Revenue during the year went up marginally by 2.14 percent to $1,461.66 million from $1,431.04 million in the previous year. Gross margin for the year contracted 15 basis points over the previous year to 23.59 percent. Total expenses were 99.51 percent of annual revenues, up from 94.73 percent for the last year. That has resulted in a contraction of 477 basis points in operating margin to 0.49 percent.

Operating income for the year was $7.22 million, compared with $75.39 million in the previous year.

However, the adjusted EBITDA for the year stood at $118.05 million compared with $140.42 million in the prior year period. At the same time, adjusted EBITDA margin contracted 174 basis points in the year to 8.08 percent from 9.81 percent in the last year.

"While we are disappointed by the shortfall in our fiscal year 2016 financial results, we fully anticipate the delayed orders will be received in fiscal year 2017," said Bradley H. Feldmann, president and chief executive officer of Cubic Corporation. "As part of our One Cubic initiative, we will complete our ERP implementation which will position us for stronger growth and greater efficiency going forward."

For financial year 2017, Cubic Corp projects revenue to be in the range of $1,505 million to $1,555 million. The company forecasts diluted earnings per share to be in the range of $0.40 to $0.80.

Operating cash flow drops significantly
Cubic Corp has generated cash of $44.60 million from operating activities during the year, down 50.27 percent or $45.09 million, when compared with the last year.

The company has spent $260.57 million cash to meet investing activities during the year as against cash outgo of $125.06 million in the last year.

Cash flow from financing activities was $233.13 million for the year, up 218.03 percent or $159.82 million, when compared with the last year.

Cash and cash equivalents stood at $197.13 million as on Sep. 30, 2016, down 9.77 percent or $21.35 million from $218.48 million on Sep. 30, 2015.

Working capital drops significantly
Cubic Corp has witnessed a decline in the working capital over the last year. It stood at $262.68 million as at Sep. 30, 2016, down 38.70 percent or $165.85 million from $428.53 million on Sep. 30, 2015. Current ratio was at 1.50 as on Sep. 30, 2016, down from 2.24 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 90 days for the year from 103 days for the last year. Days sales outstanding went up to 98 days for the year compared with 96 days for the same period last year.

Days inventory outstanding has decreased to 11 days for the year compared with 22 days for the previous year period. At the same time, days payable outstanding went up to 19 days for the year from 14 for the same period last year.