WSI Industries, Inc (WSCI) swung to a net loss for the quarter ended Nov. 27, 2016. The company has made a net loss of $0.32 million, or $ 0.11 a share in the quarter, against a net profit of $0.13 million, or $0.05 a share in the last year period.
Revenue during the quarter plunged 34.95 percent to $6.33 million from $9.73 million in the previous year period. Gross margin for the quarter contracted 426 basis points over the previous year period to 4.87 percent. Operating margin for the quarter stood at negative 7.16 percent as compared to a positive 1.88 percent for the previous year period.
Operating loss for the quarter was $0.45 million, compared with an operating income of $0.18 million in the previous year period.
Related to the quarter results, Benjamin Rashleger, president and chief executive officer, commented: “As previously disclosed, our primary customer began the process of retooling one of their production facilities in our fiscal 2017 first quarter. This project resulted in a reduction of parts shipped to that facility which negatively affected the Company’s sales and earnings in the first quarter. While the project will continue into the Company’s fiscal 2017 second quarter, we do expect shipments to resume to that facility during the quarter, and that sales will return to our historical levels.” Rashleger continued “We also continue to have available capacity due to the low price of oil and natural gas which has hurt our energy related business and has hampered both our top and bottom line.”
Operating cash flow improves significantly
WSI Industries, Inc has generated cash of $1.88 million from operating activities during the quarter, up 29.16 percent or $0.42 million, when compared with the last year period.
The company has spent $0.02 million cash to meet investing activities during the quarter as against cash outgo of $0.05 million in the last year period.
The company has spent $0.38 million cash to carry out financing activities during the quarter as against cash outgo of $0.51 million in the last year period.
Cash and cash equivalents stood at $5.22 million as on Nov. 27, 2016, up 3.51 percent or $0.18 million from $5.04 million on Nov. 29, 2015.
Debt comes down
WSI Industries, Inc has recorded a decline in total debt over the last one year. It stood at $6.40 million as on Nov. 27, 2016, down 19.65 percent or $1.56 million from $7.96 million on Nov. 29, 2015. Wsi Industries has recorded a decline in long-term debt over the last one year. It stood at $6.40 million as on Nov. 27, 2016, down 19.65 percent or $1.56 million from $7.96 million on Nov. 29, 2015.
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