Onvia (ONVI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.49 million in the quarter, against a net profit of $0.01 million in the last year period.
Revenue during the quarter grew 4.86 percent to $6.17 million from $5.89 million in the previous year period. Gross margin for the quarter expanded 214 basis points over the previous year period to 88.84 percent. Operating margin for the quarter stood at negative 8.18 percent as compared to a positive 0.05 percent for the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.28 million compared with $0.58 million in the prior year period. At the same time, adjusted EBITDA margin contracted 532 basis points in the quarter to 4.55 percent from 9.87 percent in the last year period.
"It is our goal to create the leading network in the Business to Government B2G commerce space," stated Onvia's president and chief executive officer Hank Riner. "There are three key pillars to our strategy. First and foremost, we must meet the needs of our strategic target market, which include both lead generation and business intelligence. Today we provide a leading lead generation service for B2G commerce by providing the greatest line of sight for both current and future opportunities. By early 2018 we intend to supplement our lead platform with actionable business intelligence that will allow government contractors to strategically address the B2G space with clarity, insight and analytics."
Operating cash flow improves significantlyOnvia has generated cash of $2.51 million from operating activities during the nine month period, up 53.33 percent or $0.87 million, when compared with the last year period. The company has spent $1.93 million cash to meet investing activities during the nine month period as against cash outgo of $1.64 million in the last year period.
Cash flow from financing activities was $0.02 million for the nine month period, down 91.03 percent or $0.20 million, when compared with the last year period.
Cash and cash equivalents stood at $2.08 million as on Sep. 30, 2016, up 16.05 percent or $0.29 million from $1.79 million on Sep. 30, 2015.
Working capital remains negative
Working capital of Onvia was negative $2.08 million on Sep. 30, 2016 compared with negative $0.41 million on Sep. 30, 2015. Current ratio was at 0.82 as on Sep. 30, 2016, down from 0.96 on Sep. 30, 2015.
Days sales outstanding were almost stable at 18 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 129 days for the quarter from 102 for the same period last year.
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