Qumu Corporation (RIMG) saw its loss narrow to $0.27 million, or $0.04 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $4.58 million, or $0.50 a share. Revenue during the quarter dropped 7.89 percent to $9.32 million from $10.12 million in the previous year period. Gross margin for the quarter expanded 1381 basis points over the previous year period to 70.70 percent. Operating margin for the quarter stood at negative 4.12 percent as compared to a negative 48.88 percent for the previous year period.
Operating loss for the quarter was $0.38 million, compared with an operating loss of $4.95 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.79 million compared to negative $3.72 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 8.48 percent for the quarter compared to negative 36.72 percent in the last year period.
“2016 was a pivotal year for Qumu and our fourth quarter illustrates our strong progress in several key areas. We continued to demonstrate that we are the only vendor with a full suite of video enterprise solutions as we gained significant ground in our transformation from a perpetual software licensing model to a higher-value, SaaS model. We also drove record gross margins and adjusted EBITDA and bolstered our blue-chip customer list with several high-value enterprise wins within new Fortune 500 organizations,” said Vern Hanzlik, Qumu’s president and chief executive officer.
Operating cash flow remains negative
Qumu Corporation has spent $9.48 million cash to meet operating activities during the year as against cash outgo of $23.23 million in the last year. Cash flow from investing activities was $6.17 million for the year, down 67.37 percent or $12.75 million, when compared with the last year.
Cash flow from financing activities was $6.96 million for the year as against cash outgo of $0.23 million in the last year period.
Cash and cash equivalents stood at $10.36 million as on Dec. 31, 2016, up 46.55 percent or $3.29 million from $7.07 million on Dec. 31, 2015.
Working capital drops significantly
Qumu Corporation has witnessed a decline in the working capital over the last year. It stood at $5.22 million as at Dec. 31, 2016, down 45.20 percent or $4.30 million from $9.52 million on Dec. 31, 2015. Current ratio was at 1.34 as on Dec. 31, 2016, down from 1.50 on Dec. 31, 2015.
Debt increases substantially
Qumu Corporation has witnessed an increase in total debt over the last one year. It stood at $7.30 million as on Dec. 31, 2016, up 614.50 percent or $6.27 million from $1.02 million on Dec. 31, 2015. Total debt was 17.27 percent of total assets as on Dec. 31, 2016, compared with 1.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.39 as on Dec. 31, 2016, up from 0.03 as on Dec. 31, 2015.
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