Cimpress N.V. (CMPR) has reported a 40.95 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $35.03 million, or $1.07 a share in the quarter, compared with $59.32 million, or $1.81 a share for the same period last year.

Revenue during the quarter grew 16.24 percent to $576.85 million from $496.27 million in the previous year period. Gross margin for the quarter contracted 821 basis points over the previous year period to 51.98 percent. Total expenses were 94.16 percent of quarterly revenues, up from 86.38 percent for the same period last year. That has resulted in a contraction of 778 basis points in operating margin to 5.84 percent.

Operating income for the quarter was $33.70 million, compared with $67.61 million in the previous year period.

However, the adjusted operating income for the quarter stood at $50.61 million compared to $82.50 million in the prior year period. At the same time, adjusted operating margin contracted 785 basis points in the quarter to 8.77 percent from 16.62 percent in the last year period.

"We delivered another solid quarter and we continue to execute well against our plans to invest in a broad spectrum of long-term organic investments as outlined at the beginning of the fiscal year" said Robert Keane, president and chief executive officer. "Our largest business unit, Vistaprint, continued to gain traction as customers recognize an improved customer value proposition from its expanded product and service offering and reduced shipping prices. Vistaprint repeat revenue continued at double-digit growth, and our first-time customer count and revenue grew again for the third quarter in a row. "Importantly," Keane continued, "we achieved a significant milestone with our mass customization platform this quarter against our goal to materially increase platform order flow in fiscal 2017."

The company has spent $254.70 million cash to meet investing activities during the first six months as against cash outgo of $79.21 million in the last year period.

Cash flow from financing activities was $116.26 million for the first six months as against cash outgo of $111.27 million in the last year period.

Cash and cash equivalents stood at $49.59 million as on Dec. 31, 2016, down 32.26 percent or $23.61 million from $73.20 million on Dec. 31, 2015.

Working capital remains negative

Working capital of Cimpress N.V. was negative $194.06 million on Dec. 31, 2016 compared with negative $142.64 million on Dec. 31, 2015. Current ratio was at 0.55 as on Dec. 31, 2016, down from 0.58 on Dec. 31, 2015.

Cash conversion cycle (CCC) was almost stable at 16 days for the quarter, when compared with the last year period. Days sales outstanding were almost stable at 7 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 7 days for the quarter compared with 9 days for the previous year period. At the same time, days payable outstanding went down to 30 days for the quarter from 32 for the same period last year.