GTT Communications, Inc (GTLT) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $16.80 million, or $ 0.42 a share in the quarter, against a net profit of $0.90 million, or $0.02 a share in the last year period. Revenue during the quarter surged 46.62 percent to $182.40 million from $124.40 million in the previous year period. Gross margin for the quarter expanded 311 basis points over the previous year period to 49.89 percent. Operating margin for the quarter stood at negative 1.64 percent as compared to a positive 7.15 percent for the previous year period.
Operating loss for the quarter was $3 million, compared with an operating income of $8.90 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $50.70 million compared with $28.90 million in the prior year period. At the same time, adjusted EBITDA margin improved 456 basis points in the quarter to 27.80 percent from 23.23 percent in the last year period.
“GTT is off to a great start in 2017,” stated Rick Calder, GTT president and Chief executive officer. “Our integration of Hibernia is well underway, and we are on track to achieve our $30 million synergy target. We look forward to driving continued growth to achieve our next financial objectives of $1 billion in revenue and $250 million in Adjusted EBITDA.”
Operating cash flow drops significantly
GTT Communications, Inc has generated cash of $2.30 million from operating activities during the quarter, down 62.90 percent or $ 3.90 million, when compared with the last year period. The company has spent $221.20 million cash to meet investing activities during the quarter as against cash outgo of $21.30 million in the last year period.
Cash flow from financing activities was $221.60 million for the quarter, up 1,826.96 percent or $210.10 million, when compared with the last year period.
Cash and cash equivalents stood at $33 million as on Mar. 31, 2017, up 226.73 percent or $22.90 million from $10.10 million on Mar. 31, 2016.
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