Numerex Corp (NMRX) saw its loss widen to $11.16 million, or $0.57 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.43 million, or $0.13 a share.
Revenue during the quarter dropped 6.43 percent to $17.58 million from $18.78 million in the previous year period. Gross margin for the quarter contracted 821 basis points over the previous year period to 44.54 percent. Operating margin for the quarter stood at negative 61.28 percent as compared to a negative 13.38 percent for the previous year period.
Operating loss for the quarter was $10.77 million, compared with an operating loss of $2.51 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.03 million compared with $1.96 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 0.19 percent for the quarter compared to 10.46 percent in the last year period.
"As the new senior management team at Numerex, we moved rapidly in the fourth quarter of 2016 to execute a plan to create a more focused IoT company - delivering on both near-term profitability goals and investments in future growth drivers. To achieve both objectives, we have and will continue to cut costs to make targeted investments in engineering and sales that will deliver-value added, differentiated products in key verticals. A more focused, ROI-driven approach to serving the needs of our top customers should position Numerex for industry leading profitability and growth." commented Ken Gayron, Numerex's interim chief executive officer and chief financial officer.
Working capital drops significantly
Numerex Corp has witnessed a decline in the working capital over the last year. It stood at $8.60 million as at Dec. 31, 2016, down 51.03 percent or $8.96 million from $17.56 million on Dec. 31, 2015. Current ratio was at 1.38 as on Dec. 31, 2016, down from 1.88 on Dec. 31, 2015.
Debt comes down
Numerex Corp has recorded a decline in total debt over the last one year. It stood at $17.25 million as on Dec. 31, 2016, down 8.78 percent or $1.66 million from $18.91 million on Dec. 31, 2015. Total debt was 18.85 percent of total assets as on Dec. 31, 2016, compared with 16.94 percent on Dec. 31, 2015. Debt to equity ratio was at 0.34 as on Dec. 31, 2016, up from 0.26 as on Dec. 31, 2015.
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