Covisint Corporation (COVS) saw its loss widen to $4.91 million, or $0.12 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.13 million, or $0.10 a share. On the other hand, adjusted net loss for the quarter widened to $4.07 million, or $0.10 a share from a loss of $3.67 million or $0.09 a share, a year ago.
Revenue during the quarter dropped 6.65 percent to $17.17 million from $18.39 million in the previous year period. Gross margin for the quarter contracted 563 basis points over the previous year period to 48.32 percent. Operating margin for the quarter stood at negative 28.57 percent as compared to a negative 22.38 percent for the previous year period.
Operating loss for the quarter was $4.90 million, compared with an operating loss of $4.12 million in the previous year period.
"During the second quarter, we delivered total revenue of $17.2 million, which included $14.6 million in subscription revenue. Our margins remain strong and we finished the quarter with nearly $35 million in cash, which was ahead of our expectations. We remain focused on driving subscription revenue sales growth, particularly within our core automotive vertical, while aggressively managing our cash position through strong expense management. We are raising our Fiscal Year End 2017 cash guidance to $33 million and expect to be cash flow break-even for Fiscal Year 2018," said Covisint chief executive officer, Sam Inman.
Operating cash flow remains negative
Covisint Corporation has spent $2.96 million cash to meet operating activities during the first half as against cash outgo of $3.57 million in the last year period.
The company has spent $1.62 million cash to meet investing activities during the first six months as against cash outgo of $4.95 million in the last year period.
The company has spent $0.25 million cash to carry out financing activities during the first six months as against cash inflow of $0.12 million in the last year period.
Cash and cash equivalents stood at $34.81 million as on Sep. 30, 2016, down 16.50 percent or $6.88 million from $41.70 million on Sep. 30, 2015.
Working capital drops significantly
Covisint Corporation has witnessed a decline in the working capital over the last year. It stood at $22.18 million as at Sep. 30, 2016, down 26.09 percent or $7.83 million from $30.01 million on Sep. 30, 2015. Current ratio was at 1.90 as on Sep. 30, 2016, down from 2.02 on Sep. 30, 2015.
Days sales outstanding went down to 59 days for the quarter compared with 64 days for the same period last year.
At the same time, days payable outstanding went down to 52 days for the quarter from 62 for the same period last year.
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