Aspen Aerogels, Inc (ASPN) saw its loss widen to $3.10 million, or $0.13 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.52 million, or $0.11 a share. Revenue during the quarter dropped 6.27 percent to $29.56 million from $31.54 million in the previous year period. Gross margin for the quarter expanded 526 basis points over the previous year period to 21.66 percent. Operating margin for the quarter stood at negative 8.13 percent as compared to a negative 7.85 percent for the previous year period.
Operating loss for the quarter was $2.40 million, compared with an operating loss of $2.48 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.54 million compared with $1.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 6 basis points in the quarter to 5.22 percent from 5.28 percent in the last year period.
"We operated well in the third quarter, despite the anticipated weakness in the upstream energy markets. We achieved solid improvement in gross profit and the modest declines in net income and Adjusted EBITDA were driven primarily by the increase in expense associated with our patent enforcement actions. Record revenues in the Asian market, led by continued shipments to the South Asia petrochemical project, were offset by recent softness in the North American and European downstream markets," said Don Young, president and chief executive officer of Aspen Aerogels.
For financial year 2016, Aspen Aerogels, Inc projects revenue to be in the range of $118 million to $121 million. The company expects net loss to be in the range of $10.60 million to $9.40 million. It company forecasts diluted loss per share to be in the range of $0.46 to $0.41.
Working capital declines
Aspen Aerogels, Inc has witnessed a decline in the working capital over the last year. It stood at $39 million as at Sep. 30, 2016, down 7.94 percent or $3.36 million from $42.37 million on Sep. 30, 2015. Current ratio was at 3.37 as on Sep. 30, 2016, up from 3.06 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 45 days for the quarter from 53 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has increased to 26 days for the quarter compared with 22 days for the previous year period. At the same time, days payable outstanding went up to 42 days for the quarter from 34 for the same period last year.
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
