Covisint Corporation (COVS) saw its loss widen to $4.40 million, or $0.11 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.07 million, or $0.10 a share. On the other hand, adjusted net loss for the quarter narrowed to $3.50 million, or $0.09 a share from a loss of $3.79 million or $0.09 a share, a year ago. Revenue during the quarter dropped 13.13 percent to $16.65 million from $19.16 million in the previous year period. Gross margin for the quarter contracted 502 basis points over the previous year period to 48.94 percent. Operating margin for the quarter stood at negative 26.27 percent as compared to a negative 20.99 percent for the previous year period.
Operating loss for the quarter was $4.37 million, compared with an operating loss of $4.02 million in the previous year period.
"During the third quarter, we achieved total revenue of $16.6 million, which included $14.7 million in subscription revenue. We finished the quarter with over $30 million in cash, which was in-line with our expectations. Earlier, we announced our shift in focus towards our core heritage, the automotive vertical. I have been pleased with the progress we have made and the make-up of our new team. The quality of our pipeline is improving, and we are seeing new account opportunities, not only in Cloud Identity, but also in Connected Car,” said Covisint chief executive officer, Sam Inman.
Operating cash flow remains negative
Covisint Corporation has spent $6.37 million cash to meet operating activities during the nine month period as against cash outgo of $7.64 million in the last year period. The company has spent $2.36 million cash to meet investing activities during the nine month period as against cash outgo of $6.30 million in the last year period.
The company has spent $0.38 million cash to carry out financing activities during the nine month period as against cash inflow of $1.53 million in the last year period.
Cash and cash equivalents stood at $30.44 million as on Dec. 31, 2016, down 19.08 percent or $7.18 million from $37.62 million on Dec. 31, 2015.
Working capital drops significantly
Covisint Corporation has witnessed a decline in the working capital over the last year. It stood at $19.24 million as at Dec. 31, 2016, down 31.11 percent or $8.69 million from $27.93 million on Dec. 31, 2015. Current ratio was at 1.86 as on Dec. 31, 2016, down from 2.18 on Dec. 31, 2015.
Days sales outstanding went up to 58 days for the quarter compared with 53 days for the same period last year.
At the same time, days payable outstanding went up to 67 days for the quarter from 58 for the same period last year.
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