InfoSonics Corporation (IFON) saw its loss widen to $0.94 million, or $0.07 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.14 million, or $0.01 a share.
Revenue during the quarter dropped 26.19 percent to $8.99 million from $12.18 million in the previous year period. Gross margin for the quarter contracted 660 basis points over the previous year period to 9.83 percent. Operating margin for the quarter stood at negative 9.91 percent as compared to a negative 0.68 percent for the previous year period.
Operating loss for the quarter was $0.89 million, compared with an operating loss of $0.08 million in the previous year period.
“During the quarter we saw the supply pendulum swing from over-supply to under-supply as we experienced LCD panel shortages and delivery constraints of memory and CPUs,” said Joseph Ram, president and chief executive officer of InfoSonics. “These supply issues are resulting in significant manufacturing cost increases, and when combined with a soft market environment, have put significant pressure on both our top and bottom lines. Our focus going forward is to work aggressively to increase sales, and to improve our gross margins by centering our efforts on more profitable accounts. In addition, we are working to drive down operating expenses by 20% in the fourth quarter compared to the third quarter to reduce our breakeven point, a task that was aided by the resolution in September of all our outstanding patent litigation. Regarding our product offerings, over the last year we have been in development of a software platform that will support a suite of services and cloud-based solutions that we hope to launch in the second quarter of 2017.”
Operating cash flow turns negative
InfoSonics Corporation has spent $0.68 million cash to meet operating activities during the nine month period as against cash inflow of $4.24 million in the last year period.
The company has spent $0.06 million cash to meet investing activities during the nine month period as against cash outgo of $0.11 million in the last year period.
Cash flow from financing activities was $0.64 million for the nine month period as against cash outgo of $2.70 million in the last year period.
Cash and cash equivalents stood at $1.69 million as on Sep. 30, 2016, down 18.01 percent or $0.37 million from $2.06 million on Sep. 30, 2015.
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