Fitbit Inc (FIT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $146.27 million, or $ 0.65 a share in the quarter, against a net profit of $64.16 million, or $0.26 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $125.70 million, or $0.56 a share compared with a net profit of $87.38 million, or $0.35 a share in the last year period.
Revenue during the quarter dropped 19.36 percent to $573.78 million from $711.57 million in the previous year period. Gross margin for the quarter contracted 2690 basis points over the previous year period to 22.05 percent. Operating margin for the quarter stood at negative 32.31 percent as compared to a positive 15.53 percent for the previous year period.
Operating loss for the quarter was $185.36 million, compared with an operating income of $110.54 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $156.34 million compared to operating profit of $118.33 million in prior year period.
"Our ten-year history of building this category, coupled with our powerful brand and engaged global community gives us confidence we are making the right investments to support our vision and drive long-term success," said James Park, Fitbit co-founder and chief executive officer. "We will leverage our leadership position, recently acquired talent and IP, and the valuable data we collect to improve demand and continue to set the pace of innovation for the industry through more personalized experiences, deeper insights and guidance, expansion into new categories and deeper integration within the healthcare system."
For the first-quarter, Fitbit Inc forecasts revenue to be in the range of $270 million to $290 million.
For fiscal year 2017, Fitbit Inc forecasts revenue to be in the range of $1,500 million to $1,700 million.
Working capital declinesFitbit Inc has witnessed a decline in the working capital over the last year. It stood at $718.64 million as at Dec. 31, 2016, down 15.17 percent or $128.52 million from $847.16 million on Dec. 31, 2015. Current ratio was at 1.94 as on Dec. 31, 2016, down from 2.67 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 29 days for the quarter from 20 days for the last year period. Days sales outstanding went up to 38 days for the quarter compared with 30 days for the same period last year.
Days inventory outstanding was almost stable at 23 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 32 days for the quarter from 33 for the same period last year.
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