Model N, Inc (MODN) saw its loss widen to $7.76 million, or $0.28 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.96 million, or $0.19 a share. On the other hand, adjusted net loss for the quarter widened to $2.96 million, or $0.11 a share from a loss of $1.76 million or $0.07 a share, a year ago.
Revenue during the quarter grew 12.32 percent to $28.51 million from $25.38 million in the previous year period. Gross margin for the quarter contracted 217 basis points over the previous year period to 52.39 percent. Operating margin for the quarter stood at negative 26.89 percent as compared to a negative 19.36 percent for the previous year period.
Operating loss for the quarter was $7.67 million, compared with an operating loss of $4.92 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.87 million compared to operating loss of $1.72 million in prior year period.
“Our results for the fourth quarter show continued strength in our recurring SaaS and Maintenance revenue which grew 32% year over year and represented 79% of this quarter’s total revenue,” said Edward Sander, chief executive officer of Model N.
For the first-quarter, Model N expects revenue to be in the range of $105 million to $107 million. Model N expects revenue to be in the range of $27.20 million to $27.70 million for financial year 2017. The company expects adjusted operating loss to be in the range of $21 million to $20 million for the first-quarter. For fiscal year 2017, the company expects adjusted operating loss to be in the range of $5 million to $4.40 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.73 to $0.70 for the first-quarter. For financial year 2017, the company projects diluted loss per share to be in the range of $0.18 to $0.16 on adjusted basis.
Operating cash flow remains negative
Model N, Inc has spent $12.32 million cash to meet operating activities during the year as against cash outgo of $8.77 million in the last year.
The company has spent $15.79 million cash to meet investing activities during the year as against cash outgo of $4.61 million in the last year.
Cash flow from financing activities was $3.28 million for the year, down 4.96 percent or $0.17 million, when compared with the last year.
Cash and cash equivalents stood at $66.15 million as on Sep. 30, 2016, down 27.32 percent or $24.87 million from $91.02 million on Sep. 30, 2015.
Working capital drops significantly
Model N, Inc has witnessed a decline in the working capital over the last year. It stood at $48.59 million as at Sep. 30, 2016, down 35.05 percent or $26.23 million from $74.81 million on Sep. 30, 2015. Current ratio was at 2.10 as on Sep. 30, 2016, down from 3.07 on Sep. 30, 2015.
Days sales outstanding went up to 32 days for the quarter compared with 29 days for the same period last year.
At the same time, days payable outstanding went up to 11 days for the quarter from 6 for the same period last year.
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