GSE Systems, Inc. (GVP) has reported a 2.24 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $1 million, or $0.05 a share in the quarter, compared with $1.03 million, or $0.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.90 million, or $0.10 a share compared with $1.33 million or $0.07 a share, a year ago.
Revenue during the quarter dropped 7.30 percent to $13.28 million from $14.33 million in the previous year period. Gross margin for the quarter expanded 39 basis points over the previous year period to 32.66 percent. Total expenses were 94.74 percent of quarterly revenues, up from 91.92 percent for the same period last year. That has resulted in a contraction of 281 basis points in operating margin to 5.26 percent.
Operating income for the quarter was $0.70 million, compared with $1.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.10 million compared with $1.80 million in the prior year period. At the same time, adjusted EBITDA margin improved 327 basis points in the quarter to 15.85 percent from 12.58 percent in the last year period.
Kyle J. Loudermilk, GSE's president and chief executive officer, said, "GSE closed an outstanding 2016 with a solid fourth quarter, successfully delivering on our commitments to our customers and our shareholders. We finished the year with a significantly higher cash balance of $22.9 million, reflecting GSE's improved operations and strong cash flow generation. Our strengthened financial position enhances our ability to pursue a number of exciting organic and inorganic growth opportunities that we have identified. Our focus on organic growth is most recently illustrated by our major contract expansion in Q4 2016 with EDF Energy to upgrade the control room station simulation system at their Torness nuclear power plant in the United Kingdom. As a result of this and other major new orders we won in 2016, we finished the year with near-record backlog. 2016 was a transformational year for GSE in many ways. In 2017, we aim to build on our success to grow revenue and further enhance shareholder value."
Working capital increases sharply
GSE Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $12.04 million as at Dec. 31, 2016, up 38.28 percent or $3.33 million from $8.71 million on Dec. 31, 2015. Current ratio was at 1.38 as on Dec. 31, 2016, down from 1.44 on Dec. 31, 2015.
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