Hardinge Inc (HDNG) saw its loss widen to $2.05 million, or $0.16 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.24 million, or $0.10 a share. On the other hand, adjusted net loss for the quarter widened to $0.62 million, or $0.05 a share from a loss of $0.35 million or $0.03 a share, a year ago. Revenue during the quarter dropped 4.81 percent to $64.56 million from $67.82 million in the previous year period. Gross margin for the quarter contracted 41 basis points over the previous year period to 33.13 percent. Operating margin for the quarter stood at negative 2.76 percent as compared to a negative 1.84 percent for the previous year period.
Operating loss for the quarter was $1.78 million, compared with an operating loss of $1.24 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $0.35 million compared to operating loss of $0.35 million in prior year period.
Richard L. Simons, President and Chief Executive Officer, commented, “While sales in the quarter were light, they came in as planned given customers’ delivery schedules. Nonetheless, we believe the quarter was a good start to the year with very solid orders. Global demand, for grinding especially, has been picking up nicely. This supports our confidence for sales in 2017 to be moderately better than last year and, when combined with the effect of our restructuring efforts completed in 2016, for profitability to be stronger.”
Operating cash flow remains negative
Hardinge Inc has spent $1.11 million cash to meet operating activities during the quarter as against cash outgo of $5.40 million in the last year period. The company has spent $0.48 million cash to meet investing activities during the quarter as against cash outgo of $0.40 million in the last year period. It has incurred capital expenditure of $0.48 million on net basis during the quarter, up 18.07 percent or $0.07 million from year ago period.
The company has spent $0.95 million cash to carry out financing activities during the quarter as against cash inflow of $1.89 million in the last year period.
Cash and cash equivalents stood at $26.72 million as on Mar. 31, 2017, down 8.74 percent or $2.56 million from $29.28 million on Mar. 31, 2016.
Working capital decreases marginally
Hardinge Inc has witnessed a decline in the working capital over the last year. It stood at $128.22 million as at Mar. 31, 2017, down 1.38 percent or $1.80 million from $130.02 million on Mar. 31, 2016. Current ratio was at 2.73 as on Mar. 31, 2017, up from 2.65 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 140 days for the quarter from 252 days for the last year period. Days sales outstanding were almost stable at 72 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 121 days for the quarter compared with 229 days for the previous year period. At the same time, days payable outstanding went up to 53 days for the quarter from 50 for the same period last year.
Debt comes down significantly
Hardinge Inc has recorded a decline in total debt over the last one year. It stood at $6.02 million as on Mar. 31, 2017, down 57.03 percent or $7.99 million from $14.01 million on Mar. 31, 2016. Total debt was 2.01 percent of total assets as on Mar. 31, 2017, compared with 4.53 percent on Mar. 31, 2016. Debt to equity ratio was at 0.04 as on Mar. 31, 2017, down from 0.09 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]
