Crossroads Systems, Inc. (CRDS) saw its loss widen to $0.38 million, or $0.36 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $0.14 million, or $0.15 a share.
Revenue during the quarter plunged 90.95 percent to $0.02 million from $0.21 million in the previous year period. Gross margin for the quarter expanded 850 basis points over the previous year period to 84.21 percent.
Operating loss for the quarter was $0.85 million, compared with an operating loss of $2.19 million in the previous year period.
Richard K. Coleman, Jr., president and chief executive officer at Crossroads Systems, said, "The hearing before the Federal Circuit on March 7, 2017 concludes the appeals phase of our '972 litigation. We look forward to a timely and favorable decision that permits us to continue our efforts to compel the defendants in our cases to pay for the use of Crossroads' technology. The non-'972 sales efforts are ongoing as the company seeks to maximize shareholder value."
Operating cash flow remains negative
Crossroads Systems, Inc. has spent $0.90 million cash to meet operating activities during the quarter as against cash outgo of $4.12 million in the last year period.
Working capital declines
Crossroads Systems, Inc. has witnessed a decline in the working capital over the last year. It stood at $2.55 million as at Jan. 31, 2017, down 18.47 percent or $0.58 million from $3.13 million on Jan. 31, 2016. Current ratio was at 2.30 as on Jan. 31, 2017, up from 1.42 on Jan. 31, 2016.
Days sales outstanding went up to 6885 days for the quarter compared with 823 days for the same period last year.
At the same time, days payable outstanding went up to 40097 days for the quarter from 3519 for the same period last year.
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