Emagin Corporation (EMAN) saw its loss widen to $2.43 million, or $0.08 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $2.23 million, or $0.09 a share.
Revenue during the quarter dropped 20.35 percent to $4.30 million from $5.40 million in the previous year period. Gross margin for the quarter expanded 932 basis points over the previous year period to 29.78 percent. Operating margin for the quarter stood at negative 56.33 percent as compared to a negative 41.22 percent for the previous year period.
Operating loss for the quarter was $2.42 million, compared with an operating loss of $2.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.62 million compared to negative $1.63 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 37.70 percent for the quarter compared to negative 30.10 percent in the last year period.
"While our third quarter was impacted by the previously announced softness in our domestic military business due to lower volumes on maturing programs, we are now beginning to ship under new military programs and expect volumes to increase in 2017," said president and chief executive officer Andrew G. Sculley. "Additionally, we announced today the formal launch of two consumer products. This is an important step for eMagin as we capitalize on our intellectual property and know how to pursue new, potentially high growth markets. We are pleased that, with our product launch in this new market segment, we were named a 2017 Consumer Electronics Show CES Innovation Award Honoree in the Digital Imaging product category.
Outlook
"We remain focused on our milestone approach to driving shareholder value for the remainder of 2016 and into 2017. While not reflected in our financial performance during the quarter, we are making considerable strategic business progress as we advance our microdisplay technology, expand our presence in our existing markets and penetrate new ones. We believe eMagin is the only Company whose products can meet the brightness and resolution requirements for high-pixel density displays that these markets demand,” continued Mr. Sculley.
Working capital increases sharplyEmagin Corporation has recorded an increase in the working capital over the last year. It stood at $14.57 million as at Sep. 30, 2016, up 45.21 percent or $4.54 million from $10.03 million on Sep. 30, 2015. Current ratio was at 4.68 as on Sep. 30, 2016, up from 3.01 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 146 days for the quarter from 154 days for the last year period. Days sales outstanding went up to 89 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has decreased to 107 days for the quarter compared with 120 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 35 for the same period last year.
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
