Environmental Tectonics Corporation reported financial results for the fourth quarter and full year ended February 24, 2017. Net income attributable to the company was $36 thousand, or $0.01 diluted loss per share, in the 2017 fourth quarter, compared to a $9.7 million net loss attributable to the company during the 2016 fourth quarter, or $0.65 diluted loss per share. The $9.8 million variance is due to the combined effect of a $7.2 million decrease in the provision for income taxes, a $2.0 million increase in gross profit, a $0.4 million decrease in operating expenses, a $0.1 million decrease in interest expense, and a $0.1 million decrease in other expenses. Net sales for the 2017 fourth quarter were $11.4 million, an increase of $3.1 million, or 38.3%, compared to net sales of $8.3 million for the 2016 fourth quarter. The increase reflects an increase in sales related to ATS products including Chambers within Aerospace segment to both International and Domestic customers, and an increase in Domestic sales within the Environmental Testing and Simulation Systems (“ETSS”) business unit of CIS segment, offset, in part, by decreased sales related to ATS products including Chambers and ADMS line of products within the Aerospace segment to the U.S. Government, and decreased sales of ethylene oxide sterilizers within the Sterilizers business unit of CIS segment to Domestic customers. Gross profit for the 2017 fourth quarter increased by $2.0 million, or 77.1%, compared to the 2016 fourth quarter. The increase in gross profit was a combination of an increase in net sales, a reduction in the amount of additional work required on several contracts, and a higher concentration of net sales from more off-the-shelf type products requiring less initial design and engineering work. Operating income was $533,000 against loss of $1,873,000 for the same period of last year. Loss before income taxes was $152,000 against $2,455,000 for the same period of last year. EBITDA was $684,000 against loss of $1,756,000 for the same period of last year. Net loss attributable to the company was $0.9 million, or $0.09 diluted loss per share, in fiscal 2017, compared to $10.8 million during fiscal 2016, equating to $0.74 diluted loss per share. The $9.9 million variance is due to the combined effect of a $6.5 million decrease in the provision for income taxes, a $1.7 million increase in gross profit, a $1.2 million decrease in operating expenses, a $0.4 million decrease in interest expense, and a $0.1 million decrease in other expense. Net sales for fiscal 2017 were $39.8 million, an increase of $0.2 million, or 0.5%, from $39.63 million for fiscal 2016. The increase reflects an increase in sales related to ATS products including Chambers within Aerospace segment to both International and Domestic customers, and an increase in Domestic sales within the Hyperbaric Chambers business unit of CIS segment due to consideration (approximately $0.6 million) realized from the termination of a software license, offset, in part, by decreased sales related to ATS products including Chambers and the ADMS line of products within Aerospace segment to the U.S. Government, and decreased sales of ethylene oxide sterilizers within the Sterilizers business unit of CIS segment to Domestic customers. Gross profit for fiscal 2017 was $13.3 million compared to $11.6 million in fiscal 2016, an increase of $1.7 million, or 14.6%. The increase in gross profit was a combination of a reduction in the amount of additional work required on three contracts and a higher concentration of net sales from more off-the-shelf type products requiring less initial design and engineering work. During fiscal 2017, due primarily from the increase in billings in excess of costs and estimated earnings on uncompleted long-term contracts and a decrease in costs and estimated earnings in excess of billings on uncompleted long-term contracts, offset, in part, by the increase in accounts receivable, the company generated $1.4 million of cash from operating activities compared to generating $6.5 million of cash from operating activities in fiscal 2016. Cash used for investing activities primarily relates to funds used for capital expenditures in property, plant, and equipment and software development. The company’s fiscal 2017 investing activities used $0.7 million, which consisted primarily of equipment and software enhancements for the ATFS and ADMS technologies and UPRT capabilities, and costs to upgrade existing information technology systems and streamline engineering and manufacturing processes. This is a decrease of $0.5 million from cash used in investing activities in fiscal 2016. Operating income was $555,000 against loss of $2,375,000 for the same period of last year. Loss before income taxes was $731,000 against $4,140,000 for the same period of last year. EBITDA was $1,301,000 against loss of $1,428,000 for the same period of last year.