CDI Corporation (CDI) saw its loss widen to $6.84 million, or $0.37 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.82 million, or $0.24 a share. On an adjusted basis, loss per share was at $0.33 for the quarter compared with loss of $0.24 a share in the same period last year. Revenue during the quarter dropped 19.68 percent to $187.56 million from $233.52 million in the previous year period. Gross margin for the quarter contracted 34 basis points over the previous year period to 18.19 percent. Operating margin for the quarter stood at negative 3.12 percent as compared to a negative 1.64 percent for the previous year period.
Operating loss for the quarter was $5.86 million, compared with an operating loss of $3.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.61 million compared with $0.77 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.39 percent for the quarter compared to 0.33 percent in the last year period.
"During the first quarter, our investments in sales capacity and our collaborative programs to restore growth demonstrated positive momentum, with an expanding sales pipeline, add-on business secured from existing clients, and multiple new client wins," stated President and Interim Chief Executive Officer Michael S. Castleman. "We are progressing from a complex portfolio of independent staffing and service operations to a collaborative company that delivers managed, project and staffing services fueled by technical talent. As we continue this transformation, we remain intensely focused on opportunities to improve sales effectiveness, productivity and operating efficiency."
Working capital declines
CDI Corp. has witnessed a decline in the working capital over the last year. It stood at $110.03 million as at Mar. 31, 2017, down 18.95 percent or $25.73 million from $135.76 million on Mar. 31, 2016. Current ratio was at 2.08 as on Mar. 31, 2017, down from 2.25 on Mar. 31, 2016. Days sales outstanding went up to 94 days for the quarter compared with 82 days for the same period last year.
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