ModusLink Global Solutions Inc. (MLNK) saw its loss narrow to $2.91 million, or $0.05 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $13.95 million, or $0.27 a share. Revenue during the quarter went down marginally by 2 percent to $117.57 million from $119.97 million in the previous year period. Gross margin for the quarter expanded 648 basis points over the previous year period to 9.52 percent. Operating margin for the quarter stood at negative 1.28 percent as compared to a negative 9.72 percent for the previous year period.
Operating loss for the quarter was $1.50 million, compared with an operating loss of $11.66 million in the previous year period.
Commenting on the Companys financial results and operational performance, Jim Henderson, chief executive officer of ModusLink stated, "Our results through the first half of the year demonstrate that our turnaround plan is working. By de-centralizing corporate functions, improving processes and investing throughout our global footprint, we have successfully enhanced gross margins, lowered expenses and reduced our losses significantly. We are operating more efficiently and our clients are the ones who are benefitting the most. Im pleased with the progress we have made to date and fully expect the second half of fiscal 2017 to show continued momentum. We remain on track to realize $32 million in annualized EBITDA improvements and our goal remains to bring ModusLink back to profitability."
Working capital drops significantlyModusLink Global Solutions Inc. has witnessed a decline in the working capital over the last year. It stood at $113.80 million as at Jan. 31, 2017, down 35.63 percent or $62.99 million from $176.80 million on Jan. 31, 2016. Current ratio was at 1.66 as on Jan. 31, 2017, down from 1.69 on Jan. 31, 2016. Cash conversion cycle (CCC) has decreased to 4 days for the quarter from 33 days for the last year period. Days sales outstanding went down to 107 days for the quarter compared with 127 days for the same period last year.
Days inventory outstanding has decreased to 16 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went down to 120 days for the quarter from 136 for the same period last year.
Debt comes down significantly
ModusLink Global Solutions Inc. has recorded a decline in total debt over the last one year. It stood at $57.60 million as on Jan. 31, 2017, down 28.30 percent or $22.73 million from $80.34 million on Jan. 31, 2016. Moduslink Global Solutions has recorded a decline in long-term debt over the last one year. Total debt was 18.45 percent of total assets as on Jan. 31, 2017, compared with 17.26 percent on Jan. 31, 2016. Debt to equity ratio was at 0.78 as on Jan. 31, 2017, up from 0.70 as on Jan. 31, 2016. 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
