2012 budget was released in mid February and does not show any material increases proposed in defense spending.

“We continue to explore other opportunities for manufacturing outside of our traditional product lines for products which could be manufactured with current resources to fully utilize our existing capacity.”

Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2008 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles.