Om Group (OMG), a technology-driven industrial company, swung to a net profit for the quarter ended Jun. 30, 2014. The company made a net profit of $4.80 million or $0.15 a share in the second-quarter against a loss of $3.30 million or $0.11 a share in the last year period. Adjusted earnings per share came in at $0.20, when analysts expected $0.40.

Revenue during the second-quarter climbed 6.48 percent to $297.50 million from $279.40 million in the last year period.

Gross margin contracted by 162 basis points over the last year period to 21.21 percent. Total expenses as a percentage of revenues decreased to 96.77 percent from 97.07 percent in the same period last year. That has resulted in improvement of 3 basis points in operating margins to 3.33 percent.

The company reported operating income of $9.90 million, compared with operating $9.20 million in the previous year period.

''In the second quarter we delivered impressive cash flow from operations, which supported recent share repurchases and the quarterly dividend we initiated this year,'' said Joe Scaminace, chairman and chief executive officer of OM Group, Inc.

Cash Flow

Om Group has generated cash of $21.80 million from operating activities during the first half, as against cash outgo of $6.80 million in the last year period.

The company has spent $9.80 million cash to meet operating activities during the first half, as against cash inflow of $344.10 million in the last year period. It has made net capital expenditure of $9.80 million during the first half, which was lower by 53.99 percent or $11.50 million, from a year ago.

The company has spent $15.10 million cash to meet financing activities during the first half, as against cash outgo of $480.20 million in the last year period. It has spent net of $10.20 million on repurchase of common stocks.

As on Jun. 30, 2014, the company's cash balance stood at $114.30 million, up 41.87 percent or $33.73 million from Jun. 30, 2013.

Working Capital

Om Group has witnessed an increase in the working capital over the last one year. The company's working capital stood at $318.40 million as at Jun. 30, 2014, up $43.39 million or 15.78 percent from $275.01 million on Jun. 30, 2013. It registered an increase in current ratio to 2.39 as at Jun. 30, 2014 from 2.10 on Jun. 30, 2013.

Shares of the company declined $2.36 or 8.35 percent to trade at $8.35 on Friday (9:46AM).