INNODATA INC (INOD) swung to a net loss for the quarter ended Mar. 31, 2017. Revenue during the quarter dropped 4.75 percent to $14.95 million from $15.70 million in the previous year period. Operating margin for the quarter stood at negative 9.33 percent as compared to a positive 2.69 percent for the previous year period.
Operating loss for the quarter was $1.40 million, compared with an operating income of $0.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.16 million compared with $1.35 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 1.10 percent for the quarter compared to 8.62 percent in the last year period.
Jack Abuhoff, Chairman and Chief executive officer, said, “First quarter revenue - while in line with the mid-point of our guidance - declined by $0.7 million from the fourth quarter. This resulted in an Adjusted EBITDA loss of $160,000 due to high operating leverage. Revenue in our Digital Data Solutions (DDS) segment was $11.4 million compared to $11.7 million in the fourth quarter, as volumes from new customer engagements were not sufficient to offset the lower volumes from several existing customer engagements. In our Innodata Advanced Data Solutions (IADS) segment, a combination of seasonality and the expiration of a contract in the Synodex business translated into lower segmental revenue of $1.0 million compared to $1.25 million in the fourth quarter.
Working capital drops significantly
INNODATA INC has witnessed a decline in the working capital over the last year. It stood at $12.58 million as at Mar. 31, 2017, down 58.41 percent or $17.66 million from $30.24 million on Mar. 31, 2016. Current ratio was at 1.87 as on Mar. 31, 2017, down from 3.34 on Mar. 31, 2016. Days sales outstanding went down to 29 days for the quarter compared with 30 days for the same period last year.
Debt moves up
INNODATA INC has witnessed an increase in total debt over the last one year. It stood at $5.93 million as on Mar. 31, 2017, up 17.66 percent or $0.89 million from $5.04 million on Mar. 31, 2016. Total debt was 12.21 percent of total assets as on Mar. 31, 2017, compared with 9.54 percent on Mar. 31, 2016. Debt to equity ratio was at 0.18 as on Mar. 31, 2017, up from 0.13 as on Mar. 31, 2016. 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
