InfoSonics Corporation (IFON) saw its loss widen to $1.10 million, or $0.08 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.90 million, or $0.06 a share. Revenue during the quarter plunged 33.89 percent to $6.22 million from $9.41 million in the previous year period. Gross margin for the quarter contracted 734 basis points over the previous year period to 5.18 percent. Operating margin for the quarter stood at negative 16.72 percent as compared to a negative 7.22 percent for the previous year period.
Operating loss for the quarter was $1.04 million, compared with an operating loss of $0.68 million in the previous year period.
“It was an extremely challenging quarter,” said Joseph Ram, President and Chief executive officer of InfoSonics. “The Chinese New Year fell in the middle of the quarter, which caused delivery delays from our suppliers, in addition to generally soft sales channels that were still clearing promotional inventories from year end. Although operating expenses were down 27% from the prior year, we still sustained a significant loss. In this competitive environment, we are taking actions to further reduce expenses, improve our operating efficiencies and product pricing and refine our product offerings.”
Operating cash flow remains negative
InfoSonics Corporation has spent $1.22 million cash to meet operating activities during the quarter as against cash outgo of $1.71 million in the last year period. Cash and cash equivalents stood at $1.30 million as on Mar. 31, 2017, up 196.12 percent or $0.86 million from $0.44 million on Mar. 31, 2016.
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