Electro Scientific Industries (ESIO) saw its loss widen to $9.69 million, or $0.29 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.59 million, or $0.15 a share. On adjusted basis, net loss for the quarter stood at $7.56 million, or $0.23 a share compared with a net profit of $0.40 million, or $0.01 a share in the last year period. Revenue during the quarter dropped 22.06 percent to $33.78 million from $43.34 million in the previous year period. Gross margin for the quarter contracted 700 basis points over the previous year period to 33.89 percent. Operating margin for the quarter stood at negative 29.76 percent as compared to a negative 10.31 percent for the previous year period.
Operating loss for the quarter was $10.05 million, compared with an operating loss of $4.47 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $7.67 million compared to operating profit of $0.49 million in prior year period.
Michael Burger, president and chief executive officer of ESI, said, "We delivered top and bottom line results at the high end of our expectations in the third quarter, as revenues grew 14% sequentially. We also made progress on new product evaluation by customers, the integration of our Visicon acquisition, and repositioning our Micromachining product line for future success."
For the fourth-quarter, Electro Scientific Industries forecasts revenue to be in the range of $40 million to $45 million. The company expects diluted loss per share to be in the range of $0.12 to $0.19 for the fourth-quarter. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.02 to $0.07 for the fourth-quarter.
Operating cash flow drops significantlyElectro Scientific Industries has generated cash of $0.30 million from operating activities during the nine month period, down 96.24 percent or $7.70 million, when compared with the last year period. Cash flow from investing activities was $2.82 million for the nine month period as against cash outgo of $17.03 million in the last year period.
Cash flow from financing activities was $0.24 million for the nine month period, down 41.12 percent or $0.17 million, when compared with the last year period.
Cash and cash equivalents stood at $44.89 million as on Dec. 31, 2016, up 6.70 percent or $2.82 million from $42.07 million on Jan. 02, 2016.
Working capital declines
Electro Scientific Industries has witnessed a decline in the working capital over the last year. It stood at $106.37 million as at Dec. 31, 2016, down 12.46 percent or $15.13 million from $121.50 million on Jan. 02, 2016. Current ratio was at 3.58 as on Dec. 31, 2016, down from 3.69 on Jan. 02, 2016.
Cash conversion cycle (CCC) has decreased to 155 days for the quarter from 257 days for the last year period. Days sales outstanding went up to 103 days for the quarter compared with 97 days for the same period last year.
Days inventory outstanding has decreased to 120 days for the quarter compared with 227 days for the previous year period. At the same time, days payable outstanding was almost stable at 69 days for the quarter, when compared with the previous year period.
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