Straight Path Communications Inc. (STRP) saw its loss widen to $5.99 million, or $0.49 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $1.84 million, or $0.15 a share. Revenue during the quarter dropped 23.74 percent to $0.17 million from $0.22 million in the previous year period. Gross margin for the quarter expanded 2102 basis points over the previous year period to 80.84 percent.
Operating loss for the quarter was $4 million, compared with an operating loss of $1.90 million in the previous year period.
Davidi Jonas, chief executive officer of Straight Path commented, "I am proud to announce that Straight Path has delivered on its strategic objectives and adhered to its mission." Mr. Jonas concluded, "We are energized by this success, and enthusiastic about the role our spectrum will play in the 5G ecosystem. We are proud to have helped in this major development in the wireless telecommunications industry while delivering significant value for our stockholders."
Operating cash flow remains negative
Straight Path Communications Inc. has spent $10.32 million cash to meet operating activities during the nine month period as against cash outgo of $4.07 million in the last year period. The company has spent $3.91 million cash to meet investing activities during the nine month period as against cash outgo of $1.38 million in the last year period.
Cash flow from financing activities was $17.43 million for the nine month period, up 1,742,700 percent or $17.43 million, when compared with the last year period.
Cash and cash equivalents stood at $14.56 million as on Apr. 30, 2017, up 10.50 percent or $1.38 million from $13.17 million on Apr. 30, 2016.
Working capital turns negative
Working capital of Straight Path Communications Inc. has turned negative to $7.36 million on Apr. 30, 2017 from positive $12.60 million on Apr. 30, 2016. Current ratio was at 0.69 as on Apr. 30, 2017, down from 14.89 on Apr. 30, 2016.
Days sales outstanding went up to 31 days for the quarter compared with 18 days for the same period last year.
At the same time, days payable outstanding went up to 7457 days for the quarter from 150 for the same period last year.
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