Aspen Aerogels, Inc (ASPN) saw its loss widen to $9.08 million, or $0.39 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.80 million, or $0.08 a share. Revenue during the quarter dropped 29.92 percent to $23 million from $32.82 million in the previous year period. Gross margin for the quarter contracted 1023 basis points over the previous year period to 9.66 percent. Operating margin for the quarter stood at negative 39.35 percent as compared to a negative 5.36 percent for the previous year period.
Operating loss for the quarter was $9.05 million, compared with an operating loss of $1.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $5.13 million compared with $2.02 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 22.31 percent for the quarter compared to 6.16 percent in the last year period.
“As expected, our first quarter performance reflected the impact of constrained capital investment and low activity levels in the global energy markets. Continued softness in our downstream and subsea businesses, in combination with the conclusion of shipments to the South Asia petrochemical project, resulted in much of the decrease in total revenue during the quarter. This decrease in total revenue and an increase in expense associated with our patent enforcement actions led to the decline in net income and Adjusted EBITDA,” said Don Young, President and Chief executive officer of Aspen Aerogels.
For fiscal year 2017, Aspen Aerogels, Inc expects revenue to be in the range of $102 million to $112 millionand its net income to be in the range of $18.20 million to $21.20 million and diluted earnings per share to be in the range of $0.78 to $0.91.
Working capital drops significantly
Aspen Aerogels, Inc has witnessed a decline in the working capital over the last year. It stood at $25.71 million as at Mar. 31, 2017, down 39.50 percent or $16.79 million from $42.50 million on Mar. 31, 2016. Current ratio was at 2.35 as on Mar. 31, 2017, down from 3.51 on Mar. 31, 2016. Cash conversion cycle (CCC) has increased to 53 days for the quarter from 42 days for the last year period. Days sales outstanding went up to 74 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has increased to 33 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went up to 54 days for the quarter from 41 for the same period last year.
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