Fuel Tech, Inc. (FTEK) saw its loss widen to $3.02 million, or $0.13 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.29 million, or $0.01 a share. Revenue during the quarter plunged 41.89 percent to $12.60 million from $21.68 million in the previous year period. Gross margin for the quarter expanded 599 basis points over the previous year period to 42.20 percent. Operating margin for the quarter stood at negative 22.90 percent as compared to a negative 3.67 percent for the previous year period.
Operating loss for the quarter was $2.88 million, compared with an operating loss of $0.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.80 million compared with $0.64 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 14.27 percent for the quarter compared to 2.94 percent in the last year period.
Vincent J. Arnone, president and chief executive officer of Fuel Tech, commented, "In response to lingering headwinds at APC and FUEL CHEM, we are continuing to evolve and refine our operating strategy, while proactively managing our cost structure. We are pursuing multiple domestic APC project opportunities, as well as potential projects in Asia, Europe and Latin America. Our initiatives to rationalize our cost structure has yielded estimated savings of approximately $5 million in 2016, with total estimated savings realized over the past two years of approximately $8 million. These cost savings have been achieved without any impact to customer service or the ability to pursue ongoing business development activities.Throughout this period, we have maintained a strong financial position with no long-term debt. We are excited about the progress we have made with respect to Fuel Conversion and look forward to continuing to support the advancement of this business."
Operating cash flow remains negative
Fuel Tech, Inc. has spent $2.18 million cash to meet operating activities during the nine month period as against cash outgo of $1.07 million in the last year period. The company has spent $0.45 million cash to meet investing activities during the nine month period as against cash outgo of $0.50 million in the last year period. It has incurred net capital expenditure of $0.45 million on net basis during the nine month period, down 9.26 percent or $0.05 million from year ago period.
The company has spent $6.19 million cash to carry out financing activities during the nine month period as against cash outgo of $1.88 million in the last year period.
Cash and cash equivalents stood at $13.33 million as on Sep. 30, 2016, down 7.40 percent or $1.07 million from $14.40 million on Sep. 30, 2015.
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