CPI Card Group Inc (PMTS) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $4.51 million, or $ 0.08 a share in the quarter, against a net profit of $5.71 million, or $0.10 a share in the last year period. On an adjusted basis, net loss for the quarter was $2.98 million, when compared with net profit $7.14 million in the last year period. Revenue during the quarter plunged 35.17 percent to $56.01 million from $86.39 million in the previous year period. Gross margin for the quarter contracted 563 basis points over the previous year period to 28.74 percent. Operating margin for the quarter stood at negative 3.23 percent as compared to a positive 15.82 percent for the previous year period.
Operating loss for the quarter was $1.81 million, compared with an operating income of $13.66 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.85 million compared with $18.77 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1485 basis points in the quarter to 6.88 percent from 21.73 percent in the last year period.
“Our first quarter results were in line with our expectations, and we have reaffirmed our full year guidance” said Steve Montross, president and chief executive officer of CPI Card Group. “We continue to expect EMV card production volume in the U.S. to be similar in 2017 to 2016 levels. We will drive core growth primarily through our prepaid and value-added services businesses in the second half of the year with a continued focus on delivering our entire suite of product solutions and exceptional customer service to our broad customer base. During the quarter, we continued to make progress in our product innovations. Our Print on Demand activities began to ramp up with a strong backlog of opportunities and we received certification from Visa, MasterCard and Discover for a metal EMV card. We also made strong progress on our cost savings and efficiency initiatives and are on-track to achieve our full year targets. Equally important, we maintained a focus on
For fiscal year 2017, CPI Card Group Inc projects revenue to be in the range of $315 million to $340 million for financial year 2017 and its net income to be in the range of $12.30 million to $12.30 million and adjusted net income to be in the range of $19.70 million to $25.50 million and diluted earnings per share to be in the range of $0.22 to $0.32 and its adjusted diluted earnings per share to be in the range of $0.35 to $0.46.
Operating cash flow turns negative
CPI Card Group Inc has spent $5.01 million cash to meet operating activities during the quarter as against cash inflow of $16.76 million in the last year period. The company has spent $3.28 million cash to meet investing activities during the quarter as against cash outgo of $3.78 million in the last year period.
The company has spent $2.86 million cash to carry out financing activities during the quarter as against cash inflow of $0.24 million in the last year period.
Cash and cash equivalents stood at $25.91 million as on Mar. 31, 2017, down 3.53 percent or $0.95 million from $26.85 million on Mar. 31, 2016.
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