Revenue during the quarter dropped 15.34 percent to $134.83 million from $159.26 million in the previous year period. Gross margin for the quarter expanded 291 basis points over the previous year period to 31.41 percent. Operating margin for the quarter period stood at positive 2.61 percent as compared to a negative 2.22 percent for the previous year period.

Operating income for the quarter was $3.51 million, compared with an operating loss of $3.53 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $11.82 million compared with $20.98 million in the prior year period. At the same time, adjusted EBITDA margin contracted 441 basis points in the quarter to 8.76 percent from 13.17 percent in the last year period.

"Despite the cyclical headwinds facing our Energy business, we continue to focus on what we control. In the third quarter, we negotiated an important strategic acquisition, further reduced costs, and improved our working capital and cash flow performance," said Scott Buckhout, president and chief executive officer. "The supplier quality issues we noted in the second quarter in our Aerospace and Defense business have been resolved. We expect stronger performance from this business going forward."

The company has spent $9.59 million cash to meet investing activities during the nine month period as against cash outgo of $85.63 million in the last year period. It has incurred net capital expenditure of $9.59 million on net basis during the nine month period, up 69.88 percent or $3.95 million from year ago period.

Cash flow from financing activities was $0.04 million for the nine month period, down 99.84 percent or $28.81 million, when compared with the last year period.

Cash and cash equivalents stood at $84.93 million as on Oct. 02, 2016, up 57.80 percent or $31.11 million from $53.82 million on Oct. 04, 2015.

Working capital declines
Circor International has witnessed a decline in the working capital over the last year. It stood at $254.73 million as at Oct. 02, 2016, down 8.36 percent or $23.24 million from $277.97 million on Oct. 04, 2015. Current ratio was at 3.24 as on Oct. 02, 2016, up from 2.78 on Oct. 04, 2015.

Cash conversion cycle (CCC) has decreased to 88 days for the quarter from 94 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 41 days for the same period last year.

Days inventory outstanding has decreased to 76 days for the quarter compared with 79 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 27 for the same period last year.