Numerex Corporation (NMRX) saw its loss narrow to $2.55 million, or $0.13 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $16.38 million, or $0.86 a share. Revenue during the quarter dropped 25.38 percent to $17.41 million from $23.33 million in the previous year period. Gross margin for the quarter expanded 1745 basis points over the previous year period to 48.67 percent. Operating margin for the quarter stood at negative 12.62 percent as compared to a negative 24.94 percent for the previous year period.
Operating loss for the quarter was $2.20 million, compared with an operating loss of $5.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.86 million compared with $1.66 million in the prior year period. At the same time, adjusted EBITDA margin contracted 218 basis points in the quarter to 4.93 percent from 7.11 percent in the last year period.
"I am pleased to report that the transformation we began earlier this year is continuing to show positive results in terms of both our cost structure and business model. Furthermore, we believe the business will start to grow on a sequential basis starting in Q4. As previously indicated, our goal was to reduce G&A spending and focus our investments in sales and marketing and engineering and design. This has largely been accomplished and we believe that productivity gains will become apparent as we move into 2017 and throughout the new year." said Marc Zionts, chief executive officer.
Working capital drops significantlyNumerex Corporation has witnessed a decline in the working capital over the last year. It stood at $12.25 million as at Sep. 30, 2016, down 30.18 percent or $5.29 million from $17.54 million on Sep. 30, 2015. Current ratio was at 1.69 as on Sep. 30, 2016, down from 1.84 on Sep. 30, 2015. Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 38 days for the last year period. Days sales outstanding went up to 74 days for the quarter compared with 65 days for the same period last year.
Days inventory outstanding has decreased to 33 days for the quarter compared with 48 days for the previous year period. At the same time, days payable outstanding went up to 130 days for the quarter from 74 for the same period last year.
Debt comes down
Numerex Corporation has recorded a decline in total debt over the last one year. It stood at $17.33 million as on Sep. 30, 2016, down 14.57 percent or $2.96 million from $20.29 million on Sep. 30, 2015. Total debt was 17.49 percent of total assets as on Sep. 30, 2016, compared with 17.71 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.28 as on Sep. 30, 2016, when compared with the last year. 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
