RMG Networks Holding Corporation (RMGN) saw its loss narrow to $1.27 million in the quarter ended compared with $1.32 million, a year ago. Revenue during the quarter grew 3.48 percent to $8.97 million from $8.67 million in the previous year period. Gross margin for the quarter contracted 284 basis points over the previous year period to 55.12 percent. Operating margin for the quarter stood at negative 16.50 percent as compared to a negative 18.13 percent for the previous year period.
Operating loss for the quarter was $1.48 million, compared with an operating loss of $1.57 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $0.56 million compared to negative $0.43 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 6.24 percent for the quarter compared to negative 4.98 percent in the last year period.
“This was a quarter of continued strategic and financial progress, as evidenced by our first quarter of year-over-year revenue growth since 2015,” commented Robert Michelson, Chief Executive Officer. “In addition, we advanced our core growth initiatives with the successful conversion of a second supply chain pilot into large initial rollout and implementation of our new RMG MAX LED solutions.”
Operating cash flow remains negative
RMG Networks Holding Corporation has spent $1.82 million cash to meet operating activities during the quarter as against cash outgo of $0.58 million in the last year period. The company has spent $0.05 million cash to meet investing activities during the quarter as against cash outgo of $0.02 million in the last year period.
The company has spent $1.27 million cash to carry out financing activities during the quarter as against cash inflow of $0.70 million in the last year period.
Cash and cash equivalents stood at $2.03 million as on Mar. 31, 2017, down 37.56 percent or $1.22 million from $3.26 million on Mar. 31, 2016.
Working capital turns positive
Current ratio was at 1.09 as on Mar. 31, 2017, up from 0.95 on Mar. 31, 2016.
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