Guidance Software, Inc (GUID) saw its loss narrow to $2.61 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.47 million, or $0.12 a share. On an adjusted basis, net profit for the quarter stood at $0.20 million, or $0.01 a share compared with a net loss of $0.88 million, or $0.03 a share in the last year period. Revenue during the quarter grew 3.29 percent to $27.70 million from $26.82 million in the previous year period. Gross margin for the quarter expanded 395 basis points over the previous year period to 69.90 percent. Operating margin for the quarter stood at negative 9.45 percent as compared to a negative 12.67 percent for the previous year period.
Operating loss for the quarter was $2.62 million, compared with an operating loss of $3.40 million in the previous year period.
However, the adjusted operating profit for the quarter stood at $0.20 million compared to operating loss of $0.89 million in prior year period.
"Q3 marked our third consecutive quarter of revenue growth. We continue to drive product revenue momentum and, in particular, strong Endpoint Security growth," commented Patrick Dennis, Guidance Software’s president and chief executive officer. Mr. Dennis added, "We continue to align our cost structure to focus on cybersecurity and profitable growth. Our overhead reduction plan will result in a strong finish for 2016 and a profitable outlook for 2017. Our pivot into cybersecurity combined with our realignment efforts puts us in a strong competitive position to drive shareholder value going forward."
For fiscal year 2016, Guidance Software forecasts revenue to be in the range of $108 million to $112 million. The company expects diluted loss per share to be in the range of $0.07 to $0.10 on adjusted basis.
For fiscal year 2017, Guidance Software forecasts revenue to be in the range of $112 million to $118 million. The company expects diluted earning per share to be in the range of $0.28 to $0.36 on adjusted basis.
Operating cash flow turns negative
Guidance Software, Inc has spent $9.88 million cash to meet operating activities during the nine month period as against cash inflow of $1.45 million in the last year period. The company has spent $1.87 million cash to meet investing activities during the nine month period as against cash outgo of $3.43 million in the last year period.
Cash flow from financing activities was $4.44 million for the nine month period, up 173.46 percent or $2.82 million, when compared with the last year period.
Cash and cash equivalents stood at $11.65 million as on Sep. 30, 2016, down 35.26 percent or $6.35 million from $18 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Guidance Software, Inc was negative $20.87 million on Sep. 30, 2016 compared with negative $8.24 million on Sep. 30, 2015. Current ratio was at 0.66 as on Sep. 30, 2016, down from 0.85 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 54 days for the last year period. Days sales outstanding were almost stable at 65 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 13 days for the quarter compared with 25 days for the previous year period. At the same time, days payable outstanding went up to 54 days for the quarter from 35 for the same period last year.
Debt increases substantially
Guidance Software, Inc has witnessed an increase in total debt over the last one year. It stood at $4.50 million as on Sep. 30, 2016, up 6,328.57 percent or $4.43 million from $0.07 million on Sep. 30, 2015. Guidance Software has witnessed an increase in short-term debt over the last one year. It stood at $4.50 million as on Sep. 30, 2016, up 6,328.57 percent or $4.43 million from $0.07 million on Sep. 30, 2015. Total debt was 6.01 percent of total assets as on Sep. 30, 2016, compared with 0.08 percent on Sep. 30, 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
