Forward Industries, Inc. (FORD) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.24 million, or $ 0.03 a share in the quarter, against a net profit of $0.14 million, or $0.02 a share in the last year period. Revenue during the quarter plunged 35.48 percent to $4.53 million from $7.03 million in the previous year period. Gross margin for the quarter contracted 129 basis points over the previous year period to 15.80 percent. Operating margin for the quarter stood at negative 5.23 percent as compared to a positive 2.07 percent for the previous year period.
Operating loss for the quarter was $0.24 million, compared with an operating income of $0.15 million in the previous year period.
Terry Wise, chief executive officer of Forward Industries, stated, "This was a difficult quarter for the company as we work to expand and transition our business from predominantly diabetic products which are undergoing market pricing pressures. We will continue our efforts to safeguard and grow our existing business with our top tier Medical customers. Concurrently, we are firmly focused and making promising progress on aggressively seeking new business within other growing market sectors."
Working capital increases marginallyForward Industries, Inc. has recorded an increase in the working capital over the last year. It stood at $8.17 million as at Mar. 31, 2017, up 4.70 percent or $0.37 million from $7.80 million on Mar. 31, 2016. Current ratio was at 3.93 as on Mar. 31, 2017, up from 2.75 on Mar. 31, 2016. Cash conversion cycle (CCC) has increased to 137 days for the quarter from 121 days for the last year period. Days sales outstanding went up to 109 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 32 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding was almost stable at 4 days for the quarter, when compared with the previous year period.
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