ID Systems (IDSY) saw its loss widen to $2.09 million, or $0.16 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.90 million, or $0.15 a share. On an adjusted basis, net loss for the quarter was $1.45 million, when compared with $1.27 million in the last year period. Revenue during the quarter dropped 22.36 percent to $8.22 million from $10.58 million in the previous year period. Gross margin for the quarter expanded 755 basis points over the previous year period to 48.72 percent. Operating margin for the quarter stood at negative 25.32 percent as compared to a negative 18.57 percent for the previous year period.
Operating loss for the quarter was $2.08 million, compared with an operating loss of $1.96 million in the previous year period.
"Our results for the third quarter and first nine months of this year were highlighted by strong gross margins and lower operating expenses, reflecting the continued success of our profitability initiatives," said company chairman and chief executive officer, Kenneth Ehrman. "In fact, our operating expenses for the first nine months of this year marked the lowest level since 2009, driving a significant improvement in our cash used in operating activities from $7.5 million last year to $1.3 million this year. However, while the improvements in gross margin and operating expenses are encouraging, our topline results have not met expectations. A key reason for this is related to the product issues we experienced in 2015-issues that we have successfully addressed��"which caused certain customers to exclude our solutions from their 2016 budgets.
Operating cash flow remains negativeID Systems has spent $1.28 million cash to meet operating activities during the nine month period as against cash outgo of $7.55 million in the last year period. The company has spent $0.40 million cash to meet investing activities during the nine month period as against cash inflow of $3.86 million in the last year period
Cash flow from financing activities was $0.61 million for the nine month period, down 67.14 percent or $1.24 million, when compared with the last year period.
Cash and cash equivalents stood at $3.60 million as on Sep. 30, 2016, down 16.66 percent or $0.72 million from $4.32 million on Sep. 30, 2015.
Working capital declines
ID Systems has witnessed a decline in the working capital over the last year. It stood at $11.68 million as at Sep. 30, 2016, down 21.93 percent or $3.28 million from $14.96 million on Sep. 30, 2015. Current ratio was at 1.77 as on Sep. 30, 2016, down from 1.89 on Sep. 30, 2015.
Days sales outstanding went up to 140 days for the quarter compared with 125 days for the same period last year.
Days inventory outstanding has decreased to 66 days for the quarter compared with 118 days for the previous year period.
Debt increases substantially
ID Systems has witnessed an increase in total debt over the last one year. It stood at $0.59 million as on Sep. 30, 2016, up 1,992.86 percent or $0.56 million from $0.03 million on Sep. 30, 2015.ID Systems has witnessed an increase in short-term debt over the last one year. Total debt was 1.38 percent of total assets as on Sep. 30, 2016, compared with 0.06 percent on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
