Crexendo, Inc. (EXE) saw its loss narrow to $0.52 million, or $0.04 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $1.27 million, or $0.10 a share. On an adjusted basis, net loss for the quarter was $0.26 million, when compared with $0.64 million in the last year period.
Revenue during the quarter grew 11.19 percent to $2.34 million from $2.11 million in the previous year period. Gross margin for the quarter expanded 962 basis points over the previous year period to 63.20 percent. Operating margin for the quarter stood at negative 21.71 percent as compared to a negative 62.92 percent for the previous year period.
Operating loss for the quarter was $0.51 million, compared with an operating loss of $1.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.27 million compared to negative $0.69 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 11.34 percent for the quarter compared to negative 32.91 percent in the last year period.
Steven G. Mihaylo, chief executive officer commented, "We continue to make substantial progress. We have reduced our loss on an EBITDA basis in 2016, cutting the loss almost in half. Our yearly results were much stronger in 2016 than previous years across all reporting metrics. I am confident this trend will continue in 2017 and beyond. The results for Q4 were not as strong as I anticipated. However, we have already seen good progress in the first two months of Q1 2017."
Operating cash flow remains negative
Crexendo, Inc. has spent $1.13 million cash to meet operating activities during the year as against cash outgo of $2.97 million in the last year. Cash flow from financing activities was $0.24 million for the year, down 84.89 percent or $1.33 million, when compared with the last year.
Cash and cash equivalents stood at $0.62 million as on Dec. 31, 2016, down 58.65 percent or $0.88 million from $1.50 million on Dec. 31, 2015.
Working capital drops significantly
Crexendo, Inc. has witnessed a decline in the working capital over the last year. It stood at $0.06 million as at Dec. 31, 2016, down 94.29 percent or $0.94 million from $1 million on Dec. 31, 2015. Current ratio was at 1.03 as on Dec. 31, 2016, down from 1.43 on Dec. 31, 2015.
Debt remains almost stable
Crexendo, Inc. has witnessed an increase in total debt over the last one year. It stood at $1.03 million as on Dec. 31, 2016, up 0.98 percent or $0.01 million from $1.02 million on Dec. 31, 2015. Total debt was 29.21 percent of total assets as on Dec. 31, 2016, compared with 18.06 percent on Dec. 31, 2015. Debt to equity ratio was at 2 as on Dec. 31, 2016, up from 0.46 as on Dec. 31, 2015.
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