Telenav, Inc. (TNAV) saw its loss widen to $11.42 million, or $0.26 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.64 million, or $0.16 a share. On an adjusted basis, net loss for the quarter was $11.42 million, when compared with $6.64 million in the last year period.
Revenue during the quarter grew 14.91 percent to $52 million from $45.25 million in the previous year period. Gross margin for the quarter contracted 103 basis points over the previous year period to 44.76 percent. Operating margin for the quarter stood at negative 22.31 percent as compared to a negative 15.10 percent for the previous year period.
Operating loss for the quarter was $11.60 million, compared with an operating loss of $6.83 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $2.56 million compared to negative $4.14 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 4.93 percent for the quarter compared to negative 9.16 percent in the last year period.
"Telenav delivered strong top line results for the second quarter of fiscal 2017, with revenue growing 15% year-over-year to $52.0 million and billings growing 23% year-over-year to $59.7 million," said HP Jin, chairman and chief executive officer of Telenav. "We continued to make solid progress towards the GM launch of our embedded and connected navigation solution which we expect to occur in the next couple of months. We also announced an additional award with Toyota. We are excited to see the relationship with Toyota continue to deepen and are pleased that Scout GPS Link was chosen to be in select 2018 Toyota vehicles equipped with EntuneTM 3.0. We believe our partnerships with global auto OEMs, ranging from brought-in solutions to embedded and connected solutions, is a testament to our broad capabilities and market leadership."
For the third-quarter, Telenav, Inc. projects revenue to be in the range of $37 million to $39 million. It expects net loss to be in the range of $12 million to $13 million. It forecasts diluted loss per share to be in the range of $0.28 to $0.30 for the same period.
Operating cash flow remains negative
Telenav, Inc. has spent $2.90 million cash to meet operating activities during the first half as against cash outgo of $6.66 million in the last year period.
Cash flow from investing activities was $1.32 million for the first half, down 35.82 percent or $0.74 million, when compared with the last year period.
The company has spent $1.48 million cash to carry out financing activities during the first six months as against cash outgo of $1.44 million in the last year period.
Cash and cash equivalents stood at $17.69 million as on Dec. 31, 2016, up 46.32 percent or $5.60 million from $12.09 million on Dec. 31, 2015.
Working capital declines
Telenav, Inc. has witnessed a decline in the working capital over the last year. It stood at $104.12 million as at Dec. 31, 2016, down 16.95 percent or $21.24 million from $125.36 million on Dec. 31, 2015. Current ratio was at 2.74 as on Dec. 31, 2016, down from 4.32 on Dec. 31, 2015.
Days sales outstanding went down to 82 days for the quarter compared with 91 days for the same period last year.
At the same time, days payable outstanding went up to 18 days for the quarter from 4 for the same period last year.
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