IKONICS Corporation (IKNX) has reported 29.54 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $0.08 million, or $0.04 a share in the quarter, compared with $0.12 million, or $0.06 a share for the same period last year. Revenue during the quarter went up marginally by 1.43 percent to $4.61 million from $4.54 million in the previous year period. Gross margin for the quarter expanded 58 basis points over the previous year period to 36.19 percent. Total expenses were 96.53 percent of quarterly revenues, up from 95.83 percent for the same period last year. That has resulted in a contraction of 70 basis points in operating margin to 3.47 percent.
Operating income for the quarter was $0.16 million, compared with $0.19 million in the previous year period.
IKONICS Chief executive officer, Bill Ulland, said: “Although the return to profitability was welcomed, the strong dollar and the weak global economy continue to create headwinds for IKONICS. “However, sales by AMS, our aerospace business, continued to grow in the third quarter of 2016, showing a 64% increase over the third quarter of 2015,” he said. “New opportunities to further expand that business are being actively investigated with major aerospace companies.”
Operating cash flow remains almost stable
IKONICS Corporation has generated cash of $0.80 million from operating activities during the nine month period, up 0.93 percent or $0.01 million, when compared with the last year period. The company has spent $5.37 million cash to meet investing activities during the nine month period as against cash inflow of $0.30 million in the last year period
Cash flow from financing activities was almost stable for the quarter at $3.23 million, when compared with the previous year period.
Cash and cash equivalents stood at $0.92 million as on Sep. 30, 2016, down 69.80 percent or $2.12 million from $3.04 million on Sep. 30, 2015.
Working capital increases
IKONICS Corporation has recorded an increase in the working capital over the last year. It stood at $7.57 million as at Sep. 30, 2016, up 11.41 percent or $0.77 million from $6.79 million on Sep. 30, 2015. Current ratio was at 7.14 as on Sep. 30, 2016, up from 5.57 on Sep. 30, 2015.
Days sales outstanding went down to 24 days for the quarter compared with 49 days for the same period last year.
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