RigNet, Inc (RNET) saw its loss narrow to $1.45 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $10.88 million, or $0.62 a share. Revenue during the quarter dropped 23.68 percent to $50.61 million from $66.32 million in the previous year period. Gross margin for the quarter contracted 141 basis points over the previous year period to 41 percent. Operating margin for the quarter period stood at positive 0.49 percent as compared to a negative 12.40 percent for the previous year period.
Operating income for the quarter was $0.25 million, compared with an operating loss of $8.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $8.53 million compared with $14.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 500 basis points in the quarter to 16.86 percent from 21.86 percent in the last year period.
Steven E. Pickett, chief executive officer and president, commented, "Despite continued headwinds in the energy market, we are pleased with the progress we have made related to cost containment and capex management, which helped improve our Unlevered Free Cash Flow to $6.6 million for this quarter. We remain focused on continuing implementation of initiatives to improve operating leverage of the Company, developing a broad range of SaaS and cyber security solutions for our customers, and growing our business in new vertical markets."
Operating cash flow declines
RigNet, Inc has generated cash of $22.75 million from operating activities during the nine month period, down 15.87 percent or $4.29 million, when compared with the last year period. The company has spent $16.89 million cash to meet investing activities during the nine month period as against cash outgo of $21.31 million in the last year period.
The company has spent $8.11 million cash to carry out financing activities during the nine month period as against cash outgo of $5.52 million in the last year period.
Cash and cash equivalents stood at $57.24 million as on Sep. 30, 2016, down 11.66 percent or $7.56 million from $64.80 million on Sep. 30, 2015.
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