Sciquest (SQI), a leading provider of cloud-based business automation solutions, saw its loss narrow to $0.07 million for the quarter ended Jun. 30, 2014. In the previous year period, the company disclosed a loss of $0.52 million or $0.02 a share. Adjusted earnings per share came in at $0.07 a share, when analysts expected $0.06 a share.

Revenue during the second-quarter grew 19.25 percent to $25.29 million from $21.20 million in the last year period.

Gross margin contracted by 17 basis points over the previous year period to 68.85 percent. Operating margin for the current period stood at negative 0.61 percent as compared to negative 4.96 percent for the previous year period.

The company disclosed operating loss of $0.15 million, compared with operating loss of $1.05 million in the last year period.

"We delivered second quarter results that met or surpassed expectations based on balanced contributions from across the business. Non-GAAP revenue slightly exceeded the guidance range and non-GAAP earnings per share were at the high end," said Stephen Wiehe, president and chief executive officer of SciQuest.

For full year, the company expects GAAP revenues to be in the range of $102.6 million to $103.6 million. It anticipates net loss at $0.03 - $0.04 for full-year.
 
Cash Flow

Sciquest has spent $3.10 million cash to meet operating activities during the first half, as against cash inflow of $2.94 million in the last year period.

The company has spent $51.54 million cash to meet investing activities during the first half, as against cash outgo of $9.23 million in the last year period. It has made net capital expenditure of $4.31 million during the first half, which was higher by 17.72 percent or $0.65 million, from a year ago.

The company has generated cash of $88.32 million from financing activities during the first half, up 4692.46 percent or $86.48 million, when compared with the last year period. It has raised net of $0.89 million by selling common stocks.

As on Jun. 30, 2014, the company's cash balance stood at $53.03 million, up $41.93 million from Jun. 30, 2013.

Working Capital

Sciquest has witnessed an increase in the working capital over the last one year. The company's working capital stood at $68.50 million as at Jun. 30, 2014, up $65.18 million or 1968.15 percent from $3.31 million on Jun. 30, 2013. It registered an increase in current ratio to 2.06 as at Jun. 30, 2014 from 1.06 on Jun. 30, 2013.

Shares of the company fell $0.24 or 1.54 percent to close at $15.39 on Thursday.