Actua Corporation (ACTA) saw its loss narrow to $10.07 million, or $0.27 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $13.88 million, or $0.37 a share. On the other hand, adjusted net loss for the quarter widened to $1.56 million, or $0.04 a share from a loss of $1.38 million or $0.04 a share, a year ago.
Revenue during the quarter grew 12.12 percent to $27.94 million from $24.92 million in the previous year period. Gross margin for the quarter expanded 11 basis points over the previous year period to 73.37 percent. Operating margin for the quarter stood at negative 35.77 percent as compared to a negative 49.62 percent for the previous year period.
Operating loss for the quarter was $9.99 million, compared with an operating loss of $12.36 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.83 million compared to negative $0.81 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 2.96 percent for the quarter compared to negative 3.27 percent in the last year period.
"The GovDelivery transaction demonstrates the value Actua brings in building successful SaaS businesses and unlocking that value for stockholders," said Walter Buckley, CEO of Actua. "With approximately $170 million of cash following the GovDelivery sale, we will continue to drive stockholder value by building our remaining businesses and repurchasing shares."
For the fourth-quarter, Actua Corporation expects revenue to be in the range of $28.50 million to $29.50 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.06 to $0.08.
Operating cash flow remains negative
Actua Corporation has spent $7.32 million cash to meet operating activities during the nine month period as against cash outgo of $4.12 million in the last year period.
The company has spent $2.35 million cash to meet investing activities during the nine month period as against cash outgo of $1.78 million in the last year period.
The company has spent $20.96 million cash to carry out financing activities during the nine month period as against cash outgo of $14.53 million in the last year period.
Cash and cash equivalents stood at $41.79 million as on Sep. 30, 2016, down 48.15 percent or $38.80 million from $80.59 million on Sep. 30, 2015.
Working capital drops significantly
Actua Corporation has witnessed a decline in the working capital over the last year. It stood at $10.80 million as at Sep. 30, 2016, down 72.60 percent or $28.63 million from $39.43 million on Sep. 30, 2015. Current ratio was at 1.12 as on Sep. 30, 2016, down from 1.52 on Sep. 30, 2015.
Days sales outstanding went down to 64 days for the quarter compared with 92 days for the same period last year.
At the same time, days payable outstanding went down to 125 days for the quarter from 172 for the same period last year.
Debt remains stable
Total debt remained stable at $1.32 million as on Sep. 30, 2016, when compared with the last year. Short-term debt remained stable at $1.32 million as on Sep. 30, 2016, when compared with the last year. Total debt was 0.31 percent of total assets as on Sep. 30, 2016, compared with 0.26 percent on Sep. 30, 2015.
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