Synacor Inc (SYNC) saw its loss widen to $3.36 million, or $0.11 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.93 million, or $0.03 a share. Revenue during the quarter grew 20.38 percent to $31.72 million from $26.35 million in the previous year period. Gross margin for the quarter expanded 440 basis points over the previous year period to 53.94 percent. Operating margin for the quarter stood at negative 9.06 percent as compared to a negative 3.24 percent for the previous year period.
Operating loss for the quarter was $2.87 million, compared with an operating loss of $0.85 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.22 million compared with $1.99 million in the prior year period. At the same time, adjusted EBITDA margin contracted 687 basis points in the quarter to 0.70 percent from 7.57 percent in the last year period.
“We delivered another solid quarter, exceeding our guidance and achieving double-digit top-line growth, margin expansion and growth in recurring and fee-based revenue,” said Synacor Chief executive officer Himesh Bhise. “We are making great strides in advancing our technology and products, in particular this quarter, with our AT&T partnership, Zimbra Open Source and Cloud ID offerings.
For the fourth-quarter, Synacor forecasts revenue to be in the range of $34 million to $38 million. Synacor forecasts revenue to be in the range of $126 million to $130 million for fiscal year 2016. Synacor projects net income to be in the range of $2.50 million to $3.20 million for the fourth-quarter. For financial year 2016, Synacor projects net income to be in the range of $10.20 million to $10.90 million.
Operating cash flow improves
Synacor Inc has generated cash of $6.71 million from operating activities during the nine month period, up 8.63 percent or $0.53 million, when compared with the last year period. The company has spent $6.75 million cash to meet investing activities during the nine month period as against cash outgo of $19.73 million in the last year period.
The company has spent $0.63 million cash to carry out financing activities during the nine month period as against cash inflow of $3.54 million in the last year period.
Cash and cash equivalents stood at $15.03 million as on Sep. 30, 2016, down 3.47 percent or $0.54 million from $15.57 million on Sep. 30, 2015.
Working capital drops significantly
Synacor has witnessed a decline in the working capital over the last year. It stood at $3.33 million as at Sep. 30, 2016, down 68.37 percent or $7.21 million from $10.54 million on Sep. 30, 2015. Current ratio was at 1.09 as on Sep. 30, 2016, down from 1.38 on Sep. 30, 2015.
Days sales outstanding went down to 54 days for the quarter compared with 66 days for the same period last year.
At the same time, days payable outstanding went down to 70 days for the quarter from 76 for the same period last year.
Debt comes down marginally
Synacor Inc has recorded a decline in total debt over the last one year. It stood at $7.32 million as on Sep. 30, 2016, down 1.78 percent or $0.13 million from $7.45 million on Sep. 30, 2015. Total debt was 8.41 percent of total assets as on Sep. 30, 2016, compared with 8.72 percent on Sep. 30, 2015. Debt to equity ratio was at 0.18 as on Sep. 30, 2016, up from 0.16 as on Sep. 30, 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
