Wireless Telecom Group, Inc. (WTT) saw its loss widen to $1.23 million, or $0.06 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.58 million, or $0.03 a share. Revenue during the quarter surged 49.94 percent to $9.55 million from $6.37 million in the previous year period. Gross margin for the quarter expanded 266 basis points over the previous year period to 45.37 percent. Operating margin for the quarter stood at negative 18 percent as compared to a negative 14.46 percent for the previous year period.
Operating loss for the quarter was $1.72 million, compared with an operating loss of $0.92 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.45 million compared to negative $0.60 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 4.68 percent for the quarter compared to negative 9.49 percent in the last year period.
Tim Whelan, chief executive officer of Wireless Telecom Group, Inc., commented, "We are very excited about the growth in revenues and profitability in the first quarter. The 50% revenue growth represents 34% organic growth across our combined Network Solutions and Test & Measurement segments and the inclusion of our new Embedded Solutions segment. We continued to see strong customer demand exiting Q4 of last year which continued through the first quarter and resulted in increased revenues for the period ending March 31, 2017. We received $8,700,000 of customer orders in Network Solutions and Test & Measurement in the quarter ending March 31, 2017 reflecting a continuation of increased customer spend which started in the second half of 2016. We expect to see this demand continue through the second quarter of 2017."
Working capital drops significantly
Wireless Telecom Group, Inc. has witnessed a decline in the working capital over the last year. It stood at $10.51 million as at Mar. 31, 2017, down 50.32 percent or $10.65 million from $21.16 million on Mar. 31, 2016. Current ratio was at 2.04 as on Mar. 31, 2017, down from 9.83 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 99 days for the quarter from 247 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 71 days for the same period last year.
Days inventory outstanding has decreased to 85 days for the quarter compared with 210 days for the previous year period. At the same time, days payable outstanding went up to 48 days for the quarter from 34 for the same period last year.
Debt increases substantially
Wireless Telecom Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $2.66 million as on Mar. 31, 2017, up 3,647.89 percent or $2.59 million from $0.07 million on Mar. 31, 2016. Long-term debt stood at $0.61 million as on Mar. 31, 2017. Total debt was 5.06 percent of total assets as on Mar. 31, 2017, compared with 0.20 percent on Mar. 31, 2016. 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
