Vishay Precision Group, Inc. (VPG) has reported a 315.62 percent jump in profit for the quarter ended Apr. 01, 2017. The company has earned $2 million, or $0.15 a share in the quarter, compared with $0.48 million, or $0.04 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $2.51 million, or $0.19 a share compared with $1.69 million or $0.13 a share, a year ago. Revenue during the quarter grew 5.58 percent to $59.79 million from $56.63 million in the previous year period. Gross margin for the quarter expanded 274 basis points over the previous year period to 37.66 percent. Total expenses were 93.75 percent of quarterly revenues, down from 98.25 percent for the same period last year. This has led to an improvement of 450 basis points in operating margin to 6.25 percent.
Operating income for the quarter was $3.74 million, compared with $0.99 million in the previous year period.
Ziv Shoshani, chief executive officer of VPG, commented, "We are encouraged by a solid first quarter with all segments contributing to year-over-year and sequential revenue growth. We are pleased to see indications of an improved business environment in a number of our key end markets - including test and measurement, avionics, military and space, and steel - as reflected in a positive book-to-bill of 1.06 at the end of the first quarter. Our ongoing restructuring is driving profitability and cash flow improvements and we will continue to work to capture efficiency opportunities, better serve our customers and enhance our financial performance. We have begun 2017 well and, as we progress through the year, we believe we have an excellent opportunity to leverage our end market growth and drive value to our shareholders."
For the second-quarter 2017, Vishay Precision Group, Inc. forecasts revenue to be in the range of $58 million to $63 million.
Operating cash flow improves significantly
Vishay Precision Group, Inc. has generated cash of $2.88 million from operating activities during the quarter, up 291.44 percent or $2.14 million, when compared with the last year period. The company has spent $1.81 million cash to meet investing activities during the quarter as against cash outgo of $2.16 million in the last year period. It has incurred net capital expenditure of $1.81 million on net basis during the quarter, down 16.13 percent or $0.35 million from year ago period.
The company has spent $0.96 million cash to carry out financing activities during the quarter as against cash outgo of $0.62 million in the last year period.
Cash and cash equivalents stood at $59.25 million as on Apr. 01, 2017, down 3.47 percent or $2.13 million from $61.38 million on Apr. 02, 2016.
Working capital remains almost stable
Working capital of Vishay Precision Group, Inc. remained almost stable for the quarter at $121.96 million, when compared with the previous year period. Current ratio was at 4.01 as on Apr. 01, 2017, down from 4.05 on Apr. 02, 2016.
Cash conversion cycle (CCC) has decreased to 103 days for the quarter from 180 days for the last year period. Days sales outstanding went down to 56 days for the quarter compared with 58 days for the same period last year.
Days inventory outstanding has decreased to 68 days for the quarter compared with 143 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
Debt moves up
Vishay Precision Group, Inc. has witnessed an increase in total debt over the last one year. It stood at $35.55 million as on Apr. 01, 2017, up 8.67 percent or $2.84 million from $32.71 million on Apr. 02, 2016. Total debt was 12.82 percent of total assets as on Apr. 01, 2017, compared with 12.34 percent on Apr. 02, 2016. Debt to equity ratio was at 0.20 as on Apr. 01, 2017, up from 0.19 as on Apr. 02, 2016. Interest coverage ratio improved to 8.27 for the quarter from 3.02 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
