Falconstor Software Inc (FALC) saw its loss narrow to $1.11 million, or $0.03 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.30 million, or $0.11 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.90 million, or $0.02 a share from a loss of $3.22 million or $0.08 a share, a year ago. Revenue during the quarter dropped 18.75 percent to $6.04 million from $7.43 million in the previous year period. Gross margin for the quarter expanded 294 basis points over the previous year period to 75.95 percent. Operating margin for the quarter stood at negative 18.95 percent as compared to a negative 57.72 percent for the previous year period.
Operating loss for the quarter was $1.14 million, compared with an operating loss of $4.29 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $0.94 million compared to operating loss of $3.22 million in prior year period.
"FreeStor continues to march forward as represented by the increase in year-over-year FreeStor revenue for the first quarter of 2017,” said Gary Quinn, president and chief executive officer. "FreeStor is the right storage virtualization and cloud storage solution for customers who are transforming their infrastructure to software-defined everything. We are pleased that during the quarter we were able to realize the first step to financial stability by achieving our internal goal of being cash flow positive."
Working capital remains negative
Working capital of Falconstor Software Inc was negative $12.12 million on Mar. 31, 2017 compared with negative $5.35 million on Mar. 31, 2016. Current ratio was at 0.40 as on Mar. 31, 2017, down from 0.77 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 18 days for the quarter from 27 days for the last year period. Days sales outstanding went up to 76 days for the quarter compared with 72 days for the same period last year.
At the same time, days payable outstanding went up to 58 days for the quarter from 48 for the same period last year.
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