Payment Data Systems (PYDS) saw its loss widen to $0.29 million, or $0.03 a share for the quarter ended Mar. 31, 2017. Payment Data Systems (PYDS) saw its loss widen to $0.29 million in the quarter ended compared with $0.03 million a year ago. Revenue during the quarter dropped 12.94 percent to $2.81 million from $3.23 million in the previous year period. Gross margin for the quarter expanded 28 basis points over the previous year period to 33.54 percent. Operating margin for the quarter stood at negative 11.45 percent as compared to a negative 1.44 percent for the previous year period.
Operating loss for the quarter was $0.32 million, compared with an operating loss of $0.05 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.11 million compared with $0.47 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1034 basis points in the quarter to 4.07 percent from 14.42 percent in the last year period.
"While our first quarter revenues were impacted by lower ACH volumes, credit card and return check processing fees, prepaid revenues increased as the result of our product enhancements and momentum in our PINless debit services continues to accelerate," said president and chief executive officer Louis Hoch. "We are pleased to report that our operating expenses were down year-over-year on an absolute basis. Additionally, we continued to generate cash from operations, and our balance sheet remains strong with cash of $3.6 million and no debt as of March 31, 2017. We remain enthusiastic about our key revenue generating initiatives and resources as we proceed toward a return to top-line growth."
Operating cash flow drops significantly
Payment Data Systems has generated cash of $0.24 million from operating activities during the quarter, down 49.48 percent or $ 0.23 million, when compared with the last year period. The company has spent $0.71 million cash to meet investing activities during the quarter as against cash outgo of $0.31 million in the last year period.
Cash flow from financing activities was almost stable for the quarter at $0.03 million, when compared with the previous year period.
Cash and cash equivalents stood at $3.62 million as on Mar. 31, 2017, down 14.34 percent or $0.61 million from $4.22 million on Mar. 31, 2016.
Working capital increases
Payment Data Systems has recorded an increase in the working capital over the last year. It stood at $4.40 million as at Mar. 31, 2017, up 8.33 percent or $0.34 million from $4.06 million on Mar. 31, 2016. Current ratio was at 1.09 as on Mar. 31, 2017, down from 1.09 on Mar. 31, 2016.
Days sales outstanding went up to 43 days for the quarter compared with 30 days for the same period last year.
At the same time, days payable outstanding went up to 9 days for the quarter from 6 for the same period last year.
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