Intersections (INTX) saw its loss narrow to $12.79 million, or $0.54 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $14.10 million, or $0.68 a share.
Revenue during the quarter dropped 10.98 percent to $42.20 million from $47.41 million in the previous year period. Gross margin for the quarter expanded 437 basis points over the previous year period to 70.27 percent. Operating margin for the quarter stood at negative 28.22 percent as compared to a negative 40.29 percent for the previous year period.
Operating loss for the quarter was $11.91 million, compared with an operating loss of $19.10 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.84 million compared to negative $5.66 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 4.37 percent for the quarter compared to negative 11.94 percent in the last year period.
"We made significant advances in our Identity Guard® product portfolio in 2016, initially with the release of a beta version of our new flagship product at the IBM World of Watson Conference on October 24, 2016 and thereafter with further development and testing," said Johan Roets, chief executive officer.
Operating cash flow remains negativeIntersections has spent $3.92 million cash to meet operating activities during the year as against cash outgo of $0.27 million in the last year. The company has spent $6.61 million cash to meet investing activities during the year as against cash outgo of $5.04 million in the last year.
Cash flow from financing activities was $10.24 million for the year, up 87.66 percent or $4.78 million, when compared with the last year.
Cash and cash equivalents stood at $10.86 million as on Dec. 31, 2016, down 5.35 percent or $0.61 million from $11.47 million on Dec. 31, 2015.
Working capital drops significantly
Intersections has witnessed a decline in the working capital over the last year. It stood at $2.22 million as at Dec. 31, 2016, down 84.77 percent or $12.35 million from $14.57 million on Dec. 31, 2015. Current ratio was at 1.08 as on Dec. 31, 2016, down from 1.49 on Dec. 31, 2015.
Debt increases substantiallyIntersections has witnessed an increase in total debt over the last one year. It stood at $13.57 million as on Dec. 31, 2016, up 663.44 percent or $11.80 million from $1.78 million on Dec. 31, 2015. Total debt was 25.68 percent of total assets as on Dec. 31, 2016, compared with 2.54 percent on Dec. 31, 2015. Debt to equity ratio was at 1.84 as on Dec. 31, 2016, up from 0.05 as on Dec. 31, 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
