Guidance Software (GUID) saw its loss narrow to $1.62 million, or $0.06 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $3.58 million, or $0.13 a share. On an adjusted basis, net profit for the quarter stood at $2.85 million, or $0.09 a share compared with a net loss of $1.29 million, or $0.05 a share in the last year period.
Revenue during the quarter grew 6.62 percent to $29.46 million from $27.63 million in the previous year period. Gross margin for the quarter expanded 475 basis points over the previous year period to 72.91 percent. Operating margin for the quarter stood at negative 5.15 percent as compared to a negative 12.56 percent for the previous year period.
Operating loss for the quarter was $1.52 million, compared with an operating loss of $3.47 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $2.88 million compared to operating loss of $1.30 million in prior year period.
“We entered 2016 with a plan to: 1 pivot to cybersecurity, 2 transform our go-to-market and product delivery capabilities, and 3 set a foundation for long-term, sustainable growth. I’m very happy to report that we executed on all of these objectives. Additionally, we restructured the business for profitability and exited 2016 in a strong position," said Patrick Dennis, Guidance Software’s president and chief executive officer.
For financial year 2017, Guidance Software expects revenue to be in the range of $112 million to $118 million. The company projects diluted earnings per share to be in the range of $0.28 to $0.36 on adjusted basis.
Operating cash flow turns negativeGuidance Software has spent $7.79 million cash to meet operating activities during the year as against cash inflow of $2.83 million in the last year. The company has spent $2 million cash to meet investing activities during the year as against cash outgo of $3.82 million in the last year.
Cash flow from financing activities was $3.44 million for the year, up 114.13 percent or $1.83 million, when compared with the last year.
Cash and cash equivalents stood at $12.62 million as on Dec. 31, 2016, down 33.47 percent or $6.35 million from $18.97 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Guidance Software was negative $19.16 million on Dec. 31, 2016 compared with negative $8.49 million on Dec. 31, 2015. Current ratio was at 0.69 as on Dec. 31, 2016, down from 0.84 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 32 days for the last year period. Days sales outstanding were almost stable at 35 days for the quarter, when compared with the last year period.
Days inventory outstanding was almost stable at 13 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 27 days for the quarter from 17 for the same period last year.
Debt increases substantiallyGuidance Software has witnessed an increase in total debt over the last one year. It stood at $3.50 million as on Dec. 31, 2016, up 4,972.46 percent or $3.43 million from $0.07 million on Dec. 31, 2015. Guidance Software has witnessed an increase in short-term debt over the last one year. It stood at $3.50 million as on Dec. 31, 2016, up 4,972.46 percent or $3.43 million from $0.07 million on Dec. 31, 2015. Total debt was 4.70 percent of total assets as on Dec. 31, 2016, compared with 0.08 percent on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
