Optibase Ltd. (OBAS) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.52 million, or $ 0.10 a share in the quarter, against a net profit of $0.72 million, or $0.14 a share in the last year period.
Revenue during the quarter went down marginally by 0.40 percent to $4.03 million from $4.04 million in the previous year period.
Cost of revenue dropped 12.62 percent or $0.10 million during the quarter to $0.72 million. Gross margin for the quarter expanded 250 basis points over the previous year period to 82.12 percent.
Total expenses were $2.38 million for the quarter, down 3.56 percent or $0.09 million from year-ago period. Operating margin for the quarter expanded 194 basis points over the previous year period to 40.80 percent.
Operating income for the quarter was $1.64 million, compared with $1.57 million in the previous year period.
However, the adjusted operating income for the quarter stood at $3.31 million compared to $3.22 million in the prior year period. At the same time, adjusted operating margin improved 250 basis points in the quarter to 82.12 percent from 79.62 percent in the last year period.
Revenue from real estate activities during the quarter was almost stable at $4.03 million, when compared with the previous year period.
Amir Philips, chief executive officer of Optibase commented on the first quarter results: "This quarter results are stable compared to the previous quarter and the first quarter of 2016 in our fixed income real estate rent and operating income, while our net income has decreased somewhat due mostley to increased financial expenses and Equity share in losses of associates, net. For the first quarter of 2017 we generated NOI of $3.3 million representing a 3% increase over the same period in 2016."
Receivables remain almost stable
Net receivables stood at $0.63 million as on Mar. 31, 2017.
Investments stood at $26.42 million as on Mar. 31, 2017.
Total assets stood at $261.38million as on Mar. 31, 2017. On the other hand, total liabilities were at $185.10 million as on Mar. 31, 2017.
Return on equity was negative at 0.68 percent in the quarter.
Total debt was at $163.90 million as on Mar. 31, 2017. Shareholders equity was at $76.28 million as on Mar. 31, 2017. Meanwhile, debt to equity ratio was at 2.15 percent in the quarter.
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