TESSCO Technologies, Inc (TESS) has reported 57.47 percent plunge in profit for the quarter ended Dec. 25, 2016. The company has earned $1.23 million, or $0.15 a share in the quarter, compared with $2.89 million, or $0.35 a share for the same period last year. Revenue during the quarter grew 5.51 percent to $147.20 million from $139.51 million in the previous year period. Gross margin for the quarter contracted 75 basis points over the previous year period to 20.36 percent. Total expenses were 98.57 percent of quarterly revenues, up from 96.62 percent for the same period last year. That has resulted in a contraction of 194 basis points in operating margin to 1.43 percent.
Operating income for the quarter was $2.11 million, compared with $4.71 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.29 million compared with $6.05 million in the prior year period. At the same time, adjusted EBITDA margin contracted 210 basis points in the quarter to 2.24 percent from 4.34 percent in the last year period.
“This is the first time in four years in which we achieved both year-over-year and sequential revenue growth,” said Murray Wright, President and Chief Executive Officer. “We are optimistic about our success and believe our sales momentum is improving.
Working capital declines
TESSCO Technologies, Inc has witnessed a decline in the working capital over the last year. It stood at $79.26 million as at Dec. 25, 2016, down 11.34 percent or $10.14 million from $89.40 million on Dec. 27, 2015. Current ratio was at 2.16 as on Dec. 25, 2016, down from 2.48 on Dec. 27, 2015. Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 58 days for the last year period. Days sales outstanding went down to 42 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 25 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding was almost stable at 45 days for the quarter, when compared with the previous year period.
Debt comes down significantly
TESSCO Technologies, Inc has recorded a decline in total debt over the last one year. It stood at $0.06 million as on Dec. 25, 2016, down 96.89 percent or $1.96 million from $2.02 million on Dec. 27, 2015. Total debt was 0.03 percent of total assets as on Dec. 25, 2016, compared with 1.10 percent on Dec. 27, 2015. 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
