CUI Global, Inc. (CUI) saw its loss widen to $0.51 million, or $0.02 a share for the quarter ended Sep. 30, 2016. Cui Global (CUI) saw its loss widen to $0.51 million in the quarter ended compared with $0.06 million a year ago. On an adjusted basis, net loss for the quarter was $0.05 million, when compared with net profit $0.57 million in the last year period. Revenue during the quarter dropped 6.39 percent to $23.26 million from $24.84 million in the previous year period. Gross margin for the quarter contracted 62 basis points over the previous year period to 36.97 percent. Operating margin for the quarter stood at negative 2.52 percent as compared to a positive 0.67 percent for the previous year period.
Operating loss for the quarter was $0.58 million, compared with an operating income of $0.17 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.22 million compared with $1.02 million in the prior year period. At the same time, adjusted EBITDA margin contracted 313 basis points in the quarter to 0.97 percent from 4.09 percent in the last year period.
"We continued to make steady progress in driving market adoption of our gas technology solutions in the third quarter while managing our P EM business to a 5% sequential increase in revenue and stable backlog despite continued weakness in the worldwide electronics market," stated William Clough, president and chief executive officer of CUI Global. “We were awarded a five-year framework agreement from National Grid that assures us a minimum of $40 million in already authorized work over the term of the agreement and cements our relationship with this important customer. Our successful delivery of an initial 400 GasPT units to Snam Rete - on time and on budget - confirms our ability to manage large scale deployments as we pursue other iconic European gas pipeline companies. Underscoring the value proposition of our GasPT solution, Snam Rete is today a key reference customer for us. Finally, our cash balance, which increased to $7.1 million as a result of sequential improvements in net loss and working capital, will continue to provide ample capital to achieve our goals and take us to profitability.
Operating cash flow turns positiveCUI Global, Inc. has generated cash of $1.05 million from operating activities during the nine month period as against cash outgo of $7.31 million in the last year period. The company has spent $1.10 million cash to meet investing activities during the nine month period as against cash inflow of $2.01 million in the last year period
The company has spent $0.16 million cash to carry out financing activities during the nine month period as against cash outgo of $0.09 million in the last year period.
Cash and cash equivalents stood at $7.05 million as on Sep. 30, 2016, up 13.07 percent or $0.82 million from $6.24 million on Sep. 30, 2015.
Working capital declines
CUI Global, Inc. has witnessed a decline in the working capital over the last year. It stood at $17.24 million as at Sep. 30, 2016, down 22.28 percent or $4.94 million from $22.19 million on Sep. 30, 2015. Current ratio was at 1.97 as on Sep. 30, 2016, down from 2.43 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 55 days for the quarter from 88 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 39 days for the quarter compared with 66 days for the previous year period. At the same time, days payable outstanding went up to 35 days for the quarter from 32 for the same period last year.
Debt comes down significantly
CUI Global, Inc. has recorded a decline in total debt over the last one year. It stood at $3.50 million as on Sep. 30, 2016, down 60.75 percent or $5.42 million from $8.93 million on Sep. 30, 2015. Total debt was 4.17 percent of total assets as on Sep. 30, 2016, compared with 9.79 percent on Sep. 30, 2015. Debt to equity ratio was at 0.07 as on Sep. 30, 2016, down from 0.15 as on Sep. 30, 2015. 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
