Lightpath Technologies, Inc. (LPTH) has reported an 87 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.10 million in the quarter, compared with $0.78 million for the same period last year. On an adjusted basis, net profit for the quarter was $0.85 million, when compared with $0.11 million in the last year period.
Revenue during the quarter surged 106.47 percent to $8.49 million from $4.11 million in the previous year period. Gross margin for the quarter contracted 437 basis points over the previous year period to 49.74 percent. Total expenses were 84.93 percent of quarterly revenues, down from 94.81 percent for the same period last year. This has led to an improvement of 988 basis points in operating margin to 15.07 percent.
Operating income for the quarter was $1.28 million, compared with $0.21 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.03 million compared with $0.47 million in the prior year period. At the same time, adjusted EBITDA margin improved 1251 basis points in the quarter to 23.90 percent from 11.39 percent in the last year period.
Jim Gaynor, President and Chief Executive Officer of LightPath, commented, “We believe that the acquisition of ISP Optics Corporation (“ISP”), which was completed last quarter, better positions us for accelerated revenue and profitability growth. The results of this third quarter demonstrate that growth. The comparisons are without ISP in the third quarter of fiscal 2016. Revenues generated by LightPath’s core business increased by 20% and revenues generated by ISP grew by 22% during the third quarter of 2017, compared to the same quarter of 2016.
Operating cash flow improves significantly
Lightpath Technologies, Inc. has generated cash of $2.93 million from operating activities during the nine month period, up 137.17 percent or $1.70 million, when compared with the last year period.
The company has spent $13.19 million cash to meet investing activities during the nine month period as against cash outgo of $0.75 million in the last year period.
Cash flow from financing activities was $14.12 million for the nine month period, up 5,089.19 percent or $13.85 million, when compared with the last year period.
Cash and cash equivalents stood at $6.83 million as on Mar. 31, 2017, up 138.65 percent or $3.97 million from $2.86 million on Mar. 31, 2016.
Working capital increases sharply
Lightpath Technologies, Inc. has recorded an increase in the working capital over the last year. It stood at $13.04 million as at Mar. 31, 2017, up 71.75 percent or $5.45 million from $7.59 million on Mar. 31, 2016. Current ratio was at 3.46 as on Mar. 31, 2017, down from 3.85 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 72 days for the quarter from 191 days for the last year period. Days sales outstanding went down to 47 days for the quarter compared with 69 days for the same period last year.
Days inventory outstanding has decreased to 54 days for the quarter compared with 170 days for the previous year period. At the same time, days payable outstanding went down to 28 days for the quarter from 48 for the same period last year.
Debt increases substantially
Lightpath Technologies, Inc. has witnessed an increase in total debt over the last one year. It stood at $11.43 million as on Mar. 31, 2017, up 2,908.91 percent or $11.05 million from $0.38 million on Mar. 31, 2016. Total debt was 28.79 percent of total assets as on Mar. 31, 2017, compared with 2.60 percent on Mar. 31, 2016. Debt to equity ratio was at 0.50 as on Mar. 31, 2017, up from 0.04 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 6.63 for the quarter from 25.76 for the same period last year.
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