Echelon Corporation (ELON) saw its loss widen to $1.20 million, or $0.27 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.88 million, or $0.20 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.73 million, or $0.17 a share from a loss of $1.19 million or $0.27 a share, a year ago.
Revenue during the quarter dropped 9.81 percent to $7.80 million from $8.65 million in the previous year period. Gross margin for the quarter expanded 136 basis points over the previous year period to 57.35 percent. Operating margin for the quarter stood at negative 14.62 percent as compared to a negative 7.68 percent for the previous year period.
Operating loss for the quarter was $1.14 million, compared with an operating loss of $0.66 million in the previous year period.
“First quarter results reflected better than anticipated embedded IoT product sales and our continued penetration in the outdoor lighting control solutions market,” said Ron Sege, Chairman and Chief executive officer. “Our differentiated connected lighting solutions are receiving high praise from the industry and from customers, evidenced by a growing number of follow-on orders and proof-of-concept installations ranging from cognitive video-based traffic adaptive lighting to white-tunable lighting that adapts to weather predictions. We are increasing our pace of innovation as we invest strategically for the future while continuing to effectively manage our cost structure.”
For fiscal year 2017, Echelon Corporation expects to be in the range of $7.20 million to $7.60 million and its diluted earnings per share to be in the range of $0.26 to $0.40 adjusted Diluted earnings per share to be in the range of $0.17 to $0.31. Operating cash flow remains negative
Echelon Corporation has spent $1.50 million cash to meet operating activities during the quarter as against cash outgo of $2.42 million in the last year period.
Cash flow from investing activities was $0.02 million for the quarter, up 433.33 percent or $0.01 million, when compared with the last year period.
Cash and cash equivalents stood at $8.32 million as on Mar. 31, 2017, up 57.43 percent or $3.04 million from $5.29 million on Mar. 31, 2016.
Working capital declines
Echelon Corporation has witnessed a decline in the working capital over the last year. It stood at $22.53 million as at Mar. 31, 2017, down 14.14 percent or $3.71 million from $26.24 million on Mar. 31, 2016. Current ratio was at 4.30 as on Mar. 31, 2017, down from 4.67 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 21 days for the quarter from 62 days for the last year period. Days sales outstanding went down to 41 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 34 days for the quarter compared with 74 days for the previous year period. At the same time, days payable outstanding went down to 54 days for the quarter from 56 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: [email protected]