RealNetworks, Inc (RNWK) saw its loss narrow to $9.42 million, or $0.25 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $15.17 million, or $0.42 a share. Revenue during the quarter grew 8.31 percent to $30.58 million from $28.23 million in the previous year period. Gross margin for the quarter contracted 281 basis points over the previous year period to 43.44 percent. Operating margin for the quarter stood at negative 26.45 percent as compared to a negative 52.35 percent for the previous year period.
Operating loss for the quarter was $8.09 million, compared with an operating loss of $14.78 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $4.40 million compared to negative $8.08 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 14.37 percent for the quarter compared to negative 28.63 percent in the last year period.
“In Q1, we achieved our financial objectives while also investing in our key growth initiatives,” said Rob Glaser, Chairman and Chief executive officer of RealNetworks. “We achieved stable revenue while also reducing our operating expenses by 23% from a year ago. At the same time, we're growing our mobile games business, developing new Mobile Service offerings, and continuing to build partnerships and seed the ecosystem for our new RealMedia HD codec.”
For the second-quarter 2017, RealNetworks, Inc expects revenue to be in the range of $28 million to $31 million.
Operating cash flow remains negative
RealNetworks, Inc has spent $9.41 million cash to meet operating activities during the quarter as against cash outgo of $11.21 million in the last year period. Cash flow from investing activities was $13.85 million for the quarter, up 208.58 percent or $9.36 million, when compared with the last year period.
The company has spent $0.15 million cash to carry out financing activities during the quarter as against cash outgo of $0.77 million in the last year period.
Cash and cash equivalents stood at $38.50 million as on Mar. 31, 2017, down 5.03 percent or $2.04 million from $40.54 million on Mar. 31, 2016.
Working capital drops significantly
RealNetworks, Inc has witnessed a decline in the working capital over the last year. It stood at $59.72 million as at Mar. 31, 2017, down 25.68 percent or $20.64 million from $80.36 million on Mar. 31, 2016. Current ratio was at 2.54 as on Mar. 31, 2017, down from 3.23 on Mar. 31, 2016.
Days sales outstanding went down to 73 days for the quarter compared with 74 days for the same period last year.
At the same time, days payable outstanding went down to 95 days for the quarter from 97 for the same period last year.
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