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Sparton Corp. has announced results for the first quarter of fiscal year 2017 ended October 2, 2016. Net sales reached $100.4 million, with gross profit margin of 17.2%. The company reported earnings per share of $0.01, and adjusted EPS of $0.20.
During the first quarter, the company received 64 new program wins in the MDS Segment, with expected annual revenue of $12.2 million when fully ramped up into production. MDS has trailing four quarter win revenue of $62 million, which continues to support the company's future organic growth.
"First quarter revenues came in just above the midpoint of our guidance range. However, during the quarter we remained engaged in activities related to the exploration of a possible sale of the Company and we have not yet achieved the desired level of success in addressing operating performance issues, implementing cost saving initiatives or carrying out new business development activities. We anticipate that progress in these areas will accelerate upon the completion of the current sale process, whether from an agreement for a sale of the Company or from a determination that no such sale will occur," said Joseph J. Hartnett, Interim President & CEO.
Joe McCormack, Senior Vice President and CFO, commented, "We continue to be focused on actively managing our working capital, driving free cash flow, and reducing our debt and leverage. Despite the costs associated with the exploration of a sale of the Company and increasing health care costs, we have been able to keep our overall SG&A expenses at a consistent run-rate through a continued focus on reducing our operating expenses throughout the Company."
As previously announced, the Board of Directors of Sparton is exploring a possible sale of the company. There can be no assurance that such a sale will occur.
Sparton Corporation, now in its 117th 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.