Rcm Technologies (RCMT) has reported 45.05 percent plunge in profit for the quarter ended Apr. 01, 2017. The company has earned $0.55 million, or $0.05 a share in the quarter, compared with $1 million, or $0.08 a share for the same period last year.
Revenue during the quarter went down marginally by 1.77 percent to $46.34 million from $47.18 million in the previous year period. Gross margin for the quarter contracted 151 basis points over the previous year period to 25.36 percent. Total expenses were 97.76 percent of quarterly revenues, up from 96.14 percent for the same period last year. That has resulted in a contraction of 162 basis points in operating margin to 2.24 percent.
Operating income for the quarter was $1.04 million, compared with $1.82 million in the previous year period.
Rocco Campanelli, president and chief executive officer of RCM Technologies, commented, "We are pleased with our progress in the first quarter of 2017. While our revenues are down slightly from our first quarter of last year, our best quarter in 2016, our revenues in the first quarter of 2017 show approximately 5.0% sequential growth as compared to the fourth quarter of 2016. Both our Engineering and Health Care segments' first quarter 2017 revenue and gross profit exceeded first quarter 2016. Of particular note is that our Health Care segment set yet another record quarter for both revenues and gross profit. While our information technology segment underperformed, we have been encouraged by recent activity levels. Our consolidated gross margin for first quarter 2017 decreased on a comparative basis but we expect sequential improvement as we progress through fiscal 2017."
Operating cash flow improves significantlyRcm Technologies has generated cash of $1.87 million from operating activities during the quarter, up 77.32 percent or $0.82 million, when compared with the last year period. The company has spent $0.09 million cash to meet investing activities during the quarter as against cash outgo of $0.39 million in the last year period.
The company has spent $1.77 million cash to carry out financing activities during the quarter as against cash outgo of $1.54 million in the last year period.
Cash and cash equivalents stood at $0.29 million as on Apr. 01, 2017, up 184.47 percent or $0.19 million from $0.10 million on Apr. 02, 2016.
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