Sonus Networks, Inc. (SONS) saw its loss widen to $10.65 million, or $0.22 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.65 million, or $0.09 a share. On an adjusted basis, net loss for the quarter stood at $4.50 million, or $0.09 a share compared with a net profit of $1.71 million, or $0.03 a share in the last year period.
Revenue during the quarter dropped 9.78 percent to $53.37 million from $59.15 million in the previous year period. Gross margin for the quarter contracted 169 basis points over the previous year period to 63.24 percent. Operating margin for the quarter stood at negative 20.20 percent as compared to a negative 6.56 percent for the previous year period.
Operating loss for the quarter was $10.78 million, compared with an operating loss of $3.88 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $4.63 million compared to operating profit of $2.48 million in prior year period.
"We are pleased with our first quarter 2017 financial results, which were slightly better than our previously provided guidance," said Ray Dolan, president and chief executive officer. "We continue to make good progress on our technology investments, with many new products released this past quarter coupled with several strategic customer wins."
For the second-quarter, the company projects diluted loss per share to be $0.25. On an adjusted basis, the company expects diluted loss per share to be $0.10.
Operating cash flow improves Sonus Networks, Inc. has generated cash of $3.60 million from operating activities during the quarter, up 8.75 percent or $0.29 million, when compared with the last year period. The company has spent $3.94 million cash to meet investing activities during the quarter as against cash outgo of $9.41 million in the last year period.
Cash flow from financing activities was $0.14 million for the quarter as against cash outgo of $1.62 million in the last year period.
Cash and cash equivalents stood at $31.93 million as on Mar. 31, 2017, down 25.13 percent or $10.72 million from $42.65 million on Mar. 31, 2016.
Working capital declines Sonus Networks, Inc. has witnessed a decline in the working capital over the last year. It stood at $92.51 million as at Mar. 31, 2017, down 12.69 percent or $13.44 million from $105.95 million on Mar. 31, 2016. Current ratio was at 2.33 as on Mar. 31, 2017, down from 2.66 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 90 days for the quarter from 143 days for the last year period. Days sales outstanding went up to 77 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 100 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 23 for the same period last year.
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