Revenue during the quarter dropped 26.07 percent to $27.64 million from $37.38 million in the previous year period. Gross margin for the quarter contracted 1286 basis points over the previous year period to 13.49 percent. Operating margin for the quarter stood at negative 20.66 percent as compared to a positive 4.50 percent for the previous year period.

Operating loss for the quarter was $5.71 million, compared with an operating income of $1.68 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $2.12 million compared with $5.39 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.67 percent for the quarter compared to 14.41 percent in the last year period.

“Our fourth quarter performance reflected the impact of constrained capital investment and low activity levels in the global energy markets. Despite strong growth in shipments to the South Asia petrochemical project, a continued significant decline in demand in the subsea market from record 2015 levels and continued softness in our global downstream business led to a 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 a decline in net income and Adjusted EBITDA,” said Don Young, president and chief executive officer of Aspen Aerogels.

Aspen Aerogels, Inc projects revenue to be in the range of $102 million to $112 million for financial year 2017. For fiscal year 2017, ASPEN AEROGELS INC expects net income to be in the range of $18.20 million to $21.20 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.78 to $0.91.