Net Element, Inc. saw its loss widen to $2.49 million, or $0.15 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.85 million, or $0.16 a share. On the other hand, adjusted net loss for the quarter widened to $1.89 million, or $0.11 a share from a loss of $1.49 million or $0.13 a share, a year ago. Revenue during the quarter grew 20.43 percent to $13.56 million from $11.26 million in the previous year period. Gross margin for the quarter contracted 116 basis points over the previous year period to 15.50 percent. Operating margin for the quarter stood at negative 16.68 percent as compared to a negative 15.21 percent for the previous year period.
Operating loss for the quarter was $2.26 million, compared with an operating loss of $1.71 million in the previous year period.
"The first quarter of the year is one of the slowest quarters of the year for processing and we remain focused on continued growth and innovation to differentiate our product offerings and provide superior products and services to our expanding customer base" commented Oleg Firer, chief executive officer of Net Element. “We are undertaking several strategic changes in the mobile solutions segment, which should yield results in the third-quarter of this year."
Operating cash flow remains almost stable
Net Element, Inc. has spent $0.96 million cash to meet operating activities during the quarter as against cash outgo of $0.95 million in the last year period. The company has spent $0.40 million cash to meet investing activities during the quarter as against cash outgo of $0.40 million in the last year period.
Cash flow from financing activities was $1.49 million for the quarter, up 51.63 percent or $0.51 million, when compared with the last year period.
Cash and cash equivalents stood at $0.81 million as on Mar. 31, 2017, up 12.23 percent or $0.09 million from $0.72 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Net Element, Inc. was negative $6.47 million on Mar. 31, 2017 compared with negative $4.13 million on Mar. 31, 2016. Current ratio was at 0.59 as on Mar. 31, 2017, down from 0.61 on Mar. 31, 2016.
Days sales outstanding were almost stable at 40 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 56 days for the quarter from 53 for the same period last year.
Debt moves up
Net Element, Inc. has witnessed an increase in total debt over the last one year. It stood at $4.56 million as on Mar. 31, 2017, up 12.96 percent or $0.52 million from $4.04 million on Mar. 31, 2016. Total debt was 19.86 percent of total assets as on Mar. 31, 2017, compared with 18.69 percent on Mar. 31, 2016. Debt to equity ratio was at 1.32 as on Mar. 31, 2017, up from 0.53 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
