Bottomline Technologies Inc (EPAY) saw its loss widen to $10.35 million, or $0.27 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.24 million, or $0.14 a share. On the other hand, adjusted net income for the quarter stood at $9.66 million, or $0.26 a share compared with $10.28 million or $0.27 a share, a year ago.
Revenue during the quarter went up marginally by 0.79 percent to $86.73 million from $86.05 million in the previous year period. Gross margin for the quarter contracted 367 basis points over the previous year period to 54.37 percent. Operating margin for the quarter stood at negative 12.27 percent as compared to a negative 0.86 percent for the previous year period.
Operating loss for the quarter was $10.64 million, compared with an operating loss of $0.74 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $18.68 million compared with $19.17 million in the prior year period. At the same time, adjusted EBITDA margin contracted 74 basis points in the quarter to 21.54 percent from 22.28 percent in the last year period.
“We are pleased with the results for the second quarter.” said Rob Eberle, president and chief executive officer of Bottomline Technologies. “The quarter was highlighted by strong subscription and transaction revenue growth and solid performance against our profitability goals. Our strategic plan is designed to capitalize on our leadership in business payments to drive subscription and transaction growth and expand our operating margins. The results in the quarter evidence our execution against our plan. With innovative products and a strong market position, we believe that we are well positioned for future growth and confident our plan will drive increased shareholder value.”
Working capital turns negative
Working capital of Bottomline Technologies Inc has turned negative to $79.43 million on Dec. 31, 2016 from positive $112.88 million on Dec. 31, 2015. Current ratio was at 0.71 as on Dec. 31, 2016, down from 2.15 on Dec. 31, 2015.
Days sales outstanding went down to 63 days for the quarter compared with 66 days for the same period last year.
At the same time, days payable outstanding went down to 24 days for the quarter from 28 for the same period last year.
Debt moves up
Bottomline Technologies Inc has witnessed an increase in total debt over the last one year. It stood at $176.66 million as on Dec. 31, 2016, up 6.71 percent or $11.12 million from $165.54 million on Dec. 31, 2015. Short-term debt stood at $176.66 million as on Dec. 31, 2016. Total debt was 29.37 percent of total assets as on Dec. 31, 2016, compared with 25.24 percent on Dec. 31, 2015. Debt to equity ratio was at 0.66 as on Dec. 31, 2016, up from 0.51 as on Dec. 31, 2015.
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