Fuel Tech, Inc. (FTEK) saw its loss narrow to $2.51 million, or $0.11 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $2.64 million, or $0.11 a share. Revenue during the quarter plunged 52.36 percent to $8.49 million from $17.82 million in the previous year period. Gross margin for the quarter expanded 990 basis points over the previous year period to 43.83 percent. Operating margin for the quarter stood at negative 29.53 percent as compared to a negative 14.53 percent for the previous year period.
Operating loss for the quarter was $2.51 million, compared with an operating loss of $2.59 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $1.91 million compared to negative $1.47 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 22.48 percent for the quarter compared to negative 8.25 percent in the last year period.
"As expected, our results for Q1 2017 were impacted by many of the same issues that affected our performance in 2016," said Vincent J. Arnone, President and CEO of Fuel Tech, Inc. "Although Q1 2017 revenues declined by $9.3 million from Q1 2016, our capital projects backlog has increased by $14.5 million from December 31, 2016 and we have announced $17.2 million in new orders thus far in 2017. Q1 2017 SG&A expenses declined by $2.0 million, or 28%, from Q1 2016. We have removed approximately $9.9 million of cost from our operations over the last two years, and in 2017 we expect an incremental reduction of approximately $5.0 million from full year 2016 SG&A levels. We have also continued to invest in technologies that we believe will help broaden our industry presence and define our future, all while maintaining a strong financial position."
Operating cash flow remains negative
Fuel Tech, Inc. has spent $1.62 million cash to meet operating activities during the quarter as against cash outgo of $5.59 million in the last year period. The company has spent $0.10 million cash to meet investing activities during the quarter as against cash outgo of $0.09 million in the last year period.
The company has spent $0.02 million cash to carry out financing activities during the quarter as against cash outgo of $7.07 million in the last year period.
Cash and cash equivalents stood at stood at $10.20 million as at Mar. 31, 2017.
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