Revenue during the quarter dropped 4.45 percent to $173.85 million from $181.95 million in the previous year period. Gross margin for the quarter expanded 72 basis points over the previous year period to 32.73 percent. Total expenses were 92.39 percent of quarterly revenues, up from 91.17 percent for the same period last year. That has resulted in a contraction of 122 basis points in operating margin to 7.61 percent.

Operating income for the quarter was $13.23 million, compared with $16.06 million in the previous year period.

However, the adjusted operating income for the quarter stood at $17.49 million compared to $17.76 million in the prior year period. At the same time, adjusted operating margin improved 30 basis points in the quarter to 10.06 percent from 9.76 percent in the last year period.

"Second-quarter organic sales were primarily affected by soft refrigeration end market conditions as expected, as well as customer project push-outs in Engineering Technologies and Engraving," said president and chief executive officer David Dunbar. "At the same time, our continued focus on operational excellence mitigated the effect on our bottom line performance. GAAP operating profit declined by 120 basis points on the sales decline, and non-GAAP operating profit was essentially flat. In our Electronics business, we announced yesterday our intention to acquire OKI Sensor Device Corporation, a world-renowned Japanese manufacturer of reed switches. The acquisition expands our global reach in our Electronics business, and increases our ability to capitalize on new sensor opportunities in Asia."

The company has spent $37.01 million cash to meet investing activities during the first six months as against cash outgo of $19.23 million in the last year period.

Cash flow from financing activities was $22.49 million for the first six months, up 919.12 percent or $20.28 million, when compared with the last year period.

Cash and cash equivalents stood at $121.30 million as on Dec. 31, 2016, up 16.40 percent or $17.09 million from $104.21 million on Dec. 31, 2015.

Working capital increases
Standex International Corporation has recorded an increase in the working capital over the last year. It stood at $241.04 million as at Dec. 31, 2016, up 12.19 percent or $26.18 million from $214.86 million on Dec. 31, 2015. Current ratio was at 3.06 as on Dec. 31, 2016, up from 2.86 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 48 days for the quarter from 87 days for the last year period. Days sales outstanding went up to 56 days for the quarter compared with 52 days for the same period last year.

Days inventory outstanding has decreased to 44 days for the quarter compared with 83 days for the previous year period. At the same time, days payable outstanding went up to 51 days for the quarter from 47 for the same period last year.