IKONICS Corporation (IKNX) has reported a 97.15 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.01 million in the quarter, compared with $0.22 million for the same period last year. Revenue during the quarter went down marginally by 0.32 percent to $4.75 million from $4.77 million in the previous year period. Gross margin for the quarter contracted 64 basis points over the previous year period to 36.83 percent. Total expenses were 98.13 percent of quarterly revenues, up from 93.55 percent for the same period last year. That has resulted in a contraction of 458 basis points in operating margin to 1.87 percent.
Operating income for the quarter was $0.09 million, compared with $0.31 million in the previous year period.
IKONICS chief executive officer Bill Ulland said: “This has been a year of contrasts for IKONICS. Sales of Advanced Material Solutions (AMS), our aerospace business, grew 66% over 2015. Most of these sales were to one customer, and we expect that this business will continue for future years. AMS has achieved industry recognition for service and quality. We are anticipating additional business from three potential new customers in 2017 and 2018.
Operating cash flow drops significantly
IKONICS Corporation has generated cash of $0.92 million from operating activities during the year, down 37.46 percent or $0.55 million, when compared with the last year. The company has spent $5.32 million cash to meet investing activities during the year as against cash outgo of $1.15 million in the last year.
Cash flow from financing activities was almost stable for the quarter at $3.20 million, when compared with the previous year period.
Cash and cash equivalents stood at $1.05 million as on Dec. 31, 2016, down 53.36 percent or $1.20 million from $2.25 million on Dec. 31, 2015.
Working capital increases sharply
IKONICS Corporation has recorded an increase in the working capital over the last year. It stood at $7.73 million as at Dec. 31, 2016, up 33.73 percent or $1.95 million from $5.78 million on Dec. 31, 2015. Current ratio was at 6.89 as on Dec. 31, 2016, up from 6.09 on Dec. 31, 2015.
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