Technical Communications Corporation (TCCO) saw its loss widen to $0.70 million, or $0.38 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.42 million, or $0.23 a share. Revenue during the quarter plunged 35.44 percent to $0.63 million from $0.98 million in the previous year period. Gross margin for the quarter expanded 1218 basis points over the previous year period to 70.09 percent.
Operating loss for the quarter was $0.70 million, compared with an operating loss of $0.42 million in the previous year period.
Commenting on corporate performance, Carl H. Guild, Jr., president and chief executive officer of TCC, said, “The Company continues to endure a prolonged slump in orders and we have closely monitored our expenses and made strategic reductions as appropriate. We continue to have a substantial pipeline of large potential contracts from both current and new customers. We are cautiously optimistic that some of these orders may materialize in fiscal 2017. However, the timing and outcome of these prospective orders is unknown and can be affected by our customers’ long procurement cycles, production schedules and delivery requirements.”
Working capital drops significantly
Technical Communications Corporation has witnessed a decline in the working capital over the last year. It stood at $3.90 million as at Dec. 31, 2016, down 34.92 percent or $2.09 million from $5.99 million on Jan. 02, 2016. Current ratio was at 8.41 as on Dec. 31, 2016, down from 12.21 on Jan. 02, 2016.
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