Pure Storage (PSTG) saw its loss widen to $78.81 million, or $0.40 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $56.50 million, or $0.76 a share. On the other hand, adjusted net loss for the quarter narrowed to $20.03 million, or $0.10 a share from a loss of $29.06 million or $0.18 a share, a year ago. Revenue during the quarter surged 49.93 percent to $196.96 million from $131.36 million in the previous year period. Gross margin for the quarter expanded 367 basis points over the previous year period to 64.80 percent. Operating margin for the quarter stood at negative 39.69 percent as compared to a negative 42.31 percent for the previous year period.
Operating loss for the quarter was $78.18 million, compared with an operating loss of $55.58 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $19.40 million compared to operating loss of $28.14 million in prior year period.
“Pure Storage continues to rewrite the rules for the data storage industry,” said Pure Storage Chief executive officer Scott Dietzen. “We again reported better-than-expected financial performance, driven by customer enthusiasm for our smarter approach to enterprise storage. In a world dominated by big data and cloud computing, Pure’s software-centric approach is the right solution at the right time.”
For the fourth-quarter, Pure Storage projects revenue to be in the range of $219 million to $227 million. Pure Storage forecasts adjusted net income to grow in the range of $64 percent to $67 percent for the fourth-quarter. The company projects operating income to decline in the range of 9 percent to 5 percent for the fourth-quarter.
Operating cash flow remains negative
Pure Storage has spent $51.88 million cash to meet operating activities during the nine month period as against cash outgo of $49.87 million in the last year period. The company has spent $436.73 million cash to meet investing activities during the nine month period as against cash outgo of $31.98 million in the last year period.
Cash flow from financing activities was $36.33 million for the nine month period, down 92.14 percent or $426.11 million, when compared with the last year period.
Cash and cash equivalents stood at $152.46 million as on Oct. 31, 2016, down 73.41 percent or $420.85 million from $573.31 million on Oct. 31, 2015.
Working capital declines
Pure Storage has witnessed a decline in the working capital over the last year. It stood at $502.85 million as at Oct. 31, 2016, down 15.61 percent or $93.01 million from $595.86 million on Oct. 31, 2015. Current ratio was at 3.17 as on Oct. 31, 2016, down from 5.17 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 23 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 13 days for the quarter compared with 23 days for the previous year period. At the same time, days payable outstanding went up to 29 days for the quarter from 20 for the same period last year.
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