Boston, MA 05/09/2014 (wallstreetpr) – The shares of ENGlobal Corp (NASDAQ:ENG) soared by over 40% on Thursday, after professional engineering and automation service provider reported its first quarter financial results.
First Quarter Highlights
ENGlobal Corp (NASDAQ:ENG) attained a revenue of $26.9 million, resembling a 33% growth from $20.2 revenue in the same quarter of 2013. However, the revenue fell 46% in comparison to 2013 fourth quarter’s revenue of $49.8 million, which accounted for revenue from sale of its EPCM business in August 2013. ENGlobal posted net income to the tune of $1.8 million or $0.07 per share during the reported period, which comes higher against the net loss of $(0.04) per share or $(1.0) million reported in the first quarter of the previous year. For the period ended on March 29, 2014, the company sustained non-cash expenses of $0.7 million.
Margins Improving
ENGlobal Corp (NASDAQ:ENG)’s Chief Financial Officer, Mark Hess, appeared satisfied with the results as he said that the company is beginning to witness the results of the initiatives undertaken during late 2012 through early 2013. Hess noted that the company has cut down its focus to a smaller operations and has also trimmed the risk profile of its ongoing projects, while continuing to watch the overhead costs. Those measures have resulted in improvement in margins. Hess points out that the company does not have any borrowings as per its current credit facility and has maintained a sound cash balance for the quarter. Hess concludes that ENGlobal is in healthy financial position and prepared to grow in future, while adding that a room of improvement is always there though. ENGlobal primarily provides engineering and automation service to the energy sector across the United States and internationally. ENGlobal functions through two business units, which are Automation and Engineering. Automations deals with design, fabrication and implementation services; Engineering caters to consulting services for the management, development and execution of professional engineering projects.
