Ikonics Corporation (IKNX) saw its loss widen to $0.38 million, or $0.19 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.19 million, or $0.10 a share.

Revenue during the quarter dropped 9.57 percent to $3.63 million from $4.01 million in the previous year period. Gross margin for the quarter contracted 227 basis points over the previous year period to 30.04 percent. Operating margin for the quarter stood at negative 16.15 percent as compared to a negative 7.98 percent for the previous year period.

Operating loss for the quarter was $0.59 million, compared with an operating loss of $0.32 million in the previous year period.

Bill Ulland, IKONICS chief executive officer, said: "While our first quarter is usually our weakest, 2017 was unusually difficult. Although 4% over budget, IKONICS Imaging sales were down 11% compared to the first quarter of 2016 primarily because the first quarter of 2016 included a large stocking order and equipment sales to a new customer. Export sales were down 15% partially due to timing issues related to Asian sales. Domestic sales were down 4%, and AMS sales were down 25% because our largest customer had over-ordered last year and now is working off its inventory."

The company has spent $0.16 million cash to meet investing activities during the quarter as against cash outgo of $1.03 million in the last year period.

Working capital increases sharply

Ikonics Corporation has recorded an increase in the working capital over the last year. It stood at $7.48 million as at Mar. 31, 2017, up 56.22 percent or $2.69 million from $4.79 million on Mar. 31, 2016. Current ratio was at 6.73 as on Mar. 31, 2017, up from 5.06 on Mar. 31, 2016.

Days sales outstanding went down to 28 days for the quarter compared with 54 days for the same period last year.