Gogo (GOGO) saw its loss widen to $41.37 million, or $0.52 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $24.11 million, or $0.31 a share. Revenue during the quarter grew 16.69 percent to $165.41 million from $141.75 million in the previous year period. Gross margin for the quarter expanded 217 basis points over the previous year period to 53.77 percent. Operating margin for the quarter stood at negative 8.89 percent as compared to a negative 6.06 percent for the previous year period.
Operating loss for the quarter was $14.70 million, compared with an operating loss of $8.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $10.68 million compared with $14.49 million in the prior year period. At the same time, adjusted EBITDA margin contracted 377 basis points in the quarter to 6.46 percent from 10.22 percent in the last year period.
“We achieved another important milestone when Airbus selected our industry-leading 2Ku technology for its High Bandwidth Capacity program,” said Michael Small, Gogo’s President and Chief executive officer. “We remain focused on hitting our 2Ku installation targets and driving 2Ku system performance above the 15 Mbps we are already delivering to each connected passenger around the globe. We reaffirm all of our 2017 and long-term guidance and remain on track to becoming free cash flow positive in 2019.”
Operating cash flow remains negative
Gogo has spent $14.05 million cash to meet operating activities during the quarter as against cash outgo of $2.41 million in the last year period. The company has spent $66.41 million cash to meet investing activities during the quarter as against cash outgo of $17.45 million in the last year period.
Cash flow from financing activities was $68.94 million for the quarter as against cash outgo of $14.14 million in the last year period.
Cash and cash equivalents stood at $105.93 million as on Mar. 31, 2017, down 6.39 percent or $7.24 million from $113.16 million on Mar. 31, 2016.
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]
