ORBCOMM Inc (ORBC) saw its loss widen to $3.34 million, or $0.05 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $2.10 million, or $0.03 a share. Revenue during the quarter grew 19.19 percent to $51.92 million from $43.56 million in the previous year period. Gross margin for the quarter contracted 504 basis points over the previous year period to 47.58 percent. Operating margin for the quarter stood at negative 0.72 percent as compared to a negative 0.26 percent for the previous year period.
Operating loss for the quarter was $0.38 million, compared with an operating loss of $0.11 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.40 million compared with $10.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 67 basis points in the quarter to 23.89 percent from 24.56 percent in the last year period.
“Our strong sales pipeline resulted in a fast start to 2017, with a record first quarter despite typically being the softest quarter of the year,” said Marc Eisenberg, ORBCOMM’s chief executive officer. “Leveraging our continued technology innovation with new products and increased leadership in our markets, 2017 is shaping up to be a defining year for ORBCOMM.”
Operating cash flow drops significantly
ORBCOMM Inc has generated cash of $0.50 million from operating activities during the quarter, down 86.30 percent or $ 3.16 million, when compared with the last year period. The company has spent $5.64 million cash to meet investing activities during the quarter as against cash outgo of $9.84 million in the last year period.
Cash and cash equivalents stood at $19.96 million as on Mar. 31, 2017, down 5.69 percent or $1.20 million from $21.16 million on Mar. 31, 2016.
Working capital increases marginally
ORBCOMM Inc has recorded an increase in the working capital over the last year. It stood at $35.72 million as at Mar. 31, 2017, up 3.25 percent or $1.12 million from $34.60 million on Mar. 31, 2016. Current ratio was at 1.68 as on Mar. 31, 2017, down from 1.74 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 105 days for the last year period. Days sales outstanding went down to 59 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 39 days for the quarter compared with 93 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 53 for the same period last year.
Debt comes down marginally
ORBCOMM Inc has recorded a decline in total debt over the last one year. It stood at $147.68 million as on Mar. 31, 2017, down 1.54 percent or $2.31 million from $150 million on Mar. 31, 2016. Orbcomm has recorded a decline in long-term debt over the last one year. It stood at $147.68 million as on Mar. 31, 2017, down 1.54 percent or $2.31 million from $150 million on Mar. 31, 2016. Total debt was 29.14 percent of total assets as on Mar. 31, 2017, compared with 28.50 percent on Mar. 31, 2016. Debt to equity ratio was at 0.53 as on Mar. 31, 2017, up from 0.50 as on Mar. 31, 2016. D
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