Marin Software Incorporated (MRIN) saw its loss widen to $4.60 million, or $0.12 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.14 million, or $0.06 a share. On an adjusted basis, net loss for the quarter stood at $1.85 million, or $0.05 a share compared with a net profit of $1.65 million, or $0.04 a share in the last year period.
Revenue during the quarter dropped 20.99 percent to $22.92 million from $29.02 million in the previous year period. Gross margin for the quarter contracted 428 basis points over the previous year period to 63.13 percent. Operating margin for the quarter stood at negative 18.02 percent as compared to a negative 7.33 percent for the previous year period.
Operating loss for the quarter was $4.13 million, compared with an operating loss of $2.13 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.39 million compared to operating profit of $1.66 million in prior year period.
"Given the financial discipline we showed, Marin Software was able to deliver $2.4 million of Adjusted EBITDA for the full year, and exit 2016 with $35.7 million in cash and cash equivalents and restricted cash," said Chris Lien, chief executive officer of Marin Software. "This provides us the financial resources to support a return to growth, including enabling us to continue to invest in product innovation to meet the advertising needs of the world’s leading brands. With our new product innovation, along with improvements in our execution, we expect to return to growth as we deliver on our open, independent, cross-channel performance advertising platform vision."
For the first-quarter 2017, Marin Software Incorporated forecasts revenue to be in the range of $19 million to $19.50 million. The company forecasts adjusted operating loss to be in the range of $5.60 million to $5.10 million. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.14 to $0.13.
Operating cash flow turns positive
Marin Software Incorporated has generated cash of $5.72 million from operating activities during the year as against cash outgo of $7.03 million in the last year.
The company has spent $5.91 million cash to meet investing activities during the year as against cash outgo of $21.89 million in the last year.
The company has spent $0.38 million cash to carry out financing activities during the year as against cash outgo of $1.34 million in the last year period.
Cash and cash equivalents stood at $35.71 million as on Dec. 31, 2016, down 4.32 percent or $1.61 million from $37.33 million on Dec. 31, 2015.
Working capital decreases marginally
Marin Software Incorporated has witnessed a decline in the working capital over the last year. It stood at $45.68 million as at Dec. 31, 2016, down 3.88 percent or $1.85 million from $47.52 million on Dec. 31, 2015. Current ratio was at 4.62 as on Dec. 31, 2016, up from 4.03 on Dec. 31, 2015.
Debt moves up
Marin Software Incorporated has witnessed an increase in total debt over the last one year. It stood at $3.40 million as on Dec. 31, 2016, up 15.47 percent or $0.46 million from $2.94 million on Dec. 31, 2015. Total debt was 3.17 percent of total assets as on Dec. 31, 2016, compared with 2.53 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.04 as on Dec. 31, 2016, when compared with the last year.
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