Telenav (TNAV) saw its loss widen to $13.69 million, or $0.31 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $9.84 million, or $0.23 a share. On an adjusted basis, net loss for the quarter was $13.69 million, when compared with $9.84 million in the last year period. Revenue during the quarter dropped 24.23 percent to $35.06 million from $46.28 million in the previous year period. Gross margin for the quarter expanded 603 basis points over the previous year period to 49.62 percent. Operating margin for the quarter stood at negative 37.57 percent as compared to a negative 19.96 percent for the previous year period.
Operating loss for the quarter was $13.17 million, compared with an operating loss of $9.24 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $9.92 million compared to negative $6.35 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 28.30 percent for the quarter compared to negative 13.73 percent in the last year period.
“We are very excited about the launch of our connected embedded services to General Motors in the March quarter,” said HP Jin, chairman and Chief executive officer of Telenav. “This has been the result of our successful collaboration with GM for the last three years. We are also very pleased that GM has decided to expand and extend our relationship to provide their next generation connected embedded navigation service through model year 2025. This reflects our strength in innovation, excellent execution and shared vision.”
For the fourth-quarter, Telenav projects revenue to be in the range of $39 million to $41 million. Telenav expects net loss to be in the range of $13.50 million to $14.50 million for the fourth-quarter. The company forecasts diluted loss per share to be in the range of $0.30 to $0.33 for the fourth-quarter.
Operating cash flow remains negative
Telenav has spent $10.92 million cash to meet operating activities during the nine month period as against cash outgo of $7.21 million in the last year period. Cash flow from investing activities was $10.59 million for the nine month period, up 79.44 percent or $4.69 million, when compared with the last year period.
Cash flow from financing activities was $0.19 million for the nine month period as against cash outgo of $1.79 million in the last year period.
Cash and cash equivalents stood at $20.76 million as on Mar. 31, 2017, up 34.50 percent or $5.33 million from $15.44 million on Mar. 31, 2016.
Working capital drops significantly
Telenav has witnessed a decline in the working capital over the last year. It stood at $101.52 million as at Mar. 31, 2017, down 28.51 percent or $40.48 million from $141.99 million on Mar. 31, 2016. Current ratio was at 2.73 as on Mar. 31, 2017, down from 12.40 on Mar. 31, 2016.
Days sales outstanding went up to 118 days for the quarter compared with 81 days for the same period last year.
At the same time, days payable outstanding went up to 30 days for the quarter from 13 for the same period last year.
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