CUI Global, Inc (CUI) saw its loss widen to $3.85 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $2.67 million, or $0.13 a share. On an adjusted basis, net loss for the quarter was $3.46 million, when compared with $2.04 million in the last year period. Revenue during the quarter dropped 13.63 percent to $17.84 million from $20.66 million in the previous year period. Gross margin for the quarter contracted 704 basis points over the previous year period to 31.85 percent. Operating margin for the quarter stood at negative 22.47 percent as compared to a negative 11.25 percent for the previous year period.
Operating loss for the quarter was $4.01 million, compared with an operating loss of $2.32 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $3.23 million compared to negative $1.29 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 18.12 percent for the quarter compared to negative 6.24 percent in the last year period.
William Clough, president and Chief executive officer of CUI Global, stated, “Our first quarter results reflect strong sales growth in our P&EM segment that offset lower order-flow in our Energy segment compared to the year-ago period when we received our largest GasPT order to date. P&EM revenue increased by approximately 5% year-over-year as strengthening industry fundamentals drove demand for our products across a broader distribution base supplemented by a new direct sales win in the U.S. In our Energy segment, we continued to execute on business development activities that are laying the groundwork for greater adoption of our gas technology products. Business activity in this segment is increasing as prospective customers respond favorably to the value proposition of our GasPT product.”
Operating cash flow remains negative
CUI Global, Inc has spent $1.48 million cash to meet operating activities during the quarter as against cash outgo of $0.32 million in the last year period. The company has spent $0.25 million cash to meet investing activities during the quarter as against cash outgo of $0.38 million in the last year period.
The company has spent $0.09 million cash to carry out financing activities during the quarter as against cash outgo of $0.09 million in the last year period.
Cash and cash equivalents stood at $2.96 million as on Mar. 31, 2017, down 53.38 percent or $3.39 million from $6.35 million on Mar. 31, 2016.
Working capital drops significantly
CUI Global, Inc has witnessed a decline in the working capital over the last year. It stood at $10.80 million as at Mar. 31, 2017, down 43.81 percent or $8.42 million from $19.21 million on Mar. 31, 2016. Current ratio was at 1.53 as on Mar. 31, 2017, down from 2.17 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 62 days for the quarter from 107 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 50 days for the quarter compared with 89 days for the previous year period. At the same time, days payable outstanding went up to 50 days for the quarter from 40 for the same period last year.
Debt comes down significantly
CUI Global, Inc has recorded a decline in total debt over the last one year. It stood at $3.46 million as on Mar. 31, 2017, down 61.04 percent or $5.41 million from $8.87 million on Mar. 31, 2016. Total debt was 4.38 percent of total assets as on Mar. 31, 2017, compared with 10.15 percent on Mar. 31, 2016. Debt to equity ratio was at 0.08 as on Mar. 31, 2017, down from 0.16 as on Mar. 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]
