Information Services Group Inc (III) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $8.15 million, or $ 0.22 a share in the quarter, against a net profit of $1.28 million, or $0.03 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $1.52 million, or $0.04 a share compared with a net profit of $3.08 million, or $0.08 a share in the last year period. Revenue during the quarter went up marginally by 0.74 percent to $54.29 million from $53.89 million in the previous year period. Gross margin for the quarter contracted 383 basis points over the previous year period to 37.51 percent. Operating margin for the quarter stood at negative 15.76 percent as compared to a positive 4.61 percent for the previous year period.
Operating loss for the quarter was $8.56 million, compared with an operating income of $2.48 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.91 million compared with $6.52 million in the prior year period. At the same time, adjusted EBITDA margin contracted 672 basis points in the quarter to 5.37 percent from 12.09 percent in the last year period.
"As we start 2017, we are well-positioned for a step-change in financial performance as a result of our recent acquisition and the significant work done in the fourth quarter to prepare our firm for a breakout year," said Michael P. Connors, chairman and chief executive officer. "Our full integration of Alsbridge is progressing ahead of plan, and we are on track to achieve at least $7 million in synergy savings over 18 months. In the fourth quarter, we positioned ourselves to achieve our 2017 financial objectives by eliminating certain non-performing services, and initiating training on our expanded product and services portfolio with our senior business development teams. Fourth-quarter revenue growth was held back primarily due to continued softness in the UK; excluding the UK, our firm-wide revenue growth for the quarter would have been 8 percent. Additional costs to prepare for 2017 and the revenue softness in the UK held adjusted EBITDA to $2.9 million in the quarter.
Information Services Group projects revenue to be in the range of $270 million to $290 million for financial year 2017.
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