HealthStream, Inc. (HSTM) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.31 million, or $ 0.01 a share in the quarter, against a net profit of $1.81 million, or $0.06 a share in the last year period. On an adjusted basis, net profit for the quarter was $0.59 million, when compared with $3.12 million in the last year period. Revenue during the quarter grew 5.14 percent to $58.74 million from $55.87 million in the previous year period. Gross margin for the quarter contracted 234 basis points over the previous year period to 55.35 percent. Operating margin for the quarter stood at negative 0.89 percent as compared to a positive 3.36 percent for the previous year period.
Operating loss for the quarter was $0.52 million, compared with an operating income of $1.88 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.74 million compared to $3.36 million in the prior year period. At the same time, adjusted operating margin contracted 475 basis points in the quarter to 1.26 percent from 6.01 percent in the last year period.
Robert A. Frist, Jr. chief executive officer, HealthStream, commented, "The second half of 2016 has been very busy with three acquisitions, our Customer Summit, and new product launches. We look forward to delivering full-year revenue growth of 10 to 14 percent and returning to leveraged operating income growth in 2017."
For fiscal year 2017, HealthStream, Inc. expects revenue to grow in the range of 10 percent to 14 percent. It expects operating income to grow in the range of 50 percent to 65 percent.
Operating cash flow drops significantly
HealthStream, Inc. has generated cash of $24.23 million from operating activities during the year, down 30.60 percent or $10.68 million, when compared with the last year. The company has spent $56.66 million cash to meet investing activities during the year as against cash outgo of $134.86 million in the last year.
Cash flow from financing activities was $0.05 million for the year, down 99.95 percent or $99.91 million, when compared with the last year.
Cash and cash equivalents stood at $49.63 million as on Dec. 31, 2016, down 39.48 percent or $32.38 million from $82.01 million on Dec. 31, 2015.
Working capital drops significantly
HealthStream, Inc. has witnessed a decline in the working capital over the last year. It stood at $82.47 million as at Dec. 31, 2016, down 31.54 percent or $37.99 million from $120.46 million on Dec. 31, 2015. Current ratio was at 1.87 as on Dec. 31, 2016, down from 2.35 on Dec. 31, 2015.
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