Revenue during the quarter went up marginally by 2.36 percent to $25.47 million from $24.88 million in the previous year period. Gross margin for the quarter contracted 805 basis points over the previous year period to 12.18 percent. Operating margin for the quarter stood at negative 7.40 percent as compared to a positive 1.31 percent for the previous year period.

Operating loss for the quarter was $1.88 million, compared with an operating income of $0.33 million in the previous year period.

Jason Young, chief executive officer, commented, “During the quarter, an industry slowdown among our customers in the firearms and defense sector partially offset new product growth. However, we have significant momentum in sales, with the largest committed volume of new program launches from a diverse set of customers in our Company history. The major driving factor that now governs our topline growth is our ability to launch these new part programs quickly and efficiently. From a margin standpoint, the associated costs and traditional inefficiencies associated with these new program launches has put pressure on short-term profitability, but we expect that to reverse as these new programs move into full production during fiscal 2018. This last quarter, in particular, had significant launch costs and inefficiencies related to a considerable, time-sensitive customer program currently under development. However, since launch, we have rationalized our cost structure to be more efficient going forward.

Cash flow from investing activities was $5.21 million for the nine month period as against cash outgo of $1.92 million in the last year period.

The company has spent $9.41 million cash to carry out financing activities during the nine month period as against cash outgo of $3.88 million in the last year period.

Cash and cash equivalents stood at $0.72 million as on Apr. 02, 2017, down 75.21 percent or $2.19 million from $2.92 million on Mar. 27, 2016.

Working capital declines
ARC Group Worldwide, Inc. has witnessed a decline in the working capital over the last year. It stood at $19.03 million as at Apr. 02, 2017, down 6.82 percent or $1.39 million from $20.42 million on Mar. 27, 2016. Current ratio was at 2.02 as on Apr. 02, 2017, down from 2.05 on Mar. 27, 2016.

Cash conversion cycle (CCC) has decreased to 55 days for the quarter from 91 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 54 days for the same period last year.

Days inventory outstanding has decreased to 40 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding was almost stable at 35 days for the quarter, when compared with the previous year period.