RELM Wireless Corporation (RWC) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $1.27 million, or $ 0.09 a share in the quarter, against a net profit of $0.51 million, or $0.04 a share in the last year period. Revenue during the quarter plunged 38.85 percent to $7.38 million from $12.07 million in the previous year period. Gross margin for the quarter contracted 141 basis points over the previous year period to 30.31 percent. Operating margin for the quarter stood at negative 16.34 percent as compared to a positive 6.35 percent for the previous year period.
Operating loss for the quarter was $1.21 million, compared with an operating income of $0.77 million in the previous year period.
RELM chairman Kyle Cerminara stated, "During the first quarter, our board was reconfigured with 5 new members, each of whom brings a new perspective and a unique and valuable skillset to the Company. We also named Tim Vitou as RELM's president during the first quarter. Tim assumed the President role after nine years as the Company's Senior VP of Sales where he was a significant contributor to the key sales of the Company."
Working capital declines
RELM Wireless Corporation has witnessed a decline in the working capital over the last year. It stood at $20.84 million as at Mar. 31, 2017, down 12.90 percent or $3.09 million from $23.93 million on Mar. 31, 2016. Current ratio was at 4.18 as on Mar. 31, 2017, up from 3.43 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 131 days for the quarter from 191 days for the last year period. Days sales outstanding went up to 45 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 129 days for the quarter compared with 184 days for the previous year period. At the same time, days payable outstanding went up to 43 days for the quarter from 36 for the same period last year.
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