EnSync, Inc. (ESNC) saw its loss narrow to $4.28 million, or $0.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.45 million, or $0.10 a share.
Revenue during the quarter surged 354.29 percent to $1.74 million from $0.38 million in the previous year period. Gross margin for the quarter period stood at positive 0.29 percent as compared to a negative 6.03 percent for the previous year period.
Operating loss for the quarter was $4.31 million, compared with an operating loss of $4.51 million in the previous year period.
"During the second quarter, we successfully completed the sale of the remaining two PPAs from our first tranche," commented Brad Hansen, president and chief executive officer of EnSync Energy Systems. "These sales culminate the highly unique endeavor EnSync embarked on to become the first company in the industry to successfully sell PPA agreements for PV plus storage for the commercial and industrial (C and I) market in a behind the grid setting. This highly differentiated business model is made possible by industry leading technologies, including EnSync’s patented Matrix Energy Management System that allows optimum simultaneous management of multiple sources of electricity, while also providing the seamless communication and control required for the utility to enable real-time supply response from the distributed energy resources."
Operating cash flow turns positive
EnSync, Inc. has generated cash of $0.47 million from operating activities during the first half as against cash outgo of $2.07 million in the last year period.
The company has spent $0.10 million cash to carry out financing activities during the first six months as against cash inflow of $19.72 million in the last year period.
Cash and cash equivalents stood at $17.57 million as on Dec. 31, 2016, down 37.64 percent or $10.60 million from $28.17 million on Dec. 31, 2015.
Working capital drops significantly
EnSync, Inc. has witnessed a decline in the working capital over the last year. It stood at $18.23 million as at Dec. 31, 2016, down 46.95 percent or $16.14 million from $34.36 million on Dec. 31, 2015. Current ratio was at 9.44 as on Dec. 31, 2016, down from 10.84 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 19 days for the quarter from 310 days for the last year period. Days sales outstanding went down to 22 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 563 days for the previous year period. At the same time, days payable outstanding went down to 52 days for the quarter from 319 for the same period last year.
Debt remains almost stable
EnSync, Inc. has witnessed an increase in total debt over the last one year. It stood at $1.23 million as on Dec. 31, 2016, up 0.67 percent or $0.01 million from $1.22 million on Dec. 31, 2015. Total debt was 4.53 percent of total assets as on Dec. 31, 2016, compared with 2.72 percent on Dec. 31, 2015. Debt to equity ratio was at 0.12 as on Dec. 31, 2016, up from 0.04 as on Dec. 31, 2015.
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