Net Element, Inc. saw its loss widen to $13.49 million, or $1.03 a share for the year ended Dec. 31, 2016. In the previous year period, the company reported a loss of $13.25 million, or $2.32 a share. On the other hand, adjusted net loss for the year narrowed to $7.86 million, or $0.60 a share from a loss of $11.34 million or $1.77 a share, a year ago.
Revenue during the year surged 34.92 percent to $54.29 million from $40.24 million in the previous year. Gross margin for the year expanded 25 basis points over the previous year to 15.80 percent. Operating margin for the year stood at negative 16.28 percent as compared to a negative 26.15 percent for the previous year.
Operating loss for the year was $8.84 million, compared with an operating loss of $10.52 million in the previous year.
"I am pleased to say 2016 was a successful year for Net Element. Our achievements provided growth, and positioned us for continued success as we continue to expand our global transaction services in the United States and select international markets” commented Oleg Firer, chief executive officer of Net Element.
Operating cash flow remains negative
Net Element has spent $3.28 million cash to meet operating activities during the year as against cash outgo of $1.69 million in the last year. The company has spent $1.51 million cash to meet investing activities during the year as against cash outgo of $4.35 million in the last year.
Cash flow from financing activities was $4.43 million for the year, down 31.70 percent or $2.05 million, when compared with the last year.
Cash and cash equivalents stood at $0.62 million as on Dec. 31, 2016, down 39.40 percent or $0.40 million from $1.03 million on Dec. 31, 2015.
Working capital remains negative
Working capital of Net Element was negative $6.28 million on Dec. 31, 2016 compared with negative $3.10 million on Dec. 31, 2015. Current ratio was at 0.59 as on Dec. 31, 2016, down from 0.70 on Dec. 31, 2015.
Days sales outstanding went down to 39 days for the year compared with 44 days for the same period last year.
At the same time, days payable outstanding went down to 48 days for the year from 55 for the same period last year.
Debt moves up
Net Element has witnessed an increase in total debt over the last one year. It stood at $4.56 million as on Dec. 31, 2016, up 15.12 percent or $0.60 million from $3.96 million on Dec. 31, 2015. Total debt was 19.58 percent of total assets as on Dec. 31, 2016, compared with 17.30 percent on Dec. 31, 2015. Debt to equity ratio was at 1.12 as on Dec. 31, 2016, up from 0.44 as 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
