RELM Wireless Corporation (RWC) has reported a 56.81 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.09 million, or $0.01 a share in the quarter, compared with $0.21 million, or $0.02 a share for the same period last year.
Revenue during the quarter grew 3.97 percent to $7.23 million from $6.95 million in the previous year period. Gross margin for the quarter expanded 262 basis points over the previous year period to 41.88 percent. Total expenses were 95.25 percent of quarterly revenues, down from 95.93 percent for the same period last year. This has led to an improvement of 67 basis points in operating margin to 4.75 percent.
Operating income for the quarter was $0.34 million, compared with $0.28 million in the previous year period.
RELM president Tim Vitou commented, "With sales exceeding $50 million, 2016 was a record year for RELM. Our contract with the U.S. Transportation Security Administration (TSA) was a significant contributor to a year-over-year growth rate exceeding 70%. With over 19,000 radios deployed to 406 airports, the TSA program demonstrates our ability to successfully handle large projects, which should enhance our reputation and brand recognition, and foster confidence with potential new customers."
Working capital decreases marginally
RELM Wireless Corporation has witnessed a decline in the working capital over the last year. It stood at $23.40 million as at Dec. 31, 2016, down 2.03 percent or $0.49 million from $23.89 million on Dec. 31, 2015. Current ratio was at 4.68 as on Dec. 31, 2016, down from 6.60 on Dec. 31, 2015.
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