MAGICJACK VOCALTEC LTD (CALL) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $1.26 million, or $ 0.08 a share in the quarter, against a net profit of $1.94 million, or $0.12 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $2.19 million, or $0.14 a share compared with $6.68 million or $0.42 a share, a year ago.
Revenue during the quarter dropped 3.27 percent to $23.83 million from $24.63 million in the previous year period. Gross margin for the quarter contracted 693 basis points over the previous year period to 61.48 percent. Operating margin for the quarter stood at negative 0.47 percent as compared to a positive 28.53 percent for the previous year period.
Operating loss for the quarter was $0.11 million, compared with an operating income of $7.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.74 million compared with $9.24 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2185 basis points in the quarter to 15.68 percent from 37.53 percent in the last year period.
"The company executed well in the fourth quarter highlighted by continued progress in our consumer business and free cash flow generation," said Gerald Vento, Former president and chief executive officer of magicJack VocalTec. "Looking forward, I am committed to ensure a smooth handover to newly named Chief Executive Officer, Don Bell and am confident in his ability to lead magicJack in the future."
Operating cash flow drops significantlyMAGICJACK VOCALTEC has generated cash of $15.25 million from operating activities during the year, down 39.88 percent or $10.11 million, when compared with the last year. The company has spent $41.02 million cash to meet investing activities during the year as against cash outgo of $1.02 million in the last year.
The company has spent $0.42 million cash to carry out financing activities during the year as against cash outgo of $21.70 million in the last year period.
Cash and cash equivalents stood at $52.39 million as on Dec. 31, 2016, down 33.33 percent or $26.20 million from $78.59 million on Dec. 31, 2015.
Working capital drops significantly
MAGICJACK VOCALTEC has witnessed a decline in the working capital over the last year. It stood at $6.02 million as at Dec. 31, 2016, down 82.89 percent or $29.16 million from $35.18 million on Dec. 31, 2015. Current ratio was at 1.10 as on Dec. 31, 2016, down from 1.59 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
