Guidance Software, Inc. (GUID) saw its loss narrow to $1.73 million, or $0.06 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $6.79 million, or $0.24 a share. On an adjusted basis, net profit for the quarter stood at $2.22 million, or $0.07 a share compared with a net loss of $2.17 million, or $0.08 a share in the last year period.

Revenue during the quarter grew 3.83 percent to $26.79 million from $25.80 million in the previous year period. Gross margin for the quarter expanded 439 basis points over the previous year period to 72.62 percent. Operating margin for the quarter stood at negative 6.23 percent as compared to a negative 26.15 percent for the previous year period.

Operating loss for the quarter was $1.67 million, compared with an operating loss of $6.75 million in the previous year period.

However, the adjusted operating profit for the quarter stood at $2.21 million compared to operating loss of $2.18 million in prior year period.

"The Q1 financial results are a solid start to 2017. These results include growth in product revenue, total revenue, forensic security bookings, and earnings. Not only have we grown in each of these important areas that are crucial to our long-term success, we have strengthened our cash position as planned," said Patrick Dennis, Guidance Software’s president and chief executive officer.

For financial year 2017, Guidance Software projects revenue to be in the range of $112 million to $118 million. The company forecasts diluted earnings per share to be in the range of $0.28 to $0.36 on adjusted basis.

The company has spent $0.08 million cash to meet investing activities during the quarter as against cash outgo of $0.81 million in the last year period.

The company has spent $3.44 million cash to carry out financing activities during the quarter as against cash outgo of $0.02 million in the last year period.

Cash and cash equivalents stood at $17.76 million as on Mar. 31, 2017, down 13.03 percent or $2.66 million from $20.42 million on Mar. 31, 2016.

Working capital remains negative
Working capital of Guidance Software, Inc. was negative $17.18 million on Mar. 31, 2017 compared with negative $14.57 million on Mar. 31, 2016. Current ratio was at 0.71 as on Mar. 31, 2017, down from 0.74 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 36 days for the quarter from 53 days for the last year period. Days sales outstanding were almost stable at 64 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 15 days for the quarter compared with 28 days for the previous year period. At the same time, days payable outstanding went up to 43 days for the quarter from 39 for the same period last year.