LRAD Corporation (LRAD) swung to a net loss for the year ended Sep. 30, 2016. The company has made a net loss of $1.28 million, or $ 0.04 a share in the year, against a net profit of $9.69 million, or $0.29 a share in the last year. Revenue during the year went down marginally by 2.52 percent to $16.36 million from $16.78 million in the previous year. Gross margin for the year contracted 392 basis points over the previous year to 46.89 percent. Operating margin for the year stood at negative 9.74 percent as compared to a positive 7.26 percent for the previous year.
Operating loss for the year was $1.59 million, compared with an operating income of $1.22 million in the previous year.
“Fiscal 2016 was a transition year for LRAD, marked by a change in leadership and significant investments in personnel and products,” commented Richard S. Danforth, chief executive officer of LRAD Corporation. “Following three years of decline, U.S. revenues increased by 47% in fiscal 2016 from fiscal 2015 as a result of increased government and military programs, a trend we expect to continue in fiscal 2017.”
Working capital declines
LRAD Corporation has witnessed a decline in the working capital over the last year. It stood at $23.09 million as at Sep. 30, 2016, down 9.80 percent or $2.51 million from $25.60 million on Sep. 30, 2015. Current ratio was at 12.11 as on Sep. 30, 2016, down from 17.26 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 127 days for the year from 227 days for the last year. Days sales outstanding went up to 69 days for the year compared with 53 days for the same period last year.
Days inventory outstanding has decreased to 100 days for the year compared with 221 days for the previous year period. At the same time, days payable outstanding went down to 42 days for the year from 47 for the same period last year.
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