Internap Corporation (INAP) saw its loss narrow to $8.23 million in the quarter ended compared with $9.64 million, a year ago. On an adjusted basis, net loss for the quarter was $4.82 million, when compared with $6.11 million in the last year period. Revenue during the quarter dropped 4.99 percent to $72.13 million from $75.92 million in the previous year period. Gross margin for the quarter expanded 219 basis points over the previous year period to 49.66 percent. Operating margin for the quarter period stood at positive 0.68 percent as compared to a negative 2.90 percent for the previous year period.
Operating income for the quarter was $0.49 million, compared with an operating loss of $2.20 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $21.55 million compared with $20.48 million in the prior year period. At the same time, adjusted EBITDA margin improved 291 basis points in the quarter to 29.88 percent from 26.97 percent in the last year period.
For fiscal year 2017, Internap Corporation forecasts revenue to be in the range of $275 million to $285 million. The company projects net loss to be in the range of $5 million to $1 million.
Operating cash flow drops significantly
Internap Corporation has generated cash of $7.26 million from operating activities during the quarter, down 32.63 percent or $ 3.52 million, when compared with the last year period. The company has spent $5.99 million cash to meet investing activities during the quarter as against cash outgo of $12.68 million in the last year period.
The company has spent $2.50 million cash to carry out financing activities during the quarter as against cash outgo of $1.90 million in the last year period.
Cash and cash equivalents stood at $9.17 million as on Mar. 31, 2017, down 33.99 percent or $4.72 million from $13.90 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Internap Corporation was negative $15.86 million on Mar. 31, 2017 compared with negative $6.93 million on Mar. 31, 2016. Current ratio was at 0.69 as on Mar. 31, 2017, down from 0.87 on Mar. 31, 2016.
Days sales outstanding went down to 22 days for the quarter compared with 24 days for the same period last year.
At the same time, days payable outstanding was almost stable at 50 days for the quarter, when compared with the previous year period.
Debt comes down
Internap Corporation has recorded a decline in total debt over the last one year. It stood at $329.64 million as on Mar. 31, 2017, down 12.79 percent or $48.36 million from $378 million on Mar. 31, 2016. Total debt was 79.41 percent of total assets as on Mar. 31, 2017, compared with 68.93 percent on Mar. 31, 2016. Debt to equity ratio was at 11.25 as on Mar. 31, 2017, up from 3.52 as on Mar. 31, 2016. 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: [email protected]
