Black Box Corporation (BBOX) saw its loss narrow to $6.10 million, or $0.40 a share for the quarter ended Oct. 01, 2016. In the previous year period, the company reported a loss of $129.80 million, or $8.45 a share. Revenue during the quarter dropped 7.64 percent to $218.70 million from $236.80 million in the previous year period. Gross margin for the quarter contracted 528 basis points over the previous year period to 24.87 percent. Operating margin for the quarter stood at negative 2.97 percent as compared to a negative 63.30 percent for the previous year period.
Operating loss for the quarter was $6.50 million, compared with an operating loss of $149.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $8.40 million compared to $10.90 million in the prior year period. At the same time, adjusted operating margin contracted 76 basis points in the quarter to 3.84 percent from 4.60 percent in the last year period.
"The execution of our business transformation roadmap is on track with the plan we presented in May to first stabilize and then optimize the business," said E.C. Sykes, president and chief executive officer. "The team over-achieved on cost-control and working capital initiatives, allowing us to meet or exceed these goals and to increase profitability relative to the prior quarter in spite of revenues slightly below our targets. We remain on track to implement our new operating model by the end of Fiscal 2017."
Operating cash flow turns positive
Black Box Corporation has generated cash of $15.70 million from operating activities during the first half as against cash outgo of $13.90 million in the last year period. The company has spent $2.50 million cash to meet investing activities during the first six months as against cash outgo of $4.40 million in the last year period. It has incurred net capital expenditure of $2.50 million on net basis during the first six months, down 43.18 percent or $1.90 million from year ago period.
The company has spent $20.90 million cash to carry out financing activities during the first six months as against cash inflow of $14.30 million in the last year period.
Cash and cash equivalents stood at $16.10 million as on Oct. 01, 2016, down 20.64 percent or $4.19 million from $20.29 million on Sep. 26, 2015.
Working capital drops significantly
Black Box Corporation has witnessed a decline in the working capital over the last year. It stood at $105.30 million as at Oct. 01, 2016, down 41.19 percent or $73.76 million from $179.06 million on Sep. 26, 2015. Current ratio was at 1.58 as on Oct. 01, 2016, down from 2.10 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 34 days for the quarter from 55 days for the last year period. Days sales outstanding went up to 62 days for the quarter compared with 61 days for the same period last year.
Days inventory outstanding has decreased to 7 days for the quarter compared with 28 days for the previous year period. At the same time, days payable outstanding went up to 36 days for the quarter from 34 for the same period last year.
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