Flow International Corp. (NASDAQ:FLOW) said its fiscal first-quarter loss narrowed, as the company posted break-even adjusted earnings per share, beating analyst expectations.
The maker of water-jet cutting and cleaning machines said it saw a loss of $540,000 or a penny per share in the quarter, down from the loss of $8.5 million or 23 cents a share in the year-ago period. On an adjusted basis, the company said it broke even, up from last year’s fiscal first-quarter adjusted loss of 7 cents a share.
Sales rose 23% to $46.6 million, up from year-ago revenue of $37.8 million.
The Street had predicted an adjusted loss of 3 cents a share on revenue of $44.4 million, according to a poll by Thomson Reuters.
Gross margin widened to 42%, from 37% in the fiscal first quarter a year ago.
"We are pleased with the improvement in revenues from our Standard segment as sales continued to increase sequentially over the last few quarters in most of our major regions," said Charley Brown, president and CEO of Flow, in a statement. "This growth demonstrates that our new indirect channel of distribution is beginning to bear fruit. More importantly, at these revenue levels, we have now generated our second consecutive quarter of operating profit."
Shares of Flow fell 10 cents, or 4%, in Tuesday’s session, closing the day at $2.38 a share. The stock is down nearly 23% year to date.