Quinstreet (QNST) saw its loss narrow to $3.57 million, or $0.08 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $6.36 million, or $0.14 a share. On an adjusted basis, net profit for the quarter stood at $0.63 million, or $0.01 a share compared with a net loss of $0.95 million, or $0.02 a share in the last year period.
Revenue during the quarter went up marginally by 1.45 percent to $73.44 million from $72.39 million in the previous year period. Gross margin for the quarter contracted 127 basis points over the previous year period to 7.67 percent. Operating margin for the quarter stood at negative 6.73 percent as compared to a negative 8.03 percent for the previous year period.
Operating loss for the quarter was $4.94 million, compared with an operating loss of $5.82 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $1.04 million compared with $1.14 million in the prior year period. At the same time, adjusted EBITDA margin contracted 16 basis points in the quarter to 1.41 percent from 1.57 percent in the last year period.
"Today, we announced measures to ensure that we meet our commitment to expand adjusted EBITDA margin and to take whatever steps are necessary to maximize long-term shareholder value," commented Doug Valenti, QuinStreet chief executive officer. "We continued to see strong momentum in the Financial Services client vertical, our largest business, which grew nearly 40% year-over-year in the first quarter and now represents over 60% of Company revenue. The Education client vertical continues to be challenging and difficult to project. With that in mind, we currently forecast that revenue in fiscal year 2017 will be flat to up low single digits year-over-year. We expect to generate in excess of $15 million in adjusted EBITDA in fiscal 2017, inclusive of partial-year effects from the restructuring. We expect full-year effects from the restructuring in fiscal 2018."
Operating cash flow drops significantlyQuinstreet has generated cash of $1.21 million from operating activities during the quarter, down 62.78 percent or $ 2.04 million, when compared with the last year period. The company has spent $1.01 million cash to meet investing activities during the quarter as against cash outgo of $1.72 million in the last year period. It has incurred net capital expenditure of $0.95 million on net basis during the quarter, down 44.75 percent or $0.77 million from year ago period.
The company has spent $0.35 million cash to carry out financing activities during the quarter as against cash outgo of $1.32 million in the last year period.
Cash and cash equivalents stood at $53.57 million as on Sep. 30, 2016, down 11.69 percent or $7.09 million from $60.66 million on Sep. 30, 2015.
Working capital drops significantly
Quinstreet has witnessed a decline in the working capital over the last year. It stood at $45.11 million as at Sep. 30, 2016, down 32.55 percent or $21.77 million from $66.88 million on Sep. 30, 2015. Current ratio was at 1.75 as on Sep. 30, 2016, down from 2.46 on Sep. 30, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 59 days for the same period last year.
At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.
Debt remains almost stableTotal debt of Quinstreet remained almost stable for the quarter at $15 million, when compared with the last year period. Total debt was 7.96 percent of total assets as on Sep. 30, 2016, compared with 7.63 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.12 as on Sep. 30, 2016, when compared with the last year. 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
