Digital Turbine, Inc (APPS) saw its loss narrow to $7.34 million, or $0.11 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $8.32 million, or $0.14 a share.
Revenue during the quarter grew 10.12 percent to $22.83 million from $20.73 million in the previous year period. Gross margin for the quarter expanded 1344 basis points over the previous year period to 13.81 percent. Operating margin for the quarter stood at negative 27.62 percent as compared to a negative 39.28 percent for the previous year period.
Operating loss for the quarter was $6.31 million, compared with an operating loss of $8.14 million in the previous year period.
"Digital Turbine made meaningful operational progress during the September quarter," said Bill Stone, chief executive officer. "While unsatisfied with our A&P and Content results, we achieved 42% sequential growth in our O&O business despite slower-than-expected onboarding of key new partners and the much-publicized Samsung Note 7 recall during the quarter. Specifically, O&O revenue in the U.S. grew 38% sequentially, while International O&O revenue nearly doubled sequentially, as we grew revenue with our existing partners as well as with several new partners. With a total of 20 partners now utilizing the Ignite platform, we have successfully positioned our O&O business to achieve continued solid growth in the December quarter and beyond."
Operating cash flow remains negative
Digital Turbine, Inc has spent $3.57 million cash to meet operating activities during the first half as against cash outgo of $1.66 million in the last year period.
The company has spent $1.12 million cash to meet investing activities during the first six months as against cash outgo of $0.61 million in the last year period.
Cash flow from financing activities was $2.92 million for the first six months as against cash outgo of $0.25 million in the last year period.
Cash and cash equivalents stood at $9.42 million as on Sep. 30, 2016, up 105.50 percent or $4.83 million from $4.58 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Digital Turbine, Inc was negative $3.54 million on Sep. 30, 2016 compared with negative $10.08 million on Sep. 30, 2015. Current ratio was at 0.89 as on Sep. 30, 2016, up from 0.66 on Sep. 30, 2015.
Days sales outstanding were almost stable at 61 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 72 days for the quarter from 53 for the same period last year.
Debt comes down
Digital Turbine, Inc has recorded a decline in total debt over the last one year. It stood at $9.38 million as on Sep. 30, 2016, down 11.69 percent or $1.24 million from $10.63 million on Sep. 30, 2015. Total debt was 8.01 percent of total assets as on Sep. 30, 2016, compared with 9.18 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.13 as on Sep. 30, 2016, when compared with the last year.
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