Pure Storage saw its loss narrow to $62.37 million, or $0.30 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $63.79 million, or $0.34 a share. On the other hand, adjusted net loss for the quarter narrowed to $29.50 million, or $0.14 a share from a loss of $40.28 million or $0.21 a share, a year ago. Revenue during the quarter surged 30.50 percent to $182.63 million from $139.95 million in the previous year period. Gross margin for the quarter contracted 123 basis points over the previous year period to 65.20 percent. Operating margin for the quarter stood at negative 34.72 percent as compared to a negative 46.20 percent for the previous year period.
Operating loss for the quarter was $63.40 million, compared with an operating loss of $64.65 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $30.54 million compared to operating loss of $41.15 million in prior year period.
"Pure Storage has built the storage platform for the cloud era," said Pure Storage chief executive officer Scott Dietzen. "We are pursuing one of the biggest available markets in tech in supporting new data-driven applications including AI, the rapid adoption of cloud computing and the revamping of the enterprise data center. With our best year of innovation yet, we could not be more excited about the road ahead."
For financial year 2017, Pure Storage expects revenue to be in the range of $975 million to $1,025 million. The company expects operating income to decline in the range of 9 percent to 5 percent.
For the second-quarter 2017, Pure Storage expects revenue to be in the range of $214 million to $222 million. The company expects operating income to decline in the range of 16 percent to 12 percent.
Operating cash flow turns negative
Pure Storage has spent $14.30 million cash to meet operating activities during the quarter as against cash inflow of $6.99 million in the last year period.
The company has spent $17.04 million cash to meet investing activities during the quarter as against cash outgo of $343.81 million in the last year period.
Cash flow from financing activities was $16.42 million for the quarter, down 9.61 percent or $1.75 million, when compared with the last year period.
Cash and cash equivalents stood at $168.76 million as on Apr. 30, 2017, down 41.01 percent or $117.34 million from $286.10 million on Apr. 30, 2016.
Working capital declines
Pure Storage has witnessed a decline in the working capital over the last year. It stood at $500.77 million as at Apr. 30, 2017, down 12.55 percent or $71.88 million from $572.65 million on Apr. 30, 2016. Current ratio was at 2.99 as on Apr. 30, 2017, down from 4.03 on Apr. 30, 2016.
Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 35 days for the last year period. Days sales outstanding went down to 63 days for the quarter compared with 72 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding went down to 62 days for the quarter from 77 for the same period last year.
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