Graham Expects FY Revenue Growth Of 16% - 22%

(RTTNews) - Graham Corp. (GHM) said that it expects revenue for its third quarter of fiscal year 2019, which ended on December 31, 2018, to be about $17 million to $17.4 million.

In addition, Graham updated its annual revenue expectations for its fiscal year that will end on March 31, 2019 to between $90 million and $95 million. The revised revenue guidance for fiscal 2019 represents approximately 16% to 22% growth over fiscal 2018.

The company's third quarter estimated revenue level was primarily impacted by two factors. First, shipment of a large international order was deferred until the first half of January, and the resulting revenue will be entirely recognized in the Company's fiscal fourth quarter in accordance with new revenue recognition rules.

Second, revenue associated with certain components of a U.S. Navy project will be deferred into fiscal 2020. In addition to the revenue shift out of the third quarter, revenue previously anticipated in the fourth quarter will now be deferred into fiscal 2020.

James Lines, Graham's President and Chief Executive Officer, said, "Order levels remain solid and we will report record backlog of approximately $133 million for the fiscal third quarter when we announce our results later this month. Additionally, based on our pipeline, we anticipate a book-to-bill ratio greater than 1.0x for the full year of fiscal 2019, relatively consistent with our experience in the first half. We believe that this positions us well for continued growth in fiscal 2020."

The company also announced that it will release its financial results for the third quarter of fiscal 2019 before the opening of financial markets on January 30, 2019.