Cubic Corp. reported net income of $500,000 on sales of $343.7 million in its second quarter. The business reported its financial results on May 8.
Sales were down 6 percent from the second quarter of 2016, when Cubic recorded $366.0 million of sales. Net income in the year-ago quarter was $10.1 million.
Like its federal government customer, Cubic (NYSE: CUB)’s fiscal year ends on Sept. 30, so March 31 was the halfway mark. In addition to defense contracting, Cubic offers technology and services for mass-transit systems in the United States and abroad.
Cubic expects an uptick in the second half of its fiscal year, predicting annual sales of $1.50 billion to $1.54 billion — surpassing the $1.46 billion in sales recorded in 2016.
“We are particularly pleased with our improved operating cash flow and the critical, strategic investments we made in all of our businesses during the quarter,” CEO Brad Feldmann said in a prepared statement. “These investments will contribute significantly to the growth of the company. Our strategy remains sound and we continue to expect increased order intake in the near term that will drive expanded sales and adjusted EBITDA going forward.” The initials stand for earnings before interest, taxes, depreciation and amortization.
As of March 31, Cubic reported a work backlog worth $2.63 billion.