Sigma Labs (SGLB) saw its loss widen to $0.72 million, or $0.11 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.59 million, or $0.09 a share.
Revenue during the quarter dropped 28.74 percent to $0.19 million from $0.27 million in the previous year period. Gross margin for the quarter contracted 2699 basis points over the previous year period to 63.54 percent.
Operating loss for the quarter was $0.72 million, compared with an operating loss of $0.59 million in the previous year period.
"Sigma Labs continued to focus on long term growth this quarter ��" winning new contracts and positioning the Company for faster expansion going forward," said Mark Cola, President & chief executive officer of Sigma Labs. "We are aggressively pursuing new business development opportunities and are encouraged by the high level of interest our software solutions receive in the industry ��" resulting in the potential for many new customer relationships, such as with Siemens. At the same time, we launched INSPECT™ 1.3.2 this quarter and are about to launch version 2.0 at the Formnext show in Frankfurt later this week. We also recently completed a private placement that brought in funds to fuel future R&D and sales. All in all, we believe the Company is in good shape to achieve higher top line growth as we turn the corner on fiscal 2017.”
Working capital drops significantlySigma Labs has witnessed a decline in the working capital over the last year. It stood at $0.14 million as at Sep. 30, 2016, down 93.10 percent or $1.84 million from $1.98 million on Sep. 30, 2015. Current ratio was at 1.57 as on Sep. 30, 2016, down from 10.59 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 42 days for the quarter from 71 days for the last year period. Days sales outstanding went up to 60 days for the quarter compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 56 days for the quarter compared with 342 days for the previous year period. At the same time, days payable outstanding went down to 159 days for the quarter from 324 for the same period last year.
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