DigitalGlobe, Inc (DGI) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $2.20 million, or $ 0.05 a share in the quarter, against a net profit of $8.60 million, or $0.11 a share in the last year period. Revenue during the quarter grew 19.56 percent to $209.70 million from $175.40 million in the previous year period. Gross margin for the quarter contracted 956 basis points over the previous year period to 70.77 percent. Total expenses were 97.38 percent of quarterly revenues, up from 88.26 percent for the same period last year. That has resulted in a contraction of 912 basis points in operating margin to 2.62 percent.
Operating income for the quarter was $5.50 million, compared with $20.60 million in the previous year period.
Adjusted EBITDA for the quarter was almost stable at $95.50 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 885 basis points in the quarter to 45.54 percent from 54.39 percent in the last year period.
“We delivered a strong start to 2017 with solid revenue growth across all of our major customer groups" said Jeffrey R. Tarr, DigitalGlobe Chief executive officer. “We achieved our highest revenue quarter to date in our Direct Access Program and delivered double digit growth in our Commercial business. We will continue to focus on the execution of our strategy while satisfying all closing conditions for our upcoming combination with MDA.”
For fiscal year 2017, DigitalGlobe, Inc expects revenue to be in the range of $840 million to $865 million.
Operating cash flow drops significantly
DigitalGlobe, Inc has generated cash of $38.70 million from operating activities during the quarter, down 34.96 percent or $ 20.80 million, when compared with the last year period. The company has spent $20.90 million cash to meet investing activities during the quarter as against cash outgo of $46.10 million in the last year period.
The company has spent $44.90 million cash to carry out financing activities during the quarter as against cash outgo of $65.50 million in the last year period.
Cash and cash equivalents stood at $77.20 million as on Mar. 31, 2017, down 5.74 percent or $4.70 million from $81.90 million on Mar. 31, 2016.
Working capital increases marginally
DigitalGlobe, Inc has recorded an increase in the working capital over the last year. It stood at $70.70 million as at Mar. 31, 2017, up 4.12 percent or $2.80 million from $67.90 million on Mar. 31, 2016. Current ratio was at 1.43 as on Mar. 31, 2017, down from 1.48 on Mar. 31, 2016.
Days sales outstanding went down to 46 days for the quarter compared with 50 days for the same period last year.
At the same time, days payable outstanding was almost stable at 14 days for the quarter, when compared with the previous year period.
Debt moves up
DigitalGlobe, Inc has witnessed an increase in total debt over the last one year. It stood at $1,252.90 million as on Mar. 31, 2017, up 12.88 percent or $143 million from $1,109.90 million on Mar. 31, 2016. Total debt was 42.66 percent of total assets as on Mar. 31, 2017, compared with 39.05 percent on Mar. 31, 2016. Debt to equity ratio was at 1.07 as on Mar. 31, 2017, up from 0.93 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 0.58 for the quarter from 4.04 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
