Net Element, Inc. ( NETE) saw its loss narrow to $3.47 million, or $0.25 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.51 million, or $0.75 a share. On the other hand, adjusted net loss for the quarter narrowed to $2.74 million, or $0.20 a share from a loss of $2.91 million or $0.42 a share, a year ago.
Revenue during the quarter grew 10.53 percent to $14.01 million from $12.68 million in the previous year period. Gross margin for the quarter expanded 98 basis points over the previous year period to 16.52 percent. Operating margin for the quarter stood at negative 12.63 percent as compared to a negative 15.20 percent for the previous year period.
Operating loss for the quarter was $1.77 million, compared with an operating loss of $1.93 million in the previous year period.
"We are pleased with our continued improvement as we narrow our losses for the quarter. Our results are a reflection of our ability to implement our business objectives in a dynamic environment," commented Oleg Firer, chief executive officer of Net Element. "We continue to be excited about our strategic initiatives for the remainder of the year."
Operating cash flow remains negative
Net Element, Inc. has spent $1.07 million cash to meet operating activities during the nine month period as against cash outgo of $3.51 million in the last year period.
The company has spent $1.35 million cash to meet investing activities during the nine month period as against cash outgo of $3.83 million in the last year period.
Cash flow from financing activities was $2.68 million for the nine month period, down 60.65 percent or $4.12 million, when compared with the last year period.
Cash and cash equivalents stood at $1.39 million as on Sep. 30, 2016, up 338.76 percent or $1.07 million from $0.32 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Net Element, Inc. was negative $4.10 million on Sep. 30, 2016 compared with negative $3.17 million on Sep. 30, 2015. Current ratio was at 0.68 as on Sep. 30, 2016, down from 0.77 on Sep. 30, 2015.
Days sales outstanding went up to 31 days for the quarter compared with 30 days for the same period last year.
At the same time, days payable outstanding went up to 35 days for the quarter from 33 for the same period last year.
Debt comes down
Net Element, Inc. has recorded a decline in total debt over the last one year. It stood at $4.19 million as on Sep. 30, 2016, down 9.97 percent or $0.46 million from $4.66 million on Sep. 30, 2015. Total debt was 17.93 percent of total assets as on Sep. 30, 2016, compared with 17.80 percent on Sep. 30, 2015. Debt to equity ratio was at 0.64 as on Sep. 30, 2016, up from 0.57 as on Sep. 30, 2015.
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