RCM Technologies, Inc (RCMT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.22 million, or $ 0.02 a share in the quarter, against a net profit of $2.98 million, or $0.24 a share in the last year period. Revenue during the quarter dropped 6.77 percent to $44.20 million from $47.41 million in the previous year period. Gross margin for the quarter contracted 149 basis points over the previous year period to 27.39 percent. Total expenses were 99.22 percent of quarterly revenues, up from 94.98 percent for the same period last year. That has resulted in a contraction of 424 basis points in operating margin to 0.78 percent.
Operating income for the quarter was $0.34 million, compared with $2.38 million in the previous year period.
Rocco Campanelli, president and chief executive officer of RCM Technologies, commented, "We are pleased to finish the year with our best gross margin and second best gross profit quarter of 2016. I want to highlight the following accomplishments.
Operating cash flow declines
RCM Technologies, Inc has generated cash of $11.64 million from operating activities during the year, down 6.78 percent or $0.85 million, when compared with the last year. The company has spent $0.83 million cash to meet investing activities during the year as against cash outgo of $3.04 million in the last year.
The company has spent $11.56 million cash to carry out financing activities during the year as against cash outgo of $14.19 million in the last year period.
Cash and cash equivalents stood at $0.28 million as on Dec. 31, 2016, down 71.68 percent or $0.71 million from $0.98 million on Jan. 02, 2016.
Working capital declines
RCM Technologies, Inc has witnessed a decline in the working capital over the last year. It stood at $29.36 million as at Dec. 31, 2016, down 23.14 percent or $8.84 million from $38.20 million on Jan. 02, 2016. Current ratio was at 2.24 as on Dec. 31, 2016, down from 2.45 on Jan. 02, 2016.
Debt comes down significantly
RCM Technologies, Inc has recorded a decline in total debt over the last one year. It stood at $28.34 million as on Dec. 31, 2016, down 30.90 percent or $12.67 million from $41.02 million on Jan. 02, 2016. Rcm Technologies has recorded a decline in long-term debt over the last one year. It stood at $28.34 million as on Dec. 31, 2016, down 30.90 percent or $12.67 million from $41.02 million on Jan. 02, 2016. Total debt was 40.59 percent of total assets as on Dec. 31, 2016, compared with 50.43 percent on Jan. 02, 2016. Debt to equity ratio was at 0.62 as on Dec. 31, 2016, down from 1.27 as on Jan. 02, 2016. Interest coverage ratio deteriorated to 2.99 for the quarter from 8.81 for the same period last year.
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