First Quarter Highlights
- Revenues increased by USD 2.3 million to USD 71.3 million in Q1 2017, vs. USD 69.0 million in Q1 2016.
- Gross Profit increased to USD 21.7 million, or 30.4% of revenue in Q1 2017, vs. USD 20.4 million or 29.6% of revenue in Q1 2016.
- Operating expense decreased by USD 3.3 million to USD 15.6 million in Q1 2017, vs. USD 18.9 million in Q1 2016.
- S. GAAP Net income increased to USD 5.4 million in Q1 2017, compared to a loss of USD 14.3 million in Q1 2016
- Adjusted EBITDA increased by USD 2.7 million to USD 8.8 million or 12.3% of revenue in Q1 2017, vs. USD 6.1 million or 8.9% of revenue in Q1 2016.
- Cash from Operations increased by USD 6.6 million versus Q1 2016, and all BUs are generating positive cashflow
“The company completed its first quarter with encouraging results,” said Mark Twaalfhoven, CEO of Pulse.
“We commenced shipments of newly developed products to several new customers such as power transformers for EV vehicles for a leading EV company in the US, antennas for Smart Metering to a leading utility company in Europe, and expansion of share for network applications with a large PRC based company.
We are looking forward to a good year as the company is well positioned to deliver organic growth and positive net income for the year. We will continue to drive this momentum throughout 2017 by introducing numerous new products, and continuing on our path of cost leadership in the markets we serve.”
First Quarter Operating Performance
Revenues increased by USD 2.3 million to USD 71.3 million in Q1 2017, vs. USD 69.0 million in Q1 2016. The Increase was primarily driven by our wireless segment due to increased demand for our wireless products. All seven of our business units outperformed against plan.
Gross Profit increased to USD 21.7 million, or 30.4% of revenue in Q1 2017, vs. USD 20.4 million or 29.6% of revenue in Q1 2016 primarily due to continued focus on automation. Pulse’s capital spending and focus on automation has resulted in meaningful improvements in cost, and also has improved quality, reliability and reduced dependency on direct labor.
Operating expense decreased by USD 3.3 million to USD 15.6 million in Q1 2017, vs. USD 18.9 million in Q1 2016. The decrease is primarily attributed to USD 1.7 million decrease in admin expense, USD 1.3 million decrease in Merger related costs, and USD 0.2 million decrease in Severance costs.
U.S. GAAP Net income increased to USD 5.4 million in Q1 2017, compared to a loss of USD 14.3 million in Q1 2016. This is primarily due to the decrease of interest expense of USD 14.0 million from the conversion of our debt in 2016.
The impact of the USD 138.6 million debt to equity conversion in 2016, and repayment of USD 7.9 million short-term loan in Q1 2017 resulted in significantly lower interest payments and a healthy balance sheet. As of Q1 2017, the company has USD 27.1 million of debt, and shareholders’ equity of USD 19.7 million. Furthermore, the company has delivered positive cash flow from operations for the past three consecutive quarters and is confident of this positive trajectory.