Giga Tronics Incorporated (GIGA) saw its loss narrow to $0.47 million, or $0.05 a share for the quarter ended Mar. 25, 2017. In the previous year period, the company reported a loss of $1.57 million, or $0.18 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.40 million, or $0.04 a share from a loss of $1.37 million or $0.16 a share, a year ago. Revenue during the quarter surged 95.51 percent to $5.23 million from $2.68 million in the previous year period. Gross margin for the quarter expanded 990 basis points over the previous year period to 24.89 percent. Operating margin for the quarter stood at negative 8.41 percent as compared to a negative 57.08 percent for the previous year period.
Operating loss for the quarter was $0.44 million, compared with an operating loss of $1.53 million in the previous year period.
William J. Thompson, the Company's Acting chief executive officer, stated, "We had excellent year-over-year revenue growth for our ASG product, driven by the first shipments of our new product line to the US Navy. We are expecting to approximately double our ASG product line revenue in FY18, and we are hopeful that the Navy will be a substantial source of that revenue growth. However, despite our optimism for our ASG products, we acknowledge that recent bookings have been disappointing, with no ASG-related bookings to date in calendar 2017. The ASG product line had an average selling price (ASP) of approximately $1M in FY17, which is significantly higher than historical ASPs from our legacy products. We believe that this increased ASP can to lead to significant differences in ASG bookings from one quarter to the next along with longer sales cycles."
Working capital drops significantly
Giga Tronics Incorporated has witnessed a decline in the working capital over the last year. It stood at $0.62 million as at Mar. 25, 2017, down 65.11 percent or $1.16 million from $1.78 million on Mar. 26, 2016. Current ratio was at 1.09 as on Mar. 25, 2017, down from 1.23 on Mar. 26, 2016. Debt comes down significantly
Giga Tronics Incorporated has recorded a decline in total debt over the last one year. It stood at $0.75 million as on Mar. 25, 2017, down 45.90 percent or $0.63 million from $1.38 million on Mar. 26, 2016. Total debt was 8.22 percent of total assets as on Mar. 25, 2017, compared with 12.31 percent on Mar. 26, 2016. Debt to equity ratio was at 0.43 as on Mar. 25, 2017, down from 0.46 as on Mar. 26, 2016.
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