Northern Power Systems Corp. saw its loss widen to $1.36 million, or $0.06 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.54 million, or $0.02 a share. Revenue during the quarter dropped 9.58 percent to $12.14 million from $13.43 million in the previous year period. Gross margin for the quarter contracted 784 basis points over the previous year period to 16.67 percent. Operating margin for the quarter stood at negative 10.10 percent as compared to a negative 0.10 percent for the previous year period.
Operating loss for the quarter was $1.23 million, compared with an operating loss of $0.01 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.90 million compared with $0.21 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.45 percent for the quarter compared to 1.57 percent in the last year period.
"With the completion of the sale of our utility wind technology to our partner WEG, in October 2016, we are clearly focused on distributed energy applications," stated Ciel Caldwell, president and chief operating officer of Northern Power Systems. “Our North American strategy is developing with a focus on both wind as a generation source as well as battery energy storage solutions with and without renewable integration. We are expanding our capabilities in the form of sales resources and data analytics capabilities and are rapidly identifying opportunities for Northern to capitalize in the space in 2017."
Operating cash flow remains negative
Northern Power Systems Corp. has spent $2 million cash to meet operating activities during the nine month period as against cash outgo of $6.16 million in the last year period. The company has spent $0.18 million cash to meet investing activities during the nine month period as against cash outgo of $1.28 million in the last year period.
Cash and cash equivalents stood at $3.18 million as on Sep. 30, 2016, down 43.81 percent or $2.48 million from $5.66 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Northern Power Systems Corp. has turned negative to $1.51 million on Sep. 30, 2016 from positive $4.69 million on Sep. 30, 2015. Current ratio was at 0.92 as on Sep. 30, 2016, down from 1.18 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 141 days for the last year period. Days sales outstanding went down to 33 days for the quarter compared with 48 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 139 days for the previous year period. At the same time, days payable outstanding went down to 35 days for the quarter from 46 for the same period last year.
Debt comes down significantly
Northern Power Systems Corp. has recorded a decline in total debt over the last one year. It stood at $1.90 million as on Sep. 30, 2016, down 52.50 percent or $2.10 million from $4 million on Sep. 30, 2015. Northern Power Systems has recorded a decline in short-term debt over the last one year. It stood at $1.90 million as on Sep. 30, 2016, down 52.50 percent or $2.10 million from $4 million on Sep. 30, 2015. Total debt was 9.41 percent of total assets as on Sep. 30, 2016, compared with 11.40 percent on Sep. 30, 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
