RigNet, Inc (RNET) saw its loss widen to $1.99 million, or $0.11 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.27 million, or $0.08 a share. Revenue during the quarter dropped 22.89 percent to $48.07 million from $62.34 million in the previous year period. Gross margin for the quarter contracted 396 basis points over the previous year period to 37.85 percent. Operating margin for the quarter stood at negative 2.22 percent as compared to a positive 0.94 percent for the previous year period.
Operating loss for the quarter was $1.07 million, compared with an operating income of $0.59 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.22 million compared with $10.67 million in the prior year period. At the same time, adjusted EBITDA margin contracted 208 basis points in the quarter to 15.03 percent from 17.11 percent in the last year period.
Steven E. Pickett, chief executive officer and president, commented, “I am pleased with our team’s efforts during the quarter which, among other things, resulted in $4.1 million of Unlevered Free Cash Flow and further improvements to our balance sheet. Despite sluggishness in the offshore drilling market, we are encouraged by signs of recovery in the upstream sector as a whole, where during the first quarter, we recorded increases in the number of sites that we are serving. We continue streamlining the business, resulting in lower costs and better service consistency for our customers around the world.”
Operating cash flow improves significantly
RigNet, Inc has generated cash of $8.81 million from operating activities during the quarter, up 365.93 percent or $6.92 million, when compared with the last year period. The company has spent $3.78 million cash to meet investing activities during the quarter as against cash outgo of $8.36 million in the last year period.
The company has spent $6.64 million cash to carry out financing activities during the quarter as against cash outgo of $2.36 million in the last year period.
Cash and cash equivalents stood at $55.24 million as on Mar. 31, 2017, up 6.29 percent or $3.27 million from $51.97 million on Mar. 31, 2016.
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