Jamba Inc (JMBA) swung to a net loss for the quarter ended Sep. 27, 2016. The company has made a net loss of $1.96 million, or $ 0.13 a share in the quarter, against a net profit of $13.10 million, or $0.81 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1.81 million, or $0.12 a share compared with $1.61 million or $0.10 a share, a year ago.
Revenue during the quarter plunged 37.85 percent to $22.06 million from $35.50 million in the previous year period. Gross margin for the quarter expanded 578 basis points over the previous year period to 75.90 percent. Operating margin for the quarter stood at negative 8.94 percent as compared to a positive 37.47 percent for the previous year period.
Operating loss for the quarter was $1.97 million, compared with an operating income of $13.30 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $1.81 million when compared with the prior year period. At the same time, adjusted operating margin improved 308 basis points in the quarter to 8.19 percent from 5.10 percent in the last year period.
“While Q3 financial performance did not meet our expectations, we believe the positive gap to Knapp Track’s Fast Casual benchmark, in both Sales and Traffic, indicates the strength of the Jamba brand and signals the potential for growth”, said Dave Pace, president and chief executive officer of Jamba, Inc. “During the quarter we successfully relocated our support center to Frisco, Texas, made several key strategic decisions that will increase our focus on core stores, and our newly formed leadership team has quickly rallied to build a thoughtful approach to our 2017 operating plan aligned with our five strategies for growth. I remain optimistic about our brand and future performance.”
Jamba forecasts revenue to be in the range of $80 million to $82 million for fiscal year 2016.
Working capital turns negative
Working capital of Jamba Inc has turned negative to $16.96 million on Sep. 27, 2016 from positive $2.14 million on Sep. 29, 2015. Current ratio was at 0.65 as on Sep. 27, 2016, down from 1.04 on Sep. 29, 2015.
Cash conversion cycle (CCC) has decreased to 38 days for the quarter from 50 days for the last year period. Days sales outstanding went up to 63 days for the quarter compared with 47 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding went up to 31 days for the quarter from 12 for the same period last year.
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