Tel Instrument Electronics Corporation (TIK) has reported 36.39 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.27 million, or $0.07 a share in the quarter, compared with $0.20 million, or $0.06 a share for the same period last year. Revenue during the quarter dropped 25.55 percent to $5.08 million from $6.82 million in the previous year period. Gross margin for the quarter expanded 306 basis points over the previous year period to 35.96 percent. Total expenses were 92.78 percent of quarterly revenues, up from 86.57 percent for the same period last year. That has resulted in a contraction of 621 basis points in operating margin to 7.22 percent.
Operating income for the quarter was $0.37 million, compared with $0.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.41 million compared with $0.96 million in the prior year period. At the same time, adjusted EBITDA margin contracted 604 basis points in the quarter to 8.10 percent from 14.15 percent in the last year period.
Mr. Jeffrey OHara, president and chief executive officer of Tel, stated, "We continue to report solid revenues and profitability despite the substantial completion of the U.S. Army TS-4530A KITS and CRAFT and ITATS units associated with the U.S. Navy programs. Our balance sheet continues to improve and we were able to pay off the $720k warranty liability to BCA while maintaining a solid cash balance. Legal expenses and costs associated with expert testimony continue to be a significant drag on profitability but we expect this litigation to be concluded by the end of this fiscal year. With respect to our Motion to Dismiss filed in late August, we have not yet received a decision from the court.
Working capital increasesTel Instrument Electronics Corporation has recorded an increase in the working capital over the last year. It stood at $3.92 million as at Sep. 30, 2016, up 7.69 percent or $0.28 million from $3.64 million on Sep. 30, 2015. Current ratio was at 2.26 as on Sep. 30, 2016, up from 1.88 on Sep. 30, 2015. Days sales outstanding went up to 34 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding has decreased to 52 days for the quarter compared with 93 days for the previous year period.
Debt comes down significantly
Tel Instrument Electronics Corporation has recorded a decline in total debt over the last one year. It stood at $0.54 million as on Sep. 30, 2016, down 42.31 percent or $0.40 million from $0.94 million on Sep. 30, 2015. Total debt was 6 percent of total assets as on Sep. 30, 2016, compared with 9.32 percent on Sep. 30, 2015. Debt to equity ratio was at 0.10 as on Sep. 30, 2016, down from 0.23 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 20.94 for the quarter from 35.45 for the same period last year. 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
