Comtech Telecommunications Corporation (CMTL) swung to a net loss for the quarter ended Oct. 31, 2016. The company has made a net loss of $2.49 million, or $ 0.11 a share in the quarter, against a net profit of $1.44 million, or $0.09 a share in the last year period.
Revenue during the quarter surged 111.78 percent to $135.79 million from $64.12 million in the previous year period. Gross margin for the quarter contracted 561 basis points over the previous year period to 38.38 percent. Operating margin for the quarter stood at negative 0.54 percent as compared to a positive 3.38 percent for the previous year period.
Operating loss for the quarter was $0.73 million, compared with an operating income of $2.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.05 million compared with $7.52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 433 basis points in the quarter to 7.40 percent from 11.72 percent in the last year period.
In commenting on the Company's performance during the first quarter of fiscal 2017, Fred Kornberg, president and chief executive officer, noted “Although international business conditions remain challenging, we are pleased with our first quarter fiscal 2017 results, which we view as a solid foundation for the rest of fiscal 2017.”
Working capital drops significantly
Comtech Telecommunications Corporation has witnessed a decline in the working capital over the last year. It stood at $115.04 million as at Oct. 31, 2016, down 48.45 percent or $108.14 million from $223.18 million on Oct. 31, 2015. Current ratio was at 1.65 as on Oct. 31, 2016, down from 5.03 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 86 days for the quarter from 216 days for the last year period. Days sales outstanding went down to 70 days for the quarter compared with 92 days for the same period last year.
Days inventory outstanding has decreased to 42 days for the quarter compared with 160 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 36 for the same period last year.
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