Sypris Solutions, Inc. (SYPR) saw its loss narrow to $3.31 million, or $0.16 a share for the quarter ended Apr. 02, 2017. In the previous year period, the company reported a loss of $5.10 million, or $0.26 a share. Revenue during the quarter plunged 32.49 percent to $18.18 million from $26.94 million in the previous year period. Gross margin for the quarter stood at negative 3.79 percent as compared to a positive 2.70 percent for the previous year period. Operating margin for the quarter stood at negative 28.23 percent as compared to a negative 23.70 percent for the previous year period.
Operating loss for the quarter was $5.13 million, compared with an operating loss of $6.38 million in the previous year period.
"We are pleased to announce that we are on track to meet the targets laid out during our year-end conference call held in March of this year. All major milestones are expected to be achieved by the end of May. The progress made during this past year and in the first quarter of 2017 will enable the Company’s operations to return to profitability by the second half of 2017," commented Jeffrey T. Gill, president and chief executive officer. "The Company’s total manufacturing overhead costs are being reduced, our underperforming and underutilized assets are being divested, significant liquidity has been created and important new business has been secured."
For the second-quarter 2017, Sypris Solutions, Inc. expects revenue to be in the range of $40 million to $42 million.
Operating cash flow remains negative
Sypris Solutions, Inc. has spent $0.84 million cash to meet operating activities during the quarter as against cash outgo of $4.71 million in the last year period. Cash flow from investing activities was $2.33 million for the quarter, down 53.72 percent or $2.70 million, when compared with the last year period.
The company has spent $0.04 million cash to carry out financing activities during the quarter as against cash inflow of $0.64 million in the last year period.
Cash and cash equivalents stood at $16.72 million as on Apr. 02, 2017, up 624.93 percent or $14.41 million from $2.31 million on Apr. 03, 2016.
Working capital increases sharply
Sypris Solutions, Inc. has recorded an increase in the working capital over the last year. It stood at $23.56 million as at Apr. 02, 2017, up 43.09 percent or $7.10 million from $16.47 million on Apr. 03, 2016. Current ratio was at 1.89 as on Apr. 02, 2017, up from 1.56 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 43 days for the quarter from 80 days for the last year period. Days sales outstanding went up to 54 days for the quarter compared with 45 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 73 days for the previous year period. At the same time, days payable outstanding went up to 59 days for the quarter from 39 for the same period last year.
Debt comes down significantly
Sypris Solutions, Inc. has recorded a decline in total debt over the last one year. It stood at $3.12 million as on Apr. 02, 2017, down 80.11 percent or $12.57 million from $15.70 million on Apr. 03, 2016. Total debt was 4.50 percent of total assets as on Apr. 02, 2017, compared with 21.39 percent on Apr. 03, 2016. Debt to equity ratio was at 0.13 as on Apr. 02, 2017, down from 1.05 as on Apr. 03, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
