Internap Corporation (INAP) saw its loss widen to $91.30 million, or $1.75 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $14.20 million, or $0.27 a share. On the other hand, adjusted net loss for the quarter narrowed to $7.68 million, or $0.15 a share from a loss of $9.99 million or $0.19 a share, a year ago.
Revenue during the quarter dropped 5.59 percent to $73.94 million from $78.32 million in the previous year period. Gross margin for the quarter expanded 123 basis points over the previous year period to 46.51 percent.
Operating loss for the quarter was $83.40 million, compared with an operating loss of $9.18 million in the previous year period.
However, the adjusted EBITDA for the quarter was almost stable at $19.84 million, when compared with the prior year period. At the same time, adjusted EBITDA margin improved 161 basis points in the quarter to 26.83 percent from 25.22 percent in the last year period.
"I am very excited about INAP's presence in major U.S. and global markets with our impressive upper Tier colocation assets, high-capacity network capabilities and in-demand AgileCloud services led by our Montreal team," said Peter D. Aquino, president and chief executive officer of Internap. "I believe focusing on our core strengths, reorganizing, cutting costs and aligning into pure-play businesses will position us in early 2017 to leverage these great platforms to significantly increase our sales productivity. In addition, we are simultaneously exploring strategies to improve our capital structure so we have the flexibility and runway to grow organically, participate in accretive strategic transactions, and to capture growing demand for premier products and services in the expanding internet infrastructure market."
For fiscal year 2016, Internap Corporation forecasts revenue to be in the range of $297 million to $300 million.
Operating cash flow improves significantly
Internap Corporationhas generated cash of $36.26 million from operating activities during the nine month period, up 61.95 percent or $13.87 million, when compared with the last year period.
The company has spent $39.40 million cash to meet investing activities during the nine month period as against cash outgo of $42.42 million in the last year period.
The company has spent $5.01 million cash to carry out financing activities during the nine month period as against cash inflow of $18.57 million in the last year period.
Cash and cash equivalents stood at $9.64 million as on Sep. 30, 2016, down 47.36 percent or $8.67 million from $18.31 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Internap Corporation has turned negative to $16.49 million on Sep. 30, 2016 from positive $1.20 million on Sep. 30, 2015. Current ratio was at 0.70 as on Sep. 30, 2016, down from 1.02 on Sep. 30, 2015.
Days sales outstanding went down to 24 days for the quarter compared with 25 days for the same period last year.
At the same time, days payable outstanding went up to 52 days for the quarter from 39 for the same period last year.
Debt remains almost stable
Total debt of Internap Network Services Corp remained almost stable for the quarter at $375.11 million, when compared with the last year period. Total debt was 83.71 percent of total assets as on Sep. 30, 2016, compared with 66.60 percent on Sep. 30, 2015. Debt to equity ratio was at 40.49 as on Sep. 30, 2016, up from 3.04 as on Sep. 30, 2015.
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