DigitalGlobe, Inc. (DGI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $9.30 million, or $ 0.17 a share in the quarter, against a net profit of $10.60 million, or $0.13 a share in the last year period. Revenue during the quarter grew 6.05 percent to $192.70 million from $181.70 million in the previous year period. Gross margin for the quarter contracted 817 basis points over the previous year period to 73.07 percent. Total expenses were 86.72 percent of quarterly revenues, down from 89.10 percent for the same period last year. This has led to an improvement of 239 basis points in operating margin to 13.28 percent.
Operating income for the quarter was $25.60 million, compared with $19.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $94.40 million compared with $102.40 million in the prior year period. At the same time, adjusted EBITDA margin contracted 737 basis points in the quarter to 48.99 percent from 56.36 percent in the last year period.
"We wrapped up a solid year on a high note with our successful launch of WorldView-4 and the completion of the Radiant Group transaction," said Jeffrey R. Tarr, DigitalGlobe chief executive officer. "Our improved results reflect solid execution against our strategy for shareowner value creation and position us well for 2017. We look forward to continued profitable growth as we expand our International Defense and Intelligence business with assured access to our newest high resolution satellite, develop new commercial use cases, expand our rapidly growing geospatial big data analytics platform, and realize the full potential of our services business with the addition of Radiant. Furthermore, we are pleased to have reached an agreement to combine with MDA as we separately disclosed today."
For financial year 2017, DigitalGlobe, Inc. expects revenue to be in the range of $840 million to $865 million.
Operating cash flow declines
DigitalGlobe, Inc. has generated cash of $301.60 million from operating activities during the year, down 8.52 percent or $28.10 million, when compared with the last year. The company has spent $338.30 million cash to meet investing activities during the year as against cash outgo of $169.90 million in the last year.
Cash flow from financing activities was $19.90 million for the year as against cash outgo of $151.50 million in the last year period.
Cash and cash equivalents stood at $109.30 million as on Dec. 31, 2016, down 13.32 percent or $16.80 million from $126.10 million on Dec. 31, 2015.
Debt moves up
DigitalGlobe, Inc. has witnessed an increase in total debt over the last one year. It stood at $1,289.30 million as on Dec. 31, 2016, up 16.16 percent or $179.40 million from $1,109.90 million on Dec. 31, 2015. Total debt was 42.84 percent of total assets as on Dec. 31, 2016, compared with 37.94 percent on Dec. 31, 2015. Debt to equity ratio was at 1.10 as on Dec. 31, 2016, up from 0.89 as on Dec. 31, 2015. Interest coverage ratio improved to 6.40 for the quarter from 3.74 for the same period last year.
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