Streamline Health Solutions, Inc. (STRM) saw its loss widen to $1.93 million, or $0.10 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $0.46 million, or $0.04 a share. Revenue during the quarter dropped 7.26 percent to $6.64 million from $7.16 million in the previous year period. Gross margin for the quarter contracted 799 basis points over the previous year period to 51.43 percent. Operating margin for the quarter stood at negative 26.66 percent as compared to a negative 5 percent for the previous year period.
Operating loss for the quarter was $1.77 million, compared with an operating loss of $0.36 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.23 million compared with $1.70 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2030 basis points in the quarter to 3.44 percent from 23.73 percent in the last year period.
"Our third quarter financial performance, although down from Q2 2016 levels, was as expected given that we did not close a perpetual license revenue contract in the quarter as we had in the previous quarter. Additionally, along with the incremental expense from the Opportune IT acquisition, we made additional investments to accelerate the roadmap of the acquired technologies, which also impacted our Adjusted EBITDA performance," stated David Sides, President and Chief Executive Officer, Streamline Health. "However, we are very excited about the opportunities for growth both with our new Coding Audit Services and the benefits of integrating our existing coding technology with the new software. Additionally, as we had projected, our bookings improved substantially over the first half of this year as many of the investments in sales have started to gain traction."
Operating cash flow turns negative
Streamline Health Solutions, Inc. has spent $1.24 million cash to meet operating activities during the nine month period as against cash inflow of $3.95 million in the last year period. The company has spent $3.32 million cash to meet investing activities during the nine month period as against cash outgo of $0.24 million in the last year period.
The company has spent $2.78 million cash to carry out financing activities during the nine month period as against cash outgo of $1.73 million in the last year period.
Cash and cash equivalents stood at $2.54 million as on Oct. 31, 2016, down 70.13 percent or $5.97 million from $8.51 million on Oct. 31, 2015.
Working capital turns negative
Working capital of Streamline Health Solutions, Inc. has turned negative to $2.45 million on Oct. 31, 2016 from positive $2.81 million on Oct. 31, 2015. Current ratio was at 0.75 as on Oct. 31, 2016, down from 1.24 on Oct. 31, 2015.
Days sales outstanding went up to 87 days for the quarter compared with 82 days for the same period last year.
At the same time, days payable outstanding was almost stable at 54 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Streamline Health Solutions, Inc. has recorded a decline in total debt over the last one year. It stood at $6.20 million as on Oct. 31, 2016, down 35.07 percent or $3.35 million from $9.55 million on Oct. 31, 2015. Total debt was 15.44 percent of total assets as on Oct. 31, 2016, compared with 19.25 percent on Oct. 31, 2015. Debt to equity ratio was at 0.50 as on Oct. 31, 2016, down from 0.55 as on Oct. 31, 2015.
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