I.D. Systems, Inc. (IDSY) saw its loss widen to $1.89 million, or $0.14 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.70 million, or $0.05 a share. On the other hand, adjusted net loss for the quarter widened to $1.08 million, or $0.08 a share from a loss of $0.07 million or $0.01 a share, a year ago.
Revenue during the quarter dropped 23.65 percent to $8 million from $10.48 million in the previous year period. Gross margin for the quarter expanded 227 basis points over the previous year period to 51.88 percent. Operating margin for the quarter stood at negative 23.38 percent as compared to a negative 6.85 percent for the previous year period.
Operating loss for the quarter was $1.87 million, compared with an operating loss of $0.72 million in the previous year period.
"Our revenue for the first quarter came in lower than expected, primarily due to VMS orders that slipped into Q2," said I.D. Systems chief executive officer Chris Wolfe. "Two of these significant orders were recently secured and consist of major wins with two leading auto manufacturers and we expect to start shipping units this quarter. From an operational perspective, during the first quarter we continued to make progress in executing on the key initiatives we initiated late last year. This involved significant improvements in product development, cost management and organizational structure. Our success was highlighted by the launch of new software and analytics products, the flattening of our organizational structure to further reduce operating expenses, as well as improvements in our gross margin, cash flow and balance sheet."
Operating cash flow turns positive
I.D. Systems, Inc. has generated cash of $2.34 million from operating activities during the quarter as against cash outgo of $0.14 million in the last year period.
The company has spent $0.06 million cash to meet investing activities during the quarter as against cash outgo of $0.18 million in the last year period.
Cash and cash equivalents stood at $6.67 million as on Mar. 31, 2017, up 60.92 percent or $2.52 million from $4.14 million on Mar. 31, 2016.
Working capital declines
I.D. Systems, Inc. has witnessed a decline in the working capital over the last year. It stood at $10.23 million as at Mar. 31, 2017, down 24.57 percent or $3.33 million from $13.56 million on Mar. 31, 2016. Current ratio was at 1.54 as on Mar. 31, 2017, down from 1.89 on Mar. 31, 2016.
Days sales outstanding went up to 135 days for the quarter compared with 114 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 109 days for the previous year period.
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