ZAGG Inc (ZAGG) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $7.10 million, or $ 0.25 a share in the quarter, against a net profit of $3.74 million, or $0.13 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $8.27 million, or $0.29 a share compared with $3.74 million or $0.13 a share, a year ago.
Revenue during the quarter surged 86.69 percent to $124.66 million from $66.77 million in the previous year period. Gross margin for the quarter contracted 264 basis points over the previous year period to 34.61 percent. Operating margin for the quarter stood at negative 10.20 percent as compared to a positive 9.33 percent for the previous year period.
Operating loss for the quarter was $12.71 million, compared with an operating income of $6.23 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $17.82 million compared with $9.94 million in the prior year period. At the same time, adjusted EBITDA margin contracted 59 basis points in the quarter to 14.30 percent from 14.89 percent in the last year period.
"We're pleased with our results for the quarter and for the first nine months of the year, with record sales and strong operating performance," commented Randy Hales, president and chief executive officer of ZAGG Inc. "However, we are disappointed with the mophie operating results to date. Consequently, I have assumed the role of interim president at mophie to accelerate the return to profitability and improve overall operating performance while we search for a new president."
For financial year 2016, Zagg projects revenue to be in the range of $400 million to $420 million.
Working capital drops significantly
ZAGG Inc has witnessed a decline in the working capital over the last year. It stood at $25.27 million as at Sep. 30, 2016, down 67.14 percent or $51.63 million from $76.91 million on Sep. 30, 2015. Current ratio was at 1.15 as on Sep. 30, 2016, down from 2.53 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 106 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 74 days for the same period last year.
Days inventory outstanding has decreased to 37 days for the quarter compared with 98 days for the previous year period. At the same time, days payable outstanding went down to 54 days for the quarter from 66 for the same period last year.
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
