Sonus Networks, Inc. (SONS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $2.63 million, or $ 0.05 a share in the quarter, against a net profit of $4.70 million, or $0.09 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $4.50 million, or $0.09 a share compared with $11.58 million or $0.23 a share, a year ago.
Revenue during the quarter dropped 11.47 percent to $67.57 million from $76.33 million in the previous year period. Gross margin for the quarter contracted 134 basis points over the previous year period to 67.18 percent. Operating margin for the quarter stood at negative 4 percent as compared to a positive 5.32 percent for the previous year period.
Operating loss for the quarter was $2.70 million, compared with an operating income of $4.06 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4.93 million compared to $11.83 million in the prior year period. At the same time, adjusted operating margin contracted 821 basis points in the quarter to 7.29 percent from 15.50 percent in the last year period.
"We are pleased with our fiscal 2016 financial results with a solid finish in the fourth quarter," said Ray Dolan, president and chief executive officer. "We continue to invest in our strategy to help our customers move to cloud and collaborate with others in the industry to leverage SDN/NFV in an effort to create a more secure and affordable internet."
For fiscal year 2017, the company projects diluted loss per share to be $0.35. The company expects diluted earnings per share to be $0.26 on adjusted basis.
Operating cash flow falls marginally
Sonus Networks, Inc. has generated cash of $19.19 million from operating activities during the year, down 3.41 percent or $0.68 million, when compared with the last year.
The company has spent $27.35 million cash to meet investing activities during the year as against cash outgo of $4.58 million in the last year.
The company has spent $9.87 million cash to carry out financing activities during the year as against cash outgo of $6.20 million in the last year period.
Cash and cash equivalents stood at $31.92 million as on Dec. 31, 2016, down 36.30 percent or $18.19 million from $50.11 million on Dec. 31, 2015.
Working capital declines
Sonus Networks, Inc. has witnessed a decline in the working capital over the last year. It stood at $100.84 million as at Dec. 31, 2016, down 14.31 percent or $16.85 million from $117.69 million on Dec. 31, 2015. Current ratio was at 2.31 as on Dec. 31, 2016, down from 2.52 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 67 days for the last year period. Days sales outstanding went up to 37 days for the quarter compared with 33 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 47 days for the previous year period. At the same time, days payable outstanding went up to 14 days for the quarter from 12 for the same period last year.
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