Cpi International Holding (CPIH) has reported 22.53 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $1.97 million in the quarter, compared with $1.61 million for the same period last year.
Revenue during the quarter grew 12.29 percent to $134.05 million from $119.38 million in the previous year period. Gross margin for the quarter contracted 46 basis points over the previous year period to 28.25 percent. Total expenses were 87.44 percent of quarterly revenues, down from 88.12 percent for the same period last year. This has led to an improvement of 68 basis points in operating margin to 12.56 percent.
Operating income for the quarter was $16.84 million, compared with $14.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $25.10 million compared with $23.25 million in the prior year period. At the same time, adjusted EBITDA margin contracted 75 basis points in the quarter to 18.72 percent from 19.48 percent in the last year period.
"The second half of fiscal 2016 was very strong for CPI, offsetting the somewhat slow start to the year that was caused by delays in the placement of government orders. These delays have eased somewhat and business conditions strengthened as the year progressed. As we enter fiscal 2017, our defense market remains healthy, our communications market is strong and our medical market is beginning to rebound," said Joe Caldarelli, chief executive officer. "Additionally, over the course of the year, we announced several noteworthy, large programs that were awarded to CPI, promising not only ongoing shipments but also fostering our research and development activities and expanding our capabilities in microwave and millimeter wave technologies."
Operating cash flow improves significantlyCpi International Holding has generated cash of $26.13 million from operating activities during the year, up 26.94 percent or $5.55 million, when compared with the last year. The company has spent $6.03 million cash to meet investing activities during the year as against cash outgo of $56.91 million in the last year.
The company has spent $7.46 million cash to carry out financing activities during the year as against cash inflow of $23.22 million in the last year period.
Cash and cash equivalents stood at $50.15 million as on Sep. 30, 2016, up 33.69 percent or $12.64 million from $37.51 million on Oct. 02, 2015.
Working capital increases
Cpi International Holding has recorded an increase in the working capital over the last year. It stood at $135.11 million as at Sep. 30, 2016, up 10.98 percent or $13.37 million from $121.74 million on Oct. 02, 2015. Current ratio was at 2.48 as on Sep. 30, 2016, up from 2.25 on Oct. 02, 2015.
Debt remains almost stableTotal debt of Cpi International Holding remained almost stable for the quarter at $534.45 million, when compared with the last year period. Total debt was 69.87 percent of total assets as on Sep. 30, 2016, compared with 67.40 percent on Oct. 02, 2015. Debt to equity ratio was at 9.60 as on Sep. 30, 2016, down from 11.41 as on Oct. 02, 2015. Interest coverage ratio improved to 1.73 for the quarter from 1.54 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
