Revenue during the quarter grew 14.60 percent to $28.06 million from $24.49 million in the previous year period. Gross margin for the quarter expanded 150 basis points over the previous year period to 50.75 percent. Operating margin for the quarter stood at negative 27.27 percent as compared to a negative 31.25 percent for the previous year period.

Operating profit was unchanged at $7.65 million for the quarter, compared with the previous year period.

However, the adjusted operating loss for the quarter stood at $4.19 million compared to operating loss of $4.42 million in prior year period.

“We are very pleased with our results for the first quarter, which demonstrated improved execution across the business, including the highest recurring revenue in the company’s history. With the acquisition of Revitas, completed on January 5, 2017, we are now an even stronger revenue management partner for the Life Sciences industry, at a time when this industry is at a critical inflection point. We have also strengthened our management team across global sales and alliances, technical support, professional services and engineering to deliver increasing value to our customers. We have taken steps to realize cost efficiencies and accelerate our path to profitability and cash flow generation and are well positioned in fiscal 2017 to improve the company’s performance,” said Zack Rinat, Executive Chairman and Chief Executive Officer of Model N.

For the second-quarter, Model N expects revenue to be in the range of $33.50 million to $34 million. Model N expects revenue to be in the range of $130 million to $134 million for financial year 2017. The company expects adjusted operating loss to be in the range of $6.50 million to $6 million for the second-quarter. For fiscal year 2017, the company expects adjusted operating loss to be in the range of $16 million to $15 million. On an adjusted basis, the company projects diluted loss per share to be in the range of $0.28 to $0.26 for the second-quarter. For financial year 2017, the company projects diluted loss per share to be in the range of $0.69 to $0.66 on adjusted basis.

The company has spent $5.47 million cash to meet investing activities during the quarter as against cash outgo of $13.50 million in the last year period.

Cash flow from financing activities was $0.02 million for the quarter, down 87.41 percent or $0.12 million, when compared with the last year period.

Cash and cash equivalents stood at $52.45 million as on Dec. 31, 2016, down 25.45 percent or $17.91 million from $70.35 million on Dec. 31, 2015.

Working capital drops significantly
Model N, Inc has witnessed a decline in the working capital over the last year. It stood at $38.27 million as at Dec. 31, 2016, down 34.20 percent or $19.89 million from $58.16 million on Dec. 31, 2015. Current ratio was at 1.98 as on Dec. 31, 2016, down from 2.51 on Dec. 31, 2015.

Days sales outstanding went down to 58 days for the quarter compared with 72 days for the same period last year.

At the same time, days payable outstanding went up to 18 days for the quarter from 12 for the same period last year.