Itron (ITRI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $9.88 million, or $ 0.26 a share in the quarter, against a net profit of $12.64 million, or $0.33 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $29.90 million, or $0.77 a share compared with $16.97 million or $0.44 a share, a year ago.
Revenue during the quarter grew 7.95 percent to $506.86 million from $469.53 million in the previous year period. Gross margin for the quarter expanded 232 basis points over the previous year period to 33.69 percent. Total expenses were 98.74 percent of quarterly revenues, up from 94.26 percent for the same period last year. That has resulted in a contraction of 447 basis points in operating margin to 1.26 percent.
Operating income for the quarter was $6.41 million, compared with $26.94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $51.90 million compared to $32.12 million in the prior year period. At the same time, adjusted operating margin improved 340 basis points in the quarter to 10.24 percent from 6.84 percent in the last year period.
"We are pleased with our strong financial performance during the third quarter, including substantial top-line growth and continued margin improvement," said Philip Mezey, Itron’s president and chief executive officer. "In 2016, we are realizing benefits from successfully executing our prior restructuring and cost savings initiatives while continuing to grow our business. Given our strong performance year-to-date, we currently expect our results to come in at the high-end of our guidance, or potentially a little above. Looking ahead, I am confident that investments in our OpenWay Riva IoT solution and differentiated software and services offerings, combined with our on-going operational discipline, position Itron well for continued growth and profitability."
Operating cash flow improves significantlyItron has generated cash of $81.88 million from operating activities during the nine month period, up 306.28 percent or $61.73 million, when compared with the last year period. The company has spent $32.77 million cash to meet investing activities during the nine month period as against cash outgo of $38.53 million in the last year period.
The company has spent $30.70 million cash to carry out financing activities during the nine month period as against cash inflow of $28.36 million in the last year period.
Cash and cash equivalents stood at $151.38 million as on Sep. 30, 2016, up 38.30 percent or $41.92 million from $109.46 million on Sep. 30, 2015.
Working capital increases
Itron has recorded an increase in the working capital over the last year. It stood at $352.46 million as at Sep. 30, 2016, up 5.46 percent or $18.26 million from $334.20 million on Sep. 30, 2015. Current ratio was at 1.74 as on Sep. 30, 2016, up from 1.71 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 64 days for the last year period. Days sales outstanding went down to 64 days for the quarter compared with 66 days for the same period last year.
Days inventory outstanding has decreased to 26 days for the quarter compared with 58 days for the previous year period. At the same time, days payable outstanding went down to 59 days for the quarter from 61 for the same period last year.
Debt comes downItron has recorded a decline in total debt over the last one year. It stood at $342.70 million as on Sep. 30, 2016, down 9.98 percent or $38.01 million from $380.71 million on Sep. 30, 2015. Total debt was 20.06 percent of total assets as on Sep. 30, 2016, compared with 22.79 percent on Sep. 30, 2015. Debt to equity ratio was at 0.52 as on Sep. 30, 2016, down from 0.60 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.38 for the quarter from 9.62 for the same period last year. 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
