Boingo Wireless (WIFI) saw its loss widen to $5.71 million, or $0.15 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.82 million, or $0.13 a share. Revenue during the quarter grew 9.71 percent to $40.80 million from $37.19 million in the previous year period. Gross margin for the quarter contracted 109 basis points over the previous year period to 29.70 percent. Operating margin for the quarter stood at negative 13.20 percent as compared to a negative 12.80 percent for the previous year period.
Operating loss for the quarter was $5.39 million, compared with an operating loss of $4.76 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $11.57 million compared with $8.47 million in the prior year period. At the same time, adjusted EBITDA margin improved 557 basis points in the quarter to 28.35 percent from 22.79 percent in the last year period.
"We had an excellent third quarter as evidenced by our ability to generate positive free cash flow, record quarterly revenue and a fifth consecutive quarter of year-over-year EBITDA margin expansion," commented David Hagan, chief executive officer of Boingo Wireless. “Our strong financial results were within our guidance range due to the significant accomplishments of our team, including progress on DAS, military, carrier offload and small cells. The third quarter marked the largest quarter for DAS agreements in the history of our Company in which we signed eight new venues to the Boingo network and closed 17 Tier 1 carrier contracts. We now have 35 DAS venues deployed with 17,700 nodes live and a robust pipeline of an additional 5,200 DAS nodes."
For financial year 2016, Boingo Wireless forecasts revenue to be in the range of $158 million to $164 million. The company projects net loss to be in the range of $30 million to $26 million. It company expects diluted loss per share to be in the range of $0.79 to $0.68.
Working capital remains negative
Working capital of Boingo Wireless was negative $36.57 million on Sep. 30, 2016 compared with negative $48.72 million on Sep. 30, 2015. Current ratio was at 0.63 as on Sep. 30, 2016, up from 0.57 on Sep. 30, 2015. Days sales outstanding went down to 95 days for the quarter compared with 112 days for the same period last year.
At the same time, days payable outstanding went down to 53 days for the quarter from 87 for the same period last year.
Debt moves up marginally
Boingo Wireless has witnessed an increase in total debt over the last one year. It stood at $21.79 million as on Sep. 30, 2016, up 1.33 percent or $0.29 million from $21.50 million on Sep. 30, 2015. Total debt was 5.79 percent of total assets as on Sep. 30, 2016, compared with 6.70 percent on Sep. 30, 2015. Debt to equity ratio was at 0.22 as on Sep. 30, 2016, up from 0.19 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: [email protected]
