Arotech Corporation (ARTX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $0.64 million, or $ 0.02 a share in the quarter, against a net loss of $0.62 million, or $0.03 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.57 million, or $0.10 a share compared with $1.01 million or $0.04 a share, a year ago. Revenue during the quarter grew 4.34 percent to $24.30 million from $23.29 million in the previous year period. Total expenses were 92.46 percent of quarterly revenues, down from 98.47 percent for the same period last year. This has led to an improvement of 600 basis points in operating margin to 7.54 percent.
Operating income for the quarter was $1.83 million, compared with $0.36 million in the previous year period.
"Arotech had strong gross margins in the third quarter which led to solid results," commented Steven Esses, Arotechs president and chief executive officer. "Our focus on cost control is showing results, while we continue to position ourselves for important contracts that will bring back top line growth. We are encouraged with the third quarter results as they reflect strong execution on many levels. Our design, development and production efforts are leading to contract completions at or ahead of budgets in many cases."
Working capital increasesArotech Corporation has recorded an increase in the working capital over the last year. It stood at $27.60 million as at Sep. 30, 2016, up 13.17 percent or $3.21 million from $24.39 million on Sep. 30, 2015. Current ratio was at 2.11 as on Sep. 30, 2016, up from 1.97 on Sep. 30, 2015. Days sales outstanding were almost stable at 107 days for the quarter, when compared with the last year period.
Debt comes down
Arotech Corporation has recorded a decline in total debt over the last one year. It stood at $18.24 million as on Sep. 30, 2016, down 22.50 percent or $5.29 million from $23.53 million on Sep. 30, 2015. Total debt was 15.66 percent of total assets as on Sep. 30, 2016, compared with 20.20 percent on Sep. 30, 2015. Debt to equity ratio was at 0.27 as on Sep. 30, 2016, down from 0.37 as 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
