TechPrecision Corporation Reports First Quarter 2016 Financial Results
(firmenpresse) - WAYNE, PA -- (Marketwired) -- 08/17/15 -- (OTCQB: TPCS) ("TechPrecision" or "the Company"), an industry leading global manufacturer of with customers in the defense, energy and precision industrial sectors, today reported financial results for the first quarter of fiscal year 2016, the period ended June 30, 2015.
"Opening the first quarter of fiscal year 2016 with net profit is certainly a significant achievement for all of us. This is the first profitable quarter the Company has reported since June 30, 2011 and the first profitable quarter since I joined the Company back in late June, 2014. We achieved this result with our consistent sharp focus on productivity initiatives, resource realignment, and top line growth with key customers. We improved profitability on a sales volume that was 30% lower than the same period last fiscal year. We ended the first quarter of fiscal year 2016 with a 39% decrease in selling, general, and administrative expense, and a positive gross margin of 29% compared to 3.5% for Q1 FY15," stated Alexander Shen, TechPrecision''s Chief Executive Officer.
"Moving forward, we intend to maintain the sharp focus that got us to this point of our recovery. We plan to increase our backlog and focus on new business contracts which utilize our core competencies in custom, large scale, high precision fabrication and machining, with our core customers, which leverage our established expertise, certifications, and qualifications in the defense, nuclear, and precision industrial sectors. We must continue to execute and maintain operational run rate improvements to improve gross margins, and increase the amount of cash generated from operations."
Net sales decreased 30% or $1.9 million to $4.4 million down from $6.2 million in the year-ago quarter but increased 12% from $3.9 million in revenues sequentially from fiscal Q4 of 2015.
Cost of sales decreased 49% or $2.9 million to $3.1 million compared to $6.0 million in the year ago quarter. In the prior year, $0.4 million of contract losses were recorded in the quarter ended June 30, 2014. Additionally, a significant portion of the production completed during Q1 of last year was related to loss contracts for which contract loss reserves were established in Q4 of fiscal 2014. These two dynamics negatively impacted and together suppressed gross margins in the prior year''s first quarter.
Gross profit in the first quarter of fiscal 2016 was $1.3 million or a 29% gross margin as compared to a gross profit of $0.2 million or gross margin of 3.5% in the same quarter one year ago. Contract losses recognized during Q4 of fiscal 2014 and Q1 of fiscal 2015 negatively impacted gross profit during the first quarter of fiscal 2015.
The Company continues to pursue efforts to recover significant portions of the contract losses recorded within the fourth quarter of fiscal 2014 and the first quarter of fiscal 2015.
Selling, general and administrative expenses decreased by approximately 39%, or $0.5 million, to $0.8 million from $1.3 million in the same quarter last year and sequentially decreased by 38% from $1.3 million for the fourth quarter of fiscal 2015.
The net income was $0.2 million for the first quarter compared to a net loss of $1.3 million in the prior year first quarter and compared sequentially to a net loss of $0.7 million in the fourth quarter of fiscal 2015.
At June 30, 2015, TechPrecision had negative working capital of $1.9 million as compared with negative working capital of $2.0 million at March 31, 2015. Current liabilities at June 30, 2015 included $2.2 million of short-term debt obligations which the Company is currently looking to refinance on a long-term basis. As of June 30, 2015, the Company had $1.5 million in cash and cash equivalents compared to $1.3 million at March 31, 2015.
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Monday, August 17, 2015. To participate in the live conference call, please dial 1-877-407-8133 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-201-689-8040. When prompted, reference Conference Passcode 13617492.
A replay will be available for one month starting on Monday, August 17, 2015. To access the replay, dial 1-877-660-6853 or 1-201-612-7415. When prompted, enter Conference Passcode 13617492.
The call will also be available live by webcast at TechPrecision Corporation''s website, , and will also be available over the Internet and accessible at .
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision''s goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at . Information on the Company''s website or any other website does not constitute a part of this press release.
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company''s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including recurring operating losses and the availability of appropriate financing facilities impacting our ability to continue as a going concern, to change the composition of our revenues and effectively reduce operating expenses, the Company''s ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the Company''s periodic reports that are filed with the Securities and Exchange Commission and available on its website (). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
Mr. Richard F. Fitzgerald
Chief Financial Officer
TechPrecision Corporation
Tel: 1-484-693-1702
Email:
Website:
Hayden IR
Brett Maas
Phone: 1-646-536-7331
Email:
Website:
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Datum: 17.08.2015 - 14:00 Uhr
Sprache: Deutsch
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