Arctic Cat Inc. (ACAT) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $12.77 million, or $ 0.98 a share in the quarter, against a net profit of $11.17 million, or $0.85 a share in the last year period.
Revenue during the quarter dropped 22.04 percent to $164.61 million from $211.16 million in the previous year period. Gross margin for the quarter contracted 1257 basis points over the previous year period to 8.23 percent. Operating margin for the quarter stood at negative 11.60 percent as compared to a positive 8.83 percent for the previous year period.
Operating loss for the quarter was $19.10 million, compared with an operating income of $18.65 million in the previous year period.
Christopher Metz, Arctic Cat's president and chief executive officer, stated: "We expected that Arctic Cat's second quarter would be challenging, as we continued to implement our turnaround strategies. However, we encountered a softer than anticipated powersports market in the quarter, with Arctic Cat's and the overall industry's sales down. We are disappointed in the company’s second-quarter results, which were impacted by lower sales volumes, unfavorable product mix and a heightened promotional environment."
For financial year 2017, Arctic Cat Inc. projects revenue to be in the range of $600 million to $640 million. The company forecasts diluted earnings per share to be in the range of $1.00 to $1.40.
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
