ARC Group Worldwide Reports Fiscal Year Third Quarter 2017 Results

ARC Group Worldwide (NASDAQ:ARCW) has announced its results for the period ended April 2, 20176 and fiscal third quarter 2017.
As quoted in the press release:

Quarterly Financial Summary
Fiscal third quarter 2017 revenue was $25.5 million compared to $24.9 for the fiscal third quarter of 2016.  The growth in sales was primarily driven by higher MIM sales across multiple industries.
Gross profit for the period was $3.1 million compared to $5.0 million for the prior year period.  The primary reason for the decrease in gross profit was due to increased development expenses associated with the ramping up of production for significant new products in the firearms and defense industry, which resulted in increased staffing levels and associated labor costs, along with higher scrap.
Facility EBITDA from Continuing Operations for the fiscal third quarter was $2.0 million compared to the prior year period of $3.9 million.  Facility EBITDA from Continuing Operations decreased as a result of the aforementioned start-up costs associated with the new program launches.
Net loss was $2.8 million for the fiscal third quarter compared to net loss of $0.3 million in the prior year period.
Jason Young, CEO, commented, “During the quarter, an industry slowdown among our customers in the firearms and defense sector partially offset new product growth.  However, we have significant momentum in sales, with the largest committed volume of new program launches from a diverse set of customers in our Company’s history.  The major driving factor that now governs our topline growth is our ability to launch these new part programs quickly and efficiently.  From a margin standpoint, the associated costs and traditional inefficiencies associated with these new program launches has put pressure on short-term profitability, but we expect that to reverse as these new programs move into full production during fiscal 2018.”

Click here to read the full press release.