Wireless Telecom Group (WTT) has reported 62.67 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $0.12 million in the quarter, compared with $0.08 million for the same period last year.
Revenue during the quarter went up marginally by 0.06 percent to $8.34 million from $8.34 million in the previous year period. Gross margin for the quarter expanded 237 basis points over the previous year period to 45.82 percent. Total expenses were 96.79 percent of quarterly revenues, down from 98.06 percent for the same period last year. This has led to an improvement of 127 basis points in operating margin to 3.21 percent.
Operating income for the quarter was $0.27 million, compared with $0.16 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.65 million compared with $0.41 million in the prior year period. At the same time, adjusted EBITDA margin improved 287 basis points in the quarter to 7.81 percent from 4.94 percent in the last year period.
Tim Whelan, chief executive officer of Wireless Telecom Group, Inc., commented, "As expected, our third quarter results reflected a return to profitability and sequential improvement throughout the income statement. We are pleased with the third quarter’s growth in revenues and higher gross margins along with careful management of our operating costs. We expect continued improvement in financial performance in Q4 compared to Q3."
Operating cash flow turns negativeWireless Telecom Group has spent $0.74 million cash to meet operating activities during the nine month period as against cash inflow of $0.52 million in the last year period. The company has spent $0.72 million cash to meet investing activities during the nine month period as against cash outgo of $0.37 million in the last year period.
The company has spent $0.17 million cash to carry out financing activities during the nine month period as against cash outgo of $0.09 million in the last year period.
Cash and cash equivalents stood at $8.10 million as on Sep. 30, 2016, down 24.83 percent or $2.68 million from $10.78 million on Sep. 30, 2015.
Working capital declines
Wireless Telecom Group has witnessed a decline in the working capital over the last year. It stood at $21.03 million as at Sep. 30, 2016, down 13.51 percent or $3.28 million from $24.31 million on Sep. 30, 2015. Current ratio was at 8.43 as on Sep. 30, 2016, down from 13.50 on Sep. 30, 2015.
Days sales outstanding were almost stable at 64 days for the quarter, when compared with the last year period.
Debt comes down significantlyWireless Telecom Group has recorded a decline in total debt over the last one year. It stood at $0.01 million as on Sep. 30, 2016, down 72.25 percent or $0.04 million from $0.05 million on Sep. 30, 2015. Wireless Telecom Group has recorded a decline in short-term debt over the last one year. It stood at $0.01 million as on Sep. 30, 2016, down 72.25 percent or $0.04 million from $0.05 million on Sep. 30, 2015. Total debt was 0.04 percent of total assets as on Sep. 30, 2016, compared with 0.14 percent on Sep. 30, 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
