Intermolecular, Inc. (IMI) saw its loss widen to $6.78 million, or $0.14 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $5.82 million, or $0.12 a share. On the other hand, adjusted net loss for the quarter widened to $5.89 million, or $0.12 a share from a loss of $4.68 million or $0.10 a share, a year ago.
Revenue during the quarter dropped 8.28 percent to $10.57 million from $11.53 million in the previous year period. Gross margin for the quarter expanded 1111 basis points over the previous year period to 67.32 percent. Operating margin for the quarter stood at negative 65.37 percent as compared to a negative 49.90 percent for the previous year period.
Operating loss for the quarter was $6.91 million, compared with an operating loss of $5.75 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $6.03 million compared to operating loss of $4.61 million in prior year period.
"My initial months at Intermolecular have been productive and positive. I have quickly been able to get my arms around our operations, and have begun to address the challenges to growth. My initial focus has been on improving our sales organization, restructuring and expanding IMI’s new business opportunities. The actions we took this quarter will lower our EBITDA break-even revenue point to the $11.5M range per quarter. In addition, I have seen the market conditions stabilize with our key customers and have gotten customer commitments that should increase our pipeline significantly in 2017 and 2018. I believe that this improved pipeline will yield a larger and more predictable base of business." said Chris Kramer, CEO of Intermolecular."
Operating cash flow remains negative
Intermolecular, Inc. has spent $1.70 million cash to meet operating activities during the nine month period as against cash outgo of $6.81 million in the last year period.
The company has spent $0.99 million cash to meet investing activities during the nine month period as against cash inflow of $10.49 million in the last year period
Cash flow from financing activities was $0.71 million for the nine month period as against cash outgo of $22.14 million in the last year period.
Cash and cash equivalents stood at $9.70 million as on Sep. 30, 2016, up 193.70 percent or $6.39 million from $3.30 million on Sep. 30, 2015.
Working capital declines
Intermolecular, Inc. has witnessed a decline in the working capital over the last year. It stood at $28.01 million as at Sep. 30, 2016, down 15.22 percent or $5.03 million from $33.04 million on Sep. 30, 2015. Current ratio was at 5.32 as on Sep. 30, 2016, up from 4.15 on Sep. 30, 2015.
Days sales outstanding went down to 42 days for the quarter compared with 56 days for the same period last year.
At the same time, days payable outstanding went down to 19 days for the quarter from 26 for the same period last year.
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