Inuvo (INUV) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.26 million, or $ 0.01 a share in the quarter, against a net profit of $0.65 million, or $0.03 a share in the last year period. Revenue during the quarter dropped 9.19 percent to $17.49 million from $19.25 million in the previous year period. Gross margin for the quarter expanded 115 basis points over the previous year period to 70.63 percent. Operating margin for the quarter stood at negative 2.59 percent as compared to a positive 3.30 percent for the previous year period.
Operating loss for the quarter was $0.45 million, compared with an operating income of $0.64 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.42 million compared with $1.35 million in the prior year period. At the same time, adjusted EBITDA margin contracted 461 basis points in the quarter to 2.40 percent from 7.01 percent in the last year period.
"After a soft second quarter, advertiser demand recovered, putting us back on track to quarterly sequential growth, which in the third quarter was 12%," stated Rich Howe, chairman and chief executive officer of Inuvo. "On an Adjusted EBITDA basis, we delivered $420 thousand, or $0.02 per share, up 49% over the second quarter. We expect revenue in the last quarter of the year to continue to improve sequentially."
Working capital remains negativeWorking capital of Inuvo was negative $0.33 million on Sep. 30, 2016 compared with negative $2.73 million on Sep. 30, 2015. Current ratio was at 0.97 as on Sep. 30, 2016, up from 0.79 on Sep. 30, 2015. Days sales outstanding went up to 33 days for the quarter compared with 30 days for the same period last year.
At the same time, days payable outstanding went up to 145 days for the quarter from 134 for the same period last year.
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