Aerovironment (AVAV) swung to a net loss for the quarter ended Jan. 28, 2017. The company has made a net loss of $2.18 million, or $ 0.09 a share in the quarter, against a net profit of $6.16 million, or $0.27 a share in the last year period. On an adjusted basis, loss per share was at $0.09 for the quarter compared with a profit of $0.27a share in the same period last year.
Revenue during the quarter dropped 21.31 percent to $53.16 million from $67.56 million in the previous year period. Gross margin for the quarter contracted 301 basis points over the previous year period to 36.40 percent. Operating margin for the quarter stood at negative 2.68 percent as compared to a positive 7.50 percent for the previous year period.
Operating loss for the quarter was $1.42 million, compared with an operating income of $5.06 million in the previous year period.
"Strong third quarter order flow produced our third highest funded backlog of $128 million, significantly increasing our full year visibility," said Wahid Nawabi, AeroVironment chief executive officer. "Our third quarter financial results exceeded our expectations, with $53.2 million in revenue, favorable revenue mix and lower spending. Continued strength in the international small unmanned aircraft systems market, combined with progress in our Tactical Missile Systems business, position AeroVironment to achieve our near-term business objectives while creating long-term shareholder value."
For fiscal year 2017, Aerovironment forecasts revenue to be in the range of $260 million to $280 million. The company expects diluted earnings per share to be in the range of $0.20 to $0.35.
Operating cash flow remains negativeAerovironment has spent $14.42 million cash to meet operating activities during the nine month period as against cash outgo of $5.70 million in the last year period. The company has spent $36.95 million cash to meet investing activities during the nine month period as against cash outgo of $11.90 million in the last year period.
Cash flow from financing activities was $0.36 million for the nine month period as against cash outgo of $3.10 million in the last year period.
Cash and cash equivalents stood at $73.28 million as on Jan. 28, 2017, down 40.28 percent or $49.43 million from $122.71 million on Jan. 30, 2016.
Working capital declines
Aerovironment has witnessed a decline in the working capital over the last year. It stood at $270.98 million as at Jan. 28, 2017, down 8.69 percent or $25.78 million from $296.76 million on Jan. 30, 2016. Current ratio was at 8.14 as on Jan. 28, 2017, down from 10.03 on Jan. 30, 2016.
Cash conversion cycle (CCC) has decreased to 142 days for the quarter from 156 days for the last year period. Days sales outstanding went up to 84 days for the quarter compared with 75 days for the same period last year.
Days inventory outstanding has decreased to 93 days for the quarter compared with 105 days for the previous year period. At the same time, days payable outstanding went up to 34 days for the quarter from 24 for the same period last year.
Debt comes down significantlyAerovironment has recorded a decline in total debt over the last one year. It stood at $0.22 million as on Jan. 28, 2017, down 43.81 percent or $0.17 million from $0.39 million on Jan. 30, 2016. Aerovironment has recorded a decline in long-term debt over the last one year. It stood at $0.22 million as on Jan. 28, 2017, down 43.81 percent or $0.17 million from $0.39 million on Jan. 30, 2016. Total debt was 0.06 percent of total assets as on Jan. 28, 2017, compared with 0.10 percent on Jan. 30, 2016. 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
