Arotech Corporation (NASDAQ:ARTX) 4Q 2016 Revenue At $21.5 million

Arotech Corporation (NASDAQ:ARTX)

Arotech Corporation (NASDAQ:ARTX) revenues for the fourth quarter came at $21.5 million against revenue of $27.4 million for the same period in 2015. The YoY decline was led mainly by delays in executing and receiving new orders in the Simulation Division.

The update

Gross profit for Q4 2016 came at $5.6 million, or 26% of revenues, against $8 million, or 29% of revenues, for the previous year period. Arotech Corporation (NASDAQ:ARTX) reported that operating costs came at $7.3 million in Q4 2016 as against $6.8 million in the year earlier quarter. Fourth quarter 2016 costs included $1 million in early separation expenses with former CEO.

Operating loss for Q4 2016 stood at $(1.7) million, as against operating income of $1.2 million for the same period in 2015. The net loss from continuing activities for the fourth quarter came at $(2.0) million as against $702,000 for the same period last year.

Adjusted Earnings per Share for the quarter was $0.01 as against $0.07 for the same period in 2015. Adjusted EBITDA for Q4 2016 was almost $807,000 as against $2.6 million for the same period of 2015. Arotech considers that information pertaining Adjusted EPS and Adjusted EBITDA enhances overall understanding of its existing financial performance. It computes Adjusted EPS and Adjusted EBITDA.

Arotech Corporation (NASDAQ:ARTX) closed a transformative 2016 with more cost saving measures at the division and corporate level. Acting CEO Dean Krutty reported that the company’s Board helped drive the decline in cost structure with the negotiated separation deal of former CEO and the decision to discontinue Flow Battery business. Krutty added that they have accelerated their investment in Q4 2016 into one of their most promising business units – the hybrid power division of their UEC subsidiary unit in South Carolina.

The potential of this equipment as a key for Department of Defense measures to lower fuel dependence for forward deployed Marines and soldiers motivates them to remain the industry pioneer in hybrid power technologies. They consider that this investment along with others, will lead to considerably better results for this segment starting in 2018.

In the last trading session, the stock price of Arotech gained over 3% to close the day at $4.10. The company anticipates to achieve better figures from continuing operations this year.

3/16/2017
Ticker Symbol ARTX
Last Price a/o 3:21 PM EST  $1.75
Average Volume  245.21K
Market Cap (mlns)  $53.10M
Shares Outstanding (mlns) 30.34M
Share Float (mlns) 27.66M
Inside Ownership 0.80%
Short Float 8.07%
Short Interest Ratio 9.11
Quarterly Return -23.91%
YTD Return -16.67%
Year Return -65.95%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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