Mattersight Corporation (MATR) saw its loss narrow to $4.95 million, or $0.19 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $5.82 million, or $0.24 a share. Revenue during the quarter grew 9.01 percent to $10.96 million from $10.05 million in the previous year period. Gross margin for the quarter expanded 91 basis points over the previous year period to 68.62 percent. Operating margin for the quarter stood at negative 37.33 percent as compared to a negative 56.10 percent for the previous year period.
Operating loss for the quarter was $4.09 million, compared with an operating loss of $5.64 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $1.85 million compared to negative $2.62 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 16.92 percent for the quarter compared to negative 26.01 percent in the last year period.
"Mattersight’s first quarter was marked by 9% growth in total revenues and 12% growth in subscription revenue versus the same period last year," said Mattersight chief executive officer Kelly Conway. "We are quite encouraged by our outlook for the remainder of the year based on the conversion of our backlog to revenue; our strong pipeline; and tight expense management."
Operating cash flow remains negative
Mattersight Corporation has spent $3.19 million cash to meet operating activities during the quarter as against cash outgo of $5.37 million in the last year period. The company has spent $0.66 million cash to meet investing activities during the quarter as against cash outgo of $0.57 million in the last year period.
Cash flow from financing activities was $13.62 million for the quarter, down 9.14 percent or $1.37 million, when compared with the last year period.
Cash and cash equivalents stood at $22.52 million as on Mar. 31, 2017, down 7.92 percent or $1.94 million from $24.46 million on Mar. 31, 2016.
Working capital increases sharply
Mattersight Corporation has recorded an increase in the working capital over the last year. It stood at $18.02 million as at Mar. 31, 2017, up 37.77 percent or $4.94 million from $13.08 million on Mar. 31, 2016. Current ratio was at 1.91 as on Mar. 31, 2017, up from 1.55 on Mar. 31, 2016.
Days sales outstanding went up to 39 days for the quarter compared with 32 days for the same period last year.
At the same time, days payable outstanding went up to 29 days for the quarter from 18 for the same period last year.
Debt increases substantially
Mattersight Corporation has witnessed an increase in total debt over the last one year. It stood at $26.20 million as on Mar. 31, 2017, up 36.38 percent or $6.99 million from $19.21 million on Mar. 31, 2016. Total debt was 44.76 percent of total assets as on Mar. 31, 2017, compared with 36.79 percent on Mar. 31, 2016. Debt to equity ratio was at 9.26 as on Mar. 31, 2017, up from 3.88 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: editor@irisindia.net
