CSP Inc (CSPI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.04 million, or $ 0.01 a share in the quarter, against a net profit of $0.28 million, or $0.07 a share in the last year period. Revenue during the quarter dropped 15.88 percent to $19.92 million from $23.68 million in the previous year period. Gross margin for the quarter expanded 43 basis points over the previous year period to 22.35 percent. Operating margin for the quarter stood at negative 0.51 percent as compared to a positive 1.45 percent for the previous year period.
Operating loss for the quarter was $0.10 million, compared with an operating income of $0.34 million in the previous year period.
“Our first-quarter performance was affected by a difficult comparison year-over year on the top line, while restructuring actions to improve our long-term operating results had a short-term negative effect on the bottom line,” said Chief Executive Officer Victor Dellovo. “First-quarter revenues were down 16% mostly due to a difficult comparison in Germany with the first quarter of the prior year, when we recognized revenues from a large product order from one of our major customers. We reported a net loss per share of $0.01 versus net income per diluted share of $0.07 a year ago, due to the realignment of our engineering team to focus on security services versus legacy offerings.”
Working capital increases CSP Inc has recorded an increase in the working capital over the last year. It stood at $23.68 million as at Dec. 31, 2016, up 5.79 percent or $1.30 million from $22.38 million on Dec. 31, 2015. Current ratio was at 2.19 as on Dec. 31, 2016, down from 2.41 on Dec. 31, 2015. Days sales outstanding went up to 85 days for the quarter compared with 74 days for the same period last year.
Days inventory outstanding has decreased to 19 days for the quarter compared with 30 days for the previous year period.
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