Forward Industries Inc (FORD) has reported a 37.93 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.15 million, or $0.02 a share in the quarter, compared with $0.24 million, or $0.03 a share for the same period last year. Revenue during the quarter dropped 7.66 percent to $6.59 million from $7.14 million in the previous year period. Gross margin for the quarter contracted 375 basis points over the previous year period to 17.58 percent. Total expenses were 97.75 percent of quarterly revenues, up from 96.53 percent for the same period last year. That has resulted in a contraction of 122 basis points in operating margin to 2.25 percent.
Operating income for the quarter was $0.15 million, compared with $0.25 million in the previous year period.
Terry Wise, chief executive officer of Forward Industries, stated, “This is the seventh consecutive quarter the company has generated positive income from continuing operations and Net Income in spite of challenging market conditions. We have focused our efforts on growing our existing business with our top tier Medical customers. At the same time, we have enhanced our salesforce capability in a concerted effort to aggressively seek new business within diversified industries. Benefiting from our agile operational platform we have continued to successfully extend our relationships with our existing customers through long term sourcing agreements.”
Working capital increases
Forward Industries Inc has recorded an increase in the working capital over the last year. It stood at $8.37 million as at Dec. 31, 2016, up 9.92 percent or $0.76 million from $7.62 million on Dec. 31, 2015. Current ratio was at 2.94 as on Dec. 31, 2016, up from 2.39 on Dec. 31, 2015. Cash conversion cycle (CCC) has decreased to 116 days for the quarter from 121 days for the last year period. Days sales outstanding went down to 74 days for the quarter compared with 77 days for the same period last year.
Days inventory outstanding has decreased to 43 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went down to 2 days for the quarter from 3 for the same period last year.
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