Revenue during the quarter grew 7.47 percent to $70.80 million from $65.88 million in the previous year period. Gross margin for the quarter contracted 762 basis points over the previous year period to 47.99 percent. Operating margin for the quarter stood at negative 11.67 percent as compared to a negative 11.25 percent for the previous year period.

Operating loss for the quarter was $8.26 million, compared with an operating loss of $7.41 million in the previous year period.

Adjusted EBITDA for the quarter stood at negative $4.33 million compared to negative $3.28 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 6.12 percent for the quarter compared to negative 4.98 percent in the last year period.

“We are pleased with our progress made this quarter despite the headwinds related to changes in our DoD contracts. The focus of our long term growth strategy is our commercial and state and local government businesses, and we are pleased to report that aggregate GMV in these marketplaces grew 12% over the prior year period, not only marking a return to top line organic growth for the first time in eight quarters, but also a significant milestone in the advancement of our transformation strategy. We continue to expand our service offerings to capture more opportunities and invest in our sales channels to grow seller accounts and our buyer network,” said Bill Angrick, chairman and chief executive officer of Liquidity Services.

Liquidity Services forecasts net loss to be in the range of $12 million to $9 million for the second-quarter. The company projects diluted loss per share to be in the range of $0.38 to $0.29 for the second-quarter. On an adjusted basis, the company projects diluted loss per share to be in the range of negative $0.30 to $0.21 for the second-quarter.

The company has spent $2.33 million cash to meet investing activities during the quarter as against cash outgo of $1.46 million in the last year period.

Cash flow from financing activities was $0.03 million for the quarter as against cash outgo of $0.05 million in the last year period.

Cash and cash equivalents stood at $126.91 million as on Dec. 31, 2016, up 48.52 percent or $41.46 million from $85.45 million on Dec. 31, 2015.

Working capital declines
Liquidity Services has witnessed a decline in the working capital over the last year. It stood at $91.32 million as at Dec. 31, 2016, down 18.83 percent or $21.19 million from $112.52 million on Dec. 31, 2015. Current ratio was at 2.06 as on Dec. 31, 2016, down from 2.68 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 55 days for the last year period. Days sales outstanding went down to 7 days for the quarter compared with 28 days for the same period last year.

Days inventory outstanding has decreased to 33 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 16 for the same period last year.