Silver Spring Networks, Inc (SSNI) saw its loss widen to $15.25 million, or $0.29 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.62 million, or $0.01 a share. On the other hand, adjusted net income for the quarter stood at $6.92 million, or $0.13 a share compared with $4.92 million or $0.10 a share, a year ago. Revenue during the quarter grew 6.73 percent to $74.19 million from $69.50 million in the previous year period. Gross margin for the quarter contracted 939 basis points over the previous year period to 38.07 percent. Operating margin for the quarter stood at negative 19.17 percent as compared to a negative 0.57 percent for the previous year period.
Operating loss for the quarter was $14.22 million, compared with an operating loss of $0.39 million in the previous year period.
However, the adjusted operating income for the quarter stood at $7.95 million compared to $5.26 million in the prior year period. At the same time, adjusted operating margin improved 315 basis points in the quarter to 10.71 percent from 7.56 percent in the last year period.
"We had another strong quarter, expanding our footprint by approximately 569,000 endpoints, commencing a large smart grid project, and winning additional awards since our last report," said Mike Bell, president and chief executive officer, Silver Spring Networks. "Our third quarter results, and our high-profile awards in 2016, demonstrate the strong position we have built in our smart grid and smart city markets. We see significant potential for continued innovation and growth in our core markets, and a great opportunity to extend Silver Spring’s platform and solutions into the broader Internet of Important Things opportunity."
Operating cash flow declines
Silver Spring Networks, Inc has generated cash of $12.68 million from operating activities during the nine month period, down 5.61 percent or $0.75 million, when compared with the last year period. The company has spent $29.54 million cash to meet investing activities during the nine month period as against cash outgo of $8.80 million in the last year period.
The company has spent $0.22 million cash to carry out financing activities during the nine month period as against cash outgo of $1.31 million in the last year period.
Cash and cash equivalents stood at $48.05 million as on Sep. 30, 2016, down 24.28 percent or $15.41 million from $63.46 million on Sep. 30, 2015.
Working capital turns positive
Working capital of Silver Spring Networks, Inc has turned positive to $19.20 million on Sep. 30, 2016 from negative $31.10 million on Sep. 30, 2015. Current ratio was at 1.05 as on Sep. 30, 2016, up from 0.92 on Sep. 30, 2015.
Days sales outstanding went down to 54 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 10 days for the previous year period. At the same time, days payable outstanding went down to 48 days for the quarter from 67 for the same period last year.
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