Revenue during the quarter grew 19.33 percent to $5 million from $4.19 million in the previous year period. Gross margin for the quarter expanded 294 basis points over the previous year period to 56.67 percent. Total expenses were 92.19 percent of quarterly revenues, up from 84.14 percent for the same period last year. That has resulted in a contraction of 805 basis points in operating margin to 7.81 percent.

Operating income for the quarter was $0.39 million, compared with $0.66 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $0.62 million compared with $0.67 million in the prior year period. At the same time, adjusted EBITDA margin contracted 360 basis points in the quarter to 12.42 percent from 16.01 percent in the last year period.

Jim Gaynor, president and chief executive officer of LightPath, commented, "Our strategy to organically grow certain of our product groups and our profitability enhancing initiatives announced in February 2015 have resulted in a strong financial performance and good cash flow generation in the first quarter of fiscal 2017. In addition, during the quarter we continued working towards completing the proposed acquisition of ISP Optics Corporation, which we believe will be transformative for LightPath. We believe this acquisition will significantly add to our global scale and scope and have financial benefits both in the long and short term."

The company has spent $0.39 million cash to meet investing activities during the quarter as against cash outgo of $0.29 million in the last year period.

Cash flow from financing activities was $0.05 million for the quarter as against cash outgo of $0.07 million in the last year period.

Cash and cash equivalents stood at $3.58 million as on Sep. 30, 2016, up 52.50 percent or $1.23 million from $2.35 million on Sep. 30, 2015.

Working capital increases sharply
LightPath Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $8.01 million as at Sep. 30, 2016, up 28.58 percent or $1.78 million from $6.23 million on Sep. 30, 2015. Current ratio was at 3.25 as on Sep. 30, 2016, down from 3.34 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 155 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 70 days for the same period last year.

Days inventory outstanding has decreased to 85 days for the quarter compared with 153 days for the previous year period. At the same time, days payable outstanding went down to 64 days for the quarter from 68 for the same period last year.