Qumu Corporation (RIMG) saw its loss narrow to $2.48 million, or $0.27 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $7.23 million, or $0.78 a share.
Revenue during the quarter dropped 25.95 percent to $7.11 million from $9.60 million in the previous year period. Gross margin for the quarter expanded 1054 basis points over the previous year period to 59.82 percent. Operating margin for the quarter stood at negative 35.13 percent as compared to a negative 76.81 percent for the previous year period.
Operating loss for the quarter was $2.50 million, compared with an operating loss of $7.38 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $1.39 million compared to negative $6.22 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 19.52 percent for the quarter compared to negative 64.82 percent in the last year period.
“Revenue was within our expectations and operating results were better than our expectations as we continue to manage expenses well. Based on our sales pipeline, we are positioned for strong fourth quarter revenue and operating results,” said Vern Hanzlik, Qumu’s president and chief executive officer. “Additionally, in October we strengthened our balance sheet with the proceeds from an $8 million term loan. These funds will enable us to advance our market leadership as we continue to provide the best enterprise video content management solutions and services to our customers and the Global 5000 market while we transition to more recurring revenue over time.”
Operating cash flow remains negative
Qumu Corporation has spent $8.10 million cash to meet operating activities during the nine month period as against cash outgo of $21.66 million in the last year period.
Cash flow from investing activities was $6.20 million for the nine month period, down 56.43 percent or $8.03 million, when compared with the last year period.
The company has spent $0.40 million cash to carry out financing activities during the nine month period as against cash outgo of $0.14 million in the last year period.
Cash and cash equivalents stood at $4.64 million as on Sep. 30, 2016, up 15.19 percent or $0.61 million from $4.03 million on Sep. 30, 2015.
Working capital turns negative
Working capital of Qumu Corporation has turned negative to $1.89 million on Sep. 30, 2016 from positive $12.19 million on Sep. 30, 2015. Current ratio was at 0.88 as on Sep. 30, 2016, down from 1.75 on Sep. 30, 2015.
Days sales outstanding went up to 85 days for the quarter compared with 72 days for the same period last year.
Debt comes down
Qumu Corporation has recorded a decline in total debt over the last one year. It stood at $0.63 million as on Sep. 30, 2016, down 21.55 percent or $0.17 million from $0.80 million on Sep. 30, 2015. Total debt was 1.70 percent of total assets as on Sep. 30, 2016, compared with 1.44 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.03 as on Sep. 30, 2016, when compared with the last year.
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