Global advanced manufacturing and 3D printing company ARC Group (NASDAQ:ARCW) has reported fiscal second quarter results for the period ending January 1 2017. ARC report an increase in sales, but the company is currently operating with a net loss.
ARC Group Worldwide are a leading manufacturer and 3D printing service provider. The company was founded in 1987 and is well known for their injection molding expertise.
ARC Group Worldwide ventured into 3D printing through a specific division they formed back in 2013. The 3D Materials Technology (3DMT) subsidiary was created in order to decrease lead times for their customers. Following this announcement, we gave the subsidiary’s facilities in Florida a visit ourselves.
The gross profit for this quarter was $4.8 million, an increase of 16.3%. This increase was a result of higher production volume for the company and an improvement in production efficiency.
Revenue for the fiscal second quarter was $28.2 million, an 18.3% increase over the second quarter of 2016. The company report the increase in sales was down to their customer-centered strategies.
This is shown as Jason Young, CEO of ARC Group, commented,
While strength in the firearm and defense industries helped drive growth in the quarter, we continue to see momentum with our customer-centric initiatives. Further, our focus on accelerating speed-to-market for our customers continues to be core to their needs.
Despite reported losses of $700,000, CEO Jason Young is optimistic as he also said,
While these initiatives have temporarily impacted margins, our recent successful launch of numerous new programs validates the business model, and we believe these efforts should translate into increased margin opportunities in the future.
It seems these customer-centric initiatives have had a detrimental impact on their business for this quarter. The net loss for this second quarter was comparable to the $0.6 million net loss for the year prior.
Featured image shows 3D printing solutions from ARC Group. Image via Arc Group Worldwide.