RGS Energy (RGSE) saw its loss widen to $7.74 million, or $10.27 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.28 million, or $6.97 a share. Revenue during the quarter plunged 76.40 percent to $2.46 million from $10.44 million in the previous year period. Gross margin for the quarter contracted 1018 basis points over the previous year period to 4.75 percent.
Operating loss for the quarter was $3.04 million, compared with an operating loss of $4.56 million in the previous year period.
“The last six months have been challenging for the company in that we did not have the financial capital available to fully execute our strategy and grow revenue,” said Dennis Lacey, Chief execuive officer of RGS Energy. “We are very pleased to be realizing the financial capital we had arranged previously, as this is necessary for our future growth. We look forward to being able to demonstrate what our employees can do with the benefit of sufficient capital for growth.”
Operating cash flow remains negative
RGS Energy has spent $6.51 million cash to meet operating activities during the nine month period as against cash outgo of $14.16 million in the last year period. Cash flow from investing activities was $0.01 million for the nine month period, down 67.74 percent or $0.02 million, when compared with the last year period.
Cash flow from financing activities was $7.28 million for the nine month period, down 45.75 percent or $6.14 million, when compared with the last year period.
Cash and cash equivalents stood at $1.38 million as on Sep. 30, 2016, up 11.04 percent or $0.14 million from $1.24 million on Sep. 30, 2015.
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