Rosetta Stone Inc (RST) saw its loss narrow to $5.61 million, or $0.25 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $11.44 million, or $0.52 a share. Revenue during the quarter dropped 10.92 percent to $51.68 million from $58.02 million in the previous year period. Gross margin for the quarter contracted 279 basis points over the previous year period to 80.77 percent. Operating margin for the quarter stood at negative 7.28 percent as compared to a negative 17.28 percent for the previous year period.
Operating loss for the quarter was $3.76 million, compared with an operating loss of $10.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.45 million compared with $1.59 million in the prior year period. At the same time, adjusted EBITDA margin improved 394 basis points in the quarter to 6.68 percent from 2.74 percent in the last year period.
“Over the course of 2016 we continued our work to right-size the Company and position it for growth by investing in Lexia and launching Catalyst, our new Enterprise Language product,” said John Hass, Chairman, President and Chief Executive Officer. “The restructuring process that began in March 2015 is nearing completion, having reduced expenses for eight consecutive quarters on a year-over-year basis. Importantly, even as we have focused our business and reduced costs, we have made targeted investments, especially in building out Lexia's distribution and support infrastructure, that will be a large source of future growth.”
Operating cash flow turns positive
Rosetta Stone Inc has generated cash of $1.24 million from operating activities during the year as against cash outgo of $5.64 million in the last year. The company has spent $12.48 million cash to meet investing activities during the year as against cash outgo of $9.37 million in the last year. It has incurred net capital expenditure of $12.48 million on net basis during the year, up 72.94 percent or $5.26 million from year ago.
The company has spent $0.66 million cash to carry out financing activities during the year as against cash outgo of $0.73 million in the last year period.
Cash and cash equivalents stood at $36.20 million as on Dec. 31, 2016, down 24.25 percent or $11.59 million from $47.78 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Rosetta Stone Inc was negative $65.70 million on Dec. 31, 2016 compared with negative $42.15 million on Dec. 31, 2015. Current ratio was at 0.59 as on Dec. 31, 2016, down from 0.74 on Dec. 31, 2015.
Debt comes down
Rosetta Stone Inc has recorded a decline in total debt over the last one year. It stood at $2.56 million as on Dec. 31, 2016, down 18.58 percent or $0.58 million from $3.14 million on Dec. 31, 2015. Total debt was 1.32 percent of total assets as on Dec. 31, 2016, compared with 1.38 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
