Sparton Reports Q1 FY2018 Net Sales of Nearly $83M


Reading time ( words)

Sparton Corporation has announced consolidated net sales of $82.8 million and gross profit margin of 17.6% for the first quarter of fiscal year 2018 ended October 1, 2017.

"As a result of our recent growth in new program wins, we experienced some interruptions in production and increased inventory levels which is typical with new program introductions. We believe that the backlog from these programs has us positioned for growth in the upcoming quarters and beyond," commented Joseph J. Hartnett, interim president and CEO.

Joseph G. McCormack, senior vice president and CFO, commented, "We experienced net cash outflows and increasing debt in the quarter. This was principally the result of the timing of a payment from the U.S. Navy, significant transaction-related costs as a result of the signing of the merger agreement during the quarter, increasing inventories as a result of the new product introductions, as well as typical year-end compensation related payments. The underlying fundamentals of the business remain unchanged and we expect to return to positive free cash flows and reducing our debt levels in the second quarter."

MDS Segment:

  • Gross sales of $55.3 million
  • Gross profit margin of 10.8%
  • Operating loss of $1.5 million
  • Adjusted EBITDA of $3.3 million, a 1.5% adjusted EBITDA margin
  • New program wins in Q4 have expected revenue of $11.7 million when fully ramped up into production
  • Trailing four quarter new program win revenue of $61.9 million, which continues to support our future organic growth

ECP Segment:

  • Gross sales of $30.4 million
  • Gross profit margin of 28.3%
  • Operating income of $4.1 million
  • Adjusted EBITDA of $5.7 million, a 15.4% adjusted EBITDA margin

About Sparton Corporation

Sparton Corporation now in its 118th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical & Biotechnology, Military & Aerospace, and Industrial & Commercial. Headquartered in Schaumburg, IL, Sparton currently has thirteen manufacturing locations and engineering design centers worldwide. For more information, click here

Share


Suggested Items

Tempo Automation: Setting the Pace for Low-Volume, Quick-Turn Assembly

01/31/2018 | Patty Goldman, I-Connect007
Jesse Koenig, co-founder and VP of technology at PCB assembly company Tempo Automation, discusses with I-Connect007's Patty Goldman how they are making electronics development much easier and more seamless for customers.

Top 10 Most-Read SMT Articles of 2017

12/29/2017 | I-Connect007
Every year, we like to take a look back at the most popular SMT news and articles. These are the top 10 most-read SMT articles from the past year.

Industry 4.0 and the Platform-Based Approach to Testing

12/19/2017 | Stephen Las Marias, I-Connect007
Chandran Nair, the vice president for Asia Pacific at National Instruments, explains how the Industry 4.0 vision will change electronics manufacturing. He discusses key technology enablers that would drive the evolution of manufacturing processes, and how a platform-based approach can help improve test and measurement.



Copyright © 2018 I-Connect007. All rights reserved.