Echelon Corporation (ELON) saw its loss narrow to $1.24 million, or $0.28 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $5.60 million, or $1.27 a share. On the other hand, adjusted net loss for the quarter widened to $0.50 million, or $0.11 a share from a loss of $0.29 million or $0.07 a share, a year ago. Revenue during the quarter dropped 21.81 percent to $7.50 million from $9.59 million in the previous year period. Gross margin for the quarter contracted 233 basis points over the previous year period to 54.99 percent. Operating margin for the quarter stood at negative 22.70 percent as compared to a negative 60.88 percent for the previous year period.
Operating loss for the quarter was $1.70 million, compared with an operating loss of $5.84 million in the previous year period.
“This quarter we expanded our connected lighting platform revenues for the fourth quarter in a row, despite overall revenue being lower than expected. We are encouraged by the level of sales engagement and the market response to our vision of connected lighting applications moving beyond energy savings and into safety, livability and maintenance efficiencies,” said Ron Sege, chairman and chief executive officer. “We are especially pleased with the early response to our collaboration with the IBM Watson Cognitive Computing Platform, and what we believe is the world’s first, white-tunable outdoor lighting installation in a suburb of Minneapolis.”
For the first-quarter, Echelon Corp projects revenue to be in the range of $7.20 million to $7.60 million. The company forecasts diluted earnings per share to be in the range of $0.35 to $0.47 for the first-quarter. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.22 to $0.34 for the first-quarter.
Operating cash flow remains negative
Echelon Corporation has spent $3.02 million cash to meet operating activities during the year as against cash outgo of $4.93 million in the last year. Cash flow from investing activities was $5.24 million for the year, down 51.35 percent or $5.53 million, when compared with the last year.
The company has spent $0.04 million cash to carry out financing activities during the year as against cash outgo of $11.43 million in the last year period.
Cash and cash equivalents stood at $9.80 million as on Dec. 31, 2016, up 27.46 percent or $2.11 million from $7.69 million on Dec. 31, 2015.
Working capital declines
Echelon Corporation has witnessed a decline in the working capital over the last year. It stood at $23.08 million as at Dec. 31, 2016, down 13.59 percent or $3.63 million from $26.71 million on Dec. 31, 2015. Current ratio was at 4.06 as on Dec. 31, 2016, down from 4.14 on Dec. 31, 2015.
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