Leatt Corporation (LEAT) has reported 78.07 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $0.04 million, or $0.01 a share in the quarter, compared with $0.18 million, or $0.03 a share for the same period last year.

Revenue during the quarter went down marginally by 0.51 percent to $4.63 million from $4.66 million in the previous year period. Gross margin for the quarter expanded 16 basis points over the previous year period to 52.87 percent. Total expenses were 98.63 percent of quarterly revenues, up from 92.70 percent for the same period last year. That has resulted in a contraction of 592 basis points in operating margin to 1.37 percent.

Operating income for the quarter was $0.06 million, compared with $0.34 million in the previous year period.

"We are making solid progress in our overall strategic goal to broaden the scope of Leatt product design and development, targeting new and larger growth markets, year-round sports, and both pro and amateur athletes," said chief executive officer Sean Macdonald. "We continue to be encouraged during the quarter by our progress in the U.S., the world’s largest geographic market. Our sales and marketing results in the U.S. represents the best example of our strategy, our execution and our operational effectiveness. The U.S. is where we have our closest ties to the consumer and we believe that the progress we are seeing so far there bodes well for our future success."
 

Days sales outstanding went down to 54 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 84 days for the quarter compared with 148 days for the previous year period.