Revenue during the quarter plunged 51.26 percent to $4.11 million from $8.42 million in the previous year period. Gross margin for the quarter contracted 2367 basis points over the previous year period to 13.66 percent.

Operating loss for the quarter was $4.52 million, compared with an operating loss of $1.97 million in the previous year period.

Dr. Ted Tewksbury, chairman, chief executive officer and president, commented, “As expected, we continued to experience headwinds due to excess inventory in the channel, lackluster Navy demand and delays in commercial projects, but we are beginning to see signs that our restructuring efforts and five-point strategy will return the Company to profitable growth. First, while our overall sales levels were below that of the previous quarter, if we exclude the fourth quarter 2016 order required under the distribution agreement with our distributor to the U.S. Navy, our sales levels remained flat during a quarter of significant organizational restructuring activities and executive management changes. Second, the inventory level of our U.S. Navy product in the sales channel decreased significantly during the quarter. Third, we expanded military sales into new ship construction and Navy base installations. Fourth, new product sales of $1.0 million, or 24% of net revenue, in the first quarter exceeded total new product sales for the full year 2016. Lastly, the implementation of our restructuring plan in late February resulted in a sequential quarter over quarter reduction of operating expenses of $1.5 million and the slowing of our cash burn rate to the lowest level in four quarters.”

The company has spent $0.03 million cash to meet investing activities during the quarter as against cash outgo of $0.31 million in the last year period.

Cash flow from financing activities was $0.03 million for the quarter, up 114.29 percent or $0.02 million, when compared with the last year period.

Cash and cash equivalents stood at $14.97 million as on Mar. 31, 2017, down 50.33 percent or $15.17 million from $30.14 million on Mar. 31, 2016.

Working capital drops significantly
Energy Focus Inc has witnessed a decline in the working capital over the last year. It stood at $23.69 million as at Mar. 31, 2017, down 42.24 percent or $17.33 million from $41.02 million on Mar. 31, 2016. Current ratio was at 7.38 as on Mar. 31, 2017, up from 6.33 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 132 days for the quarter from 139 days for the last year period. Days sales outstanding went up to 139 days for the quarter compared with 87 days for the same period last year.

Days inventory outstanding has decreased to 107 days for the quarter compared with 166 days for the previous year period. At the same time, days payable outstanding was almost stable at 114 days for the quarter, when compared with the previous year period.