LifeLock, Inc (LOCK) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $14.40 million, or $ 0.15 a share in the quarter, against a net loss of $65.14 million, or $0.68 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $33.55 million, or $0.34 a share compared with $27.58 million or $0.28 a share, a year ago.
Revenue during the quarter grew 12.07 percent to $170.29 million from $151.95 million in the previous year period. Gross margin for the quarter expanded 194 basis points over the previous year period to 79.58 percent. Operating margin for the quarter period stood at positive 13.42 percent as compared to a negative 57.49 percent for the previous year period.
Operating income for the quarter was $22.85 million, compared with an operating loss of $87.35 million in the previous year period.
However, the adjusted operating income for the quarter stood at $33.47 million compared to $27.45 million in the prior year period. At the same time, adjusted operating margin improved 159 basis points in the quarter to 19.66 percent from 18.06 percent in the last year period.
chief executive officer and president Hilary Schneider said, “LifeLock delivered solid financial results in our third quarter with strong annual retention rates, continued adoption of our premium products and strength in our enterprise business." Schneider continued: “We also reached a number of important strategic milestones that provide the foundation for continued and meaningful product differentiation including the completion of our flexible and extensible Identity Theft Protection or ITPS platform, the launch of our new LifeLock mobile app and our IDENTITY mobile app that helps consumers simplify the management of their digital identity."
For the fourth-quarter, LIFELOCK expects revenue to be in the range of $172 million to $174 million. LIFELOCK expects revenue to be in the range of $666 million to $668 million for financial year 2016. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.40 to $0.42 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $0.76 to $0.78 on adjusted basis.
Operating cash flow drops significantly
LifeLock, Inc has generated cash of $26.26 million from operating activities during the nine month period, down 65.32 percent or $49.46 million, when compared with the last year period.
Cash flow from investing activities was $48.77 million for the nine month period as against cash outgo of $95.10 million in the last year period.
The company has spent $90.46 million cash to carry out financing activities during the nine month period as against cash inflow of $8.35 million in the last year period.
Cash and cash equivalents stood at $34.81 million as on Sep. 30, 2016, down 74.32 percent or $100.74 million from $135.54 million on Sep. 30, 2015.
Working capital turns negative
Working capital of LifeLock, Inc has turned negative to $62.69 million on Sep. 30, 2016 from positive $32.05 million on Sep. 30, 2015. Current ratio was at 0.75 as on Sep. 30, 2016, down from 1.09 on Sep. 30, 2015.
Days sales outstanding went up to 8 days for the quarter compared with 7 days for the same period last year.
At the same time, days payable outstanding went down to 36 days for the quarter from 44 for the same period last year.
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