AEROHIVE NETWORKS, INC (HIVE) saw its loss narrow to $9.02 million, or $0.17 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $12.52 million, or $0.25 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.10 million, or $0.08 a share from a loss of $6.22 million or $0.13 a share, a year ago. Revenue during the quarter dropped 9.41 percent to $36.35 million from $40.13 million in the previous year period. Gross margin for the quarter expanded 48 basis points over the previous year period to 67.23 percent. Operating margin for the quarter stood at negative 24.34 percent as compared to a negative 30.87 percent for the previous year period.
Operating loss for the quarter was $8.85 million, compared with an operating loss of $12.39 million in the previous year period.
"We're pleased to deliver results at the high end of our guidance for revenue and exceeding our guidance for gross margin and earnings per share, made possible by the actions we have taken to improve our execution and operational efficiency," stated David Flynn, President and Chief Executive Officer. "While there is more work to do, we believe we have turned the corner on the major challenges that affected our results last year and are now back on a positive trajectory, guiding to non-GAAP EPS of breakeven to $0.01 in the second quarter and expecting to resume year-over-year growth in the second half of 2017."
Operating cash flow remains negative
Aerohive Networks, Inc has spent $1.56 million cash to meet operating activities during the quarter as against cash outgo of $3.32 million in the last year period. The company has spent $3.73 million cash to meet investing activities during the quarter as against cash outgo of $0.04 million in the last year period.
The company has spent $0.15 million cash to carry out financing activities during the quarter as against cash outgo of $0.99 million in the last year period.
Cash and cash equivalents stood at $28.91 million as on Mar. 31, 2017, down 30.16 percent or $12.48 million from $41.39 million on Mar. 31, 2016.
Working capital increases sharply
Aerohive Networks, Inc has recorded an increase in the working capital over the last year. It stood at $64.07 million as at Mar. 31, 2017, up 26.02 percent or $13.23 million from $50.84 million on Mar. 31, 2016. Current ratio was at 2.26 as on Mar. 31, 2017, up from 1.64 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 5 days for the quarter from 24 days for the last year period. Days sales outstanding went up to 55 days for the quarter compared with 50 days for the same period last year.
Days inventory outstanding has decreased to 44 days for the quarter compared with 76 days for the previous year period. At the same time, days payable outstanding went down to 94 days for the quarter from 101 for the same period last year.
Debt remains stable
Total debt remained stable at $20 million as on Mar. 31, 2017, when compared with the last year. Long-term debt stood at $20 million as on Mar. 31, 2017. Total debt was 15.51 percent of total assets as on Mar. 31, 2017, compared with 13.78 percent on Mar. 31, 2016. Debt to equity ratio was at 0.87 as on Mar. 31, 2017, up from 0.62 as on Mar. 31, 2016.
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