ModusLink Global Solutions, Inc (MLNK) saw its loss narrow to $5.07 million, or $0.09 a share for the quarter ended Apr. 30, 2017. In the previous year period, the company reported a loss of $12.85 million, or $0.25 a share. Revenue during the quarter went up marginally by 1.54 percent to $97.95 million from $96.46 million in the previous year period. Gross margin for the quarter expanded 647 basis points over the previous year period to 8.72 percent. Operating margin for the quarter stood at negative 5.35 percent as compared to a negative 12.96 percent for the previous year period.
Operating loss for the quarter was $5.24 million, compared with an operating loss of $12.50 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $3.59 million compared to negative $10.51 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 3.67 percent for the quarter compared to negative 10.90 percent in the last year period.
Commenting on the Company’s financial results and operational performance, Jim Henderson, Chief Executive Officer of ModusLink stated, “We continue to make significant progress in our transformation. This past quarter, we grew the top-line, generated a 650 basis-point gross margin improvement and continued to drive expenses down, while investing throughout our global footprint. Our focus remains on profitable growth and partnering with our clients to improve their overall value proposition.”
Working capital drops significantly
ModusLink Global Solutions, Incs has witnessed a decline in the working capital over the last year. It stood at $112.03 million as at Apr. 30, 2017, down 32.36 percent or $53.60 million from $165.63 million on Apr. 30, 2016. Current ratio was at 1.70 as on Apr. 30, 2017, down from 1.83 on Apr. 30, 2016. Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 45 days for the last year period. Days sales outstanding went down to 116 days for the quarter compared with 132 days for the same period last year.
Days inventory outstanding has decreased to 17 days for the quarter compared with 42 days for the previous year period. At the same time, days payable outstanding went down to 119 days for the quarter from 130 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 $58.66 million as on Apr. 30, 2017, down 27.78 percent or $22.56 million from $81.23 million on Apr. 30, 2016. Moduslink Global Solutions has recorded a decline in long-term debt over the last one year. It stood at $58.66 million as on Apr. 30, 2017, down 27.78 percent or $22.56 million from $81.23 million on Apr. 30, 2016. Total debt was 19.79 percent of total assets as on Apr. 30, 2017, compared with 20.46 percent on Apr. 30, 2016. Debt to equity ratio was at 0.85 as on Apr. 30, 2017, up from 0.78 as on Apr. 30, 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
