Telenav Inc. (TNAV) saw its loss narrow to $9.34 million, or $0.22 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $10.85 million, or $0.27 a share. On the other hand, adjusted net loss for the quarter narrowed to $6.54 million, or $0.15 a share from a loss of $7.05 million or $0.17 a share, a year ago. Revenue during the quarter dropped 4.16 percent to $42.23 million from $44.06 million in the previous year period. Gross margin for the quarter contracted 252 basis points over the previous year period to 44.41 percent. Operating margin for the quarter stood at negative 23.74 percent as compared to a negative 23.93 percent for the previous year period.
Operating loss for the quarter was $10.03 million, compared with an operating loss of $10.55 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $6.85 million compared to negative $6.39 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 16.22 percent for the quarter compared to negative 14.50 percent in the last year period.
"For the first quarter of fiscal 2017, Telenav delivered solid results," said HP Jin, chairman and chief executive officer of Telenav. “We continued to make progress with our auto OEM customers by increasing the breadth and depth of our partnerships. Ford completed the transition from SYNC 2 to SYNC 3 and we began development work on connected services for Ford SYNC 3. We were also selected by General Motors to offer entry level embedded navigation in Europe and through our relationship with Toyota, we started offering our Scout GPS Link in Lexus vehicles. We believe the expansion of our offerings with these global auto OEMs is a proof point of our strengthening partnerships and market leadership within the connected car space."
For the second-quarter 2017, Telenav Inc. projects revenue to be in the range of $46 million to $49 million. The company expects net loss to be in the range of $10 million to $11.50 million. It company forecasts diluted loss per share to be in the range of $0.23 to $0.26.
Operating cash flow remains negative
Telenav Inc. has spent $5.69 million cash to meet operating activities during the quarter as against cash outgo of $5.87 million in the last year period. Cash flow from investing activities was $2.04 million for the quarter, up 105.95 percent or $1.05 million, when compared with the last year period.
The company has spent $1.23 million cash to carry out financing activities during the quarter as against cash outgo of $1.68 million in the last year period.
Cash and cash equivalents stood at $16.54 million as on Sep. 30, 2016, up 38.01 percent or $4.55 million from $11.98 million on Sep. 30, 2015.
Working capital declines
Telenav Inc. has witnessed a decline in the working capital over the last year. It stood at $111.53 million as at Sep. 30, 2016, down 14.94 percent or $19.59 million from $131.12 million on Sep. 30, 2015. Current ratio was at 3.42 as on Sep. 30, 2016, down from 4.79 on Sep. 30, 2015.
Days sales outstanding went up to 94 days for the quarter compared with 82 days for the same period last year.
At the same time, days payable outstanding went up to 20 days for the quarter from 3 for the same period last year.
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