Sypris Solutions, Inc. (SYPR) swung to a net profit for the quarter ended Oct. 02, 2016. The company has made a net profit of $20.99 million, or $ 1.02 a share in the quarter, against a net loss of $0.27 million, or $0.01 a share in the last year period.
Revenue during the quarter plunged 44.37 percent to $21.38 million from $38.44 million in the previous year period. Gross margin for the quarter stood at negative 3.37 percent as compared to a positive 6.42 percent for the previous year period. Operating margin for the quarter stood at negative 28.21 percent as compared to a negative 10.61 percent for the previous year period.
Operating loss for the quarter was $6.03 million, compared with an operating loss of $4.08 million in the previous year period.
Commenting on the CSS transaction, Jeffrey T. Gill, President and Chief Executive Officer of Sypris Solutions stated, "We are pleased to complete this transaction with Analog Devices. Analog is a global leader in its markets and as a result, will have the ability to accelerate the introduction of the new, ground-breaking cybersecurity technologies and capabilities that we have developed in recent years into a variety of automotive, industrial, aerospace, healthcare, IoT and safe cities applications."
Operating cash flow remains negative
Sypris Solutions, Inc. has spent $12.96 million cash to meet operating activities during the nine month period as against cash outgo of $11.72 million in the last year period.
Cash flow from investing activities was $47.51 million for the nine month period, up 226.64 percent or $32.96 million, when compared with the last year period.
The company has spent $14.80 million cash to carry out financing activities during the nine month period as against cash outgo of $8.06 million in the last year period.
Cash and cash equivalents stood at $21.10 million as on Oct. 02, 2016, up 1,090.07 percent or $19.33 million from $1.77 million on Oct. 04, 2015.
Working capital increases sharply
Sypris Solutions, Inc. has recorded an increase in the working capital over the last year. It stood at $27.19 million as at Oct. 02, 2016, up 82.94 percent or $12.32 million from $14.86 million on Oct. 04, 2015. Current ratio was at 2.21 as on Oct. 02, 2016, up from 1.52 on Oct. 04, 2015.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 57 days for the last year period. Days sales outstanding went up to 47 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 31 days for the quarter compared with 60 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 35 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 $3.21 million as on Oct. 02, 2016, down 68.02 percent or $6.83 million from $10.04 million on Oct. 04, 2015. Total debt was 4.42 percent of total assets as on Oct. 02, 2016, compared with 13.82 percent on Oct. 04, 2015. Debt to equity ratio was at 0.11 as on Oct. 02, 2016, down from 0.42 as on Oct. 04, 2015.
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