Payment Data Systems, Inc. (PYDS) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.57 million, or $ 0.07 a share in the quarter, against a net profit of $0.12 million, or $0.01 a share in the last year period.
Revenue during the quarter dropped 13.61 percent to $3.07 million from $3.55 million in the previous year period. Gross margin for the quarter contracted 272 basis points over the previous year period to 31.48 percent. Operating margin for the quarter stood at negative 18.74 percent as compared to a positive 0.66 percent for the previous year period.
Operating loss for the quarter was $0.57 million, compared with an operating income of $0.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $129.86 million compared with $589.16 million in the prior year period.
"Overall transaction volumes and dollars processes increased in the third quarter compared to the previous quarter, driving sequential growth in revenues and gross margin," said Louis Hoch, president and chief executive officer, Payment Data Systems, Inc. "Given the year-over-year decline in ACH transaction volumes that we have experienced this year, we accelerated our marketing and promotional strategies during the third quarter and are pleased to see these efforts paying off. We are continuing to build solid traction through product innovations that support and enhance customer operations, such as the use of our prepaid card technology to support real-time provisioning to mobile wallets like Apple Pay® and instantaneous issuance and delivery of gift and incentive cards. Our new PIN-less debit product, that allows merchants to debit and credit accounts in real-time, was rolled out in October and we are very pleased with the traction we are receiving. We expect it to become a significant offering for our Company."
Operating cash flow drops significantly
Payment Data Systems, Inc. has generated cash of $0.59 million from operating activities during the nine month period, down 65.99 percent or $1.14 million, when compared with the last year period.
The company has spent $0.35 million cash to meet investing activities during the nine month period as against cash outgo of $0.73 million in the last year period.
Cash and cash equivalents stood at $4.29 million as on Sep. 30, 2016, up 13.83 percent or $0.52 million from $3.77 million on Sep. 30, 2015.
Working capital increases
Payment Data Systems, Inc. has recorded an increase in the working capital over the last year. It stood at $4.50 million as at Sep. 30, 2016, up 10.88 percent or $0.44 million from $4.05 million on Sep. 30, 2015. Current ratio was at 1.07 as on Sep. 30, 2016, down from 1.08 on Sep. 30, 2015.
Days sales outstanding went up to 29 days for the quarter compared with 23 days for the same period last year.
At the same time, days payable outstanding was almost stable at 8 days for the quarter, when compared with the previous year period.
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
