Revenue during the quarter dropped 12.49 percent to $67.21 million from $76.80 million in the previous year period. Gross margin for the quarter expanded 141 basis points over the previous year period to 34.45 percent. Operating margin for the quarter stood at negative 0.95 percent as compared to a positive 0.98 percent for the previous year period.

Operating loss for the quarter was $0.64 million, compared with an operating income of $0.76 million in the previous year period.

However, the adjusted operating income for the quarter stood at $0.66 million compared to $1.93 million in the prior year period. At the same time, adjusted operating margin contracted 154 basis points in the quarter to 0.98 percent from 2.51 percent in the last year period.

Richard L. Simons, President and Chief Executive Officer, commented, "While the sales in the quarter were disappointing, we are encouraged by the sequential growth of orders through the year in North America, particularly in the aerospace and automotive industries. We also are realizing a growing pipeline of opportunity in China. We believe our outlook in China is counter to general industrial trends in the region because our market leadership positions us to win more complex, systems-oriented projects. While Europe is challenged currently, given our total backlog and current pipeline of prospects, we nonetheless expect we can achieve revenue slightly above $80 million in the fourth quarter.”

The company has spent $1.50 million cash to meet investing activities during the nine month period as against cash outgo of $3.06 million in the last year period. It has incurred net capital expenditure of $1.50 million on net basis during the nine month period, down 50.90 percent or $1.56 million from year ago period.

The company has spent $3.98 million cash to carry out financing activities during the nine month period as against cash outgo of $4.23 million in the last year period.

Cash and cash equivalents stood at $22.94 million as on Sep. 30, 2016, up 23.78 percent or $4.41 million from $18.54 million on Sep. 30, 2015.

Working capital decreases marginally
Hardinge Inc has witnessed a decline in the working capital over the last year. It stood at $127.99 million as at Sep. 30, 2016, down 2.24 percent or $2.93 million from $130.92 million on Sep. 30, 2015. Current ratio was at 2.66 as on Sep. 30, 2016, down from 2.69 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 139 days for the quarter from 233 days for the last year period. Days sales outstanding went up to 71 days for the quarter compared with 67 days for the same period last year.

Days inventory outstanding has decreased to 126 days for the quarter compared with 216 days for the previous year period. At the same time, days payable outstanding went up to 57 days for the quarter from 50 for the same period last year.