Internap Corporation (INAP) saw its loss widen to $13.11 million, or $0.25 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $11.27 million, or $0.22 a share. On the other hand, adjusted net loss for the quarter narrowed to $5.50 million, or $0.11 a share from a loss of $7.41 million or $0.14 a share, a year ago.
Revenue during the quarter dropped 5.89 percent to $74.12 million from $78.76 million in the previous year period. Gross margin for the quarter expanded 57 basis points over the previous year period to 49.11 percent. Operating margin for the quarter stood at negative 6.74 percent as compared to a negative 8.57 percent for the previous year period.
Operating loss for the quarter was $5 million, compared with an operating loss of $6.75 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.56 million compared with $22.81 million in the prior year period. At the same time, adjusted EBITDA margin improved 13 basis points in the quarter to 29.09 percent from 28.96 percent in the last year period.
"Fourth quarter 2016 results mark the commencement of key initiatives designed to significantly improve INAP's operating performance," stated Peter D. Aquino, president and chief executive officer. "We completed phase I of cost reductions, reorganized into the pure-play businesses INAP Colo and INAP Cloud, and attracted an experienced, senior management team to help lead the company back on the path to profitable growth."
For fiscal year 2017, Internap Corporation projects revenue to be in the range of $275 million to $285 million. The company expects net loss to be in the range of $6 million to $4 million.
Operating cash flow improves
Internap Corporation has generated cash of $46.45 million from operating activities during the year, up 15.52 percent or $6.24 million, when compared with the last year. The company has spent $45.65 million cash to meet investing activities during the year as against cash outgo of $57.16 million in the last year.
The company has spent $8.12 million cash to carry out financing activities during the year as against cash inflow of $15.29 million in the last year period.
Cash and cash equivalents stood at $10.39 million as on Dec. 31, 2016, down 41.54 percent or $7.38 million from $17.77 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Internap Corporation was negative $15.87 million on Dec. 31, 2016 compared with negative $3.71 million on Dec. 31, 2015. Current ratio was at 0.71 as on Dec. 31, 2016, down from 0.93 on Dec. 31, 2015.
Days sales outstanding were almost stable at 11 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 25 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Internap Corporation remained almost stable for the quarter at $373.58 million, when compared with the last year period. Total debt was 86.76 percent of total assets as on Dec. 31, 2016, compared with 67.43 percent on Dec. 31, 2015.
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