Synacor Inc. (SYNC) saw its loss widen to $3.05 million, or $0.10 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.39 million, or $0.01 a share. Revenue during the quarter grew 7.61 percent to $34.92 million from $32.45 million in the previous year period. Gross margin for the quarter contracted 787 basis points over the previous year period to 48.31 percent. Operating margin for the quarter stood at negative 6.52 percent as compared to a negative 0.24 percent for the previous year period.
Operating loss for the quarter was $2.28 million, compared with an operating loss of $0.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.18 million compared with $2.87 million in the prior year period. At the same time, adjusted EBITDA margin contracted 548 basis points in the quarter to 3.37 percent from 8.85 percent in the last year period.
"We are seeing strong market validation of Synacor’s portal, email, advertising and video products," said Synacor chief executive officer Himesh Bhise. "We continue to make excellent progress toward the launch and deployment of the AT&T portal, and we announced several new customer wins in email and video. “We begin 2017 a stronger Synacor, well positioned in attractive and growing digital markets. We expect accelerated revenue growth of about 30% this year, as we continue to progress on our Path to 3/30/300."
For financial year 2017, Synacor Inc. expects revenue to be in the range of $160 million to $170 million. The company forecasts net loss to be in the range of $2.80 million to $8 million.
For the first-quarter 2017, Synacor Inc. expects revenue to be in the range of $26 million to $28 million. The company forecasts net loss to be in the range of $6.20 million to $7.50 million.
Operating cash flow improves
Synacor Inc. has generated cash of $8.25 million from operating activities during the year, up 7.83 percent or $0.60 million, when compared with the last year.
The company has spent $8.44 million cash to meet investing activities during the year as against cash outgo of $20.50 million in the last year.
The company has spent $1.19 million cash to carry out financing activities during the year as against cash inflow of $2.94 million in the last year period.
Cash and cash equivalents stood at $14.32 million as on Dec. 31, 2016, down 8.80 percent or $1.38 million from $15.70 million on Dec. 31, 2015.
Working capital drops significantly
Synacor Inc. has witnessed a decline in the working capital over the last year. It stood at $2.98 million as at Dec. 31, 2016, down 74.52 percent or $8.71 million from $11.69 million on Dec. 31, 2015. Current ratio was at 1.07 as on Dec. 31, 2016, down from 1.37 on Dec. 31, 2015.
Days sales outstanding went up to 36 days for the quarter compared with 35 days for the same period last year.
At the same time, days payable outstanding went up to 48 days for the quarter from 29 for the same period last year.
Debt comes down
Synacor Inc. has recorded a decline in total debt over the last one year. It stood at $7 million as on Dec. 31, 2016, down 7.72 percent or $0.58 million from $7.58 million on Dec. 31, 2015. Total debt was 7.49 percent of total assets as on Dec. 31, 2016, compared with 8.52 percent on Dec. 31, 2015. Debt to equity ratio was at 0.18 as on Dec. 31, 2016, up from 0.16 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
