CPI International Holding Corp., (CPIH) swung to a net profit for the quarter ended Dec. 30, 2016. The company has made a net profit of $0.22 million in the quarter, against a net loss of $1.21 million in the last year period.
Revenue during the quarter grew 3.56 percent to $114.62 million from $110.68 million in the previous year period. Gross margin for the quarter expanded 189 basis points over the previous year period to 28 percent. Total expenses were 90.12 percent of quarterly revenues, down from 93.86 percent for the same period last year. This has led to an improvement of 373 basis points in operating margin to 9.88 percent.
Operating income for the quarter was $11.32 million, compared with $6.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.64 million compared with $16.25 million in the prior year period. At the same time, adjusted EBITDA margin improved 158 basis points in the quarter to 16.26 percent from 14.69 percent in the last year period.
"As we indicated in our financial results conference call in December, we expect fiscal 2017 to follow a similar quarterly pattern to fiscal 2016. Specifically, we expect business momentum to grow as the year progresses, resulting in a stronger second half of the year as compared to the first half. CPI's performance in the first quarter was consistent with these expectations. Although we experienced delays on certain orders in the first quarter, several previously delayed orders of meaningful size were placed in January, just after the quarter ended, including significant orders for amplifiers, antennas and high-power vacuum electron devices," said Joe Caldarelli, chief executive officer. "We are confident that business will continue to ramp up as the year progresses."
Operating cash flow improves significantly
CPI International Holding Corp., has generated cash of $8.90 million from operating activities during the quarter, up 114.64 percent or $4.75 million, when compared with the last year period.
The company has spent $2.25 million cash to meet investing activities during the quarter as against cash outgo of $2.29 million in the last year period.
The company has spent $12.46 million cash to carry out financing activities during the quarter as against cash outgo of $5.14 million in the last year period.
Cash and cash equivalents stood at $44.34 million as on Dec. 30, 2016, up 29.53 percent or $10.11 million from $34.23 million on Jan. 01, 2016.
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