GSE Systems, Inc. (GVP) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.27 million, or $ 0.01 a share in the quarter, against a net profit of $0.14 million, or $0.01 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $0.63 million, or $0.03 a share compared with $0.52 million or $0.03 a share, a year ago. Revenue during the quarter grew 25.94 percent to $16.34 million from $12.98 million in the previous year period. Gross margin for the quarter contracted 271 basis points over the previous year period to 25.22 percent. Operating margin for the quarter stood at negative 0.35 percent as compared to a positive 1.66 percent for the previous year period.
Operating loss for the quarter was $0.06 million, compared with an operating income of $0.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.82 million compared with $0.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 82 basis points in the quarter to 4.99 percent from 5.80 percent in the last year period.
Kyle J. Loudermilk, GSE's president and chief executive officer, said, "In Q1 2017, GSE achieved 26% year-over-year revenue growth, driven by particularly strong demand for our Nuclear Industry Training and Consulting staffing services and the advancement of three major nuclear simulation projects in our Performance Improvement Solutions division. Our Nuclear Industry Training and Consulting segment achieved record quarterly orders, revenue, and gross profit, while ending Q1 2017 with its highest backlog ever. Our reinvigorated sales team generated total new orders exceeding $19.8 million this quarter and, as we execute on our near-record backlog, we believe GSE is well positioned for revenue growth in 2017. Armed with $22.8 million in cash at the end of Q1 2017, we are seeking and carefully evaluating select inorganic opportunities that can enhance our growth trajectory, enhance organic growth opportunities, and in-turn create additional shareholder value."
Working capital increases sharply
GSE Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $14.04 million as at Mar. 31, 2017, up 42.84 percent or $4.21 million from $9.83 million on Mar. 31, 2016. Current ratio was at 1.53 as on Mar. 31, 2017, up from 1.52 on Mar. 31, 2016. Days sales outstanding went down to 36 days for the quarter compared with 91 days for the same period last year.
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