Revenue during the quarter grew 13.52 percent to $26.83 million from $23.63 million in the previous year period. Gross margin for the quarter expanded 128 basis points over the previous year period to 18.64 percent. Operating margin for the quarter stood at negative 0.18 percent as compared to a positive 0.41 percent for the previous year period.

Operating loss for the quarter was $0.05 million, compared with an operating income of $0.10 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $2.94 million compared with $2.64 million in the prior year period. At the same time, adjusted EBITDA margin contracted 21 basis points in the quarter to 10.98 percent from 11.19 percent in the last year period.

Jason Young, CEO, commented, "Similar to last quarter, we saw increased progress in growing our organic sales, which is primarily a product of our new customer driven culture. We also continue to make headway in growing our market share, as we focus on building strategic relationships with key customers. While margins continue to be muted due to the start-up costs and drag associated with the launch of new programs, we expect margins to improve as these programs move to full production. The biggest opportunity for us now, is to increase capacity in our new product development, so we can more quickly and efficiently launch the new opportunities that have resulted from our customer driven approach. At this point, given the sales pipeline we have built, a key driver of our increased growth will be our ability to accelerate and expand new product launches, a challenge we are committed to solving."

Cash flow from investing activities was $9.17 million for the quarter as against cash outgo of $0.63 million in the last year period.

The company has spent $9.38 million cash to carry out financing activities during the quarter as against cash outgo of $1.59 million in the last year period.

Cash and cash equivalents stood at $3.86 million as on Oct. 02, 2016, down 6.87 percent or $0.28 million from $4.15 million on Sep. 27, 2015.

Working capital increases
ARC Group Worldwide, Inc. has recorded an increase in the working capital over the last year. It stood at $19.09 million as at Oct. 02, 2016, up 15.25 percent or $2.53 million from $16.57 million on Sep. 27, 2015. Current ratio was at 1.87 as on Oct. 02, 2016, up from 1.72 on Sep. 27, 2015.

Cash conversion cycle (CCC) has decreased to 56 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 54 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 40 days for the quarter compared with 76 days for the previous year period. At the same time, days payable outstanding went up to 38 days for the quarter from 36 for the same period last year.