Wpcs International (WPCS) saw its loss narrow to $0.45 million, or $0.33 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $0.82 million, or $0.47 a share.
Revenue during the quarter grew 28.52 percent to $4.26 million from $3.32 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 24.11 percent. Operating margin for the quarter stood at negative 11.09 percent as compared to a negative 24.80 percent for the previous year period.
Operating loss for the quarter was $0.47 million, compared with an operating loss of $0.82 million in the previous year period.
Sebastian Giordano, chief executive officer of WPCS, commented, "For the three and nine months ended January 31, 2017, we incurred an operating loss of $473,000 and $1,632,000, as compared to operating losses of $823,000 and $3,174,000 for the comparable periods in 2016. Meanwhile, our backlog has increased $3,302,000, or 23.8%, to $17,138,000 from $13,836,000 for the same period last year."
Operating cash flow remains negativeWpcs International has spent $0.15 million cash to meet operating activities during the nine month period as against cash outgo of $2.54 million in the last year period. The company has spent $0.10 million cash to meet investing activities during the nine month period as against cash inflow of $1.22 million in the last year period
Cash flow from financing activities was $0.36 million for the nine month period, down 71.77 percent or $0.92 million, when compared with the last year period.
Cash and cash equivalents stood at $2.34 million as on Jan. 31, 2017, down 2.81 percent or $0.07 million from $2.41 million on Jan. 31, 2016.
Working capital declines
Wpcs International has witnessed a decline in the working capital over the last year. It stood at $2.10 million as at Jan. 31, 2017, down 20.61 percent or $0.55 million from $2.65 million on Jan. 31, 2016. Current ratio was at 1.48 as on Jan. 31, 2017, down from 1.66 on Jan. 31, 2016.
Days sales outstanding went down to 84 days for the quarter compared with 109 days for the same period last year.
Debt increases substantiallyWpcs International has witnessed an increase in total debt over the last one year. It stood at $0.20 million as on Jan. 31, 2017, up 36.37 percent or $0.05 million from $0.15 million on Jan. 31, 2016. Total debt was 2.95 percent of total assets as on Jan. 31, 2017, compared with 2.14 percent on Jan. 31, 2016. Debt to equity ratio was at 0.09 as on Jan. 31, 2017, up from 0.05 as on Jan. 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: [email protected]
