Blucora, Inc. (BCOR) saw its loss widen to $54.12 million, or $1.30 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $10.61 million, or $0.26 a share. On the other hand, adjusted net loss for the quarter widened to $10.14 million, or $0.24 a share from a loss of $6.96 million or $0.17 a share, a year ago. Revenue during the quarter surged 2,795.20 percent to $83.24 million from $2.88 million in the previous year period. Gross margin for the quarter period stood at positive 32.38 percent as compared to a negative 7.17 percent for the previous year period.
Operating loss for the quarter was $10.51 million, compared with an operating loss of $16.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.34 million compared with $4.51 million in the prior year period.
John Clendening, president and chief executive officer of Blucora, noted that "during the third quarter, we continued to execute the strategic initiatives we outlined last quarter, including successfully divesting the Infospace business and continuing to de-lever. We are making strong progress on our transformation strategy as we organize around our new operating model and solidify our position as a technology-enabled financial solutions company," said Clendening. "We are taking the actions necessary to maximize the performance of our businesses, and are seeing positive results from these efforts. We are committed to investing in our people, our capability, and our technology to enable us to capture the substantial growth opportunities ahead in both the HD Vest and TaxAct businesses," he explained.
For financial year 2016, Blucora, Inc. projects revenue to be in the range of $451.30 million to $454.60 million. The company expects net loss from continuing operations to be in the range of $5.20 million to $3.10 million and adjusted net income to be in the range of $39.90 million to $42.90 million. It company forecasts diluted loss from continuing operations per share to be in the range of $0.13 to $0.07 and diluted earnings per share to be in the range of $0.93 to $1 on adjusted basis.
For the fourth-quarter 2016, Blucora, Inc. projects revenue to be in the range of $82.20 million to $85.50 million. The company expects net loss from continuing operations to be in the range of $17.70 million to $15.60 million and adjusted net loss from continuing operations to be in the range of $12.70 million to $9.70 million. It company forecasts diluted loss from continuing operations per share to be in the range of $0.42 to $0.37. On an adjusted basis, the company forecasts diluted loss from continuing operations per share to be in the range of $0.30 to $0.23.
Operating cash flow improves significantly
Blucora, Inc. has generated cash of $80.93 million from operating activities during the nine month period, up 198.81 percent or $53.85 million, when compared with the last year period. Cash flow from investing activities was $45.46 million for the nine month period, up 197.44 percent or $30.17 million, when compared with the last year period.
The company has spent $110.68 million cash to carry out financing activities during the nine month period as against cash outgo of $33.02 million in the last year period.
Cash and cash equivalents stood at $71.16 million as on Sep. 30, 2016, up 19.33 percent or $11.53 million from $59.64 million on Sep. 30, 2015.
Working capital drops significantly
Blucora, Inc. has witnessed a decline in the working capital over the last year. It stood at $97.43 million as at Sep. 30, 2016, down 67.75 percent or $204.69 million from $302.12 million on Sep. 30, 2015. Current ratio was at 2.18 as on Sep. 30, 2016, down from 6.12 on Sep. 30, 2015.
Days sales outstanding went down to 31 days for the quarter compared with 834 days for the same period last year.
At the same time, days payable outstanding went down to 30 days for the quarter from 968 for the same period last year.
Debt increases substantially
Blucora, Inc. has witnessed an increase in total debt over the last one year. It stood at $450.02 million as on Sep. 30, 2016, up 106.39 percent or $231.97 million from $218.05 million on Sep. 30, 2015. Short-term debt stood at $3.20 million as on Sep. 30, 2016. Total debt was 40.39 percent of total assets as on Sep. 30, 2016, compared with 26.07 percent on Sep. 30, 2015. Debt to equity ratio was at 1 as on Sep. 30, 2016, up from 0.41 as on Sep. 30, 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: editor@irisindia.net
