SPX FLOW, Inc. (FLOW) saw its loss narrow to $7.40 million, or $0.18 a share for the quarter ended Apr. 01, 2017. In the previous year period, the company reported a loss of $31.10 million, or $0.75 a share. On an adjusted basis, net loss for the quarter stood at $0.40 million, or $0.01 a share compared with a net profit of $0.60 million, or $0.02 a share in the last year period.

Revenue during the quarter dropped 14.22 percent to $433.20 million from $505 million in the previous year period. Gross margin for the quarter expanded 59 basis points over the previous year period to 32.11 percent. Operating margin for the quarter period stood at positive 2.45 percent as compared to a negative 4.24 percent for the previous year period.

Operating income for the quarter was $10.60 million, compared with an operating loss of $21.40 million in the previous year period.

However, the adjusted operating income for the quarter stood at $19.20 million compared to $19.60 million in the prior year period. At the same time, adjusted operating margin improved 55 basis points in the quarter to 4.43 percent from 3.88 percent in the last year period.

"Our first quarter results reflect positive momentum on our initiatives to drive order growth, an improved cost structure and cash generation. Orders were up 2% over the prior year and up 18% sequentially, highlighted by key order wins in the North American oil pipeline market and several small-to-mid-size system orders for food and beverage applications. Our backlog increased 16% to $913 million, up $129 million from the end of 2016," said Marc Michael, president and chief executive officer.

Cash flow from investing activities was $15.50 million for the quarter as against cash outgo of $14.70 million in the last year period.

The company has spent $58.10 million cash to carry out financing activities during the quarter as against cash inflow of $6.30 million in the last year period.

Cash and cash equivalents stood at $208.70 million as on Apr. 01, 2017, down 5.31 percent or $11.70 million from $220.40 million on Apr. 02, 2016.

Working capital increases
SPX FLOW, Inc. has recorded an increase in the working capital over the last year. It stood at $399.70 million as at Apr. 01, 2017, up 9.18 percent or $33.60 million from $366.10 million on Apr. 02, 2016. Current ratio was at 1.65 as on Apr. 01, 2017, up from 1.48 on Apr. 02, 2016.

Cash conversion cycle (CCC) has decreased to 77 days for the quarter from 116 days for the last year period. Days sales outstanding went up to 97 days for the quarter compared with 91 days for the same period last year.

Days inventory outstanding has decreased to 47 days for the quarter compared with 86 days for the previous year period. At the same time, days payable outstanding went up to 67 days for the quarter from 60 for the same period last year.