Castlight Health Inc (CSLT) saw its loss narrow to $14.81 million, or $0.14 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $21.36 million, or $0.22 a share. On the other hand, adjusted net loss for the quarter narrowed to $5.33 million, or $0.05 a share from a loss of $12.88 million or $0.13 a share, a year ago. Revenue during the quarter grew 22.13 percent to $27.74 million from $22.72 million in the previous year period. Gross margin for the quarter expanded 1104 basis points over the previous year period to 70.32 percent. Operating margin for the quarter stood at negative 54.07 percent as compared to a negative 94.40 percent for the previous year period.
Operating loss for the quarter was $15 million, compared with an operating loss of $21.44 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $5.52 million compared to operating loss of $12.97 million in prior year period.
“With the completion of the Jiff acquisition, Castlight now offers employers healthcare decision support, wellness, and a benefits hub in the most comprehensive health benefits platform on the market,” said John Doyle, chief executive officer of Castlight. “With more than 240 customers, Castlight is leading the way to digital health solutions that lower costs and improve employee well-being. We are in a great position to achieve our growth and cash flow objectives for the year.”
Castlight Health projects revenue to be in the range of $132 million to $136 million for financial year 2017. Castlight Health projects adjusted revenue to be in the range of $138 million to $142 million for financial year 2017. For fiscal year 2017, the company projects adjusted operating income to be in the range of $31 million to $35 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.24 to $0.28 on adjusted basis.
Operating cash flow remains negative
Castlight Health Inc has spent $10.91 million cash to meet operating activities during the quarter as against cash outgo of $13.99 million in the last year period. Cash flow from investing activities was $18.63 million for the quarter, down 35.07 percent or $10.06 million, when compared with the last year period.
The company has spent $0.24 million cash to carry out financing activities during the quarter as against cash inflow of $1.27 million in the last year period.
Cash and cash equivalents stood at $56.20 million as on Mar. 31, 2017, up 60.06 percent or $21.09 million from $35.11 million on Mar. 31, 2016.
Working capital declines
Castlight Health Inc has witnessed a decline in the working capital over the last year. It stood at $84.65 million as at Mar. 31, 2017, down 11.25 percent or $10.74 million from $95.38 million on Mar. 31, 2016. Current ratio was at 2.78 as on Mar. 31, 2017, down from 2.98 on Mar. 31, 2016.
Days sales outstanding went down to 47 days for the quarter compared with 54 days for the same period last year.
At the same time, days payable outstanding went down to 21 days for the quarter from 25 for the same period last year.
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