Pitney Bowes Inc. (PBI) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $76.58 million, or $ 0.44 a share in the quarter, against a net profit of $90.87 million, or $0.44 a share in the last year period. On the other hand, adjusted net income from continuing operations for the quarter stood at $99.79 million, or $0.53 a share compared with $98.70 million or $0.48 a share, a year ago.
Revenue during the quarter dropped 5.32 percent to $887.07 million from $936.95 million in the previous year period. Gross margin for the quarter contracted 172 basis points over the previous year period to 54.87 percent. Operating margin for the quarter stood at negative 1.24 percent as compared to a positive 16.19 percent for the previous year period.
Operating loss for the quarter was $11.02 million, compared with an operating income of $151.68 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $225.31 million compared with $231.11 million in the prior year period. At the same time, adjusted EBITDA margin improved 73 basis points in the quarter to 25.40 percent from 24.67 percent in the last year period.
"Our fourth quarter and full-year results were not what we wanted or expected," said Marc B. Lautenbach, president and chief executive officer. "While we were disappointed in our fourth quarter performance, especially in our Software Solutions business, we closed the year with much of the heavy lifting and short-term disruptions from our transformation initiatives behind us. We are poised to take advantage of all of the hard work we completed in 2016 and over the past four years. Going forward, I remain confident in our long-term strategy, our competitive position, our operational excellence initiatives, and our ability to unlock value for our shareholders."
For financial year 2017, Pitney Bowes Inc. forecasts diluted earnings per share to be in the range of $1.70 to $1.85 on adjusted basis.
Debt moves up
Pitney Bowes Inc. has witnessed an increase in total debt over the last one year. It stood at $3,364.89 million as on Dec. 31, 2016, up 14.04 percent or $414.22 million from $2,950.67 million on Dec. 31, 2015. Total debt was 57.62 percent of total assets as on Dec. 31, 2016, compared with 48.05 percent on Dec. 31, 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
