Insignia Systems, Inc. (ISIG) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $0.71 million, or $ 0.06 a share in the quarter, against a net profit of $0.63 million, or $0.05 a share in the last year period. Revenue during the quarter dropped 22.84 percent to $5.75 million from $7.45 million in the previous year period. Gross margin for the quarter contracted 2838 basis points over the previous year period to 17.05 percent. Operating margin for the quarter stood at negative 20.53 percent as compared to a positive 13.32 percent for the previous year period.
Operating loss for the quarter was $1.18 million, compared with an operating income of $0.99 million in the previous year period.
Insignia’s president and chief executive officer Kristine Glancy commented, "Net sales in 2016 decreased 11.7% compared to 2015. The majority of the decrease was due to our second half performance, where we elected not to repeat a promotion from 2015 to avoid establishing expectations of pricing discounts. Industry shifts, including zero-based-budgeting by our customers and an increase in competition, resulted in a decline in POPS revenue. Our net loss for the year was $1.29 million, primarily attributable to the decline in revenue, gross margin pressure from our retailer growth initiatives; new IT operating infrastructure expense (pre-tax impact of approximately $400,000), costs associated with The Like Machine™ (pre-tax impact of $1.2 million) and increased legal costs driven by board matters (pre-tax impact of $390,000)."
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