Sino-Global Shipping America, Ltd. (SINO) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.89 million, or $ 0.11 a share in the quarter, against a net loss of $1.50 million, or $0.18 a share in the last year period. Revenue during the quarter surged 33.29 percent to $2.13 million from $1.60 million in the previous year period. Gross margin for the quarter expanded 2780 basis points over the previous year period to 83.52 percent. Operating margin for the quarter period stood at positive 44.85 percent as compared to a negative 69.07 percent for the previous year period.
Operating income for the quarter was $0.95 million, compared with an operating loss of $1.10 million in the previous year period.
Mr. Lei Cao, Chairman and Chief Executive Officer of Sino-Global commented, "We had a strong quarter with an increase in total revenue of 33%. This increase was primarily the result of a shift in our business services mix towards inland transportation management, freight logistics and container trucking services. The shift in services was first implemented last year in response to worsening market conditions in the shipping industry. As a result of this change in our business model, the Company is reporting higher profit margins and we believe the Company is now better equipped to address the needs of our evolving and expanding customer base."
Operating cash flow turns positive
Sino-Global Shipping America has generated cash of $1.92 million from operating activities during the first half as against cash outgo of $0.69 million in the last year period. Cash and cash equivalents stood at $3.29 million as on Dec. 31, 2016, up 200.89 percent or $2.20 million from $1.09 million on Dec. 31, 2015.
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