WSI Industries, Inc. (WSCI) swung to a net loss for the quarter ended May 28, 2017. The company has made a net loss of $0.22 million, or $ 0.08 a share in the quarter, against a net profit of $0.08 million, or $0.03 a share in the last year period.
Revenue during the quarter grew 7.97 percent to $9.59 million from $8.89 million in the previous year period. Gross margin for the quarter expanded 3 basis points over the previous year period to 10.75 percent. Operating margin for the quarter stood at negative 1.79 percent as compared to a positive 1.85 percent for the previous year period.
Operating loss for the quarter was $0.17 million, compared with an operating income of $0.16 million in the previous year period.
Michael Pudil, president and chief executive officer, commented: "Our third quarter income was affected by one-time expenses related to the change in CEO leadership. In addition, we also realized an impairment in equipment value in the quarter. Without these one-time costs our operations were profitable during the quarter." Pudil concluded: "We have an excellent existing customer base who are leaders in their respective businesses. In addition, new business efforts in aerospace, energy and industrial markets look promising. We are in a highly competitive and dynamic marketplace and I intend on WSI being a successful leader in our industry."
Operating cash flow drops significantly
WSI Industries, Inc. has generated cash of $2.47 million from operating activities during the nine month period, down 36.46 percent or $1.42 million, when compared with the last year period.
The company has spent $0.79 million cash to meet investing activities during the nine month period as against cash outgo of $0.28 million in the last year period.
Cash flow from financing activities was $0.17 million for the nine month period as against cash outgo of $1.38 million in the last year period.
