Vishay Precision Group, Inc (VPG) swung to a net profit for the quarter ended Oct. 01, 2016. The company has made a net profit of $1.05 million, or $ 0.08 a share in the quarter, against a net loss of $1.94 million, or $0.15 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.86 million, or $0.21 a share compared with $2.38 million or $0.18 a share, a year ago. Revenue during the quarter dropped 4.65 percent to $54.49 million from $57.15 million in the previous year period. Gross margin for the quarter contracted 34 basis points over the previous year period to 37.19 percent. Operating margin for the quarter period stood at positive 4.84 percent as compared to a negative 2.99 percent for the previous year period.
Operating income for the quarter was $2.64 million, compared with an operating loss of $1.71 million in the previous year period.
“Our adjusted earnings per diluted share performance was $0.21 for the third quarter of 2016 as compared to adjusted earnings per diluted share of $0.18 in the third quarter of 2015, in spite of softer sales this quarter compared to the third quarter of 2015,” said Ziv Shoshani, VPG chief executive officer. “We also generated cash from operations of $6.3 million, with free cash flow of $4.5 million in the third quarter of 2016, which validates the effectiveness of our restructuring and cost reduction programs.”
Vishay Precision Group projects revenue to be in the range of $55 million to $60 million for financial year 2016. For financial year 2016, the company forecasts diluted earnings per share to be in the range of $0.70 to $0.75 on adjusted basis.
Operating cash flow improves
Vishay Precision Group, Inc has generated cash of $6.49 million from operating activities during the nine month period, up 22.40 percent or $1.19 million, when compared with the last year period. The company has spent $16.68 million cash to meet investing activities during the nine month period as against cash outgo of $7.39 million in the last year period. It has incurred net capital expenditure of $5.95 million on net basis during the nine month period, down 19.50 percent or $1.44 million from year ago period.
Cash flow from financing activities was $3.39 million for the nine month period as against cash outgo of $12.63 million in the last year period.
Cash and cash equivalents stood at $56.13 million as on Oct. 01, 2016, down 11.15 percent or $7.04 million from $63.17 million on Sep. 26, 2015.
Working capital declines
Vishay Precision Group, Inc has witnessed a decline in the working capital over the last year. It stood at $120.26 million as at Oct. 01, 2016, down 6.68 percent or $8.61 million from $128.88 million on Sep. 26, 2015. Current ratio was at 3.95 as on Oct. 01, 2016, down from 4 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 115 days for the quarter from 181 days for the last year period. Days sales outstanding were almost stable at 61 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 78 days for the quarter compared with 142 days for the previous year period. At the same time, days payable outstanding went up to 23 days for the quarter from 22 for the same period last year.
Debt increases substantially
Vishay Precision Group, Inc has witnessed an increase in total debt over the last one year. It stood at $36.73 million as on Oct. 01, 2016, up 93.42 percent or $17.74 million from $18.99 million on Sep. 26, 2015. Total debt was 13.51 percent of total assets as on Oct. 01, 2016, compared with 7.22 percent on Sep. 26, 2015. Debt to equity ratio was at 0.21 as on Oct. 01, 2016, up from 0.10 as on Sep. 26, 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
