Arotech Corporation (ARTX) saw its loss widen to $0.77 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.64 million, or $0.03 a share. On the other hand, adjusted net income for the quarter stood at $0.27 million, or $0.01 a share compared with $1.05 million or $0.04 a share, a year ago. Revenue during the quarter dropped 12.04 percent to $22.35 million from $25.41 million in the previous year period. Gross margin for the quarter contracted 129 basis points over the previous year period to 29 percent. Operating margin for the quarter stood at negative 1.01 percent as compared to a positive 0.56 percent for the previous year period.
Operating loss for the quarter was $0.23 million, compared with an operating income of $0.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1 million compared with $1.88 million in the prior year period. At the same time, adjusted EBITDA margin contracted 294 basis points in the quarter to 4.46 percent from 7.41 percent in the last year period.
"Arotech’s first quarter 2017 results, as anticipated, include revenue for the quarter that was less than a year ago, though better than the previous quarter. The engineering based development programs we are currently executing have required us to add engineering staff in both of our US operations to meet demand, but are absent the typical hardware components that help to immediately drive higher revenues," said acting Arotech chief executive officer Dean Krutty.
For fiscal year 2017, Arotech Corporation forecasts revenue to be in the range of $93 million to $103 million. The company expects diluted earnings per share to be in the range of $0.20 to $0.24 on adjusted basis.
Working capital declines
Arotech Corporation has witnessed a decline in the working capital over the last year. It stood at $23.99 million as at Mar. 31, 2017, down 5.02 percent or $1.27 million from $25.26 million on Mar. 31, 2016. Current ratio was at 1.99 as on Mar. 31, 2017, down from 2.14 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 110 days for the quarter from 119 days for the last year period. Days sales outstanding went up to 114 days for the quarter compared with 97 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 50 days for the previous year period. At the same time, days payable outstanding went up to 32 days for the quarter from 29 for the same period last year.
Debt moves up
Arotech Corporation has witnessed an increase in total debt over the last one year. It stood at $16.06 million as on Mar. 31, 2017, up 5.14 percent or $0.78 million from $15.27 million on Mar. 31, 2016. Total debt was 14.60 percent of total assets as on Mar. 31, 2017, compared with 13.41 percent on Mar. 31, 2016. Debt to equity ratio was at 0.25 as on Mar. 31, 2017, up from 0.23 as on Mar. 31, 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
