Powell Industries, Inc. (POWL) saw its loss narrow to $0.30 million, or $0.03 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.46 million, or $0.04 a share. On an adjusted basis, net loss for the quarter stood at $0.30 million, or $0.03 a share compared with a net profit of $2.01 million, or $0.18 a share in the last year period.
Revenue during the quarter dropped 26.43 percent to $110.34 million from $149.98 million in the previous year period. Gross margin for the quarter contracted 184 basis points over the previous year period to 13.59 percent. Operating margin for the quarter stood at negative 2.04 percent as compared to a negative 1.33 percent for the previous year period.
Operating loss for the quarter was $2.26 million, compared with an operating loss of $1.99 million in the previous year period.
Brett A. Cope, Powell's president and chief executive officer, stated, "Our first quarter results reflect the challenges we faced entering 2017 with a reduced backlog and continued downward pressure on Powell's core oil, gas and petrochemical markets. While inquiry activity has remained steady relative to what we have seen in the past several quarters, we continue to experience price pressure and increased uncertainty around the timing of the order cycle process. "Despite these challenges, Powell remains focused on maintaining our strong financial position by strengthening our balance sheet, generating positive net cash from operating activities and increasing our cash position. Powell employees, working both within and across our division lines, are delivering superior project execution and improving our efficiencies throughout our operations."
Working capital increases
Powell Industries, Inc. has recorded an increase in the working capital over the last year. It stood at $183.15 million as at Dec. 31, 2016, up 8.72 percent or $14.69 million from $168.46 million on Dec. 31, 2015. Current ratio was at 2.86 as on Dec. 31, 2016, up from 2.38 on Dec. 31, 2015.
Days sales outstanding went down to 43 days for the quarter compared with 58 days for the same period last year.
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