Luna Innovations Incorporated (LUNA) saw its loss narrow to $1.36 million, or $0.05 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.46 million, or $0.05 a share.
Revenue during the quarter dropped 6.21 percent to $13.12 million from $13.99 million in the previous year period. Gross margin for the quarter expanded 101 basis points over the previous year period to 35.64 percent. Operating margin for the quarter stood at negative 9.65 percent as compared to a negative 9.67 percent for the previous year period.
Operating loss for the quarter was $1.27 million, compared with an operating loss of $1.35 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $0.14 million compared to negative $0.15 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 1.05 percent for the quarter compared to negative 1.07 percent in the last year period.
"As we described last quarter, with the transition to a new vendor managed inventory arrangement with our largest customer in Asia as of January 1, 2017, we shipped fewer of our 100G integrated coherent receivers during the first quarter of 2017 than we did in the first quarter of 2016. As a result, our overall products and licensing revenue declined year over year," said My Chung, president and chief executive officer of Luna.
Operating cash flow turns positive
Luna Innovations Incorporated has generated cash of $0.06 million from operating activities during the quarter as against cash outgo of $1.54 million in the last year period.
The company has spent $0.29 million cash to meet investing activities during the quarter as against cash outgo of $0.24 million in the last year period.
The company has spent $0.47 million cash to carry out financing activities during the quarter as against cash outgo of $0.48 million in the last year period.
Cash and cash equivalents stood at $12.11 million as on Mar. 31, 2017, down 20.36 percent or $3.10 million from $15.20 million on Mar. 31, 2016.
Working capital declines
Luna Innovations Incorporated has witnessed a decline in the working capital over the last year. It stood at $20.07 million as at Mar. 31, 2017, down 10.30 percent or $2.30 million from $22.38 million on Mar. 31, 2016. Current ratio was at 2.38 as on Mar. 31, 2017, down from 2.52 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 88 days for the quarter from 120 days for the last year period. Days sales outstanding went up to 80 days for the quarter compared with 73 days for the same period last year.
Days inventory outstanding has decreased to 46 days for the quarter compared with 88 days for the previous year period. At the same time, days payable outstanding went down to 38 days for the quarter from 41 for the same period last year.
Debt comes down significantly
Luna Innovations Incorporated has recorded a decline in total debt over the last one year. It stood at $3.95 million as on Mar. 31, 2017, down 32.66 percent or $1.92 million from $5.87 million on Mar. 31, 2016. Total debt was 7.62 percent of total assets as on Mar. 31, 2017, compared with 10.49 percent on Mar. 31, 2016. Debt to equity ratio was at 0.12 as on Mar. 31, 2017, down from 0.16 as on Mar. 31, 2016.
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