GSE Systems, Inc. (GVP) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.17 million, or $ 0.01 a share in the quarter, against a net loss of $3.76 million, or $0.21 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $0.37 million, or $0.02 a share compared with a net loss of $1.74 million, or $0.10 a share in the last year period.
Revenue during the quarter went down marginally by 2.57 percent to $14.43 million from $14.81 million in the previous year period. Gross margin for the quarter expanded 1192 basis points over the previous year period to 25.81 percent. Operating margin for the quarter period stood at positive 3 percent as compared to a negative 24.28 percent for the previous year period.
Operating income for the quarter was $0.43 million, compared with an operating loss of $3.60 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.60 million compared with $0.08 million in the prior year period. At the same time, adjusted EBITDA margin improved 369 basis points in the quarter to 4.19 percent from 0.51 percent in the last year period.
Kyle J. Loudermilk, GSE's President and Chief Executive Officer, said, "We are pleased to report GSE's fifth consecutive quarter of positive adjusted EBITDA, which grew significantly on a year over year basis in Q3 2016, driven by our efforts to increase our backlog, reduce costs and streamline operations. This quarter we continued to win important new projects, including two contracts to modernize nuclear simulators in the UK and Japan, which demonstrate the global strength of our innovative simulation solutions. Our backlog remains strong, we have enhanced our leadership team and Board, and we are actively pursuing exciting organic and inorganic growth opportunities."
Working capital increases sharply
GSE Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $11.90 million as at Sep. 30, 2016, up 43.53 percent or $3.61 million from $8.29 million on Sep. 30, 2015. Current ratio was at 1.52 as on Sep. 30, 2016, up from 1.43 on Sep. 30, 2015.
Days sales outstanding went down to 51 days for the quarter compared with 88 days for the same period last year.
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