SPX FLOW, Inc. (SPXF) saw its loss widen to $4.70 million, or $0.11 a share for the quarter ended Oct. 01, 2016. In the previous year period, the company reported a loss of $4.10 million, or $0.10 a share. On an adjusted basis, profit per share for the quarter was almost stable at $0.34, when compared with the last year period. On an adjusted basis, earnings per share were at $0.34 for the quarter.

Revenue during the quarter dropped 20.81 percent to $466.80 million from $589.50 million in the previous year period. Gross margin for the quarter contracted 227 basis points over the previous year period to 31.30 percent. Total expenses were 95.33 percent of quarterly revenues, down from 98.88 percent for the same period last year. This has led to an improvement of 355 basis points in operating margin to 4.67 percent.

Operating income for the quarter was $21.80 million, compared with $6.60 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $34.30 million.

"We have made good progress this year executing on our realignment program and transitioning to an operating structure that will establish a strong foundation for long-term success. We realized $16 million of year-over-year cost savings in the third quarter and accelerated actions to streamline our functions globally. We remain on track to achieve our goal of $135 million of annualized cost savings by 2018. In addition, during the third quarter we refinanced $600 million of debt and amended our credit facility," said Marc Michael, president and chief executive officer.

For fiscal year 2016, SPX FLOW expects revenue to be in the range of $2,000 million to $2,030 million. SPX FLOW expects adjusted revenue to be in the range of $2,000 million to $2,030 million.  The company expects operating loss to be in the range of $370 million to $358 million. It expects adjusted operating income to be in the range of $137 million to $149 million. The company projects diluted loss per share to be in the range of $9.15 to $8.95. It projects diluted earnings per share to be in the range of $1.27 to $1.47 on adjusted basis.

The company has spent $35.10 million cash to meet investing activities during the nine month period as against cash outgo of $38.30 million in the last year period.

Cash flow from financing activities was $29.20 million for the nine month period as against cash outgo of $12.40 million in the last year period.

Cash and cash equivalents stood at $227.90 million as on Oct. 01, 2016, up 10.04 percent or $20.80 million from $207.10 million on Sep. 26, 2015.

Working capital drops significantly
SPX FLOW has witnessed a decline in the working capital over the last year. It stood at $340.70 million as at Oct. 01, 2016, down 27.39 percent or $128.50 million from $469.20 million on Sep. 26, 2015. Current ratio was at 1.46 as on Oct. 01, 2016, down from 1.61 on Sep. 26, 2015.

Cash conversion cycle (CCC) has increased to 59 days for the quarter from 55 days for the last year period. Days sales outstanding were almost stable at 45 days for the quarter, when compared with the last year period.

Days inventory outstanding has increased to 44 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went up to 30 days for the quarter from 28 for the same period last year.