ADDvantage Technologies Group, Inc. (AEY) has reported 92.67 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.01 million in the quarter, compared with $0.15 million for the same period last year. Revenue during the quarter grew 6.68 percent to $11.29 million from $10.59 million in the previous year period. Gross margin for the quarter contracted 53 basis points over the previous year period to 33.33 percent. Total expenses were 99.23 percent of quarterly revenues, up from 96.90 percent for the same period last year. That has resulted in a contraction of 233 basis points in operating margin to 0.77 percent.
Operating income for the quarter was $0.09 million, compared with $0.33 million in the previous year period.
"Total sales increased 7% to $11.3 million in the second quarter of fiscal 2017, which includes sales from our new subsidiary Triton Datacom, which is comprised of the Telco assets we acquired in October 2016. Sales for the Cable TV segment were down in the second quarter of fiscal 2017 due to lower demand for new and refurbished equipment. However, this segment remains profitable, and we believe that customer demand for this segment will resume for the rest of fiscal 2017,” commented David Humphrey, president and chief executive officer of ADDvantage Technologies.
Working capital declinesADDvantage Technologies Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $25.32 million as at Mar. 31, 2017, down 14.98 percent or $4.46 million from $29.78 million on Mar. 31, 2016. Current ratio was at 4.72 as on Mar. 31, 2017, down from 7.12 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 143 days for the quarter from 307 days for the last year period. Days sales outstanding went down to 39 days for the quarter compared with 42 days for the same period last year.
Days inventory outstanding has decreased to 132 days for the quarter compared with 291 days for the previous year period. At the same time, days payable outstanding went up to 28 days for the quarter from 26 for the same period last year.
Debt increases substantially
ADDvantage Technologies Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $7.37 million as on Mar. 31, 2017, up 53.40 percent or $2.57 million from $4.81 million on Mar. 31, 2016. Total debt was 13.32 percent of total assets as on Mar. 31, 2017, compared with 9.48 percent on Mar. 31, 2016. Debt to equity ratio was at 0.18 as on Mar. 31, 2017, up from 0.12 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.89 for the quarter from 5.27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
