Revenue during the quarter dropped 4.12 percent to $35.84 million from $37.37 million in the previous year period. Gross margin for the quarter expanded 368 basis points over the previous year period to 25.60 percent. Operating margin for the quarter stood at negative 9.93 percent as compared to a negative 17.53 percent for the previous year period.

Operating loss for the quarter was $3.56 million, compared with an operating loss of $6.55 million in the previous year period.

Commenting on the results, John H. Batten, president and chief executive officer, said: "Over the past six quarters we have taken a number of meaningful actions to align our cost structure for a period of prolonged weakness across many of our end markets. These actions have been difficult and impact many aspects of our business and communities, but are necessary for Twin Disc to weather this challenging cycle. Our proactive approach helped us improve our gross profit percent significantly during the first quarter despite lower volumes. We continue to pursue opportunities to improve efficiencies and reduce costs, with additional workforce reductions recently completed in the second fiscal quarter. It is important to note that these ongoing cost reduction activities do not sacrifice quality or our commitment to our customers, and are solely focused on improving efficiencies and realigning our operations for lower volumes. Based on our conscious decisions to hold strategic inventory, invest in R&D, and maintain a high level of customer service, we expect to gain share in many of our markets as they eventually recover."

The company has spent $0.65 million cash to meet investing activities during the quarter as against cash inflow of $3.90 million in the last year period. It has incurred net capital expenditure of $0.52 million on net basis during the quarter, down 60.95 percent or $0.81 million from year ago period.

Cash flow from financing activities was $0.81 million for the quarter as against cash outgo of $0.88 million in the last year period.

Cash and cash equivalents stood at $16.08 million as on Sep. 30, 2016, down 30.21 percent or $6.96 million from $23.04 million on Sep. 25, 2015.

Working capital declines
Twin Disc, Inc. has witnessed a decline in the working capital over the last year. It stood at $87.89 million as at Sep. 30, 2016, down 9.83 percent or $9.58 million from $97.48 million on Sep. 25, 2015. Current ratio was at 3.46 as on Sep. 30, 2016, up from 2.91 on Sep. 25, 2015.

Cash conversion cycle (CCC) has decreased to 143 days for the quarter from 264 days for the last year period. Days sales outstanding went up to 89 days for the quarter compared with 87 days for the same period last year.

Days inventory outstanding has decreased to 116 days for the quarter compared with 234 days for the previous year period. At the same time, days payable outstanding went up to 62 days for the quarter from 58 for the same period last year.