Qumu Corporation (RIMG) saw its loss narrow to $3.56 million, or $0.39 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $4.13 million, or $0.45 a share.
Revenue during the quarter dropped 23.18 percent to $6.71 million from $8.74 million in the previous year period. Gross margin for the quarter expanded 520 basis points over the previous year period to 61.50 percent. Operating margin for the quarter stood at negative 46.43 percent as compared to a negative 47.62 percent for the previous year period.
Operating loss for the quarter was $3.12 million, compared with an operating loss of $4.16 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $1.93 million compared to negative $2.96 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 28.74 percent for the quarter compared to negative 33.85 percent in the last year period.
"Qumu's first quarter 2017 was a solid start to the year as we continue to take a long-term view of our dynamic industry. We are successfully transitioning Qumu to a software as a service (SaaS) provider, serving large organizations with both on-premise and cloud video solutions. We are investing in our future with exciting new developments to be announced later this month about our suite of solutions. And we have validated our strategy with our current customers and prospects, confirming that it is directly in line with the market’s direction toward highly collaborative video environments. The digital workforce thrives on video, and large enterprises need solutions to both encourage and manage that demand," said Vern Hanzlik, Qumu's president and chief executive officer.
Operating cash flow turns positive Qumu Corporation has generated cash of $0.29 million from operating activities during the quarter as against cash outgo of $1.98 million in the last year period.
The company has spent $0.01 million cash to meet investing activities during the quarter as against cash inflow of $3.99 million in the last year period.
The company has spent $0.25 million cash to carry out financing activities during the quarter as against cash outgo of $0.12 million in the last year period.
Cash and cash equivalents stood at $10.41 million as on Mar. 31, 2017, up 15.54 percent or $1.40 million from $9.01 million on Mar. 31, 2016.
Working capital drops significantly
Qumu Corporation has witnessed a decline in the working capital over the last year. It stood at $3.05 million as at Mar. 31, 2017, down 49.84 percent or $3.03 million from $6.09 million on Mar. 31, 2016. Current ratio was at 1.21 as on Mar. 31, 2017, down from 1.35 on Mar. 31, 2016.
Days sales outstanding went up to 108 days for the quarter compared with 96 days for the same period last year.
Debt increases substantially
Qumu Corporation has witnessed an increase in total debt over the last one year. It stood at $7.16 million as on Mar. 31, 2017, up 695.11 percent or $6.26 million from $0.90 million on Mar. 31, 2016. Total debt was 18.54 percent of total assets as on Mar. 31, 2017, compared with 1.88 percent on Mar. 31, 2016. Debt to equity ratio was at 0.46 as on Mar. 31, 2017, up from 0.03 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: [email protected]
