Eastman Kodak Company (KODK) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $7 million in the quarter, against a net loss of $18 million in the last year period.
Revenue during the quarter dropped 5.31 percent to $357 million from $377 million in the previous year period. Gross margin for the quarter contracted 9 basis points over the previous year period to 23.25 percent. Operating margin for the quarter stood at negative 0.56 percent as compared to a positive 2.65 percent for the previous year period.
Operating loss for the quarter was $2 million, compared with an operating income of $10 million in the previous year period.
"I'm pleased with our continued profitability and by the strong performance of our growth engines SONORA Plates, FLEXCEL NX Packaging and the PROSPER Inkjet business" said Jeff Clarke, Kodak Chief Executive Officer. "We expect continued strong execution in these growth businesses, which will continue to increase our quality of earnings."
Eastman Kodak Co projects revenue to be in the range of $1,500 million to $1,600 million for financial year 2017.
Working capital drops significantly
Eastman Kodak Co has witnessed a decline in the working capital over the last year. It stood at $604 million as at Mar. 31, 2017, down 29.85 percent or $257 million from $861 million on Mar. 31, 2016. Current ratio was at 2.54 as on Mar. 31, 2017, down from 2.94 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 71 days for the quarter from 118 days for the last year period. Days sales outstanding were almost stable at 82 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 51 days for the quarter compared with 94 days for the previous year period. At the same time, days payable outstanding went up to 61 days for the quarter from 59 for the same period last year.
Debt comes down significantly
Eastman Kodak Co has recorded a decline in total debt over the last one year. It stood at $410 million as on Mar. 31, 2017, down 39.35 percent or $266 million from $676 million on Mar. 31, 2016. Total debt was 23.88 percent of total assets as on Mar. 31, 2017, compared with 32.72 percent on Mar. 31, 2016.
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