Inseego Corp (INSG) saw its loss widen to $27.40 million, or $0.50 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $14.39 million, or $0.26 a share. On an adjusted basis, net loss for the quarter stood at $2.80 million, or $0.05 a share compared with a net profit of $2.30 million, or $0.04 a share in the last year period. Revenue during the quarter dropped 13.97 percent to $52.92 million from $61.51 million in the previous year period. Gross margin for the quarter contracted 989 basis points over the previous year period to 16.97 percent. Operating margin for the quarter stood at negative 41.77 percent as compared to a negative 23.30 percent for the previous year period.
Operating loss for the quarter was $22.10 million, compared with an operating loss of $14.33 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.57 million.
"Our fourth quarter business performance once again demonstrates the financial and market strength of our portfolio of SaaS, software and services solutions for the Internet of Things. Our overall subscriber base for our comprehensive IoT solutions increased to 620,000 total subscribers, driven by 20.7% year-over-year growth in subscribers of our Ctrack telematics offerings,” said Sue Swenson, Chair and chief executive officer of Inseego. "We continue to set company records for our high-margin SaaS, software and services revenues, with 18.3% year-over-year growth in these recurring revenues in the fourth quarter. I am pleased that we are already achieving so many of our strategic goals, while we await regulatory approval from CFIUS to close the pending sale of our MiFi mobile broadband business, which will complete our transformation into a pure-play IoT solutions provider."
For the first-quarter 2017, Inseego Corp forecasts revenue to be in the range of $15.50 million to $17.50 million.
Operating cash flow remains negative
Inseego Corp has spent $6.58 million cash to meet operating activities during the year as against cash outgo of $26.94 million in the last year. Cash flow from investing activities was $5.04 million from investing activities during the year as against cash outgo of $97.09 million in the last year. It has incurred net capital expenditure of $3.72 million on net basis during the year, up 20.71 percent or $0.64 million from year ago.
The company has spent $1.29 million cash to carry out financing activities during the year as against cash inflow of $119.17 million in the last year period.
Cash and cash equivalents stood at $9.89 million as on Dec. 31, 2016, down 21.29 percent or $2.68 million from $12.57 million on Dec. 31, 2015.
Working capital drops significantly
Inseego Corp has witnessed a decline in the working capital over the last year. It stood at $6.07 million as at Dec. 31, 2016, down 87.02 percent or $40.69 million from $46.76 million on Dec. 31, 2015. Current ratio was at 1.10 as on Dec. 31, 2016, down from 1.73 on Dec. 31, 2015.
Debt moves up
Inseego Corp has witnessed an increase in total debt over the last one year. It stood at $94.15 million as on Dec. 31, 2016, up 9.76 percent or $8.37 million from $85.77 million on Dec. 31, 2015. Total debt was 59.32 percent of total assets as on Dec. 31, 2016, compared with 43.16 percent on Dec. 31, 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
