INSEEGO CORP saw its loss narrow to $18.57 million, or $0.34 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $20.85 million, or $0.38 a share. On an adjusted basis, net loss for the quarter stood at $1.80 million, or $0.03 a share. Revenue during the quarter grew 12.19 percent to $60.88 million from $54.27 million in the previous year period. Gross margin for the quarter expanded 1099 basis points over the previous year period to 37.65 percent. Operating margin for the quarter stood at negative 19.58 percent as compared to a negative 13.83 percent for the previous year period.
Operating loss for the quarter was $11.92 million, compared with an operating loss of $7.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.31 million.
"Novatel Wireless has been on an incredible journey over the past 12 months. With the pending sale of our MiFi business expected to close in the first quarter of 2017, the Company’s transformation into a provider of comprehensive IoT solutions is nearly complete. We now have approximately 590,000 subscribers to the Company’s high-margin SaaS, software and services offerings, with 20% annualized growth in subscribers to the Company’s Ctrack fleet management telematics solutions during the third quarter," said Sue Swenson, Chair and chief executive officer of Novatel Wireless. "With another record quarter for SaaS, software and services revenues driving the Company to a fourth consecutive quarter of improved adjusted EBITDA, I look forward to a brighter future as we move beyond our hardware roots and emerge as a pure-play IoT solutions provider."
For the fourth-quarter 2016, INSEEGO CORP forecasts revenue to be in the range of $58 million to $63 million.
Operating cash flow turns positive
INSEEGO CORP has generated cash of $0.05 million from operating activities during the nine month period as against cash outgo of $26.30 million in the last year period. Cash flow from investing activities was $6.18 million for the nine month period as against cash outgo of $98.56 million in the last year period.
The company has spent $1.49 million cash to carry out financing activities during the nine month period as against cash inflow of $117.57 million in the last year period.
Cash and cash equivalents stood at $17.16 million as on Sep. 30, 2016, up 67.97 percent or $6.95 million from $10.22 million on Sep. 30, 2015.
Working capital drops significantly
INSEEGO CORP has witnessed a decline in the working capital over the last year. It stood at $24.83 million as at Sep. 30, 2016, down 39.90 percent or $16.49 million from $41.32 million on Sep. 30, 2015. Current ratio was at 1.34 as on Sep. 30, 2016, down from 1.79 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 22 days for the quarter from 86 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 92 days for the previous year period. At the same time, days payable outstanding went up to 72 days for the quarter from 64 for the same period last year.
Debt moves up
INSEEGO CORP has witnessed an increase in total debt over the last one year. It stood at $91.50 million as on Sep. 30, 2016, up 13.87 percent or $11.15 million from $80.35 million on Sep. 30, 2015. Short-term debt stood at $2.70 million as on Sep. 30, 2016. Total debt was 49.30 percent of total assets as on Sep. 30, 2016, compared with 40.58 percent on Sep. 30, 2015. Debt to equity ratio was at 11.79 as on Sep. 30, 2016, up from 1.63 as 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
