Cimpress N.V. (CMPR) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $29.10 million, or $ 0.92 a share in the quarter, against a net profit of $10.77 million, or $0.32 a share in the last year period. Revenue during the quarter grew 18.09 percent to $443.71 million from $375.75 million in the previous year period. Gross margin for the quarter contracted 631 basis points over the previous year period to 51.83 percent. Operating margin for the quarter stood at negative 6.27 percent as compared to a positive 3.22 percent for the previous year period.
Operating loss for the quarter was $27.81 million, compared with an operating income of $12.08 million in the previous year period.
"Fiscal year 2017 is off to a solid start and we are executing well against our plans to invest in a broad spectrum of long-term organic investments as outlined at the beginning of the fiscal year," said Robert Keane, president and chief executive officer. "We continue to have confidence that, even though these investments are depressing near-term profitability, they will strengthen our competitive position and improve the intrinsic value of our business, consistent with our fundamental approach to capital allocation."
Operating cash flow drops significantly
Cimpress N.V. has generated cash of $9.60 million from operating activities during the quarter, down 65 percent or $ 17.83 million, when compared with the last year period. The company has spent $27.45 million cash to meet investing activities during the quarter as against cash outgo of $50.40 million in the last year period.
The company has spent $6.55 million cash to carry out financing activities during the quarter as against cash inflow of $14.30 million in the last year period.
Cash and cash equivalents stood at $53.62 million as on Sep. 30, 2016, down 42.84 percent or $40.19 million from $93.82 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Cimpress N.V. was negative $156.53 million on Sep. 30, 2016 compared with negative $94.57 million on Sep. 30, 2015. Current ratio was at 0.53 as on Sep. 30, 2016, down from 0.70 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 20 days for the quarter from 19 days for the last year period. Days sales outstanding went down to 6 days for the quarter compared with 9 days for the same period last year.
Days inventory outstanding has decreased to 4 days for the quarter compared with 11 days for the previous year period. At the same time, days payable outstanding went down to 31 days for the quarter from 39 for the same period last year.
Debt moves up marginally
Cimpress N.V. has witnessed an increase in total debt over the last one year. It stood at $682.52 million as on Sep. 30, 2016, up 4.15 percent or $27.20 million from $655.32 million on Sep. 30, 2015. Total debt was 46.87 percent of total assets as on Sep. 30, 2016, compared with 48.77 percent on Sep. 30, 2015. Debt to equity ratio was at 4.63 as on Sep. 30, 2016, down from 5.95 as on Sep. 30, 2015. 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
