ARC Group Worldwide reports second quarter fiscal year 2016 results
February 10, 2016
ARC Group Worldwide (NASDAQ: ARCW), a leading global provider of advanced manufacturing and 3D printing solutions, has reported its second quarter fiscal year 2016 (ending December 27, 2015) results. ARC has significant Metal Injection Moulding operations in the US and Europe.
An MPIF 2015 award winning breech block made for Smith & Wesson by Advanced Forming Technology (AFT), an ARCMIM company
Second fiscal quarter 2016 revenue was $25.0 million, a 2.2% increase sequentially compared to the first fiscal quarter of 2016. It was stated that the increase was due to early stages of momentum in several key market segments served by the company, along with record metal Additive Manufacturing revenue. Adjusted EBITDA for the second fiscal quarter was $2.9 million, an 8.4% increase sequentially compared to the first fiscal quarter of 2016. Adjusted EBITDA margin increased to 11.5%, from 10.8% in the prior sequential quarter, reflecting greater operational efficiencies.
It was also stated that ARC has launched a new initiative in Mexico, which is expected to begin operations in the coming months. It was stated that ARC Mexico should help the company be more competitive in winning new North American business and improving margins. The exact nature of the Mexico operations has not been disclosed.
Jason Young, Chairman and CEO, commented, “While we are encouraged by the positive sequential performance, we are still in the early stages of building momentum in sales. We remain focused on improving speed to market for our customers and helping them consolidate their supply chain with our holistic solution. Under our new sales leadership and focus, we believe we are making good progress educating our customers about our differentiated solution and expect to get continued traction over time. We are also encouraged by the growing demand for our metal 3D printing services, which we expect to be a major growth driver in the future.”
